The limitations of "Information Marketing"

18 replies
Hey folks

A lot of us here have adopted the business model of finding a niche and providing information in the form of free articles and paid books/videos/membership sites.

I'm doing OK, I've got 3 good products (books + videos) in the fitness market, making anywhere from $100-300 a day.

I'd like to ramp things up now by hiring full time writers to create articles and books FOR me.

However, I feel a bit conflicted. When we compare our business model in Information Marketing to McDonalds for example, McDonalds can get by with hiring high-school drop-outs and paying them basic minimum wage. We on the other hand, have to hire good, educated writers, which generally means we have to spend a lot more on recruitment.

I wonder sometimes, if I would be better off leaving Information Marketing altogether, and doing something else that depends more on the systems that I set up, rather than the talent of my employees?

What are your thoughts about this?
#information #information marketing #limitations #marketing
  • Profile picture of the author unclederek
    Can you send me links to your products? Curious to see your copy and sales funnel.

    thanks

    Derek
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    • Profile picture of the author Steve B
      Two alternatives in information marketing:

      1- Write it yourself. If you're an expert in the niche (which anyone can become with a little effort), your prospects and customers are going to want to hear from you. There is no need to recruit writers really. Become the source of your own info products, articles, sales offers, etc.

      2- If you feel you can't write a lick - hire it out. Spend a little time finding a great writer then push all your writing tasks his/her way. So what if you spend a few hundred dollars on outsourcing? If you learn how to market to your niche you will make that investment back in no time.

      Information marketing is a great way to do business but you've got to find a great source of putting your information into a product. You can do it yourself . . . or pay to have it done. Either method can be extremely profitable. Many info marketers use both methods. You've just got to figure out how to maximize your ROI.

      Steve
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  • Profile picture of the author GailTrahd
    I guess it boils down to doing what you enjoy. At least, that's how I see things in my corner of the world. I'd rather spend a bit more time or make a bit less money but be happy with my efforts at the end of the day. I don't know that anyone can really answer that question for YOU.
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  • Profile picture of the author arjch
    Originally Posted by Snow_Predator View Post

    Hey folks
    I wonder sometimes, if I would be better off leaving Information Marketing altogether, and doing something else that depends more on the systems that I set up, rather than the talent of my employees?
    What are your thoughts about this?
    I think you are right, for this you will require more knowledgeable people and that too on the subject that you are righting, you can outsource it to asia. They have whole chuck of people with good knowledge along with degrees, though you need to build a team online. Give it a try

    Though thats my thought hope you get right track on this.
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  • Profile picture of the author Frank Donovan
    Originally Posted by Snow_Predator View Post

    I wonder sometimes, if I would be better off leaving Information Marketing altogether, and doing something else that depends more on the systems that I set up, rather than the talent of my employees?
    What are your thoughts about this?
    Don't think of what you do as information marketing. You're a publisher. You may only have three products at the moment, but you know what sells and you have experience in a potentially highly profitable market.

    Acquiring new products is relatively straightforward. You know what margins you can achieve, so you can gauge how much you should spend on hiring good writers. You'll also be able to recognize profitable writing when you see it.

    As well as commissioning products, you could seek to acquire existing catalogs (full rights or under licence) and plug each one into your marketing funnel. Choose some of the better titles and expand them into courses, membership programs, seminars... The choices are many and varied.

    Not so much McDonalds, more Random House.


    Frank
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    • Profile picture of the author Lance K
      Originally Posted by Frank Donovan View Post

      Don't think of what you do as information marketing. You're a publisher.
      ^^^^
      This

      Put systems into place that allow you to hire, train, and retain the quality of writers that you deem necessary.

      Systems are an important piece of the puzzle regardless of talent.
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      • Profile picture of the author jan roos
        Just hire a good freelance writer. You only pay once for the product and then sell it over and over again. Much less overhead than offline businesses.

        Cheers
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        • Profile picture of the author Rhadoo7
          You don't really need to find very good and expensive writers, as long as you hire a native English speaker and provide him with the articles that need to be re-written.

