You can not believe how much digitalized the world is becoming. It is becoming more digitalized faster than a girlfriend snooping through her boyfriend’s phone before he returns from the bathroom. The demand for digital products is higher than it has ever been yet statistics show it is lower than it will be soon.
Today we explore what digital products are, the opportunity they bring, and why you should not miss harvesting money from those opportunities. Walk with me.
What are digital products?
Digital products are nontangible online products or services that are traded online without the need to refill inventory. They do not have a physical form but can be seen or consumed either online or offline. A perfect example is a selfie that you take with your phone camera. You can decide to sell it for some cash or give it to people for free.
When you send someone a copy you do not lose the original. You can give a copy of that picture to everyone in the world and remain with the origin without having to take another picture.
Characteristics of digital products include
Digital products are indestructible. There is no wear and tear. The downloaded product and the first copy all deliver the same utility and never fade or depreciate in initial quality. For this, producers of digital products manage the indestructibility of digital products by issuing licenses that activate and deactivate the products. They also do continuous updating of products to deactivate the previous ones.
Transmutability and adjustability.
There is a little paradox here. Digital products are indestructible but can be transmuted and adjusted. Digital products can be changed to fit the demands of the consumer. Take, for instance, my ebook reader application has options of adjusting the font size to that which my eyes can read and light adjustment to that which my eyes can handle. Digital products should be customizable and updatable to make them interactive as opposed to stand-alone products.
The production costs of a digital product are incurred when producing the first product after that, the costs should drop to zero. There are no storage, warehousing, or reproduction costs to be incurred. There is no need to replenish inventory since it does not deplete. All buyers can receive the same copy of the product without it getting out of stock. Therefore digital products are reproducible.
Examples of digital products.
One of the most paying digital products is software. Software is a collection of instructions that enable a user to interact with a computer to do a certain function. Popular software includes Photoshop, word processor, Picassa, etc. Software is usually updated or given a periodic license to deactivate the digital product. If you want a high-paying digital product, look no further than software.
Audio format products.
Audio products are another great example of digital products. Audio products like music, audiobooks, sermons, tutorials, podcasts, poems, lectures, etc are sold online for high margins. Music is sold on platforms like amazon music, Spotify, CD Baby, Bandcamp, etc. Audiobooks are sold on Amazon, iTunes, audible, etc.
During the pandemic, the ebooks readership went up by 30% and has not gone down since then. Even though a significant number of people still prefer holding a physical book, a great number opt for reading the soft copy book version on their computers or smartphones. Many people have made a lot of money selling ebooks on personal websites or ebook market platforms like amazon kindle, Smashwords, lulu press, Barnes & Noble, etc.
Skills, knowledge, and expertise have become easier and cheaper to acquire with online education. Many skilled individuals have packaged their knowledge, experience, and all resources in courses that are sold online for people who need to learn a thing or two about something. I have made use of this digital product to both learn and teach. I have taken a lot of skillshare classes and teach courses as well. If you have something you can teach people, package it in good audio or video and sell it on platforms like skillshare.com, teachable, udemy, etc.
Other digital products include graphic arts, templates, calculators, printables, phone applications, games, research and data, photography, e-marketing services, coaching, and webinars.
Digital products millionaires.
I am not going to focus on the likes of bill gates, jeff benzos, Mark Zuckerberg or Larry Page. Let’s say those are out of the league for an average online entrepreneur or aspiring online business person. Let’s look at some names whose success can sound more realistic or not far from reach.
The doctor turned online businessman makes money from selling alot of digital products like videos, courses, podcasts, etc. Ali has a couple of courses on skillshare that earn him thousands of dollars. In a video on his youtube channel, he provided evidence of his weekly earnings amounting to $27,000.
Guess what! He is less than five years in the business. His growth didn’t take long. However, it took a lot of commitment, consistency, and persistence.
Adam Enfroy of adamenfroy.com is one great example of a digital products millionaire. Through website, Adam sells courses and other digital products that help over 75,000 bloggers grow passive income from blogging and vlogging. His financial reports show an average 200,000$ per month.
Guess what! Adam Enfroy started three years back in 2019. It took him only 6months to hit the 10,000$ mark. You too can if you put in the work.
You will never know when your breakthrough will come until you get yourself grinding. Erika Mitchel, popularly known as E.L. James for her book 50 shades of grey had never written a book before 2009. Erika joined a fan fiction group of Twilight saga lovers, and from there, the spirit of writing possessed her. Erika wrote and self-published ”The 50 shades of grey” online. Her book sold millions of copies, got a publishing deal and a movie deal and earned her a net worth of $150million.
On his sickbed after an accident, Chad Mureta got the idea of fingerprint security for phones. With no programming background, he sketched his idea and sent it to a developer. Chad then uploaded the application to the play store. In his first month, he earned USD 12,000 and three months later he was averaging $120,000. He scaled his company by making more products turning him into a millionaire.
The list is endless but for now, that’s enough inspiration.
Why you should invest in digital products. (Benefits of digital products)
Digital products require low overhead costs since you do not need warehousing, inventory replenishing, shipping, packing, etc. One product is sold to many people.
There is access to a huge market for even the rarest digital products. If you sell ”how to catch fish course”, you can access many people interested in fishing lessons all over the world. People you cannot access in your small town. Digital products are therefore easy to scale.
High-profit margins. Since overhead costs are too low, the profits made from digital products are much higher compared to physical products.
It is cheaper to build a website to sell your digital products compared to setting up a physical store. A physical store requires rent, physical stock, furniture and fittings, and many other costly inputs to be set up.
Digital products are always new. They do not wear and tear. They can maybe decline in utility received by the user due to technology upgrades. However, this is solved by continuous upgrades and updates.
Unlimited stock. Since digital products do not run out of stock. The seller does not have to worry about failing to meet high demand or investing more money in production. Millions can download the same digital product without it getting finished.
Start from here.
To get started with making digital products for sale you need to first do the following;
Explore the various types of digital products to find the one that suits your abilities.
Make a research about what buyers are looking for in your ideal digital product.
Do a market survey using keyword research tools and other sources of information online.
Produce the digital product with thorough planning and preparation.
Find a platform to sell your digital product. It can be a personal website or other online platforms like Shopify, Amazon, etc.
Market your digital product.
Conclusion. The heavy work in making money selling digital products is done during the production process. It requires a lot of research, time, commitment, and persistence. However, once created you will need less and less time or any other resources to invest in the digital product. So labor the tiresome days and produce that digital product. Once you start to make the money, the party will not stop. It will open your eyes to other online opportunities you can use to become another digital product millionaire.