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Cutthroat Internet Marketing
Product Creation
©2006 By Willie Crawford
Create a
winning piece of software in the Internet
marketing
arena, and expect to see someone trying to copy
it within a
week!
Launch a profitable website around some unique
and innovative
concept, and expect to see someone setting up
something similar
within a week.
Create an ebook or other information product on
some new
idea (or an old idea expressed differently), and
expect to see
other experts on that topic mysteriously
appearing within a week.
In other words, if you create and market a
product online,
there are other online marketers who will see
that your
concept seems to be working better than theirs,
and they will
probably copy it. This can be very IRRITATING to
someone who
spends months.... perhaps even years, developing
something only
to have it quickly reverse engineered.
This is actually not a problem unique to the
online world.
In the offline world, before a business
introduces a product
it protects itself with patents, copyrights,
trademarks, and
similar forms of legal protection. They take
enforceable, legal
steps to protect their brand and their
invention. Most people
introducing products in the Internet marketing
arena don't
do this, perhaps because it can be an expensive
proposition.
They are often in business on the Internet
rather than offline
BECAUSE starting a business offline has so many
barriers to
entry.. such as high start-up costs.
Both online and offline, when someone creates a new
product
that's in-demand, they can literally charge whatever the
market's willing to pay. If they face no competition, this
price is higher than it would otherwise be. Without some
form
of legal barrier, others notice that a given business is
earning
a higher than "normal" ROI (often referred to as monopoly
profits), and this attract competitors. Competitors enter a
market, charge less, and drive the price down which
ultimately
benefits the consumer. This quickly erodes profits for the
original product creator.
Governments and other entities often grant legal protection
(copyrights, patents, trademarks, etc.) to protect
businesses
from competition. For example, they often do this when
there's
a huge research and development cost involved in bringing a
product to market, and companies need to be incentivized to
go
ahead with creating the product. Without some type of
protection to ensure that a drug manufacturer could recoup
their huge R&D costs, most large drug manufacturers
probably wouldn't proceed with developing many much-
needed drugs. As soon as they’ve recouped some of their
costs,
regulatory agencies generally allow other to produce cheaper
(generic) forms of the same product.
Taking this discussion back to the Internet marketing arena,
how does someone creating software, an ebook, or some
new service-product, protect their creation? How do they
keep
some copycat from reverse engineering their software? How
do they keep some "low-life" from going to Elance.com and
asking some programmer to create an EXACT duplicate of
their just-released software?
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