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How to Create Your Own Product

One excellent way to make money is to create your own product and sell it online. There are two main types of products - physical products and digital (downloadable product).

I'm going to focus on creating digital products as this is the easiest one to get started with and also has a much higher profit margin. If you are considering selling physical products such as crafts, clothes, cosmetics and so on you may want to start by selling on EBay to see whether or not your product sells, before you spend time and money setting up a website.

Creating a Digital Product

Digital products are very popular online and can include any of the following:

  • EBooks or Reports in PDF format
  • Videos
  • Membership Sites
  • Audios
  • Software

The first thing you need to do before you create a product is to decide on the market that you want to target. You need to make sure that there are enough people buying products in that market to make it worth your while.

One simple way to do this is to go to the Clickbank Marketplace and browse through some of the products that other people are selling. This will also give you a good idea of your competition. You also need to make sure that you are knowledgeable enough about that market to create a product. If you aren't you will either need to do a fair bit of research or outsource some of the work.

If you are concerned about getting your product noticed in a highly competitive market, you may want to consider choosing a smaller niche market instead. You can also use some keyword research tools to find out how much demand there is for the product.

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The easiest product to create if you are a beginner is an EBook or a short report. You can use Microsoft Word to write your book or you can use a free word processor such as open office and once you've finished writing your book the best format to sell it in is PDF. You'll need some PDF generator software in order to do this.

If you don't have much time or enough experience to create your own product you could consider using one of the following to speed things up:

  • Master Resale Rights (MRR) Products - purchase the resale rights to a product and sell this, keeping 100% of the profit.

  • Private Label Rights (PLR) Products - purchase the private label rights to a product and sell this, keeping 100% of the profits. PLR is more flexible than MRR as you are allowed to modify the product, add your name to it and change pretty much anything you wish.

  • Outsourcing - you could find a writer on a site such as Elance or Odesk to research and write for you.

Selling Your Product

Once you have your EBook ready you will want to start selling it online. There are a few things that you should consider at this stage:

  • Graphics - an EBook or digital product will sell much better if you get some professional graphics made. Most people don't have the skills to create high quality professional graphics so this is something that you will probably want to outsource.

  • A Website - you'll definitely need to set up your own website to sell the EBook from. Have a look at my guide to setting up your own website to learn more about this.

  • Payment Processing - you'll need to have a way to accept payments from customers. One simple option is to use Paypal, but if you want something that has a built in affiliate program you may want to consider Clickbank. Other options are PayDotCom and E-Junkie or setting up your own merchant account.

  • Download Delivery & Protection - you will need a way to ensure that your customers are automatically redirected to their download after purchased. All of the above payment processors have ways of doing this so you can check out the help pages on these sites to learn more about this. If your product starts to become very popular you may also want to put some sort of secure delivery method in place to stop people from stealing your products.

  • List Building - you will definitely want to built an optin list of your customers and prospects. Have a look at my list building tips for more information about how to do this. Building a list means that you can promote future products or related affiliate products to your subscribers.

Promoting Your Product

Once you've finished your product and you have your website up and running you will need to spend a lot of time promoting your site in order to get visitors and sales. You may want to consider using methods such as search engine optimization, list building, joint ventures, ad swaps, solo ads, banner ads and more to promote your site.

You can find more advice on how to promote your website here.

When you are happy with the conversion of your product you could also think about setting up your own affiliate program Affiliates can bring you lots of traffic and sales that you wouldn't normally have had and you will need to pay them a commission per sale. The typical commission for a digital product is 50%. If you use Clickbank, PayDotCom or EJunkie you can make use of their in built affiliate program features.

Recommended Training

If you would like more detail on how to do all of this I highly recommend taking a look at Lee McIntyre's Instant Internet Lifestyle Seminar. This video recorded seminar is from a 2 day workshop where Lee taught a group of people how to make money by creating and selling their own product. People paid almost $1000 for tickets to this, but he is selling the videos for less than $20. You can read my review of Instant Internet Lifestyle here.

If creating your own product sounds like too much hard work you could consider affiliate marketing as an alternative instead. With affiliate marketing you still need your own website but you don't need to worry about product creation, payment processing, sales copy, download management or customer support. It still takes hard work, but there isn't as much involved upfront.

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