It’s much easier to be an infopreneur

Entrepreneurs thrive in times of rapid change. We are currently living in such a period. Good news: Entrepreneurs have more opportunities if change happens quickly.

This unprecedented period of economic history is marked by the explosion of new technologies. Everyone who desires financial independence and a better lifestyle can use cheap computers, software applications, and digital network – namely the Internet.

The Money Game

Since my days as a Wall Street venture capitalist, I have been studying business. Over the years, I raised millions to finance many entrepreneurs and start up companies. Then I decided to pursue entrepreneurship and began to fund my own businesses in broadcasting and alternative energy. In 1990, I was the CEO and founder of the company that created the first Internet network in Moscow.

This is how I see amazing new opportunities for entrepreneurs. This is more evident than ever in the realm of information and communication.

Information and communication are vital components of any human interaction. Every new communication medium — the telegraph and telephone, radio and television — has had a steadily greater impact on the world. It also created great fortunes and opportunities for those who have ridden each wave. The Internet will be the greatest wave.


Internet allows you to connect with almost anyone, anywhere on the planet, in a matter of seconds and only for a few pennies. The internet is able to convert analog information such as sound and voice, written words, pictures, and data into a common digital format for transmission over Internet. This ability is changing the way businesses work and opening up new opportunities for entrepreneurs.

Although the Internet has an impact on every industry and business, the greatest impact will be felt by the information industries. Think about the largest businesses in the world. Entertainment (music and movies), broadcasting (news information and entertainment), publishing (books and magazines) and, most importantly, training and education (books courses and continuing education).

Let’s take a look at a small, but well-established medium to see the potential impact of the Internet: the book.

Analog Economics

For a book to be physical, it requires the harvesting of trees to make paper. On this paper, information or a story is printed using a printer. To move the book from the manufacturing plant to the retail store and finally to the consumer, many hands and lots more energy are needed. This process requires a lot of capital, resource and labor.

Let’s take a look at the author of our book to see how it works financially.

In an analog world, she writes her book. She receives 10 per cent of every book sale, or $2.50 per $25 book sale. The remaining $22.50 is reserved by the publisher for manufacturing, distribution, selling and other expenses. Let’s also assume her publisher pushes hard to sell 25,000 copies in a year. This is a good number for offline publishing. The author would then be able to earn $62,500 ($2.50×25,000 copies) for her creative efforts.

Digital Economics

The same book can also be printed and packaged digitally as an eBook. This allows for fast delivery anywhere in the globe at almost zero environmental impact and costs.

Let’s suppose that the author of the book is the same one, but she decides to start a digital business to sell her ebook online. Let’s say she sells the exact same amount of books for the same price.

The costs for this include $2,500 to create the website, $4,000 to hire a Webmaster and $150 to host the site (which she sells and earns money 24/7), and $10,000 to purchase Google pay-per click ads to bring traffic to her website.

Her expenses for one year ($2,500 for construction, $48,000 Webmaster, $1800 hosting, $120,000 advertising) would be approximately $172,300. Her revenues would amount to $625,000 ($25 per copy x 25,000. After subtracting her expenses, her revenue is $452,700. The Internet’s reach and cheap digital tools give her the opportunity to do more work, but make a lot more. This kind of success would be impossible for her in the offline world.

This is a simple example of the extraordinary leverage you can have as an entrepreneur selling information products to the new digital world. In the physical world, our author was paid 10 percent of the revenue ($62,500), but in the digital world, she is earning more than 70% ($452,700), which is seven times the income.

The New Capital

This digital world shifts the advantage away from those with financial capital or access to it to those with intellectual capital. This is exciting.

Many financial resources are required to set up systems for manufacturing, shipping, distribution, and retailing books in the analog world of physical publishing. To store equipment, inventory, and people, offices and plants must be constructed. To transport books to the shops that will sell them, trucks are needed. Entrepreneurs have to raise a lot of capital before they can start any venture. This is commonly called venture capital.

The Internet is changing all of this.

The digital world is a place where the business infrastructure is embedded within computers and networks. As a result, intelligent software increasingly replaces many of the manual and clerical tasks that are essential to any business. A digital business requires little capital, but a lot of intellectual capital. The power shifts away from those with the most money to those with the best ideas and intellectual capabilities to harness and use the new information technology.

