Article: ebook publishing- the business of selling digital information products . . . continuation

Do You Know What You're Really Buying?

In recent past you have probably purchased one or several ebook publishing products such as 'how-to'' or instructional information products of some kind: a special report; a video tape; a correspondence course; an ebook; a cassette tape; a software program; or even an digital audio or video file on the Internet, etc.

What you may not have known was that many of those products were earning their developers huge profits.  Sometimes hidden from view - other profit centers have been built in into these ebook publishing products,  i.e. cloaked affiliate links, joint venture's, list rentals. All created to generate an income years after it's sold to the customer.

There isn't any other product produced with the incredible mark-up that information products enjoy.

Why?

In two words: perceived value.

"Perceived value" is simply the value placed on the 'end results' or primary benefit your end users attach to your products. In many cases if you're creating a product that will make money or save money for your customer it's very easy to determine it's perceived value to them.

Your development costs are usually low compared to the perceived value and actual cost of developing and packaging your product. On the Internet, you're packaging costs are actually zero (unless you promise to ship out something to the customer) and your profits, huge!

For example, Dan Kennedy, an entrepreneur, marketing consultant, writer and speaker, sells courses that have development and packaging costs of $6 to $20 each - and these courses sell easily for $95 to $2,995 and more.

Dan's information has an extremely high perceived value, sometimes as much as 10 times the actual purchase price or more. Now - because his customers attach a great deal of value to his products he can easily sell them at these prices.

But what is it exactly his customers buy?

They are not buying the paper and ink the course was written on or even the plastic cassette tape the recording was on?

What they wanted and what they bought were the results they hoped to attain from the acquisition of scarce, private or privileged information. In short - it is the perceived value.

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