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Why do people spend so much money on IM products?

by Ian Varnava
32 replies
Hello World,

The question is in the subject. I was just thinking, why do people spend so much money on IM products? You know... eBooks, membership sites, software, and the works.

The reason I'm saying this is because you always see people complaining, "I have spent thousands of dollars on different products but have not gotten anywhere". You will find statements to this effect in 99% of those "omg I can't seem to make any money with IM and my world is about to fall apart" type of posts.

So once again, why?

Consider this... the information in this forum alone could give you information overload.

Sure, there's a lot of crap on this forum too, just like anywhere else. Even with that, there's so much amazing information on this forum that it's not even funny. Combine that with all the information freely available anywhere on the internet, albeit amongst the garbage, you don't need to pay for any sort of "info-products".

Initially, you ONLY need to spend money on a domain name & hosting. Dot com, .net, and .org go anywhere to the tune of $10, and can be purchased much, much, cheaper sometimes... usually you can find at least some type of coupons just by doing a google search, even if it may be for 10-20% off, at least it's something.

Hostgator has a baby plan for $7.96/month where you get unlimited storage & unlimited bandwidth, WordPress, and the works. You can also have unlimited domains on this account.

That is all you need to start, besides your brain. Depending on how quickly you wanna move, and/or your financial situation, you need to CAREFULLY spend money on things to GROW your business, even if that "growing" is from $0 so far, you are carefully INVESTING your money instead of throwing it away on eBook after eBook and WSO after WSO.

I'm talking maybe outsource some quality link-building, possibly content creation if you're not the biggest fan of the joy that is writing your own content 24/7 (sometimes freakishly alarming levels). When outsourcing content creation, you don't go with the cheapest. You find a medium between quality and price. Top notch content is not AS expensive as many will make it out to be. Yet, at the same time you're gambling the integrity of your content if you just go with someone to create content for you based purely on the cheap price.

You need to play smart. Do things that will GROW your business. You want to spend money? Spend money on quality products which will help grow your traffic, subscriber list, and help you build a following. Don't just keep buying info products on HOW to do these things. Buy services/products which will HELP you ACCELERATE when trying to get these things done.

If you play it right, within a short period of time, you can have a business on your hands where you have fun doing it, and which makes you consistent income, possibly thousands, for an intial expense of under $200. $100 if you are really strapped for cash. Heck, only about less than $20 in total, if you want to just buy a domain & hosting and possess the time/dedication/motivation to do all the grunt work yourself until you become bigger.

Let me be clear, I am not selling anything here and don't PM me asking if I can "share" my "secret" method or anything like that. I am merely sharing a fact which I have come to observe over the years.

So, why do people spend so much money on IM products?
#money #people #products #spend
  • Profile picture of the author lacraiger
    its the noobie mentality... the IM niche wouldnt be so profitable without them spending money...
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  • Profile picture of the author tpw
    They spend money so that they can get the education they need to be able to grow faster and more reliably, but then they never open the book.

    They spend money to buy the tools that will enable them to be more productive, but then they never put those tools to use.

    Then they come into the forum and whine about how Internet Marketing has taken all their money and given nothing back to them.

    The problem is that they are waiting for someone to give them the Magic Button, rather than to take action to drive their own destiny.
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    • Profile picture of the author steveblum
      Most times it's an unfortunate situation for the newbie or struggling IMer, but very good for the promoter.

      We live in a society of instant gratification and it's easier to put all your hopes and dreams into the "next big thing" or "shiny new system."

      Many times marketers prey on newbies with flashy sales pages and get-rich-quick promises, without ever really delivering. This kind of stuff is B.S. Marketing yes, but still B.S.

      I think if more people simply focused on one thing at a time, mastered it and ignored all the other stuff, there would be a lot more success stories in IM.

      But the reality is, that will probably never happen.
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    • Profile picture of the author Barry Unruh
      Originally Posted by tpw View Post

      given nothing back to them
      Those are magic words right there. Any struggling person who believes they are being short changed by the products they buy need to read those words a few times and come to a realization.

