Joined: 13 Jun 06
30 Sep 07 9:59 pm
Hah! This is a very good question! I don't think it's quite as straightforward as it seems, Randy. While you might see the initial income generated from the product itself, there are undoubtedly a whole bunch of other little cogs turning in the background, designed to make money.
For instance, we've all seen products promoted by gurus selling for what seems like a ridiculously low price (or even free). Are they making their millions on these products? No. But you can bet that now they have you on their list, you're going to have a lot more (more expensive) products promoted to you. So they make money on the backend.
There's also the idea (its been mentioned here before) that once someone buys from you once, it's easier to sell to them a second time. Basically, if you've got the ear of a bunch of people, its a pretty powerful thing. Thats why we tell you guys to build good quality newsletter lists! A list is a huge asset.
And then there's the less cynical explanation: If these guys approached everything with the "that's small fry!" attitude, they'd never earn anything. Plus if you want to be a giant IM guru, (with all the benefits that that entails) you need to put products out there now and again.
There's a whole bunch of reasons... none of us know what their master plan is, so we can't know how this fits in. We can only guess!