One of the income streams many bloggers consider, when thinking about monetizing their blog, is the sale of ebooks.
This makes a lot of sense. Ebooks are easy to produce, they can be distributed with ease and there are no issues regarding stock levels etc. Equally, if your readers value what you have to say, and they believe there will be something uniquely valuable in the ebook, you have a ready audience to market your ebook to.
However, as best-selling author and social media expert Chris Brogan has just discovered, there are some genuine issues regarding the ebook format and perceived value. This is an important subject for anyone wondering what price they can realistically charge for an ebook, if they want to maximise their profits from it.
Ebooks are rare, in that it costs around the same to produce and deliver 1,000,000 as it does for 10. Once the initial design costs etc have been met, the actual digital ebook costs almost nothing. In other words, you have the opportunity to make a million, by making a million sales at around $1 – or making 10,000 sales at $100. So, setting the price correctly is essential – so that you get the balance right, to leverage the maximum number of sales.
Ebook pricing and value
Chris Brogan is one of over a dozen A-List bloggers, who have jointly authored an ebook, which promises to tell readers how to make money through their blogs. When Chris wrote a blog post to promote the ebook, which he and the other authors are all affiliates of (called Beyond Blogging), a heated debate ensued in the comments section, regarding the ebook’s $47 price tag (which increases to almost $100 after the introductory period has expired!)
Reading through the comments, it seems the primary issues people have are related to the fact that the book is available in electronic format, rather than paper. Some think that the price is simply unjustifiable for an ebook.
Common sense dictates that if an ebook contains $1,000 of value and costs $100, it represents good value. The format should not become part of the value equation. But it does. And this is why I wanted to mention it here. It’s something that budding ebook authors need to be aware of, so they can plan for value objections.
If an ebook that’s written and marketed by A-List bloggers has this kind of perceived value problem, just imagine the kind of problem it would create for mere mortals like us.
Those guys have fans.
We have readers.
Fans might pay $100 for an ebook from one of these A-Listers. Some will even buy the book, just to get a mention or a “thank you” Tweet from them. Readers will be a lot harder to convince.
What may happen as a result of this ebook and the debate its pricing has caused, is that there will be a shift in how people value ebook content. I would really like to know what you think about that.
What do you think?
Would the ebook format stop you from paying $100 for some information?
Might the debate around this ebook and its price, increase the cost of ebooks generally?
What’s the most you have paid for an ebook?
Please share your thoughts on ebooks, with a comment.
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In my early web days, I equated ebook with poor information and hence would not pay. I think that still holds true to a large extent because authors self-edit quite poorly.
However, I have purchased and enjoyed many ebooks. The most I’ve paid for one is $39. The book is out of print and I really wanted to read it.
$100 seems excessive but knowing how I much I value quality information, I can see myself paying that amount for the right content. I’d be influenced by reviews and author information/familiarity.
Needing to print the ebook was a turnoff until a new printer allowed double-sided A5 booklet printing.
Hi Reeta. I think the $39 price point seems the typical ‘high end’ price, which people will pay for a business-related ebook.
It will be interesting to see how this one sells, if indeed we ever find out.
Thanks as always for the feedback.
I guess Kindle will change the marketplace a lot.
The most I ever spent on an ebook was £60 which is close to $100. It was a copy and paste of a lot of webpages and then 20 pages of courier companies copied from the yellow pages. At the time I was bemused by it, but couldn’t buy similar in physical form.
This spurred us into writing our own ebooks, which sell nicely and are original work by my husband, edited and proof read.
The good thing about the e format is that we can update the book, and update all the books with the touch of a button, so they are the most up to date courier guides on the web – you dont get that in a ‘real’ book!
Hello Sarah. The ebook format has a number of benefits for the seller; with the ability to update easily being one of them.
Thanks for sharing your experiences.
I think the problem is that there is so much information out there regarding the topics covered in the ebook (and for free) that it does seem excessive. Also, what new stuff will I learn that hasn’t been written about by the bloggers involved?
Valeria Maltoni, for example, has offered two multi-author ebooks the last couple of years that have been free. Darren Rowse did the 30 Day Blogger Challenge for free as well over at his pro-blogger blog.
I think we’re all getting tired of the same recycled stuff. Granted, I haven’t read the ebook but unless you’re telling me something completely new, then $100 is excessive no matter who you are and what the ebook is about.
Thanks for widening the debate, Danny.
I believe your point regarding the content value is a far more valid argument against the $100 price, than the fact the data is in ebook format.
Several of the bloggers involved in this project give this information away for free, which for me, devalues the ebook itself. This is the reason I will not be buying it – as opposed to the format.
