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Deciding to sell digital products for your small business can be a complete game-changer.

This can open up new ways to serve your customers whether you are already selling physical products or you are a service-based business looking to expand your business with ebooks, online courses, or other digital goods.

Your online store can become a great source of passive income if you sell digital products.

The beauty of adding digital products to your online store is that there are no overhead costs, no manufacturing fees, and no hassle or headache of shipping.

You can create and launch a digital product and sell it for an indefinite amount of time. Selling digital products can be the perfect addition to your business.

Selling digital products allows you to accommodate more customers and not jump through the hassle of shipping out physical goods or solely relying on booking clients as your main stream of income.

Although, you can sell both digital and physical goods at the same time and book clients you sell digital products as well. But creating and selling digital products in your online store allows your website to be a 24/7 money-making, customer serving machine. That’s a win-win for everyone involved!

sell digital products

Almost any type of business model has the opportunity to sell digital products. Some product ideas you can include in your online store are graphics, email or legal templates, software, webinars, stock photography, music files, ebooks, digital memberships, or online courses. The list can go on and on and you can find what uniquely works for your business.

When you sell digital products from your online store you can create something once and sell it over and over. You can work with a client one time but that work doesn’t reproduce itself the way digital goods can.

There is going to be some initial work involved in creating your digital products but once you have it up and running then you only need to maintain, update and market it after all the beginning work has been done.

Brainstorming digital products

selling digital products

If selling digital products sounds like an incredible idea but you don’t know where to start then I’m going to uncover ways to get your ideas out of your mind and into your online store.

First, start brainstorming ideas for your new digital products. The best way to brainstorm these ideas is to give yourself a specific time (1-2 minutes) and make a list of as many ideas for digital products that you have.

Read: 40 Small Business Ideas for Digital Products to Diversify Your Business Income

These may not all be practical, but it will get your mind ready to open up to the possibilities of seeing these new product opportunities. Once you’ve created this list, go back through and see which digital products you can actually create for your new online store.

One easy way to sift through the brainstorming list you created is to find your sweet spot. This means find the overlap between what you are an expert on and what your market will pay for.

This is where the magic will live as you sell digital products on your online store. Doing this will help you not only create products but create products that are successful, marketable, and beneficial to your customer.

sell digital products

From there, try to think of the specifics of what you can create. If you are thinking of creating an ebook or course then try to think of what products will truly serve your audience.

One advantage of selling digital products is that you can price them lower than your one-on-one services. This opens up a whole new market that could possibly not afford your big products or services quite yet.

By creating digital products for them, you are able to give them an opportunity to work with you in another capacity. You are able to teach them and allow them to expand to be able to be at a point where they can possibly afford your bigger products later down the road.

I’m going to be honest with you – nowadays everyone and their mom has a new ebook, software, or other digital product – and that’s completely ok. What that does mean is that you have to create products that really stand out and capture your potential customer’s attention.

You are competing with thousands and thousands of other digital products and online stores. Think about what unique perspective you can spin on your new digital products. Be conscious and aware of this when you are brainstorming and creating your new products.

Niche to sell digital products and stand out

An incredible way to force your product to stand out amongst the sea of other digital products being sold is to niche your product. I know it can be easy to think that when you get too specific you can leave people out – but the opposite is true here.

Let’s say you are selling stock photography in your online store. If you sell stock photography and create and market it as “stock photography for businesses” than you are selling to almost everyone who buys stock photography.

If you create and market your stock photography as “stock photography for health coaches” then when that specific type of business owner stumbles upon your product they won’t be able to resist. When they see your product they will know it was created exactly for them and they will buy it.

You want to create and niche your products so you provide your potential customers an immediate connection to you and your digital product. Speak right to them and create products based upon their very specific needs.

Buying decisions are mostly made on our emotions and you can create an emotional connection by making your potential customers feel like you get them.

