How You Can Make Big Money by Turning Your Self-Help Book Into an Information Product.
When it comes to information products, online learning is more popular than ever. LinkedIn bought Lynda.com for more than a billion dollars. Udemy.com is one the biggest online courses out there. And there are a few others that are direct competitors.
Udemy used to (and still does) boast that the courses cost $195, but that’s not the reality. So, if you’re salivating at the idea of selling your courses on Udemy for $195 and you see others have over 2,000 students enrolled, you can stop salivating because here is the ugly truth:
That price is just come-on. Nearly 99% of those 2,000 users didn’t pay $195 for that course. They paid something like $10 or less. I’ve purchased over dozen courses on Udemy and never paid over $15, but yet, when I see one of the courses that I purchased at a later date, they show a much higher price than I paid.
Now this post is not going to dissect Udemy’s business model, but I will present to you how can make big money by creating your own course (a.k.a. information product) and selling it right on your own website.
There are three basic element you need to make big money from your self-book. These are a product, a traffic system, and a selling mechanism. We’ll briefly go over those in this blog post.
Before we dive into those, let’s look at some numbers since that’s what excites people the most.
Suppose you have a product selling on your own website for $147.
We’ll get into the details of what’s in this product later, but let’s say that it’s a very robust product. It’s a bit more than just your book or an eBook that you self-published.
So you have your product selling for $147 on your website. So, now you need some traffic to your website to get people to buy your product.
Let’s determine how many units you would like to sell a month. Let’s say you have a goal of making $10,000 a month from your information product. This will give you a nice six figure passive income.
How many buyers do we need to make $10,000?
$10,000/$147 = 68
Now, we’ve determined that we need to sell 68 units of this product to make our $10,000 (it actually comes out to $9,996.00)
How do we get 68 people to come to your site and buy your product? Tell our friends? Tweet to our followers? Send an offer to our list?
You could do all of those things, but you’ll want a more reliable way to get your 68 people to buy your product.
In the direct marketing world, it has been known that getting a 2% – 7% conversion rate is considered normal.
So, let’s just pick 4% since it’s about in the middle. So this means that out of all the people who come to your sales page and see your product, only 4% of them will buy your product.
Let’s see how many web page visitors we’ll need:
68/4% = 1,700
We’ll need a total of 1,700 visitors in order to get 68 people to buy our $147 product.
Since, we aren’t relying on free traffic, we’ll use paid traffic to get our visitors. Since we know that if we sell 68 units at $147, we will have a revenue of $9,996.00. We’ll keep that in mind when we’re budgeting for traffic.
We use paid traffic because it’s reliable. We won’t have to worry about Google slaps, Penguins and Pandas. Paid traffic is pretty consistent.
When you use paid traffic, you will be using a PPC (Pay Per Click) system where you will pay each time someone clicks on your ad.
So, let’ get down to the numbers.
You could pay anything for paid traffic because it’s not a set price. The range could be anywhere from less than a dollar to close to seven dollars or more (personal injury lawyers pay over a hundred dollars per click—but that’s them, not you, so don’t worry).
The average can be around $2.00 per click, so we’ll use that as our starting point.
We need 1,700 visitors at $2.00/click, so that will cost us: $3,400. We made $9,996 from sales and the ads cost us $3,000, so our total profit is $6,596. Now, before you feel like you got gipped on this post, just remember you MADE money! Most people lose money on their business ventures (mostly because they don’t know the right system to selling).
Once you have a profitable system in selling your information product, you can optimize the whole thing.
For instance, after people buy your $147 product, you can upsell them on a $27 calculator, video course or anything else that’s worth $27. Later, we’ll examine how this can mean huge profits for you.
Once you get your PPC campaign running, you can optimize that, too—which means you will spend less money on ads. Let’s look at one more scenario.
You sell your product for $147, but you optimized your ad campaign (by way of: more targeted audience, better copy, better CTR, etc.) so your cost per click is now $1.25/click. And with 1,700 on your list, you can now also sell them your $27 product. Let’s figure 15% of those on your list buy your other product immediately after the first sale.
So, let’s look at the numbers:
You still want your 68 buyers, so you can reach your goal of $10,000 / month.
With a cost per click of $1.25, you’ll only spend $2,125 for the one month campaign.
Now, 15% of the people on your list bought your $27 upsell product, so that’s an extra $6,885 in your pocket.
People on your list 1,700
Number of people who bought the upsell 255 (15% of list)
Cost of product $27
Total = 255 x $27 = $6,885
Grand total = $6,885 ($27 upsell product) + $9,996 (original $147 product) = $16,881
Cost of ads = $1.25 x 1,700 = $2,125
Total Profits: $14,756
Now, do you see the power of transforming your self-help book into an information product to sell on your own website? Many online marketers call this “as about as good as compound interest.”
Now, imagine trying to peddle your $9 book. How far would you get with that? Or even your $15 course on some overcrowded site like Udemy?
We’ll talk more about what to include in your information product in a later post.
To learn more about how this whole thing works, I strongly urge you to check out this FREE Webinar that covers everything you need to know about turning your self-help book into a lucrative passive income.
Follow this link: webinar.freshsalescopy.com