September 9, 2007

How People REALLY Make Money Selling Ebooks on eBay

In all the emails I get from people, one of the recent recurring themes is how to turn selling ebooks on eBay into profit.

And from comments I receive, there's a lot of misconceptions.

The biggest one I'm going to address in this blog post is that the profit is made from selling the ebook.

WRONG!

If you take a look on eBay, then there are hundreds if not thousands of ebook sellers, all selling their ebooks for $1.99.

There's no money in that, once you take out your listing fees and the time you've taken to put the listing up in the first place, then it's all gone, and I'm going to prove it to you now.

Go to eBay, and look up one of the big ebook resellers. View their items (not the store view) and see how many they have running at any one time. Then on the left hand side in the yellow box out, you'll see some check boxes.

Check the one that says "Completed listings" click submit, and count them for a single day. And then work out how much money they've made from selling them.

Next, check to see how many listings they submit each day, my guess is somewhere between 1-4 an hour.

Finally work out how much it's cost to list ALL of the other items for that day.

Hmm, a bit of a discrepancy? Have they only just reached break even or maybe they've even lost a little money on the deal?

But if you check their feedback, you'll see they've been listing items and getting feedback for months or years.

So WHY do so many of the larger resellers sell other peoples ebooks consistently on eBay if they're losing money on the deal?

Well, there are two main reasons.

1) They have a "back end" product or products (or service or membership), together with an "irresistible offer" that fuels their efforts and makes it all worthwhile.

2) They're using eBay as an email list building tool, and funneling their buyers into individual niche oriented mailing lists.

Let's take a look at both of those in a little more detail.

#1 - They list an ebook on eBay which sells for $1.99. As part of the delivery process (probably using SmartDD), their customer receives an invitation to an "upgrade" for a limited time only at a knock down price.

It's made clear that the item normally sells for $47.00 (or $67.00), and this is a special offer for only $27.00, but only if they buy now.

Enough people will pay the $27.00 to get the second item, to make the eBay listings worthwhile.

#2 - My personal favourite. During the delivery process, they're offered the "upgrade" of the $47.00 item for free if they just sign up to a mailing list by entering their name and email address and clicking "Submit".

Once people are on the mailing list, then niche relevant offers can be made to them over time and so bring in enough income to make the eBay listings worthwhile.

These are the two main ways of making money by reselling ebooks on eBay, I realise there's not a lot of detail there, and that it can get very clever and very complicated. And there are plenty of little things that you can do that make a big difference.

There are plenty of ebooks out there that "sort of" cover this, sometimes. But in most cases, they don't make it clear enough in BIG BOLD LETTERS. ;-)

It's also worth noting that there are a few little traps that can be sprung on you by bigger ebook resellers taking advantage of your inexperience.

"To save your bandwidth if you're only just starting, you can redirect people to my download page. It's okay, I don't mind, you can keep all the profit from selling the ebook. I want to HELP you."

Yeah right. Or variations on this…

"To save your bandwidth if you're only just starting, you can use the zip file on my server instead of your own. It's okay, I don't mind, you can keep all the profit from selling the ebook. I want to HELP you."

and…

"If you're only just starting, and you don't understand how to set up a download page or a link to a zip file, you can use the zip file on my server instead of your own. It's okay, I don't mind, you can keep all the profit from selling the ebook. I want to HELP you."

In all of these and similar examples, it's a case of you paying for their traffic. And to make it worse, they get YOUR visitors to THEIR upsell page, or even get them to sign up to their mailing list.

In the zip files examples above, you'll find that they have a great big README.PDF or similar (such as UNADVERTISED_BONUSES.PDF) with an offer in there for some free ebooks on a similar niche in return for your customer signing up to their mailing list.

Now that you've read (and hopefully understand) about #1 and #2 above, they're not really helping you out at all are they? And the worst part of it is, they're making themselves out to be heroes by letting you use their web pages and zip files.

Okay that's enough for today.

In another blog post, I'll detail out how you can make more money on your own ebooks, and the considerations you should make before writing an ebook at all.

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16 Comments »

September 10, 2007

Gloria :

Wow Frank,

Consider me now "enlightened."

This kind of post is really, really helpful. Not many people are willing to "reveal" some IM "truths."

Thank you!

Gloria :

P.S.

I'll be back to read the next posting you mentioned is upcoming!

