3 Mistakes Entrepreneurs Make When They Start to Sell Information Products

Recently, I wrote about the big mistakes entrepreneurs make when they create information products. Unfortunately, there are more mistakes to avoid when starting to sell them! Here are the biggest 3:

1. Your expectations are out of whack with reality. I once had a self development consultant tell me he wanted to sell a million dollars of his $497 product in one year. So I ran the numbers for him on what he would have to do to get that. He got very, very quiet.

Look, I’m all about thinking big. I’ve thought big my entire life. But if you want to do more than simply think big and actually accomplish big things, you need to understand what it takes to get there.

Let me give you a quick example. Let’s say you want to sell one information product a day off your web site. If you have a 1% conversion rate on your sales letter (and that’s not a walk in the park to do, but we’ll start there because the math is easy) that means one out of every 100 people are going to buy your product. To sell one a day, means you need 100 people looking at your sales letter a day. (Note, I don’t mean 100 people looking at your web site a day, I mean 100 people looking at that sales letter a day.) That means you need to get 3,000 visitors to that page a month. And if you’re not getting 3,000 visitors a month, you probably won’t sell an information product a day.

So let’s say you’re this entrepreneur. You just finished your product, you wrote the sales letter and stuck it up on your site and are now sitting back and waiting for the sales to pour in. And instead of getting one sale a day, you’re lucky to get a sale a month. Or every 6 months.

And when this happens, you’re probably feeling very frustrated and discouraged. But you shouldn’t be. Because if you understood how the numbers worked, you would know what was realistic and you would ALSO know what you needed to do in order to sell one a day.

The problem I’ve found is entrepreneurs create their first info product sure this is their ticket to easy wealth. Then, when the days, weeks and months go by and it doesn’t sell, they get frustrated and give up. And giving up is the REAL problem. Not the lack of sales. (Lack of sales CAN be fixed.)

2. You don’t spent the time and energy selling it as you did creating the product. Sending a couple emails to your list is NOT putting a lot of time and energy into selling your product. Or, worse yet, throwing up a sales page and expecting people to flock to it and buy is also not putting enough time and energy into selling it.

Products are great, don’t get me wrong. And while they can be passive income, what they mostly are is leveraged income. Making sales every day from your site is NOT magic. Nor is it an accident. It’s a combination of doing the right marketing tasks to drive warm visitors to your site, collecting their contact information, and starting a relationship with them with an ezine or some other communications. It’s about doing visibility activities. It’s about doing product launches to up your visibility and take your marketing to another level.

When you do all these things, you find your overall sales go up. And when you promote a product specifically, sales spike further.

3. You give up. I can’t tell you how many entrepreneurs I run into who have unrealistic expectations about selling their product, and then do little to no promoting or marketing of their product, and then give up because they don’t sell any. They incorrectly assume there’s a problem with their business, their clients, the product, themselves, etc., when it’s a problem with their marketing.

Before you decide there’s something more drastically wrong, make sure you understand the numbers and the marketing. Only then can you make a determination if there’s a deeper problem then simply bad marketing.

