One question I get a lot is, “What type of product should I sell?”
Many people on the Internet today want to make money from home because they’ve lost their job or they’re having a difficult time and need to make extra money.
They don’t know anything about the process of Internet marketing and they don’t know what product they should sell. They think, “I’d like to work at home, but
I don’t know how to choose a product.”
I understand that this is difficult. There are thousands and thousands of products that one could sell on the Internet.
Here’s a checklist that I think will help you narrow down your choice:
Size of Market
The first thing to consider is the size of the market. For instance, it is probably pretty easy to find prospective customers online who are interested in a weight loss product.
Profitability of the Market
Not only do you need a large market, you also need find a market where customers will spend money on products.
That might sound like a silly observation, but when you’re recovering from a global recession, people are still worried about losing their jobs. Everyone is tight on money.
As a person who wants to make money online, it’s important to recognize these things.
Look For An Evergreen Product
What do I mean by that?
Evergreen trees are green all year, right? You need to find a product that has a year round market. It’s OK to market seasonal items… just don’t base your entire business prospects on something that people only buy once a year.
Competitively Priced Products
It is very hard to sell a $40 product when the customer can go to Walmart and buy a similar item for $20.
Company Longevity
Look for products that have been around for a long time and are still popular. The company behind the product needs to both be stable and also continue to
produce new products. That’s an added degree of popularity.
“Johnny-come-lately” products are fine. They’re hot… they’re exciting. But will they be around next year?
Inexpensive Investment
Look for a low start-up cost to begin your business. Not only do you need to be able to afford these initial start-up costs, low investment costs will also attract potential recruits who might join your marketing team. Also, low start-up costs mean that will have more working capital to fund things like advertising and day-to-day expenses.
Digital vs. Physical Products
Digital products include eBooks, videos, audios, and software that, when the buyer purchases, they can then download it to their computer or other electronic device.
Physical products are what you see on the counters at your local store.
Digital products have the benefit that you have no inventory or shipping issues. Physical products have more perceived value, and let’s face it… you can’t deliver a weight loss supplement though a download link.
But you can dropship physical products. In one of the business opportunities that I was working, I would take and process orders by phone or on my website,
and then have the products delivered automatically to their doorstep. I never actually personally touched the products.
Remember this… it is much more costly to produce and deliver physical products. 50% or more of the final product price is involved in manufacture and delivery… there’s no way around that. Therefore, those production costs cannot be passed on to distributors.
On the other hand, if your business deals with digital products and services, a lot more of the product’s final price can be passed on to distributors in the form of commissions.
Residual Income
Try for residual income if you can get it. Not every product offers residual income.
Consider this… you do the work to sell Joe or Joan on a product. If he or she buys the product just once you get paid one time. That’s one model.
Another model is you do the work to sell them a product that has recurring billing. The product might be a physical product on “autoship”, or a membership site featuring information products or online services. The customer continues paying month after month. You get paid every time they renew. That’s called residual income or passive income.
In our next discussion we’ll look at this important concept… “retail pays the bills”
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