Alicia

Donna :

Thanks again, Frank, you always have such great tips… you should consider compiling them all into an ebook… sounds like you have marketing ebooks on eBay down to a science. :-)

Does the latter part of your post also work in the same advantageous way for the seller (who is appearing magnanamous but really is getting his or her list built free) in the case of the "you get 100% commissions - just add your paypal email to the end of this URL and keep all the money you earn from referring people to this page…" type thing? I'm guessing the answer is "Yes".

Of course, it is advantageous to the 'affiliate' in the sense that they don't have to bother with download pages, managing any support, etc, because they send the client to the seller for 'handling' but the huge disadvantage is that they also are not building a list…. or getting to take advantage of OTO's and backend sales as you pointed out regarding eBay.

Again, thank you for your very wise advice, and for taking the time to share it so freely. You "rock" as we say over here in the US. :-) Is there a British equivalent of that?

Best regards always,
Donna

Thank You for the great information. I hadn't seen this before but it is sure worth saving for my future endevors.

John

Hey Frank, top tips for selling ebooks on ebay, very clearly explained, well done, keep those tips coming!

Sally :)

Frank
Very informative. I'm happy to see there are others out there trying to truly help newbies get started without getting taken advantage of. We can all be profitable in an honest straightforward way without taking advantage of anyone. Keep up the good work!
Coach Bill
www.billthecoach.com

Mark :

Purchasing and attempting to resell ebooks is a waste of time, effort and money for most people. Especially for the person who simply desires to add a second income stream to their portfolio.

You read all the hype on the latest, greatest information product, see a $24 or $49 price tag on the sales page being presented as a hook. Then you buy the resale package at the special price of $17 (because your on someones list who claims to want to help you make a fortune online), but when you try to resell it nobody buys it because they can do a search for the title and find the same thing selling on ebay for $1.99.

Then you have those who rename the book so you don't know it is just the same rehashed information (often obsolete) that has been sold by many others over the last two years.

Sorry guys, this to me this is a scam, aimed at the MLM drop outs that still believe in the "get rich quick" myth and haven't yet learned to base their buying and investing decisions on careful planning and logic as opposed to raw emotion.

If you want to make real money online, you won't do it with other peoples rehashed information products. You have to write your own, something that is not available anywhere else and even then you have a well thought out marketing plan.

There are much better and less time consuming ways to make money online.

May not be what you wanted to hear (and probably wont last as a comment) but it is my honest opinion and this post simply reinforces it.

Mark Hamilton - Web Developer
http://www.internetoutfitter.com

Mike :

A great post by Frank, but I'm going to disagree a little with Frank on part of this one.

Frank states that some eBay sellers present this to their customers "If you're only just starting, and you don't understand how to set up a download page or a link to a zip file, you can use the zip file on my server instead of your own. It's okay, I don't mind, you can keep all the profit from selling the ebook. I want to HELP you."

Frank seems to insinuate that eBay sellers who do this are dishonest and are deceiving the customer.

But, there is a large segment of the eBay population that want to sell certain ebooks related to their niche on eBay, and don't want to pay for web hosting, learn to setup thank you pages etc. They just want to offer the ebook for sale, and they WANT to use your download page.

I offer this option to my eBay customers. I don't tie it to saving them bandwidth and I don't present it as doing them some sort of great favor.

Their is no deception involved, it's for people who want to sell one (or more) of my ebooks but have no interest in web hosting, html etc. All they have to do is create the auction listing, and email the buyer a download link - done.

Not all customers are created equal, so I try to offer more options :-)

Mike

Mario :

Hi,
I think that people sale ebooks to make some monay I didnt think on this way till now!?! So you think its not possible to make monay just from selling Ebooks???
With respect , Mario

Thanks for the nice comments, and yes, yes to everybody else. I agree with pretty much everything that's been said.

Nothing is totally black and white.

Donna: Yes, it's important for the product owner and the affiliate to be in a win-win situation, it's more important to the product owner for the affiliate to win more than they do.

Example - SmartDD pays 50% commission to affiliates. Paul and I get less than 50% because we pay the payment processor fees. We think that's the fairest way we could do it. Some programs pay 50% of what's left after payment processor fees have been taken out, but not us.

We want affiliates to *really* get their 50% so there's more incentive to promote. And so we both win.

And this is why the 7 dollar script is still so popular. The affiliate wins by getting 100% commission (usually), and the product owner wins by getting a sign up to their mailing list. Both win.

And as you pointed out, it can be a lot of work to create a product, set up a sales page, download page, offer support etc., so it's ideal if you're just starting out to push traffic in the direction of pre-done 100% commission products. You get paid the moment the item is purchased.

