E-Book Business Model: VERY interesting

J

JonusBohr

New member
Feb 10, 2010
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Setting Up an E-Book Brand

The business model for ebooks is fairly simple, with just a few core costs and operations. So here they are labeled with possible cost forecasting, and issues I currently have with this system.

Web-Hosting: Under $25 (b/c it's not a social network, bandwidth not an issue)

Website Design: ????? how much? Where to get it?
  • Why do they all look cheesy? SHOULD they look that way?
  • What's the difference between a "landing page" and "sales letter"
  • I don't want to get ripped off, how much should I pay? who should I buy from?

Marketing: ????? how much? Where to get it?
  • SEO takes too long!
  • Pay per hour? but how many clicks is that? What's the expected return rate?
  • How much CPM should you REALLY be paying?
  • Is there any way to get a marketer to take only comission not on Clickbank?

Finance & Product Delivery:
  • What's the best way to get money out? ClickBank? Paypal?
  • Will people just steal and rip-off the ebook after you get some buyers?

$P is price of book, Q is quantity of book sold.

Revenue: $P * Q
COGS: CPM*Thousands of hits
Sales Profit: $P*Q - COGS
=
$25 * 100 = $2500 - ???? = ??? Sales Profit?

Web Hosting Cost: $25

Website Design: $???

TOTAL PROFIT: REVENUE - $25 - COGS - Design

SAMPLE quarter:

CPM is $5 & you get 1% Conversion rate @ $25 book. Buy 10,000 clicks for $50, that's 100 sales for $2500.

HOWEVER, if CPM gets too high, then there are issues....

Furthermore, you may get bad traffic that converts low, or have a bad sales page.

So, the key problem is HOW and WHERE do you get a good sales page and good marketer?

Let me know what you think.
 


CPM is $5 & you get 1% Conversion rate @ $25 book. Buy 10,000 clicks for $50, that's 100 sales for $2500.
Click to expand...

CPM is cost per 1000 impressions not clicks. So you're buying 10,000 impressions for $50 - and probably 100 clicks - and probably 1 sale for $25.
 
I wouldn't do CPM rates for ebook sales. Unless you are targeting a specific market. Like 'how to garden' on a gardening for beginners site.
 
you have ZERO tested marketing plans and you are already forecasting revenue? go research your demographic on the traffic sources you plan to test on and get DATA before you make claims like this.. if you aren't able to get the CPCs or even the CTRs that you need, then your campaign will not perform how you expect.. whenever I think of launching product ideas I ALWAYS get data first
 
I wasn't forecasting.... I was making a sample of how many hits you'd need to make money, and ask for critique. TY for the further explanation of CPM.

"Data" where? How? I'm not a marketer, I'm an author. Thus I'm a newbie on the marketing forums;p

I intend to pay for the website, then pay marketers to market the site.

I'm trying to figure out costing and WHAT is actually good. Many of the ebook sales letters are just SOOO terrible that it's crazy.... but is that REALLY the way it SHOULD look?
 
As I'm a newbie, this is in the NEWBIE section;p

If you have issue, please help me reform the simple business model, and probable costs, where to find them... etc.

This is a project I've been researching intensely the past 2days
 
About the cheesy websites and bad sales letters, look at products that sell really well in your niche and use those as examples. It doesn't matter if you as an intelligent person think it's bad. Your target audience may very well respond to it.
 
Looks like you got it all figured out. All you need now is persistence.

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Go to clickbank.

The first "products" listed in every category are the top sellers.

Look at their salespages.

Learn something.

Then stop thinking of e-books as revenue models.
 
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