Simple Tricks To Sell Your Product

How to achieve good sales in the product that you are selling? In any campaign that you are about to launch, you need to put in efforts to influence the decision making of your customers, and to be totally in the favor of your company. Well, the whole idea is to play with the psychology of the consumers!Let’s look at some tricks, which you can use to influence the mind of the consumers. These tricks are useful not only to the ordinary sales person, but also to larger firms.Firstly, consider using mutual exchanging, which is the most powerful trick. You can start off by giving freebies to the customers. Initially, the customer will accept it, but from the next time, he will feel obliged and will try to return the favor. For example, offer your product free initially. If the customer is satisfied with the product, he will pay for it the next time. This principle causes some confusion to some. To be effective, remember that the product should be given totally free without any condition to be fulfilled. For instance, it is definitely against the principle to quote in your sales line, “Spend over $40 and get a free download of an ebook!” The right sales tag should be “Download the ebook absolutely free!” If the ebook is really good and useful, the customer might think of buying other ebooks from your company, and even recommend your site to other friends.The next trick is to present something as of high value, but it should cause only a small or no amount for the company to produce it. An example is that of information. The whole idea is to attract the customer that you are revealing to them a big time, valuable secret, which is not known to anyone at all. But beware that you do not turn the big secret into another advertisement.Most customers do not reject free samples. And that’s the next tip. Give out free samples to your targeted customers. However, bear in mind you should use good quality products only. Some companies have not been successful in using this tip because they distribute samples of poor quality or even rejected products! The customers have a bad impression of the product and will therefore not buy it.Catch the customers with words that initiate immediate action. For instance, “One time offer”, “Offer while stock lasts” and “Last Day offer”, just to name a few. These are really motivating as the customer gets the impression that the offer is valid for a limited period only and the product is limited edition. What’s next? The customer feels that he should go out and buy it before it is too late.Another way to increase sales is to trick the customer in making a commitment, step by step towards the goal, without realizing it. How can we achieve this? To begin, when a customer requests for some information, provide him with the relevant details for free, and make him fill a form with his contact information. The content of the form can be getting offers and information about products in future. A word of caution – no advertisement at this point! Once the customer provides his contact information, then will you start the advertisement about your products and services! A good example is to conduct surveys.You can increase the sales of your products if you apply the tricks appropriately in your business.

Product Creation and The Art of Proper Pricing

Some entrepreneurs short-change themselves when it comes to fixing a price for the products they create. Often individuals do not factor in accurate costs that can lead to a realistic price that allows the business to recoup expenses in research and development. It is also possible to fail to take into account other factors such as site development costs and administration, overhead and general profit required after expenses.There are two primary ways entrepreneurs look at this process. They will either fix the price lower hoping for high sales volume to gain a return on investment or they assign a higher price believing the product may be niche oriented and may have fewer sales.Perhaps the best approach may be to start with a higher price and reduce it once a certain threshold has been reached. This is an approach that is often seen with the launch of new electronic devices. The initial offering relies on marketing buzz and high consumer demand among early adopters of new technology. Once the first rush of sales are over the company often reduces the price to appeal to consumers who have an entirely different approach to purchasing consumer electronics.Some businesses use a marketing approach that rewards an early purchase. These pre-ordered products can often help offset immediate expenses, allow the consumer to feel rewarded for beating a deadline, and if the consumer likes the product they can be an effective sales staff that may be motivated to share the details of your new product with others.If you are the creative genius behind a product designed for market you may need to seek advice in determining a price that allows you to make a living while continuing to provide the product long-term.There are many individuals who had to close their cyber shutters simply because they under priced an item and they couldn’t sell enough of them to offset the difference.Many of these business owners saw a profit from every sale, but it was not enough to cover the expenses of the business. The truth is these businesses may have done a great job in marketing and they may have developed a respectable number of repeat customers. The problem is often a simple case of assigning the wrong price to the right product.By the time they recognize their mistake many of these businesses are at a loss in knowing how to correct the error. They often feel that if they reassign a higher price they will lose customers. The truth is if the business has supplied the product at a lower price the buying public may conclude the product is only worth this lesser amount. In some cases it may be possible to remove the product from the market for a period of time. If the product is popular consider allowing several months to pass before unveiling a new marketing plan, a new website look and an improved list of benefits and testimonials. When you reintroduce the product assign the corrected price. This strategy may allow you to correct the mistake and capitalize on the hope of renewed consumer demand for a product consumers may have missed.You could also readjust your price and strategy by altering the price upward knowing that you will receive customer complaints and the potential loss of sales and then work at developing an affiliate program that will broaden the exposure to your product among those who have probably never heard of your product creation. Be sure to factor in the percentage you will pay your affiliates in the pricing structure. New customers can help offset the loss associated with the exodus of those who do not understand the need for an increase in price.Of course the best strategy is working to ensure early in the process a price that adequately reflects the overall investment and profit requirements of your creation.