      NOTHING IS GIVEN to you in business. It is all EARNED. Those products will never GIVE anything back to you. They simply allow you to TAKE MORE EFFECTIVE ACTION, which will EARN you the income.

      Mr. Platt has a way with words, and if you don't read all of them, you might miss an important lesson...

      To Your Success,

      Barry
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    • Profile picture of the author paulie888
      Originally Posted by tpw View Post

      They spend money so that they can get the education they need to be able to grow faster and more reliably, but then they never open the book.

      They spend money to buy the tools that will enable them to be more productive, but then they never put those tools to use.

      Then they come into the forum and whine about how Internet Marketing has taken all their money and given nothing back to them.

      The problem is that they are waiting for someone to give them the Magic Button, rather than to take action to drive their own destiny.
      I have also read that buying a product with a great sales page attached to it gives the buyer a temporary high that comes from the purchase process, and when this high goes away they're left with remorse and an unwillingness to peruse the material.

      It's the same kind of high people get when they go to the mall for some shopping therapy. The only issue here is that this kind of therapy can be very expensive (and quite destructive as well).
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    • Profile picture of the author cyberdenizen
      Originally Posted by tpw View Post

      They spend money so that they can get the education they need to be able to grow faster and more reliably, but then they never open the book.

      They spend money to buy the tools that will enable them to be more productive, but then they never put those tools to use.

      Then they come into the forum and whine about how Internet Marketing has taken all their money and given nothing back to them.

      The problem is that they are waiting for someone to give them the Magic Button, rather than to take action to drive their own destiny.
      Guilty.

      Most of us who buy IM products forget that all the information amounts to nothing unless we take action. ACTION is often the missing ingredient!
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  • Profile picture of the author Leanne King
    education
    hope
    shortcut to learning new processes/systems etc
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  • Profile picture of the author David Maschke
    Hey,

    Yo man. With 12 posts I doubt you'll be spending the night answering questions. Some around here might say you need to earn that ego.

    Why do people go to colleges or university's when there are so many great public libraries? Aren't those school's just full of what we would call re-hashed information?

    And for the record, good freakin' question man. No answer here though
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    • Profile picture of the author Rich Struck
      Originally Posted by David Maschke View Post

      Hey,

      Yo man. With 12 posts I doubt you'll be spending the night answering questions. Some around here might say you need to earn that ego.

      Why do people go to colleges or university's when there are so many great public libraries? Aren't those school's just full of what we would call re-hashed information?
      What does post count have to do with anything?

      And yes, most of what you learn at college could just as easily be learned by going to the library.
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      • Profile picture of the author David Maschke
        Originally Posted by Rich Struck View Post

        What does post count have to do with anything?

        And yes, most of what you learn at college could just as easily be learned by going to the library.
        Did you read the bottom of his post?

        I could have been wrong though, perhaps you'll p.m. him all night trying to get his secrets. You'll be waiting a while though, I don't think he is able to p.m.
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  • Profile picture of the author Rukshan
    People always depend on short cuts
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  • Profile picture of the author David Maschke
    Ya know what?

    Too bad the O.P. can't take PM's.

    I'd ask a couple. But I'll respect his wishes.
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  • Profile picture of the author smartlazy
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    Originally Posted by IM Joker View Post

    So, why do people spend so much money on IM products?
    It's because everytime people search Google for "Internet marketing" or "make money online," they'll encounter a lot of "get rich quick" magic systems with enticing sales pages.
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    • Profile picture of the author tiga
      Become they dont take action... just reading and watching video tutorial
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      • Profile picture of the author David Maschke
        Originally Posted by tiga View Post

        Become they dont take action... just reading and watching video tutorial
        Wow, been here a year and a half, and you have your third post already. You're a real blabber mouth, you know that?

        Just messin' with ya Nice to meet you

        Speak up here a little more. The O.P. of this thread is rackin' up his post count quickly, you can do the same too.
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  • Profile picture of the author mkl3377
    People buy IM products for the knowledge that the sales page promised and hopelfully that knowledge will lead them to an online income.

