The Biggest Benefit of Selling Digital Products

There are many good reasons why you should look into creating and

selling digital products on your website. They are easy and inexpensive to

create. There’s a lot of profit to be made, and frankly, your audience is

coming to expect to be able to pay for and download premium content.

We order Netflix, buy books for our Kindles, and consume information

products in a variety of different ways. If you’re not in the market of

selling digital products, you’re missing out.

By far the biggest benefit of selling digital products is that it’s a business

model that’s scalable. Here’s what I mean and why it is such a big bonus

to getting into the business of creating and selling digital information

products. The product is built once, uploaded to a web server, and can

then be sold over and over again for months and even years to come.

There aren’t a lot of costs associated with selling extra copies. There

isn’t a lot of extra work and time involved in selling extra copies. In

short, it’s easy to go from selling 10 copies of your eBook to selling 1,000

copies. You don’t have to worry about managing stock, ordering supplies

and the likes. Instead, all your time and effort can be spent on marketing

your product and continuing to make more and more sales.

There aren’t a lot of business models out here that allow you to scale up

without a lot of upfront costs. Usually, you have to order a lot more

stock, rent a bigger warehouse, hire more people, and ramp up your

entire infra-structure before you can grow and double your sales. That’s a

lot of upfront cost, responsibility, and frankly a significant financial risk

to take. With a digital product business, you can scale up without any

added upfront cost. Yes, as you make more sales, the shopping cart or

payment processor takes a cut (think PayPal or Credit Card fees), but

those only go up as your sales increase. Aside from possibly needing a

bigger web hosting package and possibly having to answer a few more

customer emails, your business stays the same whether you’re selling 3

products per month or 3,000.

This gives you a lot of flexibility when it comes to growth. You can scale

up as slowly or as quickly as you feel comfortable. You can try new

marketing methods like Facebook advertising, or broker Joint Venture

deals. You can get others to help you market for a cut of the profits

through affiliate programs. Since the profit margin on digital products is

so high, it’s not uncommon to pay affiliates a 50% commission for every

sale they refer to you. This makes it very attractive to other marketers in

your niche and gives you the chance to quickly expand your reach without

any upfront investment of time, money, or resources on your part.