Welcome to PROFIT MAKER SEPTEMBER 4TH 2004 issue
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{ARTICLE 2.}

 Cutthroat Internet Marketing Product Creation
Copyright 2004 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?

There are differing forms of legal protection available to online
product creators.  To determine which is best for your product
you need to consult a lawyer who specializes in this topic.
There are international agreements that protect your online
creation across many different countries... Again, you need
to discuss this with an attorney who specializes in this topic.

Companies like Google and Ebay aggressively protect their
brands and their patented technologies.  They have 
"deep pockets" and can more readily do this.  The budding  
netrepreneur often has to seek less conventional methods of 
protecting their profits... for at least a short time.  Over time, 
most forms of legal protection against those who would copy 
or reverse engineer a product expires.

One line of thinking is that lots of competition stimulates
innovation and continuous product improvement. This
implies that the way to out maneuver would-be competitors
is by producing a better product, positioning it for a different
segment of the market, or begin focusing on the next product
upgrade as soon as a product is introduced. In actuality, large
corporations such as Sony, and automotive manufacturers, thrive
because they deliberately stay several product releases ahead of
their competitors.  Before they even release a product, the next
several generations are already on the drawing board... or 
maybe even in production!

The bottom line is that many people in Internet marketing (as in
many other niches) are hoping to create and market a product
or service that's going to make them rich and famous.  It's much
easier for them to copy a proven concept...something that
there's proven demand for, than it is to create something new.
It's safer to produce something for which there is a proven
market than it is to develop something for which the demand
hasn't been validated.

If you're going to create your own Internet marketing product or
service, realize that it's a cutthroat business, just like many
offline businesses. This doesn't make it any more palatable for
someone who sees their product being copied the day after it's
release, but perhaps thinking about the fact beforehand better
prepares you for it :-)


Willie Crawford is a corporate president, published author,
seminar speaker and host, tele-seminar speaker and host, 
retired military officer, karate black belt, network marketing
trainer, and lifetime student of marketing.  He shows people 
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