    Can the knowledge be found elsewhere and here for free. YES! but like you said there is also more crap than you can shake a stick at.

    Also one of the hopes is that the product they purchase will actually help them weed out the crap. Unfortunately, Gurus exploit this thirst for knowledge and disguise their crap so well to make it look like legitimate info. Beginners dont have the knowledge yet to decipher what is good or bad info and experienced IMer's can onloy do it because most have gone down teh golden crap road.

    Of couse there are exceptions; the honest IMer and the lucky ones who get to learn from them cutting down their learning curve and spending spree drastically but those are the lucky ones. You have to be in the right place at the right time.

    Unfortunately, most of us arent that lucky.

    So you think we like buyin all the crap? NO. But we are in a sense forced to, due to the shortage of Imers with some integrity. So we buy one crappy product after another in the hopes that this next one will be the last that will finally tell us the truth. It also doesn't help when IMers have found out that creating a dream is more profitable than creating a product that works. Hense, we now have an over supply of over hyped, repackaged, regurgitated, usless IM product created for one purpose and one purpose only-to make the promoters money.

    So when you ask why people buy so much IM products.

    Let me ask you .... Why do people buy rejuvenation creams, lotions, and procedures.

    Because THEY WERE SOLD A DREAM of BEING rich rather than the actual method to becoming rich.
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    • Profile picture of the author georgebush
      i second this!!!

      Originally Posted by mkl3377 View Post

      People buy IM products for the knowledge that the sales page promised and hopelfully that knowledge will lead them to an online income.

      Can the knowledge be found elsewhere and here for free. YES! but like you said there is also more crap than you can shake a stick at.

      Also one of the hopes is that the product they purchase will actually help them weed out the crap. Unfortunately, Gurus exploit this thirst for knowledge and disguise their crap so well to make it look like legitimate info. Beginners dont have the knowledge yet to decipher what is good or bad info and experienced IMer's can onloy do it because most have gone down teh golden crap road.

      Of couse there are exceptions; the honest IMer and the lucky ones who get to learn from them cutting down their learning curve and spending spree drastically but those are the lucky ones. You have to be in the right place at the right time.

      Unfortunately, most of us arent that lucky.

      So you think we like buyin all the crap? NO. But we are in a sense forced to, due to the shortage of Imers with some integrity. So we buy one crappy product after another in the hopes that this next one will be the last that will finally tell us the truth. It also doesn't help when IMers have found out that creating a dream is more profitable than creating a product that works. Hense, we now have an over supply of over hyped, repackaged, regurgitated, usless IM product created for one purpose and one purpose only-to make the promoters money.

      So when you ask why people buy so much IM products.

      Let me ask you .... Why do people buy rejuvenation creams, lotions, and procedures.

      Because THEY WERE SOLD A DREAM of BEING rich rather than the actual method to becoming rich.
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  • Profile picture of the author feliciayapsl
    Hmm.. Why people spend so much on IM products? People are looking for ways to make fast bucks in a short time.
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    • Profile picture of the author Richard Van
      Originally Posted by feliciayapsl View Post

      Hmm.. Why people spend so much on IM products? People are looking for ways to make fast bucks in a short time.
      ...And there lies the entire problem.:rolleyes:
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  • Profile picture of the author alcymart
    I see 2 types of people. The newbies invest because they too want to suceed quite simply.

    And then there is the guy like me who invest in a software product to enhance my productivity or reach.

    I'm sure there are great products for the newbies out there, but the problem is that the newbie expectation is much too high not in terms of product claim but of how much time it will take to reach the products claim.

    I'm not talking about claims of being wealthy in 2 weeks or whatever. Those are newbie marketers out there that are in it just to get the buyer to part with his hard earned income and then run.

    Newbies must simply use their smarts. That doesn't mean to wait it out because they think the product is too hyped up. Some products are not hyped up. It goes down to having a good intuition.

