The Methods of Making Money From an Informational Product

Everybody wants information. This is why we search on Google, watch the news, read non-fiction, ask for help, etc. Consequentially, providing useful information online is the best and easiest way to make money on the internet. Everyone is looking for information, so if you can provide it you have the ability to profit. Think about how much time you spend online each day. How much of that time are you looking for answers or information? Probably a majority.

There are many different methods that you can use to give information to people and generate an income at the same time. Each method has a unique way of organizing the information and the user experience is different as a result. A lot of profitable websites sometimes provide their visitors with a combination of more than one of these methods. Think about which of the following method(s) would best suit you for your niche. (in no particular order):

A Blog

A blog, short for “web-log”, is a great way to easily organize your information online because the blogging platform does all of the organizing for you. This website, for instance, is a blog. Whenever I want, I can log into my WordPress account, write in the “new post” area, click Publish and the website updates automatically.

It’s quick and easy, and the best part is that you can set up a Blog for free. There are many different blogging platforms, but the most popular seem to be and, so check those out if you would like more detailed information about blogging.


  • Easy to start, edit and manage your content
  • Builds an online community with your readers
  • Establishes you as an expert in your field
  • Blog can be used to promote a product of yours (i.e. an Ebook)
  • Can be free


  • There may be many similar blogs in the same niche already (how will you be different?)
  • It takes time (sometimes months or years) to establish yourself as an expert
  • Requires upkeep and constant attention to update content and respond to comments

How money is made:

  • Advertising. (Google Adsense, Text-Link Ads, Private Advertising, etc.)
  • Affiliate Links (Linking to a particular book and getting paid for leading a sale. for example)
  • Donations. Yes, if you provide useful information and a donation button, some people may be kind enough to donate to your cause.

Helpful Links:


An Ebook, or electronic book, is also a fantastic way to organize information and distribute it to people. Usually Ebooks come in an EXE or PDF format and can be easily viewed on most computers. Ebooks are becoming even more popular today, especially with’s new Ebook reading device, “The Kindle,” out on the market.


  • If you write and sell it yourself, there is no printing press to pay (it’s electronic, no paper!), no publishers and no retailers to take a chunk of the profit. Practically 100% of each sale is all yours.
  • There’s little or no upkeep once it’s finished.
  • It can earn you money for a time.
  • It’s easy to set up an affiliate program to have other websites sell your book for you too.


  • An Ebook can take a lot of time to write.
  • It’s difficult to sell an Ebook from scratch. In other words, if you don’t have an established audience already (i.e. from a blog or membership website), finding people to purchase your book can be a challenge.
  • Once the Ebook is published and is sold, the information inside cannot be updated if, for example, something you wrote has become outdated. This is why you’ll see different editions or versions of books come out sometimes.

How Money is Made:

  • Visitors click on a “Buy Now” button on your website, which takes them to a form to fill out with their billing information. After processing, money is put into your account.
  • and are the top two methods of selling electronic files online. I prefer E-Junkie, because they will also deliver the product for you, and they don’t take any money from your sales. Clickbank, however, has a better affiliate program, which is also important.
  • If you start an affiliate program, you can find affiliates who will sell your Ebook for you off of their website. You pay your affiliates a small “finder’s fee” for bringing in the sale.
  • Through an ebook distributing website such as Amazon or

Helpful Links:

Membership Sites

A membership site is a website that can be accessed with a password. People usually pay a one time or monthly fee to become a member and gain access to the information inside. I think membership sites are a powerful way to generate an income online, and I’m hoping to get involved with this very soon.


  • Immediately creates a sense of membership and community within the site.
  • Continuously updating and providing information in this way can guarantee that people will stick around and keep feeding you money each month.
  • As an owner and administrator of a membership site, you’re immediately seen as “the expert”. This is powerful because it can help you bring more members in, and also have the ability to easily sell things to the members you already have. (Although, you should never become too greedy!)
  • The payment system in a membership website, and is kind of a snowball effect. For instance, month one, you have 10 paying members. The next month, you gain 10 more paying members, for a total of 20 paying members.