Thanks as ever for some thought provoking points Danny.
Agreed, Jim – it’s been the problem with many of the social media/marketing books that are doing the rounds at the minute. For blog readers of people like Chris Brogan, Mitch Joel and others, it might seem a rehash of what’s already there. And, like you say, non-one wants to pay for old news.
I agree with both of you guys. The big problem I see with “social media” ebooks and associated products is that they’re all spewing out the same topics over and over.
Especially with people like Chris Brogan who provide so much free value on their blogs, what’s the value in buying a $100 e-book of the same info?
The only possible value I can see is having all that information in one place, but how is that any different than just going to the author’s blog?
….and that’s exactly the point Tim. Sure, you could spend a year reading all the featured blogger’s sites, building a relationship with each to the point where you had some interaction with them and could begin to get some ideas and help – that’s the route I chose.
Or you could invest $47 in the book and get a good deal of that information in once place and glean it in a few hours.
And that’s where the cost / value equation kicks in. For you, as an already successful blogger, it may not be worth $47 (not sure where the $100 rumour started, but not true) but to someone who wants to start a blog today, with the objective of earning a sustainable income, then it may be a wise investment, in terms of time saving alone.
Hi Mike. The $100 rumour is no mystery. Chris Brogan, one of those featured in the book, blogged that the price of the book would increase to $97. Chris wrote:
“I’m an affiliate for the Beyond Blogging ebook. In the comments section of this post, people questioned the $47 cost of the ebook (which I think goes up to $97 after a fashion).”
Hope that helps.
Thanks Jim. Much as it pains me to write these words, Chris is wrong about that.
Mike,
I’m really surprised at that.
My only criteria for a product is “will I get enough value to justify the price?”. This is why I will pay $10,000 for certain information and at the same time will not enter my email address for other information.
You will never please everyone (nor should you). Many people only look at the price and do not consider the value, those are going to be the people you could never help at any price. Other people will be happy if they get one actionable idea because they know they will make many times the cover price back in profits from implementing it.
The format only comes into play in regards to if I am going to effectively consume and implement it. If they could slot a chip into my brain neuromancer style I would be much happier, but until then I tend to avoid audio products while other people seem to see them as higher value than ebooks, so as always YMMV
Hi Chris. I agree 100% regarding the format. In fact, I prefer information in digital form – according amazon’s success with the Kindle, I’m not alone either. I prefer audio, as I can’t read a book in the gym, driving etc, but ebooks are better for me than regular paper ones (and lighter to carry)
Thanks for the feedback.
There have been $100 ebooks for years. My parents paid about $1200 for a course on internet marketing that ended up saying stuff like, “make a blog, get on social networks.” They then called me and said, “you must be doing it right, according to this.”
People pay what they perceive as a value.
Here’s a hint: most of the people we know and blog about aren’t the target. If you know how to do what we know how to do, you don’t have to buy it. Make sense?
That’s a big factor. I read a story about a woman in Africa who bought a sewing machine to launch a business. Her business was to sew for people who didn’t know how. In her world, she was successful because she transfered her knowledge to people who needed it.
This is no different. You’re not the target audience, so having you and Danny say that it’s all old hat, no kidding. For you.
Mike and Nathan are selling this to the people freshly washed up on our shores.
Thanks for the comment Chris.
My point was regarding the fact that typically, ebooks don’t average out at $100 a copy. Yes, there are (and have been for years) ebooks that delivered market information / data etc that have sold for more than $100, but these are memorable because they are not the norm. My question was whether or not 2010 will see the start of $100 ebooks being commonplace.
Your closing point about the ebook being aimed at “people freshly washed up on our shores”, makes sense to me.
Thanks again for the feedback, and good luck with the book.
Wasn’t saying it is old hat, Chris – just that it could be perceived as having already been covered, even for new readers or bloggers.
Then again, all music stems from just three basic chords, and that seems to have done alright for itself over the years
See, I think of Chris Brogan and folks as people pushing the envelope, developing new ideas, rather than marketing to the “people freshly washed up on our shores” with the same old stuff they’ve been saying for over a year now.
That’s my reasoning behind questioning this latest project. All these “thought leaders” in this space and they come up with a “make a million dollars blogging” book? Seems like they could step it up a bit with their knowledge.
Shouldn’t he be able to do both? It’s not just about you, is it?
Jim,
Danny raises a key point to which I will add that most of the free content on this subject is crap so when I saw the announcement, I wondered “What else is there to say?”
But I am intrigued because of the reputation of the writers so I go to the Beyond Blogging website to check it out.
