Written by: Steven Clayton, Guest Author

When I first started out in Internet marketing, my focus was on affiliate marketing. Specifically, I was really concentrating on marketing ClickBank products. I was able to make a wonderful income doing this, and became one of the top affiliates for one of ClickBank’s best sellers. At that time, I was making this product owner approximately $1 million dollars per year.

That was wonderful, as I was making that too (with a 50% commission split), but as I found out that I was only the 4th (!) largest affiliate for this product owner, something occurred to me. I was working VERY hard, and wouldn’t it be nice to be the product OWNER and have 100’s or 1000’s of “me’s” running around and promoting my product instead of just benefiting from my efforts ? How about if I just had the top 4 affiliates of this vendor? It was a pretty compelling question, and one that set me out on a journey to become a vendor as well as an affiliate.

Fast forward to the present, and my company has sold 10s of millions of dollars of our own information products over the last few years. Don’t get me wrong, I LOVE affiliate marketing and I do it every single day… but having your own products is a very special feeling and a nice distraction and diversification from the “daily grind”! The information product market is enormous (by many counts approximately $4 billion dollars) and ClickBank themselves have a healthy 10% or so of that market. This makes them the ideal place to launch your information product business.

We teach a lot of folks how to build information products, and when people are just starting out they seem to share a lot of the same challenges:

• What topic or niche do I pick?
• Don’t I have to be an “Expert” ?
• Can I outsource this so I don’t have to do it all myself? How do I outsource?
• How do I attract affiliates to market my product for me?

I think giving advice on these four large “problem” areas is a great way to help you start to move from affiliate to vendor.

What topic or niche do I pick?

Information products are pretty simple. First, you identify a market or a niche. These are groups of people who share a common interest. For example, organic gardening. That’s a group of folks who are all interested in a very specific activity. The goal of a marketable information product is to simply find out what that group “needs” and deliver it in the form of an ebook, videos, software, or some combination of these digital products.

So, in my organic gardening example, perhaps we could create an information product that educates and makes recommendations with regard to the proper fertilization techniques for organic gardening. The idea is that you find a market, you find out what the market wants or needs, and then you deliver it in the form of an information product.

So what constitutes a great market? In a perfect world, I would say it’s three things (you don’t always have to meet ALL of these conditions to have a successful information product).

First, you want an “evergreen” market.  An evergreen market means that it won’t be going away anytime soon. The classic example of that is weight loss. For the foreseeable future, everyone will want to continue to try to lose weight.

Second, you want a market where there are searchers online looking for information. This can be determined by looking at Google’s external keyword tool and the volume of searches for the main and related keywords. In our example, we could input “organic gardening” into the tool and see that there are plenty of people looking for information out there.

Finally, we’d like to see a market where there is the potential for people to buy multiple products or multiple related products. This means that as you continue to build your list of customers, it is more valuable as you could sell them more items over time. People interested in losing weight is the perfect example market. It’s evergreen, there are plenty of searches, and people will typically invest in multiple products and related products.

We know what a perfect market looks like, but where do we find ideas? I’ll tell you my biggest “secret source” for finding ideas . The “Dummies” books and the “Idiot’s Guides” books. There are THOUSANDS of titles that have been created for these two franchises. Each of these thousands of books cater to a market that is perfect for an information product.

These companies have already done the market research and the analysis to determine that there’s a great market for  these kinds of products. All you have to do is find one that interests you, and then decide on your particular “slant” on how to enter that market. For example, perhaps you found organic gardening (that’s a great market and there are Dummies books for that), and after some brainstorming and checking existing material and online search volume, your topic will be “organic gardening to feed a family of 4,” or you could go with our fertilizer example from earlier. That’s the way to use these resources for ideas that can blossom into a great information product.

In the next part of this series, I’ll answer the common question “Don’t I have to be an expert?” and talk about how and why you should outsource. Be sure to check back tomorrow for much more info!

Update: Parts 2 and 3 are now available!

About the Author

Steven Clayton and his partner Tim Godfrey are the creators of a number of best selling information products in the Internet marketing niche, along with many other markets. Their Info Prodigy course (teaching how to create and market information products) is currently closed to new members, but you can get on the waiting list and get a free and very detailed 26 page report that gives away even more secrets right here. In addition, don’t forget to sign up at www.blueprintaffiliates.com to see excellent examples of affiliate resource pages.

About Beau Blackwell

Beau is the Client Knowledge Guru for ClickBank and covers the latest trends, tips and techniques for building profitable Internet marketing businesses.

Take a look at these related posts:

1. 5 Steps to Making Your First Sale as an Affiliate Marketer
2. Making the Profitable Move From Affiliate to Vendor: Part 2
3. Making the Profitable Move From Affiliate to Vendor: Part 3
4. Proven Techniques for Finding a Profitable Niche: Part 1
5. Tips to Becoming a Successful Internet Marketer

15 Responses to “Making the Profitable Move From Affiliate to Vendor: Part 1”