Creating an Offer
There are a surprising number of ways to acquire or create irresistible offers for your products and services.
Your product or service is your message. It's your answer to the question - your solution to the problem. Too many would-be entrepreneurs think of their product as simply the thing you exchange for money. But it's more than that. You need to wrap your mindset around the fact that your product or service is a problem-solver and a message about you, your company and why it exists.
Among the five pillars of Internet Marketing, this concept about what to sell is the easiest to discover. Assuming you have done your market research and know who your audience is, then you should know what they need or at least what they think they need. Getting it to them is pretty simple because you have so many options.
Whether you create a product yourself, affiliate yourself with one (for a commission) or procure the rights to sell another product through private labeling or other means, finding one is the easiest step - mostly because there are so many available.
But before we go any further, let me explain that my living for the past 20 years or so has been made online with non-physical goods. While I've dabbled in selling physical products here and there, 99.9% of my success has been in the digital world. It's what I do, what I believe in and what I teach about. The plethora of available digital products that abound online is actually overwhelming - but that's why there is so much opportunity. Information has always been the number one commodity - even before the Internet.
But now that we do have a global online economy, finding products to sell that can be delivered by download (e-books, videos, memberships, software, podcasts, coaching, etc.) is pretty easy to do.
But let's first explore the concept of selling digital goods.
A common question that comes up when I teach this concept in live seminars is about the difference between selling physical products versus digital products. This is a question I love to answer and am always glad when it is asked.
"Should I sell physical products?"
Yes, it is possible to sell physical products online. Amazon is the authority on this subject. But that doesn't mean you can be Amazon. There are also smaller mom and pop businesses selling physical products via the web - and doing just fine with it. Items that are easy to ship (jewelry, small electronics, small gifts and bric-a-brac, kitchen gadgets, vitamins, video game components, etc.)
If you have access to a product that can be stocked, shipped and acquired at such a cost there is enough margin for you to sell it...then certainly run it through the Market Research test resources to see if there is a buying crowd for it.
However, the difference between selling physical goods and digital information products is so vast, that I have made my career based on the latter.
If you are dead set on selling a physical product, you have my blessing (not that you need it) but I would encourage you to do EXTRA research to make sure your costs are covered in bringing that item to the correct market. Yes, it is possible - but it is harder to do.
The best way to explain and justify my position is to make a comparison between the two types of business models.
Look at these significant differences between selling physical goods versus digital information products:
- A physical product has to be manufactured by someone.
A digital product is developed once and that same file or media is then resold unlimited times.
- A physical product has a potentially limited supply.
A digital product has no limits on supply as the same file is resold unlimited times.
- A physical product has to be stocked by someone.
A digital product is stored as a computer file on a web server or computer. It is a collection of virtual invisible matter that is almost mysterious. But can provide limitless value to the end user. This is the real magic of selling digital products.
- A physical product has to be shipped.
A digital product is delivered electronically (by download) and that delivery can easily be automated due to the nature of technology.
- A physical product has potential for loss or breakage.
A digital product has only one copy and since it is not physical, cannot be damaged or lost the same way a physical product can.
- A physical product has to be shipped and therefore the customer must wait for its arrival. A digital product is delivered instantly.
- A physical product has more labor cost associated with it due to manufacturing, storage and shipping.
Once a digital product is developed it can be managed automatically.
- A physical product has a basic minimum cost to produce.
A digital product has an almost infinitely flexible profit margin to work with.
Basically, it costs just as much to create and sell 1 digital product as it does to create and sell 1 million digital products. The reason is because you still only need to create 1 digital product.
But to create and sell 1 widget is not the same cost as creating and selling 1 million widgets. You have to keep creating, stocking, repairing and delivering more widgets in order to continue to sell them.
The most powerful concept behind the profit margin of a digital information product is that it is "manufactured" once, yet can be sold and delivered an unlimited number of times. And further, can be delivered without any human intervention, as the delivery process can be automated 100% via digital technology.
The bottom line is that selling a physical product or even offering a service as having to "start over" every time a sale is made.
Again, we are exploiting the power of Internet technology here. This is why the focus of this course is all about providing digital information products to a targeted market.
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ABOUT THE AUTHOR
Greg Hughes started experimenting with marketing on the Internet in February of 1996 and has been making a living online since 2001. Greg has helped tens of thousands of small businesses and entrepreneurs create their online presence and assisted them in setting up successful ventures on the web. Some of his clients are the now famous "gurus" you see making tens of thousands of dollars in monthly revenue online.
His expertise in the technical side of Internet Marketing comes from nearly two decades in the web hosting and web design software industry. In 2009, Greg authored the book The Snowball Factor and has subsequently created countless resources, articles, video training courses including the Fanbase Blueprint, The 5 Step Marketing System, Best Kept Secrets of SEO, How to Zero In On A Hungry Audience, How to Create and Sell Digital Products Online and Social Media Blueprint. As the founder of DotComClassroom, Greg provides the resources and training for assisting Internet entrepreneurs with training for creating successful businesses online.
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