the beginner's guide to digital products
so you're thinking about exploring the realm of passive income, and one of the options you're exploring is digital products.
you've heard lots about them. You've seen lots of people selling them all over Instagram, TikTok, YouTube, and Pinterest.
AND you've even seen some people have a ton of success by selling them - making thousands of dollars per month.
👉 I was in the same boat as you before I started my digital products journey.
I was seeking a way to make income that didn't require a lot of my time. I've tried other avenues, such as content creation and freelancing, but those take up a significant amount of my time.
so for me, digital products were the way to go.
with that said, let's break down everything you need to know about digital products.
what are digital products?
digital products are digital goods that you can buy or sell that are delivered in a digital format. Typically they will be delivered in a PDF or email. They can take the form of many different types of digital goods, like templates, guides, ebooks, planners, itineraries, courses, and so much more.
why sell digital products versus physical products?
digital products offer a range of benefits that make them an attractive option for entrepreneurs. digital products can yield HIGH PROFIT MARGINS since there are no inventory, shipping, or manufacturing costs involved. physical products on the other hand typically have a harder time achieving high profit margins because of all the things that go into creating a physical product, delivering it, and more.
plus, customers appreciate the instant access they receive when they purchase a digital product, resulting in higher satisfaction levels.
embracing digital products as your business model allows you to maximize your earnings while providing a seamless and enjoyable customer experience!!
the top benefits of digital products
There are actually a ton of benefits to selling digital products, especially when compared to selling physical products. I'm going to highlight what I feel are the 6 most compelling, but you can see the full list in my free starter guide.
quick time to market: because of the nature of digital products (being that they are in a digital format), they are typically not too time-consuming to create, which means that you can get them created and on your online store quickly to begin selling
lower operational costs: without the need for physical storage or shipping, your overhead costs are significantly reduced, if they cost you anything at all; I would air on the side of there will be at least some sort of operational costs you will incur
potentially high profit margins: the nature of the product you are selling combined with your low operational costs leads you to potentially having high profit margins
instant fulfillment: digital products are delivered immediately after purchase, so your customers can start using their digital products right away
unlimited stock: you're never at risk of running out of digital products, unlike selling physical goods
24/7 availability: your digital products are always accessible to potential customers, regardless of the time or day, and regardless of whether or not you are available; you don't have to take time out of your day to fulfill orders
how much can you earn by selling digital products?
the earning potential for digital products is limitless!!
your income potential is determined by your marketing efforts and the appeal of the products you offer!!
now, it may sound crazy, but with selling digital products, you only need to make one sale and then you can simply scale that product in the future.
and when you add more digital products for sale to your mix of available products, your earning potential only expands!!
how much can you expect to spend by selling digital products?
the amount you will need to spend to start your digital products business and begin selling products will vary, but here are some of the costs to consider:
the cost of the digital products - unless you decided to create your own digital products from scratch, you will need to factor in the cost of the digital products you plan to sell, and you need to ensure they come with the desired resell rights (learn about them here)
purchasing your domain - if you're planning to create your own ecommerce website, you will need a domain. It likely won’t cost very much, but it will be a recurring charge, likely on a yearly basis; I typically buy mine from GoDaddy, but you may want to figure out your ecommerce store provider first, since some include the cost of a domain with your subscription
using a dedicated email address - you can opt for a free Google email, like mystore @gmail.com, or you can pay to use a branded email, like ashley @mystore.com, through Google Workspace. sign up here. (note: if you would like 10% off your Google Workspace Business plan, email me for a unique code)
your ecommerce store provider - this could be cheap or expensive, depending on what tool you go with. cheaper doesn’t always mean better, since cheaper likely means you will need to upgrade for additional services; I typically recommend tools like Shopify, Etsy, High Level, and more - you can read about your options and choosing the right one for you here
any additional tools to promote your digital products - this could be an email marketing tool if your ecommerce store provider does not include it, a forms tool to collect email addresses for your lead magnets, etc.
how long does it take to get started selling digital products?
it depends!!
it can take as little as a few hours to get fully set up depending on what you're selling and what tools you're planning to use, but I would suspect it will likely take a couple days to work through everything - from figuring out which niche and type of digital products you will sell, buying ones with resell rights (or creating your own from scratch), picking a store name, buying a website domain, setting up your ecommerce store, and creating promotional materials to find potential buyers.
that in itself sounds super overwhelming, so I created the ultimate digital products business starter kit to help you speed up the process, have all the moving parts you need - all to cut down your time to market (and time to start making sales)!! check it out here!!
What are you waiting for? Get my FREE starter guide to digital products!
*note: this blog contains affiliate links for Google Workspace and Shopify. Using these affiliate links will not affect how much you pay for Google Workspace or Shopify if you choose to sign up for a paid plan. It provides me with the opportunity to earn a small commission on qualified purchases. This allows me to continue to operate, and continue to provide you with free insights into tools like these, at no cost to you. full affiliate marketing disclosures.
