Most businesses can benefit from creating and selling digital products these days. Digital products can provide a fabulous extra income stream and a way for you to build trust with your customers.
“Digital Products” can mean a whole lot of things: from Canva templates to PDF printables and teacher worksheets to SVG files.
There are digital products that can complement almost any type of business.
Let’s look at some of the reasons why adding some digital products to your current offerings might be a great 2024 goal for you.
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The barrier to entry for creating and selling digital products is crazy-low.
Honestly, you can pay a low cost to have digital products created for you if you don’t want to do the work.
You can also use PLR products. These are products that provide a reseller license. You can easily tweak these products so that they’re original and then sell them as your own. The Secret Weapon is the place to go for a massive selection of digital products that you can resell.
If you do want to dive into the creative process, it’s really quite simple. Canva Pro is the most widely used design software and the monthly cost is less than $15.
If you want to create a full-on Etsy business, I’ve mapped out the costs for you HERE. Spoiler alert: You need less than $100 to do it up right!
You can build trust with your customers by offering these low-cost products.
Digital products generally have a very simple, tangible promise–that the customer will be able to use them! Since they are instant downloads, you get to provide exactly what you say you will provide, immediately.
If your normal offer line-up comes at a high cost, a lot of people won’t be willing to take the risk, or they might not have the money. Digital products are much less risky-feeling for a buyer and allow you to help people at more price points. Once digital product buyers see the value you offer, they will be more likely to purchase a higher-ticket product in the future.
Sure, digital products generally sell for a low cost, but if we’re talking about percentages, they have great profit margins!
Let’s imagine that you spend two hours working on a new digital product and that you value your time at $30 per hour. So essentially, it cost you $60 to create this product.
If you sell it for $12, you only have to sell 5 to recoup your cost. After that, it’s all gravy!
There are very few ways to make money that include such little time spent up-front and can literally give you unlimited income. (Obviously not every digital product you create is going to be unimaginably profitable, but the possibility and potential truly are amazing!)
Some business opportunities are fussier than others. Any kind of physical product that you want to sell brings up the issues of inventory and shipping.
Inventory takes up space (both in raw materials and finished products). It also means you’re shelling out a good amount of money upfront.
Shipping means that every single time someone makes an order, products need to be pulled, packed, and shipped ASAP to keep your customer happy.
If you’re making daily sales, this can take up a whole lot of your time and energy!
So much of selling digital products can be automated. I don’t want to say that it’s completely a “set it and forget it” situation, but pretty darn close! If you want to add a new income stream to your business, make sure that it won’t take up massive amounts of your time to manage.
It is near-effortless to scale the sales of digital products. Plus, there’s no limit to the amount you can sell. Once your automated systems are in place, you just let them do their thing.
The only real difference between making 5 and 5,000 sales with digital products is that you’ll likely have more messages or emails to answer. People have questions or issues, so that becomes a bit more work as you make more sales.
But when you look at that compared to what it takes to scale other forms of income, it’s easy to handle! It’s exactly the kind of thing you can hire a virtual assistant to help you with if you need to.
Do I have you convinced yet? If your business is not offering digital products yet, you need to think about it! It is an inexpensive, scalable, cost-effective way to serve your customers.
Not sure what you might create? I have a handy-dandy list of in-demand digital products you can get started with.
Grab this free list of 25 digital products (+ the 6-step AI process to 10x your digital product business income) and where to create and sell them here.