Information products only pay the owner and affiliate sales. No inventory to store, no big upfront costs and if it doesn't sell, just transfer it to an archive file or hit the delete key. When you consider all of those factors, the information product owner has freedom to set the prices with one exception - what will the market pay?

That's the tricky part. Ebooks are well established in every genre from textbooks to popular topics so the price is dependent on the market and the following of the author. Let's say you're starting out and lack that major following, how do you price your product?

Start by surveying the prices on comparable information products on at least a dozen sites or vendors. Have you noticed that many information products end in '7'? Popular pricing is $17, $27, $47.

This price seems to click with many buyers. Other frequently used price points are $9.95, $19.95, $39.95. The '.95' is borrowing a retailer's trick of making the price sound less than it really is.

After all, $19.95 isn't a full twenty bucks since buyers tend to ignore the impact of retail tax or shipping. With information products delivered electronically, the $19.95 is the true price, leaving a big nickel for whatever a nickel still buys.

It's not the nickel - it the psychological satisfaction of spending less than twenty dollars. The $17 products have the same appeal of spending less than twenty dollars. Look for the middle ground in pricing.

Avoid starting too low or the value of your product won't be seen as worthwhile. Even if you start slightly higher than comparables, you have room for a price reduction or a 'special offer' at the next lowest price point.

Special bonus offers are another great way to build up value in your offer. You can find free or very cheap Private Label Rights(PLR) the allow you to give away free eBooks, software, or free trials that, combined with your offer, which makes the value go way up - and everyone loves to get something for nothing.

**Key tip** Make sure your free bonuses are of the highest quality. If they are not, it will decrease the value your offer, and yourself as an expert in that niche.

Think of how many times you see the infamous television infomercials that flash the price as $129 with reductions that end up at $39.95. The buyer gets excited about getting a discount when the product was never going to sell at the inflated price in the first place. It's about letting the buyer win.

Price only matters as part of the equation. Don't give your buyers a reason to focus on the price. Keep them focused on the product and the excitement of the purchase and they'll be willing to pay based on the perceived value and not the dollar amount you put on your product.