In this article, I'm going to reveal to you 5 reasons why information marketing is the perfect business model for Internet marketers. Information marketing is the process of creating and selling information products that teach people how to do something. The information products can be in various formats including video, audio, home study courses, conference calls, etc. Here are 5 reasons why I believe a business in information marketing is perfect.
1. You only have to create the product once - Creating the products is actually pretty easy and you only have to create the product once. By not having to constantly recreate the product, you can move onto other projects or create more products which ultimately makes you more money. Plus, you can easily change your products and/or update them with relative ease as information products are generally easy to create.
2. Information products are very hard to duplicate or imitate - One of the problems of physical products, like a golf club, is that you can create one today and literally within a few days, you can see an exact replica made in China for about 1/10th the cost. With information products, that's not the case. Someone would actually have to take the time to consume the whole product and recreate it themselves. Most people are not willing to do that.
3. Digital information products have little to no cost to deliver them - This is a HUGE benefit. Typical products have all sorts of extra costs to them, like packaging, shipping, production, etc. The costs can add up quick. With information products where most, if not all of them, are stored digitally, delivering the product can happen 24/7 on autopilot with no cost. If someone buys a new eBook or 6 hour program, usually the product will be delivered via email.
4. Insanely high profit margins - For all the reasons I've already stated, the profit margins are crazy. Think about it. You can create a product with little to no cost, you don't have storage or inventory costs since the products are usually digital, and you don't have costs to deliver the product, so realistically you have practically 100% profit margins since the only real cost was the time it took to create the product... and this all happens on autopilot.
5. People will pay to get information put together for them - People will argue that the information found in information products can be found for free online, which is true. So why would someone pay for something they can find online for free? Because they don't want to spend hours, if not days, finding all the information all over the place themselves. People will gladly pay you to package that information up together for them if it saves them time.
There are probably a million more reasons why information marketing is a great business to be in, but these 5 will give you enough information to chew on for awhile.