Choosing right price for your ebook is one of most critical parts of marketing process. The first rule of pricing ebooks is to never underprice. Determine highest price your audience can afford, and then if you find your book isn?t selling, you can always reduce price. Before you take that step, make sure you are promoting your book like crazy on Internet and on websites. The price should be aimed at bringing in profits, but you should never forget that price is one of factors that people use in judging value of your ebook ? before they buy it. So always start with highest price, and then launch a mega-marketing campaign.

Pricing an ebook is particularly difficult because ebooks are a fairly new commodity. Since they are digital, value of an ebook is as confusing as understanding of what digital actually is to average layperson. This means that we must look at ebooks in a different light in order to determine their actual worth in this brave, new cyber world.

Let's look at difference between a book in print and an ebook. A printed book is an object you can hold in your hand, store on your bookshelf, even hand down to next generation. It is priced on factors such as paper stock, design and production costs, and marketing.

But fact that unites ebooks and print books is that they are composed of ideas. It is ideas in these books that have ability to change, or possibly transform, people's lives.

What do you think an idea is worth when evaluated against cost of paper and ink?

It is IDEAS that are valuable! That is how you determine cost of your ebook.

What should I charge for my ideas?

There are all different formulas and methods for determining correct price for your ebook. Let's begin with honing in on your ultimate goals.

Decide if your goal is to get wide distribution and maximum exposure. This goal is aimed at drawing customers to your business or service, or to establishing credibility of your reputation. If this is your main goal, you should aim to keep your price on low side. Some authors have even priced their ebooks at a profit loss to draw a high number of new customers. The key is to find a price that maximizes your profits and number of books you sell.

This is an excellent pricing strategy if you are looking to acquire long-term customers. Long-term customers are extremely likely to buy from you again and again ? as long as first ebook they buy is of exceptional quality and beneficial to customer.

Everyday more web based companies enter business scene. The low initial investment, potentially high revenue, and convenience of owning and operating a business from your home PC or laptop is enticing an ever-increasing number of entrepreneurs to try their hand at e-business. Unfortunately, most of these would-be companies disappear shortly after their initial market entry.

Many of these businesses might have been more successful if they had invested in a web based CRM system. CRM (customer relationship management) systems have been around as long as business has as a way to keep track of what good was sold and who made purchase.

Most start-up companies quickly go under because they fail to understand their customers. Without putting substantial effort into collecting and making sense of customer data, a small company is effectively flying blind. They don't know whose buying what, why they're buying, or what they would like to see I future products or services. Most new companies not only provide little or no opportunity for voluntary customer feedback, they also fail to make demographic data collection an integral part of their sales and marketing efforts.

Anyone who has just entered e-business arena ought to be very interested in finding a web based CRM system. While their initial product and service offerings may sustain business operations in short-term, without proper customer relationship management company will quickly stagnate or fold.