Suppose you are thinking of an easy way of making some cash on the side you can do selling digital products. It would be best if you had a computer and some string internet connection, and you are good to go. But before you create and sell digital products, you need to have a robust strategy if you are to succeed.
Selling digital products is more than uploading the product on an online store or website and expecting buyers to start buying. Designing digital products requires effort and a lot of time, so you must plan better to create the perfect product.
- Ask yourself what you need to sell.
- Ensure the idea you want to venture into is marketable.
- Understand how it works.
Here is a guide on how to sell digital products and the pros and cons of the products.
What are digital products?
A digital product is an intangible media or asset you can distribute online without physically managing or sourcing inventory. The digital product will be software-enabled and doesn’t need a physical form. You will offer the product in digital form but will end up in a physical format.
The products will be delivered in streamable and downloadable formats like MP3s, PDFs, software, videos, and templates. For instance, you could buy an ebook and download it. Other examples include software programs, design templates, and recipes.
What type of digital products should you sell?
The digital commerce sector is expanding rapidly, and there are several paths entrepreneurs looking to sell a digital product can consider. The four main types of online products to consider include:
- Digital templates, printables, and tools
- Educational material
- Licensed digital offerings
#1 Educational material (eBooks/ePublishing)
Educational material entails the selling of information in ebooks. eBooks have been among the fast-growing digital products offered online for five years. The industry is expected to continue growing considerably over the next decade.
The advantage of selling eBooks is that you won’t need to deal with shipping or inventory. You are responsible for controlling margins and setting the price. However, it would help if you had some expertise in making and selling eBooks, and you could only write what you know. The downside is that eBooks are easy to plagiarize, and once a person has an ebook, they can distribute it, and anyone can read it. Therefore even if selling ebooks can be lucrative, you can sell them once. This is an easy way to create and sell digital products.
#2 Digital templates, printables, and tools
There are several digital templates and tools that one can sell online. These templates and tools help people organize their lives or do things they cannot perform. They include
- Plugins, overlays, presets, and filters for image and video editing software
- templates and scripts for emails and resumes
- graphic design templates for websites, print materials, and social media platforms
You can also sell printables! Learn more about printables here in my guide.
Printables are an easy way to create and sell digital products.
#3 Licensed digital products
Most entrepreneurs offer licensed digital products incorporated in their works. Some products include sound effects, software, music loops, legal contract templates, and stock photos and videos.
For instance, The Loop Loft provided professionally recorded music samples and loops for producers, musicians, and DJs.
Most entrepreneurs sell ongoing memberships offering access to various digital services and products online, like exclusive online coaching, groups, and courses. For instance, Gauge Girl Training gives three membership alternatives for nutrition and fitness training, coaching, and resources.
My membership is called the Printable Sellers Bootcamp and you can check it out here!
Why should you create and sell digital products?
- Save time: You are not required to manage or source inventory when offering digital products. Equally, you also save the hassles of transport and logistics.
- Save money: Physical goods sourcing, storage, and shipping get expensive, as does inventory management. You can altogether avoid these costs by selling digital products.
- Scalable: Digital items can be scaled indefinitely. The difference between supplying ten and 10,000 units a day is negligible. (However, when your business grows, you will need to recruit more customer care representatives and modernize your site to accommodate the increased traffic.
- High-profit margins: Because digital products do not require acquiring and managing physical inventories, profit margins are significantly higher.
- Automation Potential: Automating digital product distribution is extremely simple, allowing you to concentrate on building your brand.
- Flexibility: You can produce new items or change how you sell the products at any time. For instance, you could offer a free digital product to grow the email account or charge a subscription fee to have access to additional products.
- Opportunity: Before the COVID-19 pandemic, e-learning was exploding, and more individuals than before were studying and working from home. As a result, by 2026, the e-learning business is anticipated to be worth $374 billion.
- Digital items generally do not degrade or wear down with time. They are indestructible. They could be updated should they become obsolete as technology advances.
- When you sell digital products online, you will earn a passive income. Even if you are not online, these goods will keep selling. To earn cash, you don’t have to put forth an effort constantly.
- There are few barriers to entry. You can use online courses to promote your expertise as a service. Examples include real estate counseling, financial accounting, and copywriting. All you will need is some prior knowledge and access to a digital product market to keep going.
What are the cons of venturing into digital products sale?
- Rivalry: Because selling digital things is so simple; competition could be fierce. Plus, anything you intend to sell will undoubtedly be up against others who provide similar stuff for free.
- Piracy: You must be cautious because thieves can readily steal and redistribute digital things.
How do you create a digital product?
If you are looking for a digital product to sell, you should always consider the target audience. You can research online to discover which products are consumed most. You can survey prospective clients to understand their preferences and follow the steps to create your digital product.
