Why Selling Digital Products Is Very Beneficial

There are two types of products being sold online, the digital and the physical. Both offer businesses a chance to make money and trade on a global scale, but the digital products are a more advantageous avenue for anyone wanting to get into business using the internet.

Let’s look at physical products for a minute. If you’re selling products online then you need a storage facility to store all the products, you need to constantly be aware of new orders coming in as you package them and arrange shipping.

On the other end of the scale, digital products don’t need any of that. There is no tangible product which means no storage facility, no shipping and handling and you don’t need to stare at your computer throughout the day hoping that an order will come in.

Less Work

One of the biggest advantages of selling digital products is that the business basically runs itself. You don’t need to spend hours in front of the computer processing orders.

Digital products are ordered by the customer and once paid for a link is emailed to them enabling them to download the product, it’s that easy. There is no shipping and handling and no products that need storage.

Because the business basically runs itself, except for some marketing you may do, you can sell digital products in your spare time, a way to make a second income with ease.

Higher Profit Margins

If you were to sell one hundred physical products, you would need to purchase the products, add your profit margin to the price and then sell each one. That’s not only a lot of work, but your profit margins are limited.

When selling digital products you make one digital product and it can be sold thousands of times without any extra effort. This means that once your first product is sold, the rest is pure profit, this increases your profit margin dramatically.

Flexible Prices

Digital products enable you to determine your own pricing and you can change the price as and when you want, you can lower the price during quieter times and increase it during peak periods, remember you are working on a very high profit margin.

If it was a physical product you were selling you would have purchased the item, so you would have spent money and then you need to mark up the price, there is no flexibility as you need to ensure you make some form of profit.

Less Competition

The internet has opened up so many doors for companies, but companies selling physical products are finding it harder to make a good sales turnover as they are not trading on a local or national scale anymore, but they are trading on a global scale which means they have more competition than ever before.

For those selling digital products this is a huge advantage, you are able to sell your item to any country around the world and digital products are unique based on your abilities which means your competition is considerably less.

Sell Your Digital Products

One of the best ways to make money online is to sell digital products, either your own or those of others. In this article I’ll discuss how you can sell your own digital products to grow your online business.

Step One: Create a Digital Product

Although many people believe otherwise, creating your digital products is fairly easy. You just need to have a topic that will be of interest to potential buyers and then put together some information about that topic in written, audio or video format.

To find a profitable topic, you need to do keyword research. This topic could be an article all its own, so I’ll only mention the basics here. You want to find a keyword phrase of two or more words that gets at least 50 searches a day. If the words “how to” “buy” or “review” are in that keyword phrase, so much the better. There are plenty of tools online for you do to keyword research, so just look for them with your favorite search engine.

Once you’ve found your topic, pull together some information about it. You can do this from your own experience, research or even find some experts on the topic and interview them. Record the interview using one of the many no cost teleconference services and you automatically have an audio product. Get the audio transcribed and you can create a written product. Add some images, create a slide show and you can have a video product, too. Again, these topic could each be several articles by themselves, so I don’t have the space to go into much more detail here.

Step Two: Create a Sales Page

Now that you have your product, you need to be able to explain to folks why they should buy it. You do this with a sales page. Ideally, you’ll create this sales page on your own mini-website, but if you don’t have hosting, you can always start out creating a sales page using one of the free blogging sites, such as Blogger or LiveJournal. Basically, you create one post and that’s your sales page.

Your sales copy should following this basic formula:

1. Share the problem your product solves, illustrate how painful this problem and be.

2. Explain how your product solves these problems.

To make your sales copy stronger, you can add in an explanation of common solutions to the problem and then why yours is different and better.

There is plenty of information on the Internet about how to write good sales copy, so read up. But this simple formula will at least get you started.

Step Three: Set Up the Sales Process

There are many ways you can do this, but before you start, think about whether or not you’re going to stop at just one or two products or are going to continue to grow your inventory of digital products.

The simplest way is to just create a “buy now” button through a payment processor such as PayPal. If you want to have an affiliate program attached to the product so that others can market your product and make a commission, then you can go one step up and set up your product with ClickBank or PayDotCom.

Both these methods work well if you are only selling one or two products. However, if you are going to sell several products … especially if one customer would conceivably want to purchase more than one at a time … you’ll want to invest in a digital shopping cart. A digital shopping cart lets you set up multiple products in one system and empowers customers to place several products in a virtual shopping basket for purchase at one time. In addition, eCommerce software protects your downloadable products from cyber thieves, so that only paying customers gain access to the files.

In fact, download protection, although possible without a shopping cart, is probably the most compelling reason to invest in eCommerce software. If too many non-paying “customers” get access to your digital products, the value of your product is reduced and you can stand to loose a lot of money. Protecting your download individually can be time-consuming process that is easy to get wrong. Digital shopping cart software does this for you in very simple steps.

