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Want To Know The Seven Biggest Information Business Mistakes And How To Avoid Them?
Most people don't know that information products are much more profitable and easier to sell than physical products as there is no stock to hold, no big overheads and no staff worries. However a lot of people still make these basic mistakes...
If you've loved what you've read so far, you'll go bananas over what you are about to learn now. The following seven mistakes are the result of almost 17 years of trial and error and millions of dollars worth of costly mistakes you'll learn to avoid.
Information Business Mistake #1: Trying to re-invent the wheel. To create products and start your business from scratch: Most people rack their brains trying to come up with a product idea that will make them rich. Over the years, I have learnt to look for information products that are under exploited or poorly marketed and to simply improve what's already there. This saves both money and time and gives you a much greater chance of success in the long run.
Another business owner I know bought a distribution license for a new training program from one of the best sales and marketing trainers in the world… Chet Holmes. Chet had already sold over $25,000,000 worth of his training expertise to over 13,000 small and large companies in the USA. The training came with professionally produced interactive videos with over 800 presentations charts and graphic images, successful ads, faxes, sales letters, telephone scripts… the lot.
It would have taken them at least 8 months and cost at least $500,000 to put this all together starting from scratch.
Instead they took what was already there adapted it for Australian conditions and promptly sold $456,650 worth of these training programs in 15 months
…while having fun and taking plenty of holidays. This is only one product, one person selling it. It proved to me that marketing and paying for something already created is the best way to go.
Information Business Mistake #2: Not having a high enough profit margin. Unless you have high profit margins, you cannot make money in any business. You must sell products with a high profit margin in order to make money in this business. If you start with a low cost product as your first sale you MUST have a second and third product to sell to these people, preferably at $1,000 and above. This is where the real profits are.
Information Business Mistake #3: Not getting a mentor and a coach. All great athletes have a coach and a mentor. I have had several mentors and coaches in my life. Not getting a mentor and coach is like walking into the desert with only two litres of water. You'll soon die of thirst because even if there are water wells along the way, you'll never find them on your own.
Information Business Mistake #4: Not monitoring your progress and tracking your results. Keeping careful records of all your ads, letters and promotions is a major part of this business.
You must know the cost of your ads, how many people responded, the amount of each promotion. Every promotion
Information Business Mistake #5: Constantly changing your promotions. I know an information marketer that's been using the same ads for over 15 years…and they still work. You may have seen his headlines"$5 Make $100"and "How To Rob The TAB Legally" the lesson here is..if its making you money don't change it. The concept of offering something for FREE has always and will always work to build a customer list.
A business owner I know once had a very successful fax promotion. He kept "improving" it until it stopped working. Luckily he had copies of all his past results and went back to the original formula, and guess what? That's right, it still worked and he made money!!
Information Business Mistake #6: Looking for a "quick hit" "get-rich-quick" magic formula to make you a fortune. Hey, it happens, but so does winning the lottery. This is a business that requires discipline and commitment. With the right support, the right products and the right marketing tools you must eventually find success like I did.
Information Business Mistake #7: Not selling to people who have money. Over the years I discovered the best markets to sell to are business people. Why? Because they are easy to target (there are plenty of lists, yellow pages, directories, associations, trade journals available) They are hungry for information to improve their business and are always on the lookout to improve. They will also pay more than consumers for the right type of information.
Because it's having the best systems for selling information, that makes you the most money. Things like the right products, the right ads, the follow up letters, the Internet connections, the mailing lists and so on. Burn this into your head… In any type of business.
It is the system that makes you the money- not the product
But that's not to say that good products are not important, because without good products to sell you can't make money either. So, before I go any further, here's a quick checklist as to what makes a great information product.
HOT TOPIC: Potential customers want the product so badly they will respond to any ad that offers it! (this means you don't have to buy expensive ads. Simple, low-costs ads will do!)
HIGH VALUE: The product has such a high perceived value almost any price you charge seems like a bargain! (Customers value the product so highly they are happy and eager to pay your price!)
RIGHT MARKET: The product appeals to people who have money, and who want to spend it now! (If you don't think this is important, try selling something to people who don't have money!)
LOW COST: The product costs you only a fraction of the selling price! (You want a large enough profit so it only takes a few sales to make serious money! Toothpicks are out!)
EASY TO DELIVER: The product is easy to ship, and easy to keep on hand. You shouldn't have to worry about renting a warehouse to store inventory, or worry about how difficult it is to package and ship the product. (You want it to be easy—a “no brainer”. Don't try selling pianos)
LOW SERVICE NEEDS: The product requires little or no support, and is self-sufficient. (You sure don't want to spend days with each customer explaining how to use the information! Don't sell computer software, the support would kill you!!)
AUTO PILOT: You can handle customer orders using an order taking service (When hundreds of phone or internet orders start coming in, you don't want to be the one who has to take all the calls!)
HIGH REPEAT SALES: Your customers call you back to order more. When your customers actually get their hands on your product, you want them to be so impressed with what they received that they'll call you back to order more! (It's six times easier and cheaper to re-sell to an existing customer than to find a new customer. You can double your profit on each sale by having the next product, the back-end, ready for them when they call!)
Pretty good ‘wish-list' for a product isn't it? Yes, that's one of the most important lessons that I learned...
Information Products (intangibles) are much better to sell than physical products (Products you can touch and feel)
Because when I found myself with very little capital, I found it was easier (and a lot less costly) to start a successful business selling information, rather than selling a physical product.
I knew it was time to make some more changes in life and how I did business…
I sat down and for the second time in my life thought about what it was I really wanted out of my life and from my business.
I created a checklist of what I wanted from the perfect business. And in the process, I discovered that what I really wanted, (apart from the money) was…
- A business that could be run from home and which would give me the flexibility and the time to spend time with my family. As well as.
- A business that would give me free time and flexibility to travel and pursue my hobbies. Plus…
- A business that had low risk and high profit potential. And which could be started with low capital requirements.
- A business that could grow without employing lots of staff, and still make lots of money. And also…
- A business where the products are easily produced at low cost and can be sold at high profit margins and finally…
- A business that could be run from anywhere in Australia (or even the world).
- A business that was duplicable and could be taught to anyone. I wanted to be able to develop a SYSTEM out of what I was doing.
I also outlined what I didn't want from the business. Or a job pretending to be a business. I didn't want a business where I was under constant pressure because of high overheads.
I didn't want staff hassles, low margins and ever increasing costs. I didn't want to have to sign leases and buy lots of expensive equipment that became obsolete soon after I bought it. And I certainly didn't want a business where I was tied to it 6 or 7 days per week.
If you are looking for a business with high profit and low overheads then look no further. Contact us today!