          As long as he's good at rewriting stuff, he doesn't need to be a Fitness expert. And if you are able to find an employer on the long-run, you will be able to train him according to your own personal demands...instead of constantly changing writers.
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  • Profile picture of the author Christopher Fox
    Don't lose the forest for the trees ...

    While the labor may come relatively cheaply and without much work history/skil background, the operating/opening costs are HUGE. Buying retail space, building a restaurant, all the equipment, the monthly electricity bills, etc. It costs WAY more money to open and operate a McDonalds, even with 'cheap' labor, than what you have going on.

    You are in a CHEAP to operate business, even with paying good money to skilled writers.

    Why in the world would you fold up and walk away from $100-$300/day? That is a fulltime income for many. $200/day, everyday, is over $70,000 a year.

    What the hell are you complaining about? That you cannot find quality writers for $5 on Fiverr?

    Puuuuhlease. Many here would love to have what you have ...

    Quit bitching and pay writers what they are worth ...
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  • Profile picture of the author thatjc
    Frank mentioned "courses" above.

    I think many publishers could pretty easily create online courses (or hire them built) using the excellent "Moodle" courseware at www.moodle.org/. Moodle is used by many universities.

    Iv'e built a Moodle Course on "Image Composition for Artists" and found Moodle very useful. It not only has the basics needed for online classes, but also enrollment fee collection, student-to-student chat, student-to-author "teacher office hours" chat, testing, and much else.

    Please see, as an example, my: Art Head Start - Basic art skills. By the way, feel free to PM me if you'd like more info on the Moodle Courseware.

    Hope this helps...
    _jim coe
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  • Profile picture of the author KyleMallory
    I don't think you're thinking about it properly, McDonald's pays their workers pennies, but they invest a helluva lot of money to open each restaurant (over a million, usually). The information products you're making are an asset that no one can take away from you. You spend a lot of money to get the asset, then you spend pennies to make money.

    You're not much different from McDonald's
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  • Profile picture of the author Peter Lessard
    You seem to have already accomplished the hard part.
    You have 3 products that are making you money.
    Don't worry about employees, worry about one more product at a time.

    You must already have an idea what a good product looks like, how much it costs to make one and what kind of revenue it will generate.

    Is it not easy for you at this point to rinse and repeat? Just budget for one more product at a time since there is no long term commitment to the creators of the product after it is done it seems to me you can scale as much as you want and at whatever speed you prefer.
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    • Profile picture of the author wtatlas
      The two "systems" are not directly comparable.

      McDonald's can only earn from an employee while he is actually working. The employee works, gets paid, and McDonald's earns some money from that worker's endeavours. Each day thereafter is the same as the one before. The business can't earn any more profit from work that was done by that employee once the work has been done. In other words the profit that can be earned from that employee per day is finite.

      The situation is very different for the information publisher. Each book that a writer produces can continue to bring in revenue for a long time but the writer is only paid once for each book. In contrast to the situation with McDonald's, the profit that can be earned from a writer's daily work is potentially infinite.

      In this way, far from a good writer being expensive, he can actually be hired for less than a McDonald's employee in terms of profit earned per dollar paid!
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  • Profile picture of the author Greg guitar
    Originally Posted by Snow_Predator View Post

    Hey folks

    A lot of us here have adopted the business model of finding a niche and providing information in the form of free articles and paid books/videos/membership sites.

    I'm doing OK, I've got 3 good products (books + videos) in the fitness market, making anywhere from $100-300 a day.

    I'd like to ramp things up now by hiring full time writers to create articles and books FOR me.

    However, I feel a bit conflicted. When we compare our business model in Information Marketing to McDonalds for example, McDonalds can get by with hiring high-school drop-outs and paying them basic minimum wage. We on the other hand, have to hire good, educated writers, which generally means we have to spend a lot more on recruitment.

    I wonder sometimes, if I would be better off leaving Information Marketing altogether, and doing something else that depends more on the systems that I set up, rather than the talent of my employees?