When you provide a specific connection to your potential customer then your product has to stand out amongst the others similar to it. You don’t even leave room for competition because similar products are probably not marketing directly to that specific individual.

sell digital products

My own first ebook is called Freelance Design Freedom where I help aspiring freelance designers move from their 9-5’s into full-time freelance success and freedom.

I could have created this ebook around anyone who is looking to leave their 9-5, but the market would have been too general. Creating something specific just for freelance designers created a connection to a part of my audience that really needed this product.

They knew in this book there would be specific tips that they could apply to their exact situation. Maybe I lost potential customers that were just looking to leave their 9-5’s, but I gained a loyal customer base that is specifically aspiring freelance graphic designers. Use this example to stand out and reach your audience the way I did.

Also, this exact topic was in my expertise so it was easier for me to get really specific with my knowledge on how to run a freelance design business. This was my sweet spot in this area and it worked for both creating my product and marketing it to the right people.

Now that you have your ideas brewing for your online store make sure you do put the love, time, and effort into actually creating the product. This may go without saying, but always make sure your products are value-packed.

Don’t create and sell digital products for the sake of creating something that will provide you with passive income. This shouldn’t be the only goal for your online store. You have an opportunity to wow your new customers so be sure to take full advantage of this moment.

Pricing your new digital products

Once you’ve created your digital product – it’s now time to price it to be ready to go live in your online store. This can seem overwhelming at first, but it doesn’t have to be.

You usually want to price your digital products lower than what your one-on-one services or larger products would cost. As I mentioned before, you are opening up a new opportunity for people that may not be able to afford your larger price points. That is the beauty of selling digital products.

You also want to consider pricing your digital products so that your customer truly values them. Think about the last time you bought something for $1 or $2. Did you value it as much as something you invested $30 in? Probably not. Valuing your products on a monetary level will give your customers a higher incentive to actually read, use, or take them in.

Read: 10 Types of Digital Businesses Taking Off Right Now

When you are pricing your digital products, try to avoid looking at outside sources or your competition for pricing inspiration. Competing with another product out there is never a good idea but it happens so often in the digital product world.

Online stores try to match or go lower than the prices of competitors so they don’t lose those comparison shoppers. Pricing comparison shoppers aren’t always the best type of customers for your online store. These are customers that want a deal and may not value your product for what it is, instead, they will value your product for how much they got it for.

It’s best to reframe your perspective that your products are unique. You have used your own unique experiences, skills, and talents to put together your own distinct product.

I know it may sound cheesy – but there is only one of YOU. No one else can compile their words, creativity, or whatever else goes into your product that makes it completely unique. Highlight the uniqueness of your products and don’t try to compete with all the other online stores.

Value-based pricing to sell digital products

Another great approach to pricing your digital products is by using a value-based pricing technique. This is where you can reframe your thinking to understand how much value your product can bring your customer.

An incredible question to ask yourself is – By buying your digital product how much time or money by your customer? Or how much more money or return can they get by having the knowledge you’ve provided them with from your product?

When you think in terms of what value you can bring then pricing your product can make more sense to you.

Also, be sure to make everything easy as well. Test the buying process yourself to make sure it’s simple to understand and that your products are secure.

Don’t leave anything open to interpretation as you want to guide your potential customers to easily buy your digital products. This is one of the most important steps.

Now that you have your digital product ideas brewing and know how to implement steps to create a brilliant product you are on your way to serving your customers in a whole new way.

About the author

Jessica Safko

Jessica Safko is a Berlin-based photographer specializing in lifestyle, branding, and event photography.


    1. Hanna Whirty

      Thanks for reading, Rajesh!

  1. Chad

    Awesome! How do I get started?

    1. Hanna Whirty

      Hey Chad, I would take a look around the rest of FounderU — there are a lot of great resources and articles to read depending on what type of digital product you would like to download. Here’s one you can start with. Thanks for reading!

    1. Hanna Whirty

      Thanks for reading Lauren!

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