Home » Internet » E-Commerce

What To Sell For Big Profits

Mar 27, 2008
In order to make money online, you need to sell something. There are two kinds of products you can sell: physical products (golf clubs, sweaters, wine, etc) and information products (ebooks, courses, directories, newsletters, seminars, videos, etc.).

While millions of people go online to purchase physical products, selling physical products is a hard way to make money because of the much higher inventory, shipping and customer support costs. The margins are much smaller because of the competition from big companies such as Amazon and Best Buy and the fact that shoppers can use Google to find the lowest price on the Internet.

As Willy Sutton, the famous bank robber once said when asked why he robbed banks, "Because that's where the money is." In the online world, the real money is in information products.

Information products are the ideal products to sell online because there are no inventory or shipping costs, the margins are much higher, the customer support needs are much lower, and it's difficult for customers to competitively shop for information products. Best of all, since info products can be shipped electronically over the Internet, the entire business process can be automated, so that it operates while you sleep!

What Are Info Products?

People purchase information products or services to get the information they contain. Examples are: books, directories, newsletters, special reports, instructional courses, CDs, videos, DVDs, movies, anything thing that can be digitized.

Until the Internet came along, information was primarily delivered in physical forms, which is more capital intensive, consumes more resources, takes more time and is more expensive than selling the same information in digital form over the Internet.

To understand the difference, let's look more closely at the economics of physical books versus ebooks.

Physical Books

In the world of physical books, an author writes a manuscript and gives it to a publisher. The publisher buys rolls of paper, runs printing presses, and manufactures physical books to put into inventory for shipment to regional warehouses. From there, the physical books are shipped by plane, train or truck to thousands of stores, where customers come to purchase them.

Needless to say, lots of capital is required for buildings, printing presses, warehouses, trucks, and the retail stores that comprise this kind of publishing and distribution system.


Instead of publishing physical copies, an ebook is the same manuscript stored on computer and delivered directly to the customer over the Internet, in a digital form.

The customer then reads it online or prints it on his/her desktop printer. The benefits are obvious and enormous. No trees need to be cut down to make paper. No petroleum is required to ship the physical books. No capital is tied up in buildings, printing presses, stores or personnel.

These factors dramatically change the economics for authors and information owners.
About the Author
Wayne Van Dyck is the CEO of Six Degrees Media in Sausalito, CA and is a developer of Internet tools and technologies for building online businesses. To get your FREE "Money Making Analysis" and FREE copy of "How to Make Your First $50,000 Online...WhileYou Sleep" go to: http://SmartMoneyWebsites.com .
Please Rate:
(Average: Not rated)
Views: 202
Print Email Report Share
Article Categories