The Economic Tsunami

Already, we have seen young people of 30 years old start out with very little on the Internet to become multimillionaires or even billionaires. Large companies are running to the courts to stem the economic tsunami created by new technologies.

The digital world was first seen affecting the music industry. It is now affecting Hollywood’s monopoly of film and video distribution and will soon be affecting publishing and education. Digital systems are much faster and more cost-effective than traditional, slow, physical manufacturing and distribution.

Many jobs and careers are disappearing as older systems collapse under the economics new technologies. We are seeing a decline in long-term employment; pensions are on their way out; salaries have dropped to what they once were. All this is happening as the cost to live continues to rise. Therefore, it is important to consider becoming an entrepreneur – to learn and use the new digital technologies to create information products and services that can be used to leverage our knowledge and skills.

Entrepreneurs were required to not only be creative but also to raise capital and create complex organizations to provide their product or service. Then they needed the skills to manage, coordinate, and lead them.


It’s not necessary to have traditional skills in money raising, organizational development, management or building a business. The Internet and information publishing industries are so exciting. This opens new financial doors for a larger number of potential entrepreneurs.

Infopreneurs are entrepreneurs who take advantage of the opportunities in digital information publishing. They think and do things differently.

Infopreneurs, the new breed of entrepreneurs, see new ways to use information technology and systems to meet market needs and desires. They can create new economic models and see them in action. They do not need capital to create it. They do not manage large organisations, but they lead small teams. They do not work in corporate offices, but in private homes across America. They do not have employees on-site, but they hire contractors from all over cyberspace. They also make a lot. This is the new breed.

They also have different businesses.

Virtual Businesses

Informationpreneurs are creating new opportunities known as virtual business. Virtual businesses can be found almost entirely within computers and networks. Software applications now integrate many of the functions of business that were previously handled by people in the offline environment. Virtual businesses can be described as automated collections of software and hardware connected to each other via digital networks. Virtual businesses operate 24 hours a day, selling and delivering information products worldwide.

Virtual businesses communicate with their customers online and provide product presentations and salespeople. The transactions are processed automatically by automated eCommerce engines, and the products are sent and delivered electronically. Software systems allow for supervision, control, and management.

Today, there are virtual businesses that were created with shoestring funds. Virtual businesses can serve the same number customers and generate the same amount of profit as venture-backed firms that invest millions in plant and equipment. Virtual businesses can be run from their bedrooms and make more than large companies with hundreds of workers. This is truly a time of entrepreneurial success.

Informationpreneur benefits

You might be thinking about starting your own business, or you are looking for something more lucrative.

Being an infopreneur has many advantages.

· You get to be your own boss. You can work when and where you want.

· You can work anywhere. All your activities can be done over the internet so you can be anywhere: on the beach in Hawaii or in a mountain chalet in the Alps or at a Starbucks here in Manhattan.

· You don’t need much capital. Information businesses can be started on a tight budget and can borrow capital rather than consuming it. You will only need the intellectual capital that you develop by learning how these technologies can be used.

· You can start in your spare time and at your own pace. You can begin slowly, keeping your 9-to-5 job, while you learn the ropes. This will allow you to build the income and confidence to take the leap to independence.

· You don’t need employees. All the skilled talent, skills, or help that you require can be found on the internet, and it’s all contract-based. You won’t be disturbed by an overhead or a high burn rate. Management skills are not required.

· You can make a lot of money. Informationpreneurs can make millions every year with only a handful of outside contractors, as I know from personal experience. One of my friends is making $8 million with nine employees, after all expenses. That’s how virtual companies can be leveraged.

Internet information publishing is one of the best entrepreneurial opportunities you’ll ever see. It is the easiest, most cost-effective, and most riskless way to make a living or build a fortune. It’s also possible to do it at your own pace, without any investors or venture capitalists telling you what you should do.

You might consider becoming an informationpreneur.


We are a team of professionals with each having two decades of experience in start-ups, sales, marketing, finance, HR, large scale project and profit centre management and running mature cross functional operations. At Molw.net we are big believers that knowledge transfer is critical to our industry’s evolution. We love to share our experiences and learnings through our online resources.

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