Selling information products is one of the best methods of earning passive income on the internet. “Passive income” means you aren’t exchanging your time in exchange for payment. You create the product once, set up a website to sell it, and collect payments over and over again from your customers. How much money can you realistically expect to make selling information products online?
You can predict your sales by running some numbers based on the averages. The average conversion rate for sales through an information product website is that 1 person out of every 100 visitors will buy your product. If the website receives 500 visitors to your website per day, you would average 5 sales each day. With an information product that sells for $30, you would make $150 per day, about $1050 per week, or about $4,500 per month.
Would a website earning over $4,000 a month make a difference to your current lifestyle? Your own sales would change if you were able to drive more than 500 visitors to the website per day, or if you were able to increase the number of people out of every 100 visitors who buy the product. Some information products will sell better than this, and others will sell less – but it’s a good average to base your estimations on.
Once you set up your first website for selling an information product successfully, you can choose to leave it as it is, and enjoy the second income; or you might decide to become a serious seller of information products by creating additional information products and sales sites. Andrew and Daryl Grant earn 7 figures per year through information product sales. They created seven ebook websites and earned $250,000 in their first year.
If you are extremely interested in the topic of your information product, you might consider growing a bigger business around the same topic. If someone buys an ebook from you for $30, there is a good potential that they would become repeat clients and buy another product like an audio series for $200, followed by a home-study pack or coaching which is higher priced. Once someone buys from you, they have confidence in what you offer and are more likely to buy from you again in the future.
Creating additional information products targeted to the same group of buyers will help you expand your business and increase your sales volume. It requires less marketing because you already have a list of targeted buyers who have made it clear they are interested in products about your topic.
You may also expand your information products into a subscription site – and use the information products to promote the subscription site. Each time someone buys your ebook on gardening for example, they would be presented with a link to join your subscription site about advanced strategies for gardening, for example.
Selling information products is an effective way to set up a business that earns passive income.
If you’d like step by step training from Andrew and Daryl in how to do this yourself, book in to our next workshop – here’s the link.