The Problem With Information Products

By February 27, 2010 General 13 Comments

I announced earlier this year my plans for 2010, which will see me moving away from creating information products. Sure, information marketing has given me the opportunity to quit my job, start a company, and become somewhat popular in a small niche.

But I really want to achieve more than that, and I decided last year that the only way to move forward is to forget about information marketing. Instead, I now see information as the “icing on the cake” type of business.

It’s great and easy to do when you have already built a strong business model doing something else. But to depend on it solely is suicide. It’s the truth.

What is the problem with information marketing?

Firstly, for the sake of people who still don’t get it, “information marketing” basically involves selling in-demand “how to” information on a particular topic. People are willing to pay for that information because they perceive you as the expert who has inside information, experience and a proven method for success.

In my case, the topic has mostly been about blogging and making money online.

Information marketing has 5 serious flaws:

  • It gets outdated easily – Unless you’re in an evergreen market like dating, losing weight etc, from the moment you sell your information product it’s on a downward spiral to being viewed as “old” or “outdated”.
  • “Version 2” always fails to excite – Publish a successful e-book today, lots of marketers are interested in promoting it. A year later come up with version 2 and you’ll be lucky to get the same level of success. There are exceptions of course.
  • Your scope is limited – You may be an expert in one field. But how many different e-books can you spin on the same topic? I know some marketers who produce tons of new e-books and membership sites on just one topic (and are successful at it), but the truth is that each of those products contain 80% the same information. If you are honest to yourself, it is not good value to your loyal customers.
  • It’s not truly scalable – You are the expert. You must be the one creating the actual “information” part of the product. Sure you can have a big team to do everything else, but people buy the product because of you. It’s impossible to train your staff to become you.
  • Shrinking residual income – Now, creating any information product by itself will get you some sort of residual income. But it’s always on a downward trend, refer to point number 1 and 2. The only real solution is to keep coming up with new information products.

Now, I’m not saying that I will never create an information products again. Rest assured, I have mastered the art and I will create them from time to time. However, it’s not going to my bread and butter.

So then what will?

I’ve decided to move towards creating software applications. Not just any type of software, but specifically web marketing software.

After searching my soul for the truth, I realize if I want to move forwards, software is the answer. It’s the only way to keep moving forward, make improvements, and still achieve ever-growing residual income.

It’s the only real solution to grow an Internet marketing company exponentially. It’s also the most profitable option in the long run.

Sure, there are many players in the software game. Just as there are many players in the information marketing game. But I have an edge here that is unique to me, which no one else has. What this “edge” is I rather not say until it’s proven.

I am pretty confident that I can be successful in launching at least two profitable software applications within this year. This is the year that I need to breakthrough to the next level.

I will do it.

About Gobala Krishnan

Gobala Krishnan is the founder of Kreydle, and the mastermind behind all our awesome projects. A failed rockstar, Gobala now uses his wicked skills on the guitar to terrorize his colleagues and make them want to buy overpriced Beats stuff for some inner peace.


  • MiL says:

    Hi Gobala,

    Few years ago I’d bought your best product ‘Chapter-M’.. it help me a lot wire transfer from paypal using debit card..

    And thanks a lot for the virtual office information.. & affiliates marketing.. It help me generate about rm600 for two weeks using paydotcom.

    But the problem is, sometime my income is zero (most of my income zero) for internet marketing.. I’m surprise looking at your big check.. !! Nearly USD30k..

    Dude, how did you do? Any seminar or ebook about your SECRET SUCCESS..??


  • MiL says:

    [q]creating software applications[/q]

    Just my 5 cents.. How bout ‘Facebook Application’.. Cannot wait for ur application software..

  • Matthew Liow says:

    Welll said. Wish you all the best in your new exploration.

    I once had this idea of going into software application but decide not to go into it because I don’t have the programming and technical skills.

    I decide to offer my service to people who have problems. It is like balancing the supply and demand sides.

  • Mr Entre says:

    Hi Gobala, interesting point. However, I notice that most successful software sold on Clickbank are usually Forex robots…whats your take on this?

  • MiL says:

    Thanks guys..

    Matthew Liow wrote;
    [Q]I decide to offer my service to people who have problems. It is like balancing the supply and demand sides.[/Q]

    And Mr Entre wrote;
    [Q]I notice that most successful software sold on Clickbank are usually Forex robots…whats your take on this?[/Q]

    I believe all of you guys know how to access.. the statistic/analysis of what usually the customer always looking for product at ClickBank rite..?

    Hmm, Mr Gobala.. are you willing to share the information.. Hahaha.. :) or have a price for it..?? :))

    I think you’ve touch this topic in chapter-m before rite.. Hmm..
    Let me check it out first..
    Thanks a lot guys..


  • comBlogger says:

    Only problem with Software products is that the investment is much higher than the information products.

  • rayman says:

    Gobala, would u say that ebook is a dying business? Once the ebook is sold, anyone can read and rephrase the knowledge and put it on their blog for some adsense bucks…

    You cannot stop knowledge being disseminated by saying “The content of this ebook is copyrighted, please do not repharase & publish”

    Actually, when u created the ebook, you have read tons of other ebooks & rephrase the knowledge you gain before… now you do not want others to do the same to yr ebook .. (i am not talking about yr ebook gobala… … just any ebook in general)

    • @ rayman – Information marketing is more about the credibility of the source, not the actual information itself. But yes, anyone who reads your ebook today can *technically* start selling their own version tomorrow.

  • Fariq Hamdan says:

    They promise the world, but in reality.. not so. It is still the basic, that is trust and credibility.

  • Friedbeef says:

    Hi saw you at wordcamp and decided to check out what you’ve been up to recently. Anyhow, I have to say point #3 is an honest statement I wish more IM practitioners would acknowledge rather than hype EVERYTHING up as the latest and greatest secret. Kudos to you!

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