What Are Digital Products
If you have an online business, a website, or a blog, you’ve probably heard of digital products. Chances are that you’ve consumed quite a few of them already and you may even be thinking about adding them as a new revenue stream to your business.
Before you can start to think about creating digital products, it’s important that you understand what exactly they are.
Digital products are information products that can be downloaded online. This could be an eBook, a video course, a webinar, an audio recording, or even a handful of printable checklists or a workbook.
Digital products come in a variety of different formats from pdfs to mp3s. What product format you choose depends on what you’re comfortable creating, what works well to convey the information you’re sharing, what you’re teaching, and of course what your target audience prefers.
Before you consider what you may want to create, browse around and see what type of digital products are available in your niche. Buy a few and review them.
Take note of the kind of information covered, how the material is organized and shared, what the product looks like, how it is delivered etc. Take note of price points too. All this research will come in handy when you are ready to develop your own digital products.
Another interesting aspect of digital products is that it’s easy to set up an affiliate program and pay a high commission on it. While the affiliate commission on physical products is often 10% or less than the purchase price, with digital products, commissions of 50% or higher are the norm. This is important for two reasons.
First and foremost, this makes it easy and profitable for you to sell digital products to your visitors and subscribers. It’s a nice way to test the water, see how digital products are received, and create a passive stream of income at the same time.
Secondly, setting up an affiliate program of your own is a great marketing strategy to help you make more sales of your digital products and grow your reach once you create them. Since there is not a lot of cost and overhead involved in digital products and it usually costs no more to sell one than to sell two hundred (aside from fees like those paid to PayPal for example), it’s possible to pay high commissions and still make a profit for yourself.
Why You Should Be Selling Digital Products
There are a lot of good reasons to get into the business of selling digital products. Today we’re going to look at the benefits of selling them both as an affiliate and as an information product creator.
Use it as motivation to get started selling digital products in your niche.
First and foremost, you should be selling digital products because that’s what your market expects. We live in the information age and have knowledge available at the press of a button. We want to be able to buy something and instantly access it.
Instead of ordering a physical book or DVD and waiting for it to arrive in the mail, we expect to be able to buy it, download it to our favorite digital device, and start consuming it right away.
From a seller’s point of view, digital products are a safe bet because there aren’t a lot of costs involved in developing the product. Your main investment will be the time it takes you to create a digital product.
Start small, test the waters by selling info-products as an affiliate, and get your feet wet. You can type up a short report in a few days, turn it into a pdf, and have it up for sale on your website without spending any money.
Of course, you have the option of hiring a writer, editor, graphic designer, etc., but it’s not necessary. It’s easy to create your first few digital products on a budget and outsource once you become profitable.
Another big reason why you should be creating your own digital products is that it’s a passive stream of income. You do the work of setting up the product once and then have something to sell going forward without any or much additional work.
You can focus on marketing or create the next product while this one continues to sell for months and years to come. Last but not least, you should consider creating digital products because it’s one of the most profitable ways to monetize your online business.
Your target audience wants to learn, wants to solve problems, and wants to be entertained. You spend a lot of time engaging them, getting them to read your blog, sign up for your newsletter or emails, and gaining their trust.
They are ready for more and happy to pay you for your time and efforts. Start creating a few different digital products and see for yourself just how profitable this business model can be.