I have been playing the money game for the last 25 years. First, as an investment banker and venture capitalist, then as a high-tech entrepreneur. Three years ago I decided to quit the corporate world and start building ‘micro businesses’.(Micro businesses are those that exist inside of computers and live on the Internet. When micro businesses are automated, they can become ‘money machines’ without the need for employees.)To get started quickly and avoid the long learning curves and potholes most people fall into, I spent tens of thousands of dollars on Internet education and mentoring. My mentors were Alex Mandossian and Armand Morin, two very successful and wonderful infopreneurs. It was from them I learned the INSIDER SECRETS.INSIDER SECRETMaking money comes from supplying a product or service to others in exchange for their money.When going online to make money, the would-be entrepreneur has the choice of selling physical products OR digital information products. Physical products are tangible things like; cars, golf clubs, shoes, etc. Information products are things like books, newsletters, software, music, movies, courses, etc., where the value is in the information they contain, not in the tangible elements.
Physical products need to be manufactured, inventoried, and shipped. Selling physical products online requires not only getting orders online, but purchasing and physically handling the merchandise after the sale is made. Physical products must be shipped by UPS or FedEx to the consumer. For people just learning to build online businesses, purchasing and handling physical products requires more money, more staff and more effort than many people expect.Information products, on the other hand, are ideal for the new online entrepreneur because the information, or content, can be converted into a digital form. When the information is in a digital form, it can be manufactured and inventoried in computers. Even better, it can be sent, or delivered, to the end user, over the Internet for only a few pennies. And best of all, information products have very HIGH profit margins because there’s no physical product to make or ship.EXAMPLELet’s look at an example of the difference between a physical and an informational product from the online perspective.Assume that you had just written a book and that you found a publisher to print, ship and sell your book in the physical world. Let’s further assume that you’d receive a 10% royalty on each book produced and sold by the publisher for $25, or $2.50 each. If the publisher sold 25,000 copies, your income would be $62,500 ($2.50 x 25,000 = $62,500).Now let’s assume we convert your book into a digital book, commonly known as an eBook, and that you sell the same number of copies (25,000) over the Internet for the same $25 price. Since the books cost zero to manufacture and distribute (the computer makes copies and Internet delivers them to the consumer’s home PC) you have no costs expect creating it and your advertising expenses. So if you sell the same 25,000 copies at $25 each, your income is now $625,000, less any advertising expense. Assume you spent $100,000 on PPC ads, your income is now $525,000 instead of $62,500, or EIGHT TIMES MORE than a physical product.
BENEFITS OF INFO PRODUCTSThere are four major reasons digital information products are the best products to build an online business around.1) Digital info products do not require costly manufacturing, warehousing, or shipping.2) Digital info products have very high profit margins, up to 95%.3) Digital info products can be sold over and over at no additional cost.4) The selling, duplication and shipping of digital info products, over the Internet, can be automated so as to not require any employees, thereby creating a ‘money machine.’For more information please visit www.SimpleMoneyMachines.com [http://www.SimpleMoneyMachines.com]