For me, the page falls short – there are no samples of the content to help me judge the value. There is no table of contents so I can see who is writing about what.
Unfortunately, there is a page design/format that I hate – that long winded used car sales format always has (and will) turn my stomach.
So, combine`my initial apprehension with a lack of information and presentation that makes me want to bath – and I can safely say that the age of the $100 ebook didn’t arrive with this specific book.
Hi Pat. As a marketing guy myself, I was also a little surprised at the format used on the ebooks website. It seems from Chris Brogan’s comment here, that the book is aimed at people new to blogging. Maybe that’s why they chose that approach? There’s some very savvy people involved and I assume that they did some serious research before using that format.
Thanks for the feedback.
Hi Pat,
The “free content” I was referring to was the existing stuff from the authors, or respected people in their fields (Valeria and Darren most definitely fall within that). Generally, yes, a lot of free ebooks are simply PLR from a mish-mash of resources, and haphazard to say the least.
I agree the sales page/MLM approach kinda put me off, too – though I’ve never been a fan of that format.
I can’t stand that scammy sales page design either. I still don’t understand who buys from those pages – they just scream total scam to me.
And to see someone like Chris Brogan who has built up trust with me support such a design? Sad to see. Although I’m definitely not the target audience for the book anyway, so I suppose my opinion is irrelevant anyway.
Of course your opinion isn’t irrelevant Tim, even if you aren’t the target market for the book.
But I do object to you using the word “Scammy” all over the web about the sales page. That really, really ticks me off, because if you knew me, or you took some time to read my blog or previous books, you would know how much I hate the typical sales page as used by many internet marketers.
Every time I see one of your comments, I go back to the sales page and read it again, and I look hard for anything “scammy.”
What I see is a lot of information, a few (genuine) testimonials from people who you can contact easily, and a bunch of facts that I know describes what is being bought in some detail.
Let me throw down the gauntlet to you:
1/ Buy the book and read it. You’ll have the same completely unconditional guarantee everybody else has. If you don’t enjoy it, and don’t get any benefit from it, email me or Nathan. You’ll have a full refund, no questions asked, within moments. So far, only one person has asked for a refund – these are his words ” In summary, I thought the ebook was fine for beginners.”
2/ Tell us how you feel the sales page should look, or even design one for us (happy to pay!). This is a long term project, it’s not about a flash in the pan – we’ll even split test alternative sales pages, and as long as they continue to do the job, then we’ll stick with any new design.
Are you up for the challenge?
I’ve been thinking about this ebook a lot too so I’m really glad you got the discussion started over here.
I think the $100 might be doable because of who’s involved. 15 of the top bloggers promoting a book will drive some sales at pretty much any price point.
I think people are put off by the higher priced e-books because they’ve become so accustomed to getting their information for free. If it’s not on wikipedia, it must not exist right? It’s just hard to charge for anything online these days.
Is it fair? Perhaps not, but who cares…it’s happening.
Do I think we’ll see more ebooks priced at $100 in 2010? I don’t think so. I think it’s hard to sell something so intangible, with no clear, foreseeable value (you have to read it to know how valuable it is), for such a high price. Then again, it’s all about how you market it right? Perhaps if you have enough testimonials declaring the great deal of value you’ll find the ebook, people will be more inclined to take the risk.
Personally, I don’t think I’d ever pay $100 for an ebook, or a regular book for that matter.
David
Community Manager, Scribnia.com
Interestingly I’ve experienced better sales when split testing price for an ebook at $67 and $97 than $47.
Yes, it has something to do with fans – which certainly has something to do with pre-selling.
I get about 2% conversions on straight sales page, at least double that from opt-in sequence in the first 10 days and still greater than that from more established mailing list (the fans as you call them)
The objective of an ebook writer should be to determine what highly desired outcome their market wants and target that square on – the higher and more insanely passionate the market, the more they will pay for information that promises to help them get what they want.
Guys/gals, this is a great debate, glad I found it.
Lot’s of things I’d like to get to, and I hope I don’t miss any…
First of all, I think there is a bit of a discrepancy in the price. We don’t intend to raise the price…what we intend to raise is the price of the consulting…I’m sure you can agree that charging around $50 for an hour of your time, let alone 2 of you combined, probably sounds unreasonable. It’s the same deal there. So, really we’re not talking about a 97 ebook (although I think it could support a price that high, we don’t plan on trying).
Now, the 2nd point, which seems to be causing quite a stir, is the sales page. People like you (all of you here), are used to pulling the trigger on books like this. You probably don’t need a lot of info to pull the trigger, but there are a LOT of people…beginners especially, that still print out long copy.
