Why are digital products becoming famous in affiliate marketing?
I’m not certain of what exactly you’re asking, based on the way you worded the question. Are you asking why digital product sellers are using affiliate marketing more often? Are you asking why affiliate marketing is becoming largely focused on digital products? I’ll try to just give some general insights that would answer the potential meanings to your question.
As a successful affiliate marketer, I am always looking to get bigger returns on it for less time. One recent change to the market is the entry of more and more digital products. It’s not that physical products are no longer dealt with, but many new affiliate marketers get started with digital products and never move out of that area. Even if you’re already a successful affiliate of a physical product, there’s really no reason not to expand into digital.
Why? Let’s find out.
Any product that can be held or touched is a physical product. Physical products are to be transported to customers through physical methods like mail shipping, unlike digital products that are sent and experienced online. Digital products include a wide range of things like ebooks, online courses, digital subscriptions, audio products, video products, software, etc.
Coming straight to the point, here are 4 reasons why digital products are becoming a bigger part of affiliate marketing:
#1 Digital products businesses can be set up very fast with little/no investment. All you need is to research and pick a profitable niche and start there. For an affiliate program, you just sign up and share your link. You can promote such a product by writing a review or other content pieces about your experience with it, and share it on relevant platforms to get viewers and more customers.
#2 No concerns about inventory. Customers can instantly access products once they pay and you need not worry about shipping, inventory costs, etc. For products like DVDs, CDs, etc. that have a digital and physical form, cloud sharing and storage is turning out to be effective, and nothing stops you from selling a physical version, too, since they’re lightweight and easily produced.
#3 Almost zero back-office issues. No replacing damaged product, or reimbursing product that got lost in the mail. Some reputable sellers do offer replacement/money-back guarantees, but these are mostly for customer peace of mind and are worth having. It’s been proven in studies that the more generous a money-back guarantee is, the less likely it is to be used anyway.
#4 The main reason: High-profit margins compared to those of physical products. The less something costs to produce and sell to scale, the more profitable it can be to scale.
In addition to the above four main reasons, there are other reasons as well which are specific to the type of digital product. You can comment or message me with more info if you want more specific advice.
Since a lot of this stuff is common knowledge now among entrepreneurs, many affiliate marketers have now started to create and sell their own digital products, giving themselves 100 percent of the revenue instead of a commission I’ve been doing the same!
With a specialized method like the Perfect Product Creation (PPC) anyone can create an awesome digital product that would practically sell itself. You don’t have to take a pittance from other digital product creators and be their affiliate forever. After promoting multiple digital products of other people, I am almost ready to launch my very first digital product, with what I learned in PPC. If you are interested in it, you can read my review of PPC on my website.
Feel free to reply if you have any questions.