May 9, 2008
The Small Reports Business Model
There’s no disguising the fact that I LOVE small reports … and so should you!
Last year I wrote an article entitled ‘10 Benefits To Writing Your Own Mini Ebook’.
This post is a continuation and re-enforcement of that article. It is also a business model that I not only highly recommend; it is a method I have been successfully using for some time.
If you’re not sure what small reports are, they are basically information products written about a particular subject.
They are usually no longer than 20-25 pages in length and contain concise, no-fluff, quality information.
The price of these reports range from $7 to $17 depending on the subject and niche.
I much prefer to read this type of report than a wordy 200 page document. And I’m sure if I think that way, then a good few other internet marketers like you will be thinking it to.
When I started my online business I was encouraged to go down the information product route. It’s an established, tried and tested method that still brings in the bulk of my online income.
The drawback with this method is it can take a long time to write a good 60-100 page info product. In fact it took me nearly 12 months to write my very first one.
However, times are a changing and the swing is towards short, meaty reports that are very specific and inexpensive.
People love these reports and they sell like hot-cakes!
Here’s why they work so well:
1. Multiple purchases from the customer. When you offer budget-friendly items, most customers will buy multiple items (if not ALL items) over time. It's much easier to sell to satisfied customers (on autopilot!) than it is to go find new customers. Especially as advertising costs rise.
2. Less refunds from the customer. Many people are becoming more and more prone to requesting refunds (especially in this economy) on products $47+. If you sell through Clickbank or Paypal this is super easy for them to do … just request and it's automatic. Refund rates are skyrocketing.
2. Less refunds from the customer. Many people are becoming more and more prone to requesting refunds (especially in this economy) on products $47+. If you sell through Clickbank or Paypal this is super easy for them to do … just request and it's automatic. Refund rates are skyrocketing.
BUT, in my experience, there are much less refunds at the $17 and under level. In fact, since nearly 12 months ago I’ve sold my internet marketing report – ‘Zero to Fifty In 30 Days!’ which is priced at $9.97 I have only had 5 refund requests!
3. Greater conversion rates. Obviously, all things equal, conversion rates tend to get lower as the price gets higher. You'll find that you aren't "wasting" as much traffic with low-cost offers because more of your visitors will buy your reports instead of walking away empty-handed. If you work hard to get them there, you want as many of them to order as possible, right?
4. Backend orders. The real key here is the backend. Whether you casually mention affiliate links, cross promote your entire line of low-cost offers, get customers into a continuity program or up-sell them to higher priced offers, there is a LOT of revenue to be generated beyond the initial $7-$17 sale.
5. Licensing. You can easily offer resale rights or private label rights to these small ticket items for 3X-7X the price and see a significant spike in your revenue.
The bottom line is this: You CAN do a "low-cost" product launch and still see a very lucrative amount of sales come in.
How do I know? I've been doing it for some time now with both internet marketing products and various niche markets.
There’s a great resource that covers everything to do with profiting from small reports. Plus it’s free!
3. Greater conversion rates. Obviously, all things equal, conversion rates tend to get lower as the price gets higher. You'll find that you aren't "wasting" as much traffic with low-cost offers because more of your visitors will buy your reports instead of walking away empty-handed. If you work hard to get them there, you want as many of them to order as possible, right?
4. Backend orders. The real key here is the backend. Whether you casually mention affiliate links, cross promote your entire line of low-cost offers, get customers into a continuity program or up-sell them to higher priced offers, there is a LOT of revenue to be generated beyond the initial $7-$17 sale.
5. Licensing. You can easily offer resale rights or private label rights to these small ticket items for 3X-7X the price and see a significant spike in your revenue.
The bottom line is this: You CAN do a "low-cost" product launch and still see a very lucrative amount of sales come in.
How do I know? I've been doing it for some time now with both internet marketing products and various niche markets.
There’s a great resource that covers everything to do with profiting from small reports. Plus it’s free!
It’s a business model that can be easily duplicated and is very profitable.
Here’s the report:
Let me know your thoughts on these small reports below…
Filed under Blog, Internet Marketing by Peter Tremayne
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Comments on The Small Reports Business Model »
Peter, You always give good advice. I know that I am more likely to buy when the price is lower. SO it makes sense that it is easier to sell when the price is lower. Keep up the good work.