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The opinions of entrepreneurs' contributors are their own.
When we think of passive income, we think of making money while you sleep. There is no better way to do this than creating a digital product that can sell itself while you are busy doing other things. For this reason, entrepreneurs are turning to digital courses, e-books, presets and SaaS products more than ever. If you are for profit, these digital products and services are the way to go. They are inexpensive – aside from the up-front cost of creating them – and their profitability is limitless.
Statista reported that the digital media market is projected to top over $ 292 million in 2021 alone, but it's not just the profitability potential that makes digital products worth a second look. Because of this, new entrepreneurs are developing their very first digital products and entrepreneurs are considering their own digital product or service as an additional source of income.
1. Easy administration.
There has never been a product that is easier to manage. The business model of a digital product is designed for total simplicity. Unlike physical products that require manufacturing, storage, and shipping, a digital product is as easily accessible as a paywall and download. Everything you want to sell digitally is set up on the major e-commerce platforms in less than an hour.
Related: 5 Tips To Increase Sales With Your Digital Product
2. The potential for profitability is great.
The ease of administration adds to the potential for profitability. The nature of a digital product lies in the preparatory work to produce it. Once the e-book is ready and uploaded, it can be sold to thousands of buyers. Once the course is recorded, it can be uploaded and hundreds of students can enroll throughout the course's life cycle.
Another example of a digital product (especially in times of Covid) are virtual conferences or workshops. These live courses can last as little as 30 minutes or up to a full day, with varying programming fees. And as long as you host the conference or course, the potential for profitability continues to grow. Think of it this way: you might be charging $ 99 for a master class and your goal is to sell just 10 tickets. Once you hit 10, you can easily accommodate 50 more attendees and profits increase without changing expenses.
Tom Wang is a successful Amazon entrepreneur who has generated over $ 8 million in sales with his skin care company Sdara. Mastering the backend funnel for physical products, he recently moved into the digital space for online courses and workshops teaching other hopeful entrepreneurs how to achieve what they have. "Creating digital courses and online workshops is a whole new arena of opportunity," said Wang. “We can enroll or register up to hundreds of students and they will keep coming back to learn more. It's a completely different business model than physical products, and that's what makes it so exciting. "
3. You can make money while you sleep.
There's nothing like waking up every morning with notifications of sales that happened overnight – while you were sleeping. Selling a product silently in the background is the best way to achieve this, as long as you have the right marketing channels in place. Nicola Napolitano is a good example. As a successful e-commerce entrepreneur, his first digital presets product grossed over $ 200,000.
“When you show what your digital product can do and set up a way for customers to buy and download on cue at any time of the day, the real sales begin,” explains Napolitano. “I would show the presets with my photos and let other social media influencers do the same. Then it was a simple, independent process developed for each customer. You decide to make a purchase and will be guided through a series of prompts to help you get the presets going on your own. There are always a few questions we get, but it's a largely intuitive and easy-to-use process that generates massive profits while I'm sleeping or working with clients, ”he added.
Related: How To Make Money While You Sleep
4. You will never be “sold out”.
In addition to being easy to manage, the ability to avoid back orders or sell-offs increases the potential for profitability. F. Curtis Barry & Company estimates that when a company processes back orders or has products out of stock, a whopping 10% of sales can be lost simply because customers go elsewhere. In today's culture of immediacy, this is all the more true. Digital products offer this immediacy so that the customer can read, view, use, or learn within minutes of paying, and from a business owner's point of view, there is no inventory management. There is an unlimited number of products that can be sold as they are just digital access or copies.
With so much ease and so little up-front requirement, it's a breeze to start brainstorming digital product ideas. Whether you are selling in the background or your main focus, profitability alone is worth the extra work. Cheers to the rich and rewarding ROI.