    Take care,

    Bernard St-Pierre
    Marketing Consultant
    Copywriter/Teacher
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    • Profile picture of the author tonis
      I would like to add a 3rd type.
      David Maschke who seems to be so fond of peoples post counts that hell he is posting so irrelevant info in this thread.
      Yeah i have a small post count, but really does it matter? People are learning just by reading and maybe they are not so smart as Mr. David Maschke here maybe they don't want to spam this forum with irrelevant questions and answers.

      I have seen this a lot here in WF. When so called "Newbies" with low "Post Count". Creates a thread there is always one or two persons who say "Congratulations you just got another post to your POST COUNT".
      Guess why they have such low "POST COUNT"...

      Yes I am a newby with LOW POST COUNT! and i am proud of it!

      Originally Posted by alcymart View Post

      I see 2 types of people. The newbies invest because they too want to suceed quite simply.

      And then there is the guy like me who invest in a software product to enhance my productivity or reach.

      I'm sure there are great products for the newbies out there, but the problem is that the newbie expectation is much too high not in terms of product claim but of how much time it will take to reach the products claim.

      I'm not talking about claims of being wealthy in 2 weeks or whatever. Those are newbie marketers out there that are in it just to get the buyer to part with his hard earned income and then run.

      Newbies must simply use their smarts. That doesn't mean to wait it out because they think the product is too hyped up. Some products are not hyped up. It goes down to having a good intuition.

      Take care,

      Bernard St-Pierre
      Marketing Consultant
      Copywriter/Teacher
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  • Profile picture of the author suemax
    Surely one of the primary reasons why people spend so money on IM products is because there are so many compelling sales pitches out there, and those desperate for success fall for them...?
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  • Profile picture of the author rickfrazier1
    There are so many things just plain wrong with the whole IM system I don't know where to start. Perhaps a different thread would be better, but...

    Newbies spend tons of money chasing the dream because of a couple of things. First because it is a dream, and because a lot of sleazy vendors feed the dream of easy money if the target just buys their product. Not because the product can provide the actual processes or procedures to build a business, but because it can provide huge returns overnight without any effort. The "easy button" so to speak.

    Second, because they still have the money to do so. When someone has enough disposable income, or is perhaps desperarate enough even if they cannot truly afford to, they will buy product after product that promises that "easy button" to see if this latest one will be true to the advertising. After all, haven't they been indoctrinated by our media to believe? Yep, buy this beer and the women will see you as desireable (but make sure the women are drinking more than you for it to work). Buy this car and everyone will think you are successful. Buy the big house (same reasoning).... and so on and on...

    As you can see, it's NOT just the IM system, but I've found that in IM, itis a LOT more blatent than conventional advertising. With the beer commercials, as with most other advertising, it is IMPLIED by the visuals you see that you will be successful if you buy the advertised product. In IM, it is implicitly stated. Like "I made a bajillion dollars in one day with this method". the little disclaimer somewhere you won't notice that says "results are not typical" is hard to find and most people don't even see it.

    Yep, there are the two biggest reasons I can see for people spending so much money on IM products. I really wish it were different, because I'm not selling into that crowd. I would prefer, instead, to sell to the people that already know (or are willing to learn) that building a business isn't an overnight thing, and that real work is involved to become successful, but that once you have achieved true success you can duplicate it in a number of venues, so you don't have to be worried about the next "magic button" taking it all away from you...

    Thanks for reading... it's been a long day. If you agree with me, at least look at my blog to see if it can provide you any benefit. You will see a link to my blog and WSO in my signature file. If you don't agree with me, that's fine too. Without diversity, we wouldn't have the choices we have today. Have a nice day.
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    • Profile picture of the author sal64
      I am so happy that some one has seen fit to start this thread.

      This is a topic which is never discussed on this forum, and it's about time that someone posed the question.

      We should have at least 10 threads per week on this topic. It is that important.
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  • Profile picture of the author Aira Bongco
    They spend money because they can learn new ideas or strategies they would not have learned otherwise with free information and free products.

    They spend money for systems that can fast track their success especially if it is done by someone who have already implemented it.