Step Four: Market Your Product

Now that your product is created and ready for people to buy, you need to get the word out and sell your digital products. There are way too many ways to market your product than I have time to cover in this article. But so you’ll have some idea of what methods to research, here are the most common methods:

  • Article Marketing: writing articles about the topic of your product and posting them to article directories with a link to your sales page.
  • Relationship Marketing: building a list of prospects and creating a relationship with them so they are more likely to buy what you promote.
  • Pay Per Click Advertising: posting short advertisements online that promote your product.

9 Steps to Creating Your Own Digital Product

Creating your own digital product is actually quite easy when you use a system. Here are the steps that I suggest you use to create your own top quality digital product in record time.

1. Narrow down your niche

As a general rule, the best products – and certainly the easiest ones to market – are targeted at a relatively small, easily identifiable niche. So instead of targeting, say, weight loss, you would narrow that down to weight loss using a specific diet or method or aimed at a certain demographic.

2. Outline your digital product

Making an outline of what you want to cover in your digital product serves two main purposes. Firstly it ensures that you don’t miss anything obvious from your product and secondly it gives you a map to follow when you are creating your product.

3. Drill down on your outline

Once you’ve got an outline of your product, it pays to drill down and write down what you’re going to cover in each section. Again, this helps ensure that you’re not going to miss anything when you create your product. But also writing this down in bullet point form means that you can use that list as a crib sheet whilst you are talking or otherwise recording your product.

4. Ensure you won’t be disturbed

You need to set some time aside to record your product.

Make sure that you do some simple things such as switching off your phone, closing any instant messenger windows and making sure that anyone who could potentially interrupt you knows that you’re doing something important and therefore shouldn’t be disturbed.

5. Start recording

I almost didn’t include this step but it is actually one that a lot of people stumble on.

Most of us have a tendency to procrastinate and put things off.

But the trick is to actually start. Once you’ve started, you’ll probably find that you want to continue as your enthusiam levels rise.

6. Edit if necessary

This is a separate step. Editing uses the critical side of your mind, so you shouldn’t mix editing with the creative process of recording your product.

Audio and video programs come with a wealth of editing tools but – in my mind at least – I think that you should be aiming for something that is “good enough” rather than striving for perfection.

7. Upload your product

You can upload your newly created digital product to your website using the control panel in your website hosting or, more efficiently, by using a program such as Filezila to FTP the files across from your local computer to your internet host.

8. Create a download page

A download page can be as pretty or as ugly as you like. Your customer is mainly concerned with getting the product they paid for and using it than they are about the wrapper that’s around it.

The glamour should be reserved for the other element of your digital product:

9. Your sales letter

You can create this with fill in the blank software that’s available for free or chargeable on the web. Or you can create a sales letter from scratch.

The aim of a sales letter is to persuade your potential customers that you have a product that meets their needs and that they want to buy.

The principles of sales letters haven’t really changed much since at least the time of Claude Hopkins (author of the 1923 book Scientific Advertising), just the medium has changed from print to the internet.

The Difference Between Digital Products and Digital Service

I get this question all the time: “Eric, I wanted to start an online business. However I don’t know where to start from. Should I start from digital products, or should I start from digital services?” And my answer for all these while has been this: “always go for digital products.”

You may be shocked to see my answer to be digital products. Countless of people have been telling me that they have certain expertise and it is wiser that they use their expertise in the form of providing service to others so that they can earn money from their expertise. I would like you to think even further, can’t you package your expertise in the form of digital products and sell it online?

Here’s one dirty little secret of these two options, or I should say, the dirty little secret of online business: Digital products can be automated entirely while digital service cannot do so. Simply put, when you have your digital products, you are making your system to be on automatic pilot. You no longer need to be in the equation in order to make money. You make money when you work, make money when you fish, make money when you hike, make money when you hike, make money when you eat, and the coolest part is that, you make money when you sleep.

But if you choose to go for the digital service, unless you are satisfied to work like an office hour in order to make money, then this option may not be suitable for you. When you can create your own digital products, you only do the work once. Once it is up there in the system, or commonly known as the sales funnel, it can be run automatically. You don’t have to monitor the website 24/7 just to make sure money will come in. You don’t have to assist the customers to check out from the sales funnel because everything is arranged and built systematically.

In the digital service world, here is the rule that is inevitable: you have to be in the system or equation in order to make money. Try to think of it. You are providing service to other people. If you stop working, who is going to provide the service to your customers? No one except you! That’s why in digital service, your earning stop when you stop working. You may be arguing with me that to provide digital service will enable a stable income. This to a certain degree is true. But try to think outside the box. If you can sell your service in the form of digital products, can you increase your profit margin? And when you build trust with your customers (which I assume you are adding real values/solutions to their life), you can always promote them with backend products. Can you see how powerful digital product is now?

Here is one final bite between these two. If you ever dream of having the time freedom so that you can do more meaningful things in your life apart from work alone, then you need to take a look at digital products seriously.