Digital products are not limited to ebooks. What else can you sell as a digital product?
We can all agree that digital products are extremely versatile and not limited to just ebooks.
In this post, I'll share different types of digital products you can create beyond ebooks that can generate significant passive income.
You'll learn about information products, software, media files, and services - what they are, real examples, and how to get started selling them. By the end, you'll have several digital product ideas to validate and turn into your next online business.
Digital products are digital files that can be downloaded or accessed online. Unlike physical products, digital products don't require manufacturing or shipping. Some examples of popular digital products that people sell online include:
- Online courses and tutorials
- Stock photos, graphics, and templates
- Music, podcasts, and audiobooks
- Software and apps
In this article, we'll explore the definition of a digital product in more detail, discuss the benefits of selling digital products online, and outline some of the different types of digital products you can create and sell besides the usual ebooks.
Definition of Digital Products
A digital product is any file that can be distributed or accessed digitally online. Digital products are intangible products as opposed to physical products you can touch. Common file formats for digital products include PDF, MP3, MP4, JPEG, etc.
Digital products can be accessed on any device from anywhere in the world as long as the buyer has an internet connection. This makes them easy to distribute globally and gives them a potentially massive reach.
Digital products also have minimal overhead costs compared to physical products since there is no need for manufacturing, warehousing, or shipping. This makes digital products a great low-cost business model.
Benefits of Selling Digital Products
There are many advantages to selling digital products over physical products:
- Lower overhead costs - no manufacturing or shipping costs
- High profit margins - almost 100% profit margins in some cases
- Global reach - sell to anyone in the world with an internet connection
- Passive income potential - products can sell themselves 24/7
- Easy to duplicate - effortless to produce another copy
- Instant delivery - customers get access instantly after purchase
Selling digital products online is an attractive business model for entrepreneurs or small business owners looking to build a location-independent business with high profit margins.
Types of Digital Products
Digital products encompass a wide range of items that can be sold online without requiring any physical goods or shipping. Here are some of the most popular categories of digital products that entrepreneurs can leverage to generate income:
One of the most common types of digital products is information packaged in a digital format. These include:
- Ebooks - One of the easiest digital products to create. Write guides, how-tos, or fiction books and sell online.
- Online courses - Create a series of video lessons along with course materials to teach skills. Sell access to the course.
- Membership sites - Provide exclusive content to members who pay a monthly or yearly subscription fee.
- Software documentation - Create guides and tutorials for using software programs.
Another major digital product category is software and apps, including:
- SaaS products - Web apps that users can access via subscription.
- Plugins - Code that adds features to existing software programs.
- Templates - Pre-designed documents, slide decks, and site themes.
- Scripts - Bits of code that automate tasks.
Various types of media files can also be sold online, such as:
- Stock photos - Libraries of images available for license and commercial use.
- Music - Songs, instrumental tracks, sound effects libraries.
- Video files - Stock video clips, animation files, After Effects templates.
- Illustrations - Libraries of drawings, clip art, and vector images.
Finally, digital services can also generate income:
- Freelance services - Sell skills and services digitally like writing, design, and more.
- Consulting services - Provide expertise to clients remotely via video chat or messaging.
- Virtual assistance - Administrative and personal assistant duties done digitally.
The options are vast when it comes to selling digital products online. Focus on your skills and interests to determine the best direction to take.
Getting Started With Digital Products
Digital products offer a great opportunity for entrepreneurs and small business owners to generate additional income streams. Here is some advice on getting started with creating and selling your own digital products:
Validating Your Idea
Before investing time and money into creating a digital product, it's important to validate that there is a market demand for what you plan to offer. Some tips:
Conduct keyword research to see what related topics and questions people are searching for online. This can give insight into problems people have that your product can solve.
Survey potential customers by creating a simple questionnaire and promoting it on social media and relevant online groups and communities. Gauge interest levels and see what resonates.
Analyze competitors selling similar products. See what is working well and what can be improved upon.
Validating early helps ensure you build something people want and that has the highest chance of selling.
Creating Your Digital Product
There are a few options for actually creating a digital product:
Outsource to freelancers: Hire those with expertise in writing, design, development etc. to create the product for you based on your direction. Saves time but costs more.
Use DIY platforms: Some tools make it easy to create certain products like online courses or ebooks without technical skills. Handy but less customization.
Do it yourself: If you have the skills, you can build the product entirely using tools you already have. More control but steeper learning curve.
The best approach depends on your budget, skills and type of product you want to create.
Setting Up Your Sales Channels
To sell your digital product, you need to get it in front of potential buyers. Here are some effective platforms:
Your own website: Gives you the most control and ability to build an audience. Requires more effort to drive traffic.
Online marketplaces: Places like Etsy and Creative Marketplace make it easy to list your product with high visibility. Commission fees apply.
Affiliate networks: You provide affiliates a unique link and commission on any sales they drive to your product. Scales reach.
Consider setting up multiple sales channels to access the widest customer base possible.
Marketing and Promoting Your Product
With your digital product ready to sell, marketing and promotion become critical. Some proven tactics:
SEO: Optimize your website and product pages to rank high in search engines for relevant buyer keywords. Free traffic.
Social media: Create interesting social content centered around your product and industry to attract a following. Build community.
Paid ads: Run Google/Facebook campaigns targeted to those most likely to purchase your product. Provides more control.
Content marketing: Produce blog posts and videos that provide value and feature your product. Improves discovery.
Email marketing: Build an email subscriber list to notify about product updates, special deals etc. Direct access.
An integrated digital marketing strategy helps maximize reach and drive ongoing sales of your digital products. Test different channels and find what works for your business.
Case Studies and Examples
Information products like online courses, ebooks, and templates can generate passive income when sold as digital downloads. Beyond these common options, many other digital products can also be quite lucrative.
Information Product Example
Marie launched an online course teaching social media marketing strategies. She sells access to the course for $199 per person. Over 5,000 people have purchased the course so far. Marie invested time upfront creating the course, but now earns over $100,000 per year in passive income from course sales.
John is a developer who created subscription management software for small businesses. Users pay $29/month for access. The software has grown to serve over 2,000 active subscribers. John continues improving the software while earning over $70,000 per month in recurring revenue.
Media File Example
Sarah is a designer selling SVG icon packs on a stock media marketplace. She earns 35% royalties from each sale. Her products have made over 50,000 sales to date. Sarah creates new icon packs periodically, but most of her revenue is passive income from existing product sales.
Digital products provide immense opportunities for passive income with low barriers to entry. Beyond the popular ebook format, creators can sell a wide variety of digital products online.
The key is to validate ideas first to ensure demand, carefully craft high-quality products that solve customer problems, and focus on effective marketing outreach. With the right strategy, digital products can become a lucrative business.
Digital products like ebooks, online courses, templates, graphics, music, and software require low upfront investment and inventory costs compared to physical products.
Validate potential product ideas first by surveying target customers on social media or running paid ads for pre-orders to gauge interest.
Carefully plan each digital product, ensuring it solves a specific customer problem and provides excellent value. Well-designed products in underserved niches have the highest earning potential.
Marketing and customer outreach are crucial for success. Leverage content marketing, social media ads, influencer partnerships, email lists, and other channels to maximize discoverability.
With strategic planning and execution, passionate creators can build sustainable online businesses selling all kinds of digital products beyond ebooks. The opportunities are endless.