One of most popular online ventures is selling e-books. People are hungry for information; that’s why they’re on Web in first place. And e-books are cheap to produce and distribute.
However, I’ve come across quite a few new online entrepreneurs thinking they’re going to strike it rich selling a $20 or $30 e-book. They’ve failed to do some simple math.
Suppose you sell an e-book for $30. Deduct $5 off your $30 sell price to account for advertising and other costs. That leaves you with $25. You’d have to sell 1,000 copies a year to make $25,000. That’s a lot of copies! Even if you did sell that many, 25 grand isn’t exactly going to put you on Easy Street.
Another factor is competition. Many e-books with resell rights have also be purchased by hundreds, possibly thousands, of competitors.
And if you’re selling an e-book as an affiliate, you’re usually limited to 50% or less of sell price.
The key to making large amounts of money selling information products is that you need resell rights for at least one higher priced item.
Say you have duplication rights to a product that sells for $400. If you sold just 6 copies of this product a month, you’d be pulling in $2,400 in sales. That’s $28,800 a year. If you sold 12 a month, you’d make $57,600 a year. Sell 24 a month and you’re raking in $115,200 a year.