What Is A Digital Product (A Detailed Guide)

You might have heard about the term digital product often on the internet. But what exactly is a digital product?

Digital products are commodities created on digital devices like desktops, tablets, or mobile phones, which can be sold to users online. 

In short, anything you can download and use digitally is a digital product. 

So, what are the examples of digital products?

I have provided a detailed definition of digital products and their examples in the following article. 

Digital Product Definition And Example

Any commodity that cannot be touched or felt and is available on digital devices is called a digital product. 

These products are usually cheaper and readily available compared to their physical counterparts. 

Further, the digital products can be easily updated or modified. Besides, most digital products provide users with a license that allows consumers to use the products in unlimited ways. 

Some of the advantages of digital products over physical products are:

1. Digital products are cost-effective as they do not require any inventory or overhead costs. Besides that, you will not need any shipment charges. 
2. Higher profit margins are observed in digital products. These margins are due to the cost-effectiveness and reduced extra product-handling costs.  
3. Digital products can be easily incorporated into your business and marketing strategy. You can also market them as your source of income or give them away as freebies to boost your business’s brand awareness. 

Types Of Digital Products

Different types of Digital Products that you can create and sell online are: 

1. E-Books

E-books are book publications made available to users in digital form. Users can download these books on their devices to read them. These books include all the images, graphics, etc., like an ordinary book, but it’s just in digital form. 

E-books are sold on various platforms, including eBay, Shopify, Amazon, and other dropshipping platforms. You can also sell them on your WordPress sites. Besides that, e-books are great for directing your users to your website. 

2. Downloadable Software:

If you are good at coding, you can easily create unique software that can be downloaded and sold on the internet. The downloadable software industry keeps increasing daily and provides creators with enormous opportunities to showcase their talents. 

You can develop web-based applications, desktop software, mobile applications, plugins, website templates and themes, video games, etc. You can sell these digital products on the platforms that suit your needs. 

3. Photography

Stock photographs can be used for free or can be purchased at a cheaper price. However, if you can click unique and incomparable images, you can easily create a fair amount from your pictures. 

Moreover, you can sell these photographs on different websites or create a WordPress website. 

4. Video Content

Video content is one of the most popular forms of media consumed in today’s era. You can use video to share anything and everything. One can create educational, informative, or entertaining content and share it on various platforms. 

Currently, platforms like Instagram, YouTube, Facebook, etc., provide monetary benefits for content creators with more than a few thousand followers. 

5. Music And Audio

Music and audio are the most powerful ways to convey the message to the users. Hence, most businesses do not step back to pay for the audio that can attract the type of audience they intend to.

Besides, sound effects are one of the most in-demand commodities that can be created and sold online. You can sell your audio files through third-party platforms or your e-commerce website. 

6. Online Courses

Online learning has gained a massive demand over the past decade; more and more students are shifting towards online learning to grab the educational content and to level up their skills. 

Hence, with the huge demand for online learning, you can step into the industry and deliver the learners detailed courses to upskill their interests. You don’t need to think much; just create the online course on your expertise and sell it online. The Authority Site System course is the best example of an online course that offers the best value at a reasonable price.

7. Digital Art And Graphics

Digital artists and graphic designers have a wide variety of options to create and sell online. These include digital products like illustrations, logos, Icons, templates, Powerpoint themes, sketches, book covers, 3-D drawings, and other types of digital art. 

If you can produce your own digital art pieces from scratch, you can earn a fair amount of money by selling them online. Besides, you can also provide an option to the users to print your designs on different objects like tote bags, mugs, t-shirts, etc. 

8. Web-Based Applications

Web-based applications are not downloadable software and can be used only on web pages. These web-based applications are called SaaS (Software as a Service). 

However, these web-based applications are not sold similarly to digital products but have subscriptions. Users can subscribe to this software and use the services provided. 

Some examples of web-based applications are content management systems like Salesforce, project management systems like Asana, and cloud storage systems like Google Drive or Dropbox. 

Top 5+ Digital Products That You Can Sell Online 

As seen above, there are a wide variety of digital products you can choose to create from. However, if you intend to make selling digital products your source of income, you need to select the niche that will help you to earn more and the ones that are more popular.

Here are the top 5 digital products that you can choose to sell online to help you generate a decent source of income. 

1. Online Courses And Educational Products

The popularity of online courses has proliferated over the past decade. There are various platforms allowing users to create and sell their online courses. 

To create and sell your courses online, you can use Teachable, Kajabi, Udemy, Skillshare, Thinkfic, Coursera, etc. These platforms allow you to create courses, online classes, etc., and you can monetize them. All you need to do is pay some amount of your earnings to the platform. 

The benefit of using these platforms to sell your courses is getting a ready-made user base. You just have to provide the learners with the best quality courses and attractive learning methods. 

2. Templates

In today’s digital era, everyone loves getting their hands on templates that ease their work. Hence creating templates of designs, website skins, CVs, e-books, journals, etc., will help you to monetize your skills. 

You can create your personal website to sell these templates or use the platforms like Amazon, eBay, Shopify, etc. These templates are purchased by thousands of users daily; hence make sure that you deliver high-quality and captivating designs. 

3. Stock Photography

Stock Photography has gained popularity over the last few years and is most popular among content creators and marketers. Photographs and videos can be sold on platforms like Unsplash, iStock, Pexels, Alamy, Shutterstock, etc. 

