Digital products are intangible products, but they are very popular and widely used. Some of the popular products used daily include mobile applications, downloadable printable content, music videos, songs, ebooks, online courses, and podcasts.
Unlike products you can touch, these can be accessed instantaneously. It can be very gratifying for a consumer to get their product immediately. Combined with the reliance on cellphone use, this makes digital products extremely popular.
The Pros of Selling Digital Products
Let’s take a look at the biggest advantages of being in the business of digital products. There are countless pros associated with it, but the top 3 are discussed below.
- Saves time and money – These products don’t have inventory nor do they have any shipping costs. As a result, the business owner doesn’t have to rent a space to store products. Also, most of these products don’t require that the creator does anything further once they’re online. The product generates passive income for the creator.
- A high-profit margin – Many digital products take a finite amount of time to create. The price of these products should factor in the time, money, and effort taken to complete them. Since it is a once-off creation, the owner will break even and eventually make a pure profit from the product. Contrast this with tangible products that a creator has to pay for with each new product.
- Easy to automate – Many of the online shopping platforms that house these products can automate sales. Consumers can also pay for these digital downloads in many new ways, adding to the convenience.
The Cons of Selling Digital Products
Having any type of business comes with its fair share of risks. It’s no different when selling digital products. However, the challenges are a little more unique. Below are the two most troubling aspects of the business.
- Piracy is an issue – Products that perform well can attract a lot of attention. Many scammers looking to pirate these creations often pose as customers. They will purchase the product and then claim it as their own IP. It can be difficult to know who has essentially stolen your IP if it does ever happen. A typical way to trace the perpetrator is to look up public records of the customers.
The ‘customers’ with a poor track record will help narrow down the list of suspects. You can search the records of the customers that purchased the product within a short time period before it popped up on another e-commerce site. - It’s highly competitive – When starting out, the business model can be very low risk. Creators can simply make one product and promote it with a small budget. As a result, everyone feels equipped to try their hand at it. So with so many people putting out content, the market becomes highly competitive.
Different Types of Digital Products
The industry is ever-evolving. The types of digital products change with advancements in technology. There is no complete list of all of the possible options out there. However, we have compiled a list of the most widely consumed content.
- Visual content – This consists of pictures and videos. This may be a monetized Youtube video or stock footage that earns the artist a small commission. There are many platforms that can host visual content for download.
- Written and printable content – This covers ebooks, how-to guides, nutrition plans, coloring books, day planners, and even some 30-day challenges. The possibilities are endless when it comes to written products.
- Audio content – Content includes audiobooks, songs, voice overs and any paid-for audio with no visual content attached.
- Templates – Reusable templates for anything from day planners to ‘Thank-you’ cards fall under this category.
- Online Tools – Being able to use online services is also a form of digital commerce. For example, being able to lookup public records, and services that perform identity monitoring, online apps that automate video captioning, and even grammar correcting tools fall under this category.
- Software and mobile applications – Many mobile applications will make money from advertising or in-app purchases. Software with accompanying applications like VPNs is also very lucrative but they require more effort to create.
How to Sell a Digital Product
Creating a winning product means nothing if nobody knows it exists. Knowing what the public wants is also as vital as marketing, whether the product is tangible or not.
There is a lot of research that goes into developing and promoting a brand new product. However, if you’re looking for where to start, read the points below.
- Define your target market – You might already have an idea in mind, but it’s still important to find out who will buy this potential product. Defining your target market means knowing the age range, location, and gender of your likely customers. You can then further niche down and add in their likely hobbies, taste in music/content, and so on.
- Validate your idea – You need to know if there is a demand for your product. There must be a gap that you’re filling. Even if the type of product already exists, how do you plan to better it? To know what people are searching for you can use ‘Answer the public’ and Google trends. Remember that it’s okay to go back to the drawing board if you find your product lacking.
- Create an audience – We live in an age that values and loves social media. You can use any of the big social media platforms to generate an audience that’s interested in your product. Additionally, you should still implement traditional marketing strategies like Facebook/Google adverts as well as email campaigns.
- Choose a reliable e-commerce web host – If servers are suddenly down, you won’t be able to make sales. If this happens often, you’ll lose your customers’ trust, and possibly hurt your website, leading you to build a new website. If you choose a reliable host, you also won’t need to worry about your customers’ security and privacy.
- Partner with complementary product/service providers – Two quality products are better than one. Partnering in this way gives customers added convenience and often allows the price of both products/services to be lowered. Even better if you can partner with a well-established company.
- Make feedback-related improvements – No product has ever been perfect. There is always room for improvement. When your clientele gives you valuable feedback, make changes accordingly.
A Final Word
It is almost impossible to go through life without using a digital product. The industry is booming and only set to grow even more. If you have an idea, there is no time like the present to implement it. Solidify your concept and follow the steps set out above. Your future self will be very grateful!
