|The following excerpt is taken from my Do What You Love newsletter, a monthly printed newsletter I send to members of my Do What You Love Success Group only.To learn more about this newsletter and download the full issue for only $9.95, click here.|
For years, Internet marketers have relied on audio products for their back-end information products. The typical funnel of many marketers included low-cost, mass market books or eBooks on their front-end, and big packages of audio CDs on their back-end.
If you attended almost ANY business seminar just a few years ago, and took a look at what the speakers sold at the back of the room, almost all of them were selling big packages of CDs.
Compared to books, CDs had a much higher perceived value. One CD could typically be sold for $25, so a big package of 12 CDs could easily be sold for $250 or more.
At the time, everybody bought CDs. If you wanted music, you bought a CD. If you wanted to listen to personal development information, you got some CDs to play in your car.
Now fast-forward to 2010, and we’ll notice that CDs are on the way out. In my last survey to my list just 2 years ago, I found that at least 50% of my subscribers owned an MP3 player. Now in the age of smartphones, iPhones and iPods, the number of people who don’t own one of these devices is increasingly low. According to 24/7 WallSt:
Digital downloads accounted for 40% of all music sales in 2009, according to Nielsen SoundScan.
According to The Big Picture:
Another year, another collapse in CD sales.
For the eighth time in nine years, U.S. album sales declined. That’s according to data compiled by Nielsen SoundScan.
Album sales fell to 373.9 million units, a 12.7% decline from 2008. Total sales fell a whopping 52% since 2000. CDs still account for almost 80 percent of all album purchases.
Paid online song downloads continued to grow, but at a pace that was too slow to make up for lost CD sales.
Why do CDs still account for 80% of all album purchase? The answer is piracy. Most people get their music digitally, but more often than not, without paying for it. (By the way, I’m personally 100% against online music piracy and always purchase music on iTunes.)
A friend of mine, Paul Durham, is a full-time musician who publishes his own music for his amazing band Black Lab (see his strategy and listen to his music at www.blacklabworld.com).
He told me that 5 or 6 years ago, he still made 80% of his income from CD sales, and 20% from download. Now it’s the other way around, with iTunes being his main source of income (iTunes gives 70% of profits to the recording company, in this case, he gets all the profits since he’s self-publishing).
Even in my own life, although I sometimes still bought CDs for the extras (if it’s an artist I really liked), I’ve become so used to listening music digitally that I purchase almost all of my music on iTunes.
If I get a CD, I will immediately rip the CD and only listen to the music digitally on my iPod, only keeping the CD as a backup.
CD sales are going down, but with the average album selling for $9.95 on iTunes, the perceived value of digital audio has also gone down.
A big package of CDs still has more perceived value than a digital download of the same audios. But when faced with the choice between a package of downloadable MP3s at a lower price, and a package of CDs at a higher price (plus shipping), most customers now choose the digital download (at least that’s what I’ve found in my field).
There are other options of course. Some companies are even selling branded-media players (for example: http://www.myseminarplayer.com), or even flash-drives with pre-loaded content.
It’s the equivalent of selling people an iPod with your content on it!
Unfortunately, I think most people would value the iPod or other media player more than the actual content, which they can’t see or touch.
And they might even erase your content to make space for their music, because they value the player more than your content. So I don’t think the concept of branded media players will really fly.
CD Popularity Drops, Video Grows
At the same time, while CD popularity has dropped, almost everyone now owns a DVD player, and DVDs have now replaced old VHS 100%. Also, computers typically include a DVD drive and a lot of people use their computers to watch DVDs.
With the popularity of YouTube and online videos, video has become more and more important. Smart Internet marketers today are trying to push video products in their back-end, instead of relying on audio-only products.
Audio products also have their place, but video now has a higher perceived value.
The day has not yet arrived where DVDs are phased out completely to be replaced by digital video. Even before that happens, they will be most likely replaced by Blue-Ray discs for high-definition video. The bottom line: the physical video media discs are going to be with us for a long time, and their value will continue being perceived as high by the market.
So the reason why you should have video products is that they are perfect products for your back-end (the term “back-end” simply indicates the more expensive and important products that you offer, as opposed to the low-cost, entry level products such as books or eBooks. The term comes from the seminar world, where speakers would sell their products at the “back end” of the room).
How to Create a DVD Product
One of your goals should be to release a DVD product. Here are three main ways to create a DVD:
1) Film a live event, and put it on a DVD
2) Produce a DVD from scratch
3) Use screen-capture video
For more detailed information on how to create your own dvd products IN DETAIL and other internet business techniques check out my Do What You Love Success Group at http://www.dowhatyouloveuniversity.com/new.html
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“How To Create and Sell Video Products” for only $9.95 for the first month!
Find out how to make your own live videos, screen capture videos, the video editing software you need and how to determine what video your market needs.
Until next time!
Your question: What videos on health and alternative living are you most interested in on watching for free online and purchasing on DVD? What do you find the most value on?