Wednesday, December 12, 2007

What Products To Sell on The Internet

Selling Digital Products

All Internet Marketing is selling products of one form or another using the web as your sales medium. People who surf the web find products that they want to buy and hopefully buy from you.

Products could be hard goods such as clothes, dvds, furniture, machinery etc. Any physical product. If you are a manufacture of such a product often the internet becomes a secondary source for your sales. You will have to make or obtain your product. Then package it and deliver it to your customers.

Many transactions on ebay are this type of sale. A person sells a physical product, packages it and ships it to the customer. Essentially mail order sales with an electronic twist.
Ebay is a great place to get started selling items on the web. It is easy to set up, easy to operate, easy to collect money (Pay Pal). It is harder to make a living from ebay (many people are doing this though).

A little math. On ebay items can sell for what ever the auction brings or you can have a fixed price. Most smaller items will sell about the $20.00 range (as an example).
So lets say we want to make $30,000.00 a year income. This means we have to sell $30,000/365=$82.00 a day. Or 4 products for around $20.00. Every day. About 1500 products a year (this assumes that you have no cost for inventory, double the numbers if you buy wholesale). Now you think to yourself that sounds like a store. Yes the same pricipals apply. You set up an ebay store. Buy products at wholesale prices, sell at retail (or close to) prices and make a profit. You would still have to package and ship!

There are a number of drop shippers that can be found on ebay. Drop shippers warehouse, package, and ship their products for you. You just generate the sales. Obviously good for mass produce items such as electronics and dvds etc.

Instead of physical products the net is most useful for selling digital products. These products are ebooks or software that people can download right after payment. This is where clickbank comes in. Clickbank is a huge resource of information and some software. Again easy to set up an account and start selling Information Products. Clickbank has worked very well for me.
Essentially to sell a digital product you create a write up about the product with a link to more information or sales letter. When a person clicks on the link they are transfered to clickbank which makes the sale on your behalf. Then credits you with the corresponding portion commission on the sale.

If it is your product through your link you get 100% commission (less clickbanks service fees) if it is someone elses product you get the percentage they set. This is an affiliate commission. As you can see though no products to store, package, ship etc. Very clean very nice. You just add a bit of code to your website, blog, newsletter, email etc.

Commission Junction is another place you can sell products or services different from clickbank. This is affiliate marketing as well. You look through their vendors for companies that you have an interest in and you join to become one of their sales reps. Once you make a sale you are given a commission on each sale.

The art comes from creating sales information (webpages, letters etc) that convince your readers to click the link and buy from the seller. This takes practice and in future posts I will add some suggestions on how to accomplish this.

So my preference is to sell digital products or refer to a vender that is set up for shipping and packaging. I do sell hard goods on the net as well, but given the consideration of time and effort selling digital products is the best return.

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