  • Creating a membership site definitely takes a lot of hard work, time, and effort. You want to make sure that you are able to give your members what they are paying for. If you don’t, they’ll feel betrayed and leave.
  • Again, it can be difficult to bring in members if you don’t have an established audience or reputation already. Some money may be needed to invest in marketing the membership website to be able to get it off the ground before it takes off.
  • Although money is generated automatically, you can’t just dissapear and leave the content static. It’s reassuring to the members if new there is new stuff available every once and a while, which is good because it decreases the potential number of cancellations.

How Money is Made:

  • Members will be charged a one-time lifetime fee or a monthly fee for access to the information on the site.

Helpful Links:

In addition to the methods above, you can also sell tools and templates, newsletters, audio or visual products, and learning methods.

As you can see, you have a lot of options to choose from. You can also combine two or more of the metods to create an even bigger resource for people – it’s really up to you and what you feel most comfortable with.

If you are in no rush to make money, I would recommend starting with a blog, building readership and trust, and then sell an ebook or start a membership program to take your informational marketing to the next level.

  • Lindsay

    Thanks for the link, Pat!

    You know that now that you’ve written a successful ebook, the next step is to sell an ebook on how to write successful ebooks… 😉

  • Robin

    Thanks Pat! I just wanted to mention one more thing .. E-junkie works with ClickBank too .. so if you have the the kind of ebooks which needs ClickBank’s affiliate network, you can use E-junkie to automate and secure the delivery.

  • Sarah H.

    Nice overview here. I definitely agree with your concluding statement about starting a blog first and then trying an e-book or membership program once you have a good following. I’ve seen blogs recently that have done this with success.

  • Money

    I just wanted to say that I love this site

  • google profit house

    wonderful site you have here great information thanks so much will return when i have more time to read :)

  • Ron

    Ya know, I’ve read this article before Pat, but somehow reading it now gives it new meaning. The idea of having a membership site is beyond tantalizing, yet it seems like such a far off accomplishment.

    Are you still considering creating one of your own?

  • Moissanite

    Do you think someone can be an expert even though they are an affiliate? For example, my new site (definitely needs some work on it, just learning) in the link is a blog to learning everything about this product. However, I do not dropship or actually sell this in real life like my competitors. I haven’t found that “dream” topic I want an authority site on yet. I can’t wait when I do.

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  • Steven Leconte

    Thank you for sharing about all these different ways of making passive income online.

    I like the idea of starting a blog first or releasing some type of free content before trying to sell something to people.

    I have been creating blogs for people but I haven’t blogged in a while. These days I’m putting videos out on Youtube on how to do different things online.

    Once they pick up more momentum I will work on my blog and experience with different things you proposed here. Ultimately I would like to start selling hosting accounts because I believe it can become a great source of passive income.

    It would be like a membership site in the sense that people would pay the same amount once a year or every month.

    Which me luck! lol

  • Tansey Louis

    Good post pat! I have taken the approach of writing a kindle book prior to building an audience. The book is selling, but I am sure it would have sold much more if I had build up trust with an audience first. Now I am concentrating on building up my blog with relevant content before writing anymore ebooks.

    I like your approach pat. You plants seeds by giving away good value first. And you reap the harvest afterwards.

  • Sibo

    I got this great idea from Pat and was working on my e-book for just over 3 weeks. I will see what happens. Thank you for all the links you included here, Pat. There are great resources!

  • Amir Rimer

    Amazing advice Pat!

    I really like how you have ended the post because what you wrote goes along with my own beliefs.

    I always tell people who think about starting to make money online, that the best way to make money online is actually to start very simple, and without trying to sell anything.

    People must trust you if you want them to buy from you, so if you are in no rush to make money, then posting on your blog regularly for a few months / years is the best way to go.

  • Masterzeek

    I love reading these old blog posts. It motivates me to start at the beginning and just work my way through. I’ve started my site at and look forward to adding a lot of content over the next few months and years. Hopefully I can get it to a good spot. Thanks for the great work Pat!

    • elcodigodel tiempo

      Your website looks great ^^

      • Masterzeek

        Thanks! It’s always a work in progress though. Once you start you can’t stop!

  • elcodigodel tiempo

    This post has been very helpful but some of the links didn’t work D: