Information at What Price? Exploring Fee-based e-Content

In pursuit of a paid model for content, many Businesses offer newsletters for a fee or ebooks. These models offer pros and cons. Some organizations send out two newsletters: fee and free. The free version has the basic, watered-down contents found in the fee version to entice readers into wanting more and paying for it. But is it worth the time and energy to do this?

ebooks are also a way for Businesses to make money. But do they sell when it's been proven that people prefer reading printed copy to electronic text? Read on to hear from several experts in the field about what people are willing to pay for and whether or not offering fee-based content is right for your organization.

Too much information!

Considering there are so many free newsletters and information out there, why should readers shell out the dough for these premium newsletters? Reading online is harder on the eyes because of the light emitted from the monitor. People overcome this by printing out the newsletter.

I can't hazard a guess on how many free newsletters are out there. So why would a person pay for a fee-based newsletter? Jenna Glatzer, editor-in-chief of AbsoluteWrite.com, says, "You have to offer something different and better than what the free newsletters are doing. Personally, I wouldn't pay for newsletters that are just for entertainment, but I do have paid subscriptions to a handful of newsletters that are specific to my line of work and appropriate for my level (not beginner). A paid newsletter that has all the same sorts of free-reprint articles that all the other sites have won't work. You must find a corner of the market that no one has claimed yet and be the most reliable source of information on it."

Joan Stewart, publisher of The Publicity Hound, started her subscription newsletter seven years ago, long before there was as much information on the Internet as there is today. She says, "Content must be king. If you can supply good content that can't be found elsewhere, and it's well-written and easy to read, and leads readers in other directions where they can find even more info than they could possibly need, you will keep your customers happy.

"If I had it to do over again, I would have never started my subscription newsletter. It started as an 8-page print newsletter, but the postage and printing costs were killing me," she says. "About two years ago, I reverted from a print newsletter to a PDF document. It's in the same format, but it's now emailed to customers. My free ezine, The Publicity Hound's Tips of the Week, is still far more profitable, several hundredfold, than the subscription newsletter."

Charging for ebooks

Considering there are no printing and paper costs to the publisher for ebooks, how can they charge as much as they do for them? Higher prices equal higher perceived value. However, I've seen many ebooks cost more than a paperback, and the content isn't always better quality than print. Yet, they sell.

What justifies the higher cost of ebooks when there are no printing costs involved with them? Christopher Knight, publisher of Ezine-Tips, says, "What justifies the higher cost of ebooks when there are no printing costs involved with them? Christopher Knight, publisher of Ezine-Tips, says, 'That would be a fallacy in perception logic because the printing cost is not relevant to the market perception of a paperback versus an ebook. In fact, I'd be willing to bet that some people even value an ebook as higher value than a paperback because they can take their data with them on a personal notebook computer, whereas it's hard to travel with a pile of paperback books.'"

Glatzer points out that whether a piece is written in print or ebook format, it is the same amount of work for the writer. "Of course, ebooks have a smaller market, so the problem is that if the ebook is priced very low, it won't be worth it for the writer to spend the time