Frankly, I don’t like writing it, and I know it turns people away, but it also works for a lot of people…that’s why so many people use it.
We tried to avoid yellow highlighter, ridiculous claims, etc…but I’ll be honest, I get worked up writing about our book. I’m extremely passionate about it, and I’m wrapped up in it…in an admittedly subjective fashion. Is that an excuse? No, but it’s the truth.
We wanted to get some sample chapters out there, but what do you give…which chapter? Some of each? Frankly, the design was finished just in time, so we just didn’t make it that far, but we plan on doing what we can in the future.
The content? Yeah, it might be old hat for you, but there is a lot of good stuff in there too. I sent out a lot of copies to people that I thought would be interested. Some of you probably should have gotten them as well, but maybe we should have a beer or two and talk about it…
Anyway, I sent out copies blindly, and almost everyone either said yes I’ll be an affiliate, or yes I’ll Tweet…etc. The content is good, it might not be revolutionary, but I think it is different…it puts it all in one place, and it’s the culmination of 5 months worth of work. You guys/gals hang out with these bloggers, but think about the disconnect for the rest of the blogosphere. Thing about the people that are too scared to ask or don’t know how to find this info.
We can’t make it for everyone, but we’ll try and follow up with something for everyone. If we priced it at 10 bucks, we might have sold a few hundred more, but we might have remained in the red for the project…who knows?
Consider that there are affiliates, 2 authors, and design/production costs and you’ll see what I mean.
People need different things at different stages, and you never know where that final piece of the puzzle will come from. This project was born out of a desire to be the Think and Grow Rich of Blogging. Did we make it? I can’t say, that’s up for the readers to decide.
Thanks for having me.
Nathan
What I’m getting a little tired of is those ebooks that you get for free that say ‘this book is valued at $97 but I’m giving it to you for free’
Why is it that so many ebooks are valued at $97? Do they all have the exact same amount of experience and spent the exact same amount of time writing and producing the ebook?
How do you determine the books worth at $97?
Sarge | BeginnerBlogger.com
(UPDATE)
Sorry that so many comments were stuck in moderation. The software here had been set up to moderate everyone’s initial comment.
This slowed the conversation down and has now been revised, to let most of the good stuff through.
Thanks for being cool enough to get involved, and sorry for the delay in publishing.
I will never, ever purchase an ebook costing $97 again, especially if it promised the secrets to getting laid, making money online, getting a six pack without exercise, becoming permanently happy, or getting enlightened without effort.
Almost nobody is successfully selling $97 ebooks on any other topics anyhow.
Greed isn’t a business model.
I have to say I’m with you Duff. I wouldn’t buy a $97 book either. And just to reiterate, Beyond Blogging will not be sold at $97, and was never intended to be.
And like you, I wouldn’t buy any book on the subjects you list.
I’d have to disagree with the last part though – there are a lot of people very successfully selling books at those kind of prices. You and I wouldn’t buy them, but plenty of people do.
What really bothers me about your comment is the last part…greed.
Is asking to be compensated greedy?
I don’t think so.
Do you know why books like Trust Agents and Crush it are priced under 20? It’s because they know they’ll sell thousands/hundreds of thousands/millions…enough to recoup the costs and make everyone a little bit of cash.
It’s the same with ebooks, only they don’t have the same distribution channels, they are priced higher.
I’m disappointed that you see it as greed.
I’ve had a look at the book and it is a book for people that need to get motivated and inspired to start blogging a creating their own business empire. It tells good stories of people that have done it before.
Then again, there is very little of practical advice on how to get started or how exactly to do it so another resource would be needed for guys that do want to start a blog after reading this book.
If you already do read Chris Brogan and other bloggers profiled, there is no real reason to buy this book. Better is to just go to your own blog and write the best post you can and then go out into social media and connect with people that would love to read the value you just provided.
Hi Marko. It’s helpful to hear from someone that’s actually read the book and not being paid to endorse it.
Thanks for sharing your feedback.
I suppose the reason we didn’t get into “how to set up your sidebar” or “how to install WP” is because it’s not within the context of the book.
For an example, we talk about video blogging, podcasting, and regular blogging. There isn’t really a cookie cutter method, outside of our blueprint, that would apply to everyone…wouldn’t you agree?
As you said in your review, that’s where blogs like yours come in to place.
I still think there is something that can be learned from the book, even for people that already blog.
We just want bloggers to take a bigger approach to blogging and not just think about AdSense and banner ads.
Jim, I’d be happy to talk about the book. nathan at nathanhangen dot com