Product Creation – 3 Mistakes To Avoid When Creating Information Products

by Elizabeth McGee on December 9, 2011 · 17 comments

Source: Flickr

Creating your own information products is one of the most profitable ways to generate income on the web.  But people often make mistakes that keep their earnings low or prevents them from making any money at all.

Here are 3 mistakes to avoid when creating information products that will not only help boost sales but will give you the confidence you need to get your product off the ground.

Dropping an Idea Because It’s Been Done

I hear this all the time. Someone has an idea for an ebook but because there are other products already on the market, they drop the idea.  Big Mistake!   

Your sales result from the buzz that goes on around YOU.  Those other products have their own marketing connections. For every person that creates a product, whether there are 100 more just like it or not, there is enough business to go around for each of them if they can create their own buzz.

That’s really what internet marketing or any marketing is about, creating your own circle of followers, customers and buzz.  That marketing circle around you is your business.  It doesn’t matter about the similar products that some other person is selling, your customers and followers may never hear about them, but they do know about you.  That should be your focus.

It’s also important to realize that people often buy the same information from different experts.  Have you ever done that?  I do it all the time.  Sometimes it’s just to see the common thread that runs through each product, sometimes I just like getting different ideas and opinions.

Your product is uniquely you, and if people like what you have to say or what you stand for then their curiosity will peak and they’ll buy from you even if there are other similar products on the market.

So if your idea has already been done, don’t let that stop you.  You can always take what’s out there and do it better, and that’s a sales strategy you should capitalize on.

Pricing Your Product Too Low

Price your products for what is fair and relevant to the value being offered. Never judge what others are willing to pay.  You should be pricing your products in terms of great content and the value being offered.

Often times price can be a perception.  The higher the price the better the value.  But be darn sure that your information product delivers on what you say it will.  A hyped up sales letter that doesn’t live up to its promises is sure to destroy your reputation as well as your sales.

A good rule of thumb is to take a close look at the knowledge contained in your product and think about what you would consider valuable if you were buying the product yourself.

Not Getting Others to Promote for You

One of the best ways to catapult sales and traffic is to develop an affiliate program for your information product.

One reason folks shy away from the affiliate concept is because they want to keep 100% of the profits for themselves, and you will for the sales that you make, but what happens when you have multiple people promoting for you? Of course you’ll have to pay them a commission of the sale but overall you’ll be making much more.

Here’s an example.  Let’s say I make 1 sale a day with my $47 ebook.  That’s $329 a week.  But let’s say I have 5 affiliates, each also making one sale a day.  If I pay my affiliates 50% of the sale, then for each sale they make I get roughly $23.50 a sale (minus fees if any).   So what’s happens to my sales?  I’ve now made about $822.50 a week, and that’s just from my affiliates.  Big difference from $329 a week.

If your information product is making sales at all, you’ll want to think about introducing an affiliate program at some point.  You’ll have so much more potential for boosting your income even with paying 50% commission to your affiliates.

Have you tried to sell an information product?  Please let us know what has worked for you in the comments below.

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Swayam December 9, 2011 at 10:11 am

Pricing factor is very important while selling product online. The seller will have to sell at the competitive price yet protect the Brand by doing justification to it. :) Nice post!

Elizabeth McGee December 9, 2011 at 7:45 pm

Very true Swayam. You have to be competitive but you don’t want to diminish your value by charging a lessor price just to make the sale.

Riya December 9, 2011 at 11:59 am

Nice points, There is nothing bad if you’re promoting your products through affiliates. I know you’ve to share your profit but you also make more sales.

Elizabeth McGee December 9, 2011 at 1:22 pm

Absolutely Riya, An affiliate program will help you boost profits and expand your reach. Very key to boosting profits ;-)

helen December 9, 2011 at 5:12 pm

Created my first info product it was an ebook about organizing your home. Tried to promote it via mommy bloggers (giving 50%) but it was near on impossible to get them to take action on it! Put in on clickbank and still only made 4 sales. I have noticed it has been added to a lot of spammy sites with little or no traffic. I gave up promoting it as my idea was to do it via mommy bloggers and get a list too but it was just not happening much?? any idea on how else to promote it? Thanks

Elizabeth McGee December 9, 2011 at 7:39 pm

Helen, do you have an opt-in list for your ebook? Try creating a squeeze page or opt-in page that offers a tips list for each sign up. This will help you build a targeted list that you can promote to.

You’ll need to spread your reach beyond Mommy bloggers. Write guest posts for ‘organizing’ sites in your niche. I’ve found that to be one of the best ways to get traffic and sales.

Also create an affiliate page on your site that offers tools like articles and banners an even twitter tweets that your affiliates can use.

I hope that helps
Elizabeth :-)

Robin December 10, 2011 at 11:11 pm

Thanks Elizabeth, an excellent article and I was planning to make my first informative products but dropped the idea as there were plenty and now I think after reading this post, I should definitely go ahead. Thanks for the nice post.

Elizabeth McGee December 11, 2011 at 4:26 pm

Hey Robin, That’s great! I hate to see people drop ideas because they think it’s been done or there are too many of the same thing out there. That’s NOT a reason to ditch your idea.

Just make sure there’s a market for your product, put real value in your product and effectively demonstrate to your readers the value that you’ll be providing them.

Laura December 11, 2011 at 6:49 pm

I agree that many people who sell information products online seem to believe that their product is worth less than it is. The truth of the matter is that information is one of the hottest commodities on the market right now – or at least, good information is. With such an influx of bad informational products in the market, selling something good is often an incentive to the customer alone!

For my business, our product is very much based on the relationship that we build with customers. We’re a form of advertising company, but our success depends heavily on the relationship we have with the client. It’s a great business and I wouldn’t have it any other way!

Elizabeth McGee December 11, 2011 at 11:15 pm

You’re so right Laura, relationship is key.

Anyone can create a product and put it up for sale but with so many products out there, particularly information products, people are more likely to buy from someone they recognize and are familiar with.

But you also need to create quality products and price them accordingly. Nothing will destroy your reputation, and your following, faster than delivering poor products.

Mat December 12, 2011 at 1:22 am

Excellent information Elizabeth and thanks for sharing and I hope whenever I will go for my own product, I will take care of the above points.

Ricardus December 14, 2011 at 2:21 am

Price in fact is the most important factor. Even if it’s a slight difference, clients will enquire why.

Elizabeth McGee December 14, 2011 at 9:26 am

Ricardus, If your product costs more than a competitor’s, that’s OK, as long as you are offering real value and you can accurately demonstrate in your sales offer the value that your buyer will receive. I try to add value by offering various kinds of media, i.e. ebook, DVD, video and to also add useful bonus materials.

Kay Elisabet December 14, 2011 at 8:51 am

Affiliate programs are a great way to sell ebooks. A friend of mine is doing quite well with some SEO ebooks that he is selling. He says that his sales about doubled after signing up with clickbank and getting people to promote his ebooks for him. I think it’s definitely worth the money!

Kavya Hari December 16, 2011 at 2:16 am

Pricing factor should be most important part when selling items in the web. I Would like to say thanks for given up here :)

Shaun April 13, 2012 at 9:35 am

I am sure those three are not the only mistakes that people make while creating their product. But I agree that those three are most crucial. Also among those first one is the most vital according to me. Because if you can present your product in a unique and proper way, there are always customers for it.

Liz April 16, 2012 at 9:24 am

You’re right Shaun,

A lot of your success will come from your presentation or your angle. You have to start with a great product but to get your potential buyers to realize that, you have to separate yourselves from all the others.

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