Well… my first Internet Lifestyle product is finally finished. It’s been a long six months putting this course together.
The end result is I now have something that can produce lifelong passive income.
With that in mind, I want to break down the “financials” of info product creation. Specifically I’ll give a real world example of what it’s like to invest in an eBook course. (Maybe this post will give you that extra *nudge* to create your own.)
Audio Version of Affiliate Marketing without the Bulls**t – $590
Upsells are a great way to create additional product revenue. The trick is to add extras without filling a sales page with high pressure one-time-offers.
So I decided an audio version is a great way to add value without being too “salesy” to my blog readers.
Here’s what’s interesting. On the day I decided to look for an audio talent, Morgan from eBook Voice left a comment on my blog. I check out Morgan’s site and discovered she offers an audio narrating service. It was one of those serendipitous moments where you stumble across exactly what you need at the right moment.
I really love the quality of Morgan’s work. She did an incredible job of narrating all eight modules. We’re talking over 8 ½ hours of audio. So that’s a lot of talking!
Now, you might think $590 is a steep price to pay. However I think I got a great deal here. Just do a search for ‘voice talent’ on Elance and you’ll see it’s a service that’s very expensive.
Another thing to consider is the lifelong value of an audio version. Right now, I charge $15 for this upsell. All I have to do is make 40 sales to break even. Everything else is gravy!
My advice is this. If you decide to create an eBook, offer an audio version. And if you decide to offer an audio version, use Morgan’s eBook Voice service.
eCover Images – $295
I’ve used Elance.com for more than six years. But I wanted to test out other services. So I decided to try 99Designs.com since I’ve heard a lot of good things about this site.
Unfortunately I wasn’t happy with the end result.
The negative is they charge a ridiculous amount for their service. I paid $295 for an eCover project. But only $175 of that goes to the designer. The rest is kept by 99Designs.com.
Do the math and you’ll see that’s a 40% cut. That’s simply not a competitive price – Especially when you can find excellent designers from dozens of other sites.
With that said, I’m extremely happy with the work of Phil (the designer.) I think he did a great job of creating a stylish batch of eCover images. I highly recommend Phil’s services. (Contact me if you want more details.)
Overall though, I don’t recommend 99Designs. It costs an arm and a leg to post a project. Plus this money doesn’t go to the people who do all the hard work.
Microsoft Word Template – $150
Again, I feel lucky here. I needed a professionally designed Microsoft Word template. And I hired Karen (on Elance) who did a great job!
Specifically I liked how the interior design of the eBook matched the look of the eCovers. If you didn’t know better, you’d think they were designed by the same person. (As an example, take a look at this free eBook: THE Affiliate Research Formula.)
It’s important to have a professional look for your information product. This is something that increases the perceived value when people make a product purchase. That’s why I consider $150 to be a worthwhile investment.
Infographics Academy – $27
Last month I signed up for Tristan Higbee’s Infographics Academy. This investment has more than paid for itself.
I’m still going through his course. But I applied some of what I learned to create a simple image for my sales page:
I’ll admit this diagram is pretty basic. What’s important is Tristan’s product has helped me learn a lot about creating images. I hope to use this information as I build my affiliate center. Ultimately this will generate additional future income.
Clickbank Activation Fee – $29.95
$29.95 is a cheap price to list a product in the Clickbank marketplace. This is #1 spot that affiliates use to find a product. If I get my course to the top of their listings, I’ll receive a lot of extra exposure.
I know Clickbank gets a lot of flak because of their high refund rates. However this site is still the best place to find potential affiliates. So I’ll take the occasional B.S. refund request because I’m now able to tap into a vast network of product promoters.
My opinion is all Internet entrepreneurs should have a product listed in Clickbank. In my affiliate niche, I’ve brokered a number of profitable deals – Simply because of my high profile in the Clickbank marketplace.
Data Transfer Fees (Recurring) – $.08 Per Upsell
You’ll often get a few recurring charges with an information product.
First we’ll go over Amazon’s S3 program.
Amazon offers a simple service – They host large audio and video files. I love this service because my upsell has 600 MB worth of content. This kind of data transfer can cause a server meltdown in any standard website.
Fortunately, Amazon S3 handles all data transfer – At an affordable price.
Here is the pricing structure they offer:
Right now, I qualify for the $.12 per GB Transfer option. This works out to $.08 per upsell option. That’s a great price for removing a major info product headache.
Clickbank’s Transaction Fees (Recurring) – $1 plus 7.5% on Each Transaction
Yes, Clickbank’s fees are a little steep. Not only do they ding you for an activation fee; they also take a taste from each sale.
Clickbank charges $1 plus 7.5% on each transaction. That works out to $3.25 for the silver option or $4.37 for the platinum option.
Again, I don’t mind paying this fee. Clickbank handles all credit card transactions (which is a real pain in the butt to manage.) Plus they make it brain-dead simple for affiliates to promote your product.
Conservatively, Clickbank has been responsible for at least six figures of info product income in my pocket. So I’m more than happy to pay their activation and transaction fees.
Let’s Add it Up…
Okay, let’s add up these fees:
In my opinion, $1091.95 is a small price to pay for something that will continue to make money.
How is this Lifelong Passive Income???
You might wonder: “How is this passive income?”
Well, I admit I’m going to work hard on this product. So it’s not the true definition of passive income.
With that said, I’m putting together a strong affiliate center. The end result is I’ll have a product that others promote while I enjoy life. That sounds pretty passive to me.
Plus, there’s the added benefit of having an information product. Offering a premium course helps you:
- Gain instant credibility as a niche expert
- Drive traffic to your blog – Even from the people who don’t buy
- Network with other folks in a marketplace
- Have a potential bonus offer whenever you promote a high ticket item
These are only a few benefits to having your own information product. Put one together and you’ll see how it exponentially grows your online income.
How to Take Action… Now!
In this post, I covered two techniques to get more from your Internet business:
1) Affiliate Marketing
2) Information Products
So here’s what I recommend you do:
First, check out my report – How to Create a Profit-Pulling eBook Empire in 2011. This is a step-by-step blueprint where I talk about info product creation.
This information comes from my personal experiences with creating an eBook a few years back. And it’s the same plan that I’m currently following. So I know it works!
Next, I’d like to remind you about my Affiliate Marketing without the Bulls**t course.
I’m not going to do a hard sell here. Suffice to say I think it’s a quality product and it seems like others agree.
Also, on Monday I’m raising the price by at least 30%. So you only have a few days to take advantage of this discounted rate.
Creating this product was hard work. But I’m glad I invested the time and money. Now all I have to do is work on the affiliate program. Wish me luck!To Your "Internet Lifestyle",