Product Income – How to Create a Product

Fifth Monetization Strategy – Products

Selling products is the fifth monetization strategy. In contrast to most of the previously discussed monetization strategies, the strategy of developing your own product can take a significant amount of time and effort. Still, it is perhaps the most profitable monetization strategy because of the leverage it provides.

The exact type of product you want to develop depends on your site’s niche, as well as on your own special skills and knowledge. Obviously, the more you know about your chosen field, the more likely you are to create a successful product that appeals to people in that field. I recommend that you brainstorm some 20 product ideas before narrowing them down to a single one. While products can be virtually anything, they can be divided into two distinct categories: digital and physical.

Digital Products

Digital products have a lot of advantages over physical products. They do not need to be manufactured, stored or shipped. Therefore, virtually all overhead and production costs are eliminated. It is only data, and data costs nothing to replicate and transfer. Even so they have a high perceived value. Digital products can be downloaded after payment and the end-user can enjoy their benefits immediately.

Producing digital products can be fairly simple and inexpensive. In particular, information products tend to sell well and have high profit margins. They are also difficult for competitors to duplicate. If you have an Informational Content site, then you already have the content on which you can base your product. Below is a list of the main digital information products that you can produce from content.

  • EBook – Compile the best of your site into an eBook and send it in for copy editing and proofreading.
  • ABook – Have a professional create an audio program based on your eBook.
  • Video seminar – Hold a seminar based on content from your site. Record it professionally and produce a video seminar from it.
  • Video tutorials – Instructional content can be made into video tutorials.
  • ECourse – A set of lessons in various media formats compiled from your other informational products.

Physical Products

Products made up of atoms have some drawbacks compared to digital products. Foremost, getting a physical product from idea into the customer’s hands often involves a lot more steps. Fortunately, all steps from production to shipping and support can be delegated to companies that specialize in such services.

One popular company that specializes in this is CafePress. This is an online retailer that produces user-customized merchandise – such as clothing and posters. You provide the designs or slogans for the products you choose to sell, and they produce and ship them for you. You pay nothing for the service since the products are only produced after you sell them. Other similar retailers include Zazzle and Printfection.

The informational products discussed previously can just as easily be packaged and sold as hardware – such as books, CDs and DVDs. They can be manufactured cheaply through online publishers such as CreateSpace, which is Amazon’s publishing company. This allows you to sell the products on trusted ecommerce sites – such as eBay and Amazon – in addition to your own site. Through CreateSpace you can distribute your product not only to Amazon.com, but also to other online retailers as well as bookstores, libraries and schools.

Physical products have one significant advantage over digital products. People are more accustomed to paying for them than for data bits. It is simply easier to get a person to pay for a T-shirt than for a piece of data.

Market Demand Research

Be sure to research whether there is a demand for the product you plan to create. The simplest way of determining this is to see if others are selling similar products successfully. You can discover this using the Google AdWords Keyword Tool once again. This time, add the column for Approximate CPC (cost per click) and search for your product category. Note that you need to be logged in with your AdWords account for this option to be available. If people are paying more than $0.10 for keywords in and around your product niche, you can be fairly certain your product will have a market. The more people are willing to pay per click, the more profitable the niche will be. Additionally, you can use Google Trends to see if your product category is rising or falling in popularity.

Product Marketing

The steps so far have been to determine what you want to sell and finding out if there is a sufficient market for it. Once that has been established you want to automate the process of getting the product into the customers’ hands. Then, the final step is to market your product. This attribute of products – that you can market them directly – is a significant advantage over the advertisement and affiliate income strategies.

On a Content site you market the site itself since you cannot market your ads or affiliate links. This is an indirect method and therefore has a low conversion rate. On an Ecommerce site, however, you can market your products directly. You not only earn a much larger income per conversion, but you can also achieve a much higher conversion rate.

When the time comes to start promoting your product, you want to have a market strategy in place. Start by researching other successful websites that sell similar products and see what tactics they employ. By finding out how they are promoting their products, you will be able to duplicate much of their success.

To give some examples, one method of promotion is to sell your product on eBay and Amazon. This will make your product visible for people searching through their search engines. Another method is to hire popular bloggers and people with influence to write favorable reviews about your product. There is also the possibility of distributing demos of your product on P2P networks to increase awareness. Additionally, the link building strategies discussed in previous chapters work just as well for Sales pages as for Content pages. The tactic of buying traffic through PPC is another great promotion tactic.

Learn how to create successful informational products:
Christopher King - Laptop Lifestyle 2: How to Create and Sell Your Own Products