#1 Research and brainstorm ideas
The first thing to do is identify the digital product you wish to deal with. it is vital to note that no expertise is needed to create a digital product, and anybody can create one. Don’t be afraid that your idea is terrible as you can equally turn it into a good one.
After brainstorming, begin with existing ideas to see what people offer online. Search social media platforms, Google, and check Reddit Subreddits, Facebook groups, and other forums. You can focus on skills that will help others, your passions or interest, and if you have a business, you could create digital products supporting your physical products.
#2 Identify a problem to solve
After searching for ideas, you can now evaluate them and consider the problem your digital product will resolve. For instance, if you plan to enlighten people on how to keep fit, you will help them enhance their confidence, improve health, and save money and time spent in the gym or with a trainer.
If the problem you want to solve is more significant, then it will be possible for your digital product to gain traction quickly. So after identifying the problem that the idea solves, choose the niche you want to focus on.
#3 Define your niche and target market
Define your market target, which allows you to tailor your digital products to the particular needs of your niche, making them more valuable and compelling. It will help to personalize your communication to target market needs, desires, and language. Becoming an expert in a niche will allow you to build authority and become competitive. For example, if you focus on fitness training, you could help injured individuals work out safely.
#4 Validate the idea
You want to create a digital product that can sell, so you should validate the idea before making your first digital product. You can start using Google’s Keyword Planner to see the terms related to the notion that people search. Consider Google Trends to ensure growing demand for the concept and reach out to the target market to get feedback on the idea.
#5 Design the product to sell online
After validating the winning idea, you can now create a digital product, and if you are yet to choose your format, this will be the right time to do so. Always start with a simple design, and you can improve the digital products with more client feedback regarding their desires and needs. If you want to create a video course that people can download, you can continue offering coaching calls before moving to a downloadable resource.
#6 Establish an online store
You may wonder where you are supposed to sell your digital products. There are various marketplaces where you can offer your products. One of the marketplaces is Shopify which charges $29 per month for you to create an online shop for your products. There are countless apps in the Shopify app store which you can use to personalize the functionality of your site.
Some apps to consider when selling digital products include SendOwl, FetchApp, Single Music, Digital Download, Bold Memberships, ThriveCart, Photolock, BookThat App, and Recurring Order & subscription.
#7 Promote your product
After completing the creation of your digital product, you need to market it to drive sales. Some types of internet marketing you could use to boost sales include.
- Paid advertising: Use Facebook Ads and Google Ads to promote your business.
- Use social media channels like YouTube, Facebook, and Instagram to share content and engage with your target demographic.
- Collaborate with influencers to market your products to their audiences through influencer marketing.
- To entice and turn individuals into consumers, use content marketing to create unique, exciting content.
- Search engine optimization (SEO): Improve the visibility of your website and content in search engine results pages (SERPs) to attract more qualified visitors.
- Email marketing captures potential clients’ contact details and grooms them into paying subscribers.
- Use affiliate marketing
- To entice third-party salespeople to market your products in return for a premium or commission.
How do you ensure your digital product stands out
#1 Start a membership marketing program.
Affiliates are a massive driver of targeted traffic for producers offering digital products. Find recognized and reputable contributors in the industry and award them a fee for every sale they generate. If somebody has a considerable following, you could offer them a larger commission to motivate them to market more and bring in more customers. You could set up varying compensation categories for different partners.
#2 Gather pre-orders.
A subsidized “early bird” rate is crucial to generating sales early. If you are launching a fresh digital product, try to give the initial 100 purchasers a 50% coupon, provide the next 100 customers with 25% coupons, and now sell your digital creations at a regular price after the 25% deal expires. To recognize their commitment, collect response, and enhance pre-launch sales, you only can offer 50% discounts to your current audience.
#3 Give a cash-back warranty.
It’s understandable if you are afraid to give a guarantee on the products. Most consumers might buy and utilize the product before asking for a refund. However, this is part of the suite when holding a digital business. High conversion rates exceed the small minority of people who’d capitalize on the initiative. A cash-back warranty shows potential buyers that you’re willing to invest your cash where your head is, and you’re the one risking, not them.
#4 Make use of a lead magnet.
Build a lite version of the digital product for free, irrespective matter how much it costs. Free establishes a relationship of trust between the company and potential clients. A free digital product might aid in the development of an email list to which you could sell later. It also allows for retargeting of potential clients and upselling through various promotions.
More help on creating and selling digital products?
If you need more help creating digital products like printables, then check out my course Transformational Printables now!
If you need help starting a Shopify store to sell the printables then check out my course Printables Ecom Academy here!