To sell your photographs online, you can select a niche or a general category and then sell images on the platforms. Before you sell your images, please make a point to edit your images to make them more impressive. 

4. Podcast

Podcasts have become one of the most preferred media in today’s fast-moving age. They are digital audio recordings made available online for streaming or downloading. 

Platforms like Captivate, Buzzsprout, Resonate, etc. help you to host or listen to the podcast for free or for paid usage. This podcast can promote your products, offer consulting services, promote products, build an online community, or educate the audience. 

Most podcasts today are free on the platforms like YouTube, Spotify, Apple Music, etc. These platforms provide a good amount of money for affiliate sales, course sales, Patreon support, ads, etc. 

5. Memberships

If you want to maintain a long-term partnership with your audience, the membership model of selling digital products is the best way to go ahead.

For example, Mindvalley a self improvement platform created a Mindvalley membership offers a plan for $199 monthly. This membership enables users to access the self improvement courses. Similarly you can also create membership plans or products.

You can also provide subscribed consumers with exclusive content or discounts on your monthly or yearly subscription. Besides, the subscribers will be happy to receive freebies and extra benefits like promo codes, discounts, or coupons. 

Where Can You Sell Digital Products?

Here are some of the main places online that allow you to sell digital products:

• Your own website – Using platforms like WordPress, Wix, or Shopify, you can host and sell digital products directly from your own website. This gives you complete control.
• Marketplaces – Major marketplaces like Etsy, eBay, and Amazon marketplace enable listing digital products for additional exposure.
• Digital storefronts – Specialized platforms like Gumroad, SendOwl, and Selz are designed specifically for selling digital goods.
• Email marketing – Email channels like Mailchimp allow you to sell digital products directly through campaigns and newsletters.
• Social media – Facebook, Instagram, YouTube, and Twitter all have options for selling digital products directly through posts, profiles, and channels.
• Affiliate marketing – Become an affiliate for other digital products and earn commissions when you drive referrals and sales.
• Digital auctions – Auction platforms like Envato allow you to sell creative works like templates, photography, music, and more.
• Paid channels – Channels like paid ads, paid social media, and influencer promotions can drive traffic to your digital goods.

The easiest approach is often through your own website combined with marketplaces and social platforms. This provides maximum reach while retaining control of your branding and customer data.

Benefits & Challenges Of Selling Digital Products

Here are the benefits & challenges of selling digital products

Benefits

• Low Overhead Costs: No need for physical inventory, storage, or shipping expenses.
• Scalability: Easily scale your business without significant additional costs.
• Global Reach: Sell to customers worldwide without geographical limitations.
• Instant Delivery: Customers can access products immediately after purchase, enhancing satisfaction.
• Passive Income: Create products once and sell them repeatedly without ongoing production costs.
• Flexibility: Update and improve products easily, providing better value to customers.
• Eco-Friendly: No physical materials used, reducing environmental impact.
• High-Profit Margins: Lower production and distribution costs lead to higher profit margins.
• Customization: Tailor products to specific niches or customer needs for better targeting.

Challenges:

• Intellectual Property Theft: Higher risk of piracy and unauthorized distribution of digital products.
• High Competition: Easy market entry leads to saturation and intense competition.
• Technical Issues: Dependence on technology can lead to issues with product delivery and customer access.
• Quality Perception: Customers may undervalue digital products compared to physical ones.
• Marketing Efforts: Requires effective digital marketing strategies to stand out and attract customers.
• Customer Support: Providing support for digital products can be challenging, especially with technical issues.
• Refund Policies: Handling refunds and returns for digital products can be more complex.
• Digital Literacy: Customers need a certain level of digital literacy to use and benefit from the products.
• Platform Dependence: Reliance on third-party platforms for sales and distribution can limit control and increase costs.

Tips For Selling Digital Products Online

Here are a few marketing and sales tips that can help you easily sell digital products online:

• Search For The Best Digital Product: A lot of free digital content is available on the web, so finding the right digital product is the most difficult part. You have to do market research to find the best digital product that will add value to your customer’s lives.
• Promote A Free Version Of Your Product: If you want to create interest among your visitors, then you need to create a light or free version of your product. This will help you collect leads from your website; ultimately, your visitors may buy the full version of your digital product.
• Start An Affiliate Program: Affiliate marketing is one of the biggest sources for creators to sell digital products. So, you should also start an affiliate program for your digital product. Give affiliate marketers a high commission to attract more customers and get more sales.
• Sell Your Product Through Preorder: If you want to get sales in advance before launching your product, then attract your customers by providing them an early bird discount on your product through preorder. You can offer a 50% discount to the first 100 customers who preorder and then a 25% discount to another 100 customers when 200 customers have preordered your product and then launch your product at full price.
• Offer Money-Back Guarantee: Some people may not like your digital product, and if you don’t want negative reviews on your product, then it is best to offer a money-back guarantee. This will reassure the new buyers that they have no risk in buying your product, and if they are not happy with your product, then they can just use the money-back guarantee.

Final Verdict: Online Courses, eBooks, Templates & More Are Digital Products

That’s all about digital products. 

Creating and selling digital products is an excellent way to earn income and showcase your talent. 

Check out our website to learn more about the platforms you can use to sell your digital products. You will also find other latest details and blogs for the same. 

Which digital products would you like to sell? Let us know in the comment section below. 

FAQs