In line with my previous blog titled ‘Passive Income 24/7’. Here is an excerpt from an article by Mark Coker that affirms my thinking that creating and selling information products are lucrative and the way to go.
2009 will go down in history as the year e-books went mainstream.
According to the Association of American Publishers (AAP), between 2002 and 2008, e-books grew at a compound annual rate of 58%, compared to 1.6% for the overall book industry. In the last two years, e-book growth has accelerated. In July 2009, the most recent reported by the AAP, sales increased 214%. Yet despite this growth, e-books accounted for only 1% of book sales.
AAP statistics dramatically understate the overall market share for e-books. AAP collects its data from about a dozen large publishers. Thousands of smaller independent publishers, as well as self-published authors, don’t report data to AAP.
Amazon’s e-book results point to an even larger market opportunity than indicated by the consumer surveys, especially for retailers with a strong e-book strategy. Amazon has announced that for books it sells in both print and Kindle editions, Kindle versions now account for 48% of unit sales. In February, the number was around 12%.
What’s driving the rise of e-books? A confluence of multiple, self-reinforcing factors, including:
1. Screen reading now rivals paper – Thanks to advances in screen-reading technology, today’s crop of e-reading devices offer a reading experience as good as, and sometimes better than paper.
2. Proliferation of multiple high-quality e-reading devices – Multiple e-reading devices satisfy different consumer preferences. In the next two years, entry-level mobile phones will feature e-book-ready screens and apps, which will dramatically expand the worldwide market for e-books. Last but not least, dedicated e-reading devices have introduced millions of additional readers to e-books.
3. Oprah Winfrey – In October 2008, Oprah dedicated an entire show to celebrating her favorite gadget, the Amazon Kindle. For millions of book lovers, this was their first introduction to e-books. Immediately following the segment, the rate of growth for ebooks accelerated.
4. Early adopters become new evangelists – Books have always been a word of mouth business, and ebooks are no different. Most people today have a “wow” experience when they try ebooks for the first time. These early adopters then evangelize ebooks to their friends.
5. Greater content selection – Hundreds of thousands of ebooks are now available for instant sampling, download and purchase. Within the next few years, the vast majority of books ever printed will probably be available in ebook form, and many of these books will be free.
6. Free books are gateway drug – Many consumers discover ebooks for the first time by downloading free books.
7. Portable library in the cloud – Books are moving from physical repositories (personal libraries, public libraries, book stores) to virtual repositories (personal online libraries, online public libraries, free online repositories, and online bookstores).
8. The slush pile, digitally liberated – Independent authors are adopting e-books as a format for rapid publishing. Whereas traditionally published print books require months or years to sell to a publisher, and then 12-18 months more before the books appear in bookstores, e-books offer instant publishing. Like a giant slush pile of digitally liberated books, these titles comprise gems of undiscovered brilliance.
9. Prices dropping – As prices drop further it will serve to accelerate e-reading adoption. One factor driving price drops is the proliferation of free e-books. Many talented indie authors also offer some of their e-books for free to build readership and fans.
10. Impulse buying – E-books are the ultimate impulse purchase. With a few clicks of a button, you can download dozens of free book samples in seconds. Today, ebooks offer instant sampling, immediate gratification and affordable reading pleasure.
eBook Strategies – For publishers an eBook is another form of revenue stream with multiple discounts and margins attached. For authors it’s also another form of revenue with many opportunities. If you have a book in print and struggling for sales, produce an eBook and begin giving some of the content away for free. It is estimated that a fiction title can actually give away as much as 30% of the content and still leave enough to entice the consumer to make a purchase. For non-fiction it’s not so clear but give away enough to make the reader want more. The best eBook strategies for authors trying to build an audience is (1) keep your price low, and (2) give away as much content as you can.
This article was posted in a newsletter circulated by Jerry D. Simmons – firstname.lastname@example.org.