The British translatation of "you rock" is "you rock", so thanks for that. :-)

Mark: Yes, you're right. Absolutely spot on. But (aha, there's always a but) if you use resale rights products as a traffic generator for your own products (which many do), then you can upsell to your own unique item for which you don't offer resale rights.

And THAT can hold a premium price as it can't be purchased (well, legally purchased) anywhere else.

But if it's to an item where you can purchase resell rights for a premium price, well you're right. I never do. I just do EXACTLY as you've suggested and take a look on eBay to see if it's there for $1.99 which it usually is.

All your other comments about the "get rich quick" myth, having a sound marketing plan (don't forget your business plan) are bang on the mark.

Everyone should take careful note about what you've said about this. And I'll just re-inforce it.

There is no such thing as easy money. You have to work HARD to get your business up and running. And you have to be RELENTLESS.

Starting and running your own business is not for the feeble willed. I know, I know, I'll have offended some people with that comment but it's true.

It doesn't matter how clever you are, if you're not filled to the brim with good minded determination and a "bountiful" attitude, you're not going anywhere.

To run your own business can be the hardest thing in the world, but also the most satisfying. And to get the right mind set means self improvement, which is something a lot of people aren't prepared to do.

*phew* Sorry, shall I get off my soapbox?

Mike: Ah, the exception to the rule. ;-)

You actually own the products, so it's understandable you would offer that service.

However, some resellers don't own the products, but offer their pages and zip files for download. No, I'm not going to name names, that's the fastest way to a court case.

But tell me, are your download pages and zip files just generic ones, or do you try to get people to sign up to your list?

I'm chuckling here, and I'm not trying to be unpleasant. If you're not list building, you should be. ;-)

I tell you what though, I would like to know how you actually do go about providing the downloads. Seriously.

Every day's a school day as far as I'm concerned, and if you have some clever method of serving people who resell your ebooks, I'd love to know.

Mario: If it's reselling ebooks you intend to do, then I would boil it down to saying you make it pay through eBay by building a mailing list. A mailing list is a long term business asset that no-one can take away from you, not a Google slap, not a new eBay rule, nothing.

Your mailing list will always be a group of people you can turn to for help, or to make offers to. But it's very important to remember it's a 2-way thing.

(No, I don't mean you can send me your affiliate links! ;-) Not until I'm on your list anyway…)

***

Okay, just one last thing now. I stopped while writing this to have a quick text chat with a friend of mine. It looks like we're going to JV on something that's sort of related to the illegal selling of ebooks on eBay which I mentioned above.

Here's a question for everyone who's interested.

How many people do you think would sell an ebook on eBay illegally if it had their name, email address and home (or business) address inside it?

;-)

Hi Frank,

I like those scenarios, I'm about to start selling e-books
on e-bay, and this article has been a big help!

Thanks Frank!

~jeff davis

September 11, 2007

Tim :

Hi Frank,
IMHO, the inclusion of an identity stamp and other details would 'deter' most (thre quarters of) folks from illegitimately selling an eBook.

The challenge I see is to ensure they've given you the correct data input at the start to begin with (G I = G O). Thus some verifications and cross ref checking of provided data is needed?

Regards,
Tim

Every thing really does come down to the list….I don't like the tactic but I certainly understand the reasoning. It's a very competitive world out there with everyone trying to make some extra cash. Hmmm…does anyone remember when it only took one income to make a good living?
To keep my sanity I try to overdeliver and make true,real friends and customers.
cheers!

Tim: Usually after payment, the payment processor sends all details back to your web site, including your full name, email address and home or business address.

This usually can't be faked with out the credit card transaction failing.

If you then had some method of embedding / rebranding a PDF "on the fly" with that detail, even before it was downloaded, then it would be (IMO) impossible to share.

Think about it. You just couldn't risk it. If you gave even one copy to a friend with strict instructions not to give it to anyone else, and then they broke and shared it with one other person with the same strict instructions, and so on…

Eventually someone would break completely and say to themselves "well I don't know this guy, I'll send it to all my friends or maybe I'll post it on that forum I go to…"

And then it's all over the web with the original person's name and address in it.

Hans: Building your list is the most important thing you can do online as this becomes your main method of doing your job as an affiliate.

Think of it like this. Your job is to connect the buyer with the seller (and take your cut) to create a win-win-win situation.

The buyer gets what they want. The seller gets paid. You get paid. Usually, everyone is happy. ;-)

September 18, 2007

Chris :

Really useful eBook tips. Thanks mate

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