    And you need more than a domain and hosting. You need actual experience which comes from implementing everything that you have learned from paid products.
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  • Profile picture of the author jazbo
    It is down to the "get rich at the click of a button" myth. People come online desperate for money, see these "systems" and in desperation, or curiosity, they buy. Then they buy another, then a third.

    Eventually they realise they mostly say, keywords, clickbank, website, links....

    What DOES concern me, as a coaching provider, is that a lot of people who come to me admit they have thrown hundreds/thousands at these products. But when they are "sizing me up", they ask a ton of questions and treat me with huge suspicion, despite the first month costing a measly $10!

    So there is a perception thing there as well. People seem happy to throw money at "systems" with absolutely no guarantees other than a bit of sales patter and hype, yet they tip-toe around investing in real-assistance and are suspicious of it, even after several email exchanges.

    So there is a hiding element in there for me as well. Not having to be held to account. One of the biggest reasons people stop the coaching is that when they are challenged, they back off and give up.

    I assume they either give up totally, or retreat back into the anonymous comfort zone of reading about systems and dreaming of passive income.
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  • Profile picture of the author paulie888
    Originally Posted by londonwarrior View Post

    They think each product is their get rich quick scheme. When they realise that they actually have to do some work they move on to the next get rich quick product. Most people don't even read the info let alone act on it. I suppose most people are lazy and are trying to find something where they can make money without work. They will spend $1000s and waste years of their lives doing this. If only they put as much effort into actually doing some work then they might be successful.
    'Work' has become a four letter word to many newbies who seem to have a 'lottery' mindset. Ironically, they waste more time and effort researching, seeking and procuring all these crappy "pushbutton" products than they would have just following a simple but effective IM plan of action.
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  • Profile picture of the author sbucciarel
    Banned
    Yep ... Paulie has pretty much nailed it. The buy one product after another after another, thinking each one is the blueprint to making big wads of cash

    Without Working
    Without any Skills
    In Your Pajamas
    Overnight

    When each one fails, they move on to another. Failure after failure and they don't get it that these BIG PROMISE products are big on promises and short on delivery. They don't bother to do the method at all if once inside, they discover that

    Ohhhh nooooo. This requires work.
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    • Profile picture of the author jbsmith
      Do you realize how crazy that question really is?

      Do employers higher people for $100,000K + jobs off the street, with no training, credentials or experience?

      If you want to become a fitness instructor, dentist, doctor, broadcast professional, etc...etc...etc... what would you expect to pay to be trained?

      Growing a real business (even if it is 100% based on Internet Marketing) is no different...people who don't learn the fundamentals are typically out of business very quickly.

      If anything, people do not take their IM business seriously enough or get properly trained on business and marketing fundamentals.

      Hate to break it to you, but making a living building a business that happens to be marketed online takes a lot more than getting a domain and webhosting account...and even that for many people is a huge stretch from where they are today.

      Don't misunderstand me, I'm not saying people whould recklessly spend their money on training - but carefully learn the fundamentals of market research, business value, product creation/licensing and of course, marketing and communication. Also, learning something about leadership and managing other people is critical too as any business at some point is going to require managing people (contractors, VA's, temps, employees, partners, etc...)

      By questionioning people learning, trianing and growing their knowledge of how business and IM work demonstrates that you don't take this business seriously, that is the main reason people don't reach their objectives these days.

      About finding the material on this forum - I agree, there is great material on this forum - the challenge most people have is that they think sequentially. Their minds can't focus on Step 3 until they have understood what Step 1 and Step 2 is. So, they need a step-by-step plan or blueprint to follow rather than reams and reams of good information.

      I have recently learned this myself inside of a very heavy content membership site we run - even though there is tons of valuable content, people still were coming to us asking us to organize the material in a series of step-by-step blueprints so they won't get lost. That's what we are now doing and the feedback has been great.

      Jeff
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  • Profile picture of the author Saad Sami
    thank you for your tips..
    I think "knowledge is the only thing that separate you from where you are and where you want to be"
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