As I’ve stated before on this blog, creating information products is currently perhaps one of the best ways of making money online. However, I recently came across something which truly blew me away - and if you are smart enough to realize the implications, it may blow you away too.

SitePoint’s Marketplace is a place where people basically buy and sell websites. Every so often I’ll take a look there, to see what’s being sold and how much it’s selling for.

Well, take a look at this listing - I took a screenshot (which you can view by clicking here)

Here’s what’s amazing about it. The guy had created an information product called Pure Pitch, which basically “teaches musicians ‘pitch recognition’ through a series of audio exercises, and includes an illustrated 120-page manual.”

Now here’s where I really want you to pay attention. The site was launched on 1st February 2008. He listed his site for sale on 28th March 2008 in the SitePoint Marketplace - and it sold for $25,000.

Did you hear that?…

A 2 month old site and product sold for $25,000!

Now, I want you to study that auction and really understand how he was able to achieve that kind of valuation - you know why? Because there’s absolutely no reason why you can’t do the same!

Absolutely everything that he did, you can do - and I mean everything. Over the coming weeks I’m going to show you how it’s all done, right here on this blog. The cost to you will be nothing - except your time. (That’s why you absolutely must subscribe, unless you don’t like money.)

Now, first of all he created the product. That was probably the hardest part, but it’s actually a lot easier to create products than you might imagine, and right here on this blog I’ll show you how.

Next, he created the site and sales letter. They also present their own challenges, but nothing that can’t be overcome.

Finally, he created an affiliate programme through Clickbank. Clickbank have a built-in marketplace where an army of affiliates can find products to promote, and it seems that the only promotion he did was on the Clickbank Marketplace, and on eBay.

And for doing these things, he got paid $25,000.

Now, I really believe that the person who sold this was incredibly smart. You can’t normally throw up a site and sell it for $25,000 two months later - but here’s why I think this was so effective:

• He demonstrated profits. He said: “In the last 2 months since its launch Pure Pitch has earned $9,500 net ($5,000 profit). I spend $0 on marketing. It is all done by affiliates.”
• He demonstrated value. He explained that he was asking for $20-$25K, based on an average profit of $2,000 for 12 months. He also made clear that the product had a shelf life of at least 5 years, which could bring in revenue of $120,000 over that period.
• He showed potentials for increased profits. He emphasized that he wasn’t really promoting it, and added: “With just a little promotion this website will definitely grow into a great source of residual income. The great thing about this product is that you can create joint ventures with all music-related websites. There is such huge potential for this product, which is why I wish I could keep it…”
• He gave a genuine reason for sale: “… but my debts need to be paid.”
• He provided “proofs”, in the form of screenshots from inside his Clickbank account and his web statistics account.

There’s also a subtle form of risk reversal involved. Smart marketers are always looking for niches in which to enter, but they want to know that it’s profitable. By creating the product and successfully selling it, he’d effectively reversed the risk for people who were considering entering a niche - here was one that was proven to be profitable.

Now, this was such a slick auction that I suspect the entire product might have been deliberately created just to be sold off in this manner shortly afterwards. Of course, I could be wildly wrong here, but it doesn’t really matter either way.

The point is, do you see the potential here? A niche product was created, put on Clickbank, some sales made, then sold for $25,000 in the space of 2 months! (OK, we don’t know how long it took for him to create the product - that’s the only “unknown” factor).

And that, my friends, is an amazing twist on Information Marketing.

Was it overvalued? Not at all! As the seller stated, there was huge potential for plenty of additional profits through affiliates, joint ventures, advertising, backend sales and so on.

Incidentally, don’t be afraid if any of those terms baffle you… we’re going to explain absolutely everything you need to know right here on this blog. This isn’t just another “make money online” blog, remember?

So how do you go about creating information products in the first place? Stay tuned…