What are digital products? How do I earn money by selling such products?
With digitization growing as ever, more and more digital products are arriving in the market. You can earn a lot of money by selling them. Let’s explore that more in this answer.
A digital product is a type of product that is being sold online and does not have a physical form or substance. Examples of digital products include ebooks, software, documents, graphics, audio, video, etc. However, you can convert some digital products like ebooks into physical form, such as printing them out. But most of the digital products remain in electronic form. They are mostly purchased online and shipped electronically as an email attachment or downloaded from cloud storage through a link. Some of the digital products can be accessed online only through subscriptions.
For sellers, they have the following three advantages over traditional physical products:
1) They do not run out of stock, unless a limited quantity was artificially designated by the seller. One reason they might do that is if they’re an online course seller, and they know they only have time to teach a certain number of students.
2) The production cost is usually low compared to physical products, since nothing has to be manufactured, prepared, harvested, etc.
3) Their market is the internet, which is undoubtedly very large and involves more direct lines of communication with customers.
There is no doubt some challenges are also associated with them, like competition, the threat of piracy,, etc.
Out of those challenges, the most important is competition, which directly affects sales. Rest assured, I will let you know how to tackle that before completing my answer. For now, let’s discuss the three ways of you can sell a digital product and earn money:
1) You can sell products like ebooks on famous eCommerce sites like Amazon, Flipkart, etc.
2) For a product like an online course or a tool, I would recommend you to do that from your website. You can also make use of partner websites for that.
3) You can share your digital products with affiliate marketers as they are competent in selling products like yours on different platforms. In return, you can offer them a commission or a reward per sale.
Well, depending upon the category of a digital product, you have a lot of options to sell it and make money. But that’s what it usually boils down to.
To make money, what matters most as a producer/promoter of that product is pricing, quality, utility, and above all, the competitors of that product. Thinking digital products are easy money, people ignore the creation process and don’t consider how to stand out from the competition. If designed properly using a systematic methodology like the development models in software engineering, then you can make way more money from your digital product. A proper design plan lets you conquer the market and lead the way, while your competitors can only follow.
If I were to suggest a method for that, then it would be Perfect Product Creation(PPC). As mentioned previously, PPC can handle competition for you by suggesting you the best design techniques. Once you create the product, it further suggests how to sell that product to the right people, and more of them.
On an expert’s advice, who is into digital product creation for decades, I have recently started using PPC. Truly speaking, I failed twice, taking the digital product creation process lightly by not using the proper methodology. This time, I am hoping for success (close to launching a new product), and I am very close to an incredible launch, just based on experience using some of the advice already. I can assure you that using PPC as a template for making a digital product, and then selling that, will be your first step on an amazing journey.
Please feel free to reply to me in case you need more information on any of the points discussed above.