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In the past few years, the market for digital products has flourished, offering endless opportunities for aspiring creatives and entrepreneurs. But what exactly is a digital product, and how does it fit into your business?
Digital products include any non-physical product, from video classes to memberships and art downloads. Many content creators and creatives view digital products as the best way to earn passive income. By approaching things strategically and setting up an online shop to highlight your products and expertise, you can focus on making top-notch digital products and getting them in front of the right people.
Understanding digital products
At its core, a digital product is any product that is created, distributed, and consumed in a digital format. Unlike traditional physical products, digital products can be downloaded, streamed, or accessed online. This includes everything from ebooks and online courses to music downloads and design templates.
In the web economy, consumers have become accustomed to accessing information and entertainment at their fingertips. This shift has led to a growing demand for digital content, opening up new avenues for content creators and entrepreneurs to monetize their skills and expertise.
Types of digital products
For many digital products, the barrier to entry is low. You can use your laptop or phone to create products quickly to sell content, and there’s no need to worry about storing physical inventory or dealing with shipping. Your overhead only includes the time you put into creating and marketing your digital products.
Here are some of the most common types of digital products:
Ebooks: Books that can be read on electronic devices such as e-readers, tablets, or smartphones. Ebooks cover a wide range of topics, from fiction and self-help to technical manuals and educational materials.
Design templates: Pre-designed layouts or templates that can be customized for various purposes, such as website design, graphic design, social media, or presentations.
Online courses: Interactive educational programs delivered in video or audio, covering subjects ranging from business and marketing to photography and cooking.
Workbooks or guides: Printable or downloadable resources that provide step-by-step instructions, exercises, or prompts to help users achieve specific goals or outcomes.
Art: Digital artwork, illustrations, photography, or graphics sold for digital use or as files for a customer to print out themselves.
Member sites: Subscription-based access to exclusive content, communities, or services, often offered through online platforms or membership sites.
Videos: Digital video content available for streaming or download, including tutorials, fitness classes, vlogs, webinars, and entertainment videos. You can set up a paywall for buyers to access exclusive videos or other content for a fee or subscription.
Written content: Articles, blog posts, essays, or reports published online and distributed through websites, blogs, or digital publications.
Newsletters: Periodic emails containing curated content, updates, or insights on a specific topic or niche.
Music or podcasts: Digital audio files that are downloadable or available for streaming behind a paywall.
Miscellaneous: Various other digital products, such as software applications, mobile apps, fonts, and more.
These are just a few examples of the diverse range of digital products you can buy or try creating yourself. Whether you're a writer, designer, educator, or musician, there's likely a digital product that aligns with your skills and interests.
For aspiring creatives and entrepreneurs, understanding what digital products are and how they fit into your skillset or audience is the first step toward unlocking new potential revenue streams.
Benefits of creating and selling digital products
Digital products offer a range of benefits for creators and entrepreneurs alike. You can use them to start earning for the first time or to earn additional income for your business.
Flexibility and scalability: Once created, digital products can be replicated and distributed infinitely without incurring additional production costs, so you can reach a vast audience without constraints.
Low overhead costs: Unlike traditional brick-and-mortar businesses that require physical infrastructure and inventory management, digital products often entail minimal overhead costs. That gives you a chance to maximize profits and reinvest in further product development or marketing.
Access to a global audience: Through your website and social media, you can showcase your products to consumers anywhere.
Passive income potential: Once created, digital products can generate income through online sales, subscription models, or licensing agreements, providing you with freedom and flexibility.
Opportunity for creative expression: Digital products are an outlet to express your creativity, share your knowledge, and pursue your passions. Whether it's writing an ebook, designing artwork, or producing online courses, you have an opportunity to showcase your unique talents and perspectives.
As long as you’re creating high-quality products that resonate with your audience, you can start sharing digital products and earning passive income.
How to choose a digital product in five steps
Creating and selling digital products requires careful consideration and strategic planning about what you’ll sell and who your audience is.
Assess your interests, skills, and expertise. Reflect on your passions, strengths, and areas of expertise to identify potential digital product opportunities that align with your interests and capabilities. For example, are you better at writing or appearing on camera? These decisions will inform your digital content and format.
Identify market demand. Do some research to identify your target audience’s demographics, preferences, and pain points. Evaluate market demand for potential digital products by analyzing trends, conducting informal polls of your network or followers, or exploring niche markets.
Research your competition and trends. Investigate existing competitors and similar digital products within your chosen niche. Identify gaps or opportunities where you can differentiate your product.
Consider your resources. Assess the feasibility of creating and selling your chosen digital product, taking into account factors such as time, budget, and resources required for production, marketing, and distribution.
Narrow down your options and make a decision. Based on your research and analysis, narrow down your options and prioritize digital product ideas that have the highest potential for success. Consider factors such as market demand, competition, and personal preferences.
Learn more about creating digital products
Sell digital products online using Squarespace
With regular promotion and an engaged audience, the content you add to your website can potentially earn revenue for years to come. Once you decide on which digital products to sell, the next steps are straightforward.
Create a website or landing page.
Add your products and set pricing options.
Make the value of your products clear on your website.
Promote and market your products to your audience or peer group.
With Squarespace, you can sell digital products by adding a paywall to content, like a blog or video, or adding downloadable products to an online store. You can also design and charge for an online course or create a members’ only website for your community.
Digital content presents a range of opportunities for aspiring creatives and entrepreneurs to thrive in the digital marketplace. With benefits such as flexibility, scalability, global reach, and passive income potential, selling digital products offers a pathway to financial independence and creative fulfillment.