    What are your thoughts about this?
    The McDonalds example has been used to death, and overused in my opinion. It is true they are massively successful (to the massive detriment of labor, animals, human health, and the environment), because they have created systems for everything, but they are far from the only example; many many businesses successfully use systems, including yours, although you might want to create more systems, such as a specific set of outsourcing guidelines, which several Warriors have on offer, if you don't want to create your own. Even your outsourcing can be outsourced.

    Information marketing is probably a lot less hands on than a McDonald's franchise anyway. Sure, you need more skilled people than are needed to flip burgers, sweep floors, and ask "would you like super-clogged arteries with that?", but you misunderstand the idea of systems if you think they only include ones that require almost no talent, and don't pay anyone a living wage.

    There are vast pools of talent available, and if you learn where to find it, and how to hire, what is stopping you from making that into a system too? In fact, others already have; if you want, you can just hire a project manager, who will do all the hiring and managing for you. All you need to do is figure out a budget that will still allow you to make a profit.

    You say that you're making $100-300 a day from 3 products, and I assume you have also created a number of lead and traffic magnets such as the free articles you alluded to. So let's say you wrote 100 articles in addition to your 3 paid products. What if you wanted to duplicate your efforts, and paid a good writer $25 each for the articles, and $500 each for the products? That's $2500 for all the articles and $1500 for the products, for a total of $4k.

    Assuming the income from them was at the bottom of your current earnings, it would take you 40 days to recoup your investment, and everything after that would be profit (minus hard costs like hosting, of course).

    So what if you paid someone enough to actually make a living; does that make it any less of a profit making system? I think not. You're successfully using systems already, and in a position to put more systems in place, but you don't seem to see it.

    We humans have a bad tendency to create problems in our minds whether they are real or not. There is no problem in your case, and you are in a perfect position to build on your success, so don't trade your successful business model for one that's a lot more of a headache, just because lots of writers love to use the McDonald's example to explain what a business "system" is. You have something that actually helps people, that can be just as lucrative as the destructive McDonalds model. Don't "fix" it; just appreciate it, and ramp it up.

    Kudos on your success, and please stay on track!
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  • Profile picture of the author Christopher Fox
    I just wanted to add, that I wasn't trying to be a total d-bag with my response; consider it more of a back-handed compliment.

    Congratulations are certainly in order for what you have accomplished. I was confused by your frustrations of it all. A lot of people would be stoked to achieve the results you have gotten. You have a 'good' problem on your hands. Further, you have 'cracked the code' a bit, so keep crackin', reinvest, and add another zero to your per day earnings ...

    Best of luck.
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  • Profile picture of the author onpointinfo
    Greg Guitar...I tip my hat off to you. Something is wrong, here if you earning what you say you are earning you already have a system, to earn daily that much. Now what you can do, is hire someone that help you scale what you are doing already, fine tune it basically, then fine tune it again and again.

    You're looking at the other shiny objects on the other side of the fence when on your side of the fence , you have gold already and just do not know how to dig up more of it.

    There are guys out there that earn in the millions in information marketing, you need to go to the heavy weights who can consult you and coach you, if you want to scale information marketing into the millions period. You already have a millionaire business model in your hand and possibly do not even know it.

    One of the masters in information marketing is DAN KENNEDY ... now go eat his brains for lunch LOL
    Edwin
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  • Profile picture of the author Lucian Lada
    When you're talking about McDonald's, what you're taking into account are just the people you see, the ones behind the counter and perhaps the ones in the back, doing all the cooking.

    But there are other, highly-educated, highly-skilled, well-paid people "upstairs", making sure everything goes well "downstairs", where you see the college dropout flipping burgers. (Plus, McDonald's often set up shop in the most expensive locations, rent-wise.)
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  • Profile picture of the author bostjan33
    Banned
    Info marketing is so over saturated that your content needs to be top notch quality. So, if you're a real expert, then diy. If you're not, hire one of the best authors you can find and go for it.
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