Digital Products Explained (and How to Create the Right One)
Zachary Tyler
Founder of Solomain Digital ?? ? I Build Automated Systems That Destroy Procrastination & Turn Ideas Into Impact ? ?? Visit Website to Learn How For Free ?? ZylerKade.com
Have you ever wondered how you can leverage your skills to create a stream of passive income?
If you're like many aspiring entrepreneurs, the idea of building digital products might seem daunting, but did you know that digital products can actually be your secret weapon for achieving financial freedom?
Here’s a fact:
If you want to earn money while you sleep, digital products are the fastest and easiest way to do so.
Hi, I’m Zach Tyler, and I’m here to help you turn your creativity into a thriving online business.?
Whether you're new to the world of digital entrepreneurship or looking to expand your digital offerings, this guide will provide you with the insights you need.
In today's article, we’ll dive into the different types of digital products you can create, explore their pros and cons, and help you determine which one aligns best with your skills and goals.
The Common Struggles of Creating Digital Products
I know how overwhelming it can be when you're trying to figure out which type of digital product to create.
With so many options, it’s easy to feel stuck or unsure about where to start.
When I first started, I struggled to choose between writing an eBook, creating an online course, launching a membership site, and more.
I wasted months trying to perfect my first product because I didn’t know what would resonate with me or my audience the most.
The real reason many entrepreneurs struggle to decide on a digital product is the fear of making the wrong choice—one that doesn’t generate sales or align with their strengths.
This indecision often stems from a lack of understanding of the market demand, the time and resources required, and the long-term potential of each product type.
Additionally, the overwhelming amount of information available can lead to analysis paralysis.
I like to think of choosing a digital product like composing a song.
You don’t just throw together random notes and hope for a hit.
Instead, you carefully select the right instruments, tempo, and key to create harmony and resonance.
Similarly, you need to craft a digital product that aligns with your skills and simultaneously resonates with both your preferences as well as your target audience’s.
It’s a careful balance of satisfying all parties involved.
Different Types of Digital Products Explained
Let’s break down some of the most common digital products and look at the pros and cons of each, in order to help give you a better idea of which one(s) may be right for you:
1. eBooks
eBooks are digital versions of traditional books that can be read on electronic devices such as Kindles, iPads, or even smartphones.
The benefits of creating and selling eBooks include low production costs, the ability to reach a global audience, and higher profit margins compared to physical books.
eBooks are usually best for writers, educators, and experts in a specific field who want to share their knowledge.
An example being if you have expertise in personal finance, you can write an eBook on budgeting and saving strategies.
Pros of Creating and Selling eBooks:
Cons of Creating and Selling eBooks:
To successfully create and market an eBook, you should focus on a niche topic, ensure your content is professionally edited, design an attractive cover, and use effective marketing strategies such as SEO, social media advertising, and email marketing campaigns.
Some Additional Examples for Different Types of eBooks Include:
2. Online Courses
The online course market has seen exponential growth, as people increasingly turn to the internet for learning.
Online courses allow you to package your knowledge into a structured educational experience that can be sold worldwide 24/7.
Online courses are best suited for creators, professionals, and educators who enjoy creating structured learning experiences.
An example could be a fitness instructor that creates a comprehensive online course on home workouts.
Pros of Building and Selling Online Courses:
Cons of Building and Selling Online Courses:
To create a compelling course, start by identifying a profitable niche, outline your course content clearly, and use engaging delivery methods like video, quizzes, and interactive assignments.?
Pricing strategies can vary widely but should reflect the perceived value of your course.?
Promoting your course effectively involves leveraging SEO, social media, and email marketing, as well as engaging with online communities related to your course topic.
Some Additional Examples for Different Types of Online Courses Include:
An online course was the first digital product I ever sold, which was a basic course on how to build passive income blogs using WordPress.
I ended up making ~40 sales and earning a little over $2,000 from it when it was available for purchase.?
Not bad for being my first product.
That course is now freely available on my website, you can check it out here (no email or opt in required).
3. Subscription Services
Subscription services involve offering continuous access to products or services for a recurring fee. This model benefits from generating predictable, recurring revenue, which can stabilize your income streams.
Successful subscription services provide high-quality, exclusive content or services that justify the ongoing cost to the customer.
Best practices for maintaining and growing your subscriber base include regularly updating content, engaging with subscribers through newsletters or exclusive offers, and using analytics to track customer satisfaction and retention rates.
That’s why a subscription service type of digital products is typically best for content creators or professionals with technical skills who can consistently produce valuable content, services, and resources.
An example of a subscription service is a graphic designer that offers a subscription service providing monthly design templates, such as that like DesignJoy by Brett Williams.
Pros of Subscription-Based Services and Digital Products:
Cons of Subscription-Based Services and Digital Products:
Other Examples for Different Types of Subscription Services Include:
4. Software and Apps
Developing software and apps can be highly profitable, especially if they solve specific problems or offer unique services.
This type of digital product is typically best for those tech-savvy individuals or teams with programming skills.
Monetization strategies can include selling software licenses, offering subscription services, or providing in-app purchases.
Marketing your software product can be done through SEO, pay-per-click advertising, and building partnerships with other businesses.
Pros of Building and Selling Apps and Software:
Cons of Building and Selling Apps and Software:
Other Examples for Different Types of Apps and Software Include:
Some examples of different apps and software I personally use on a regular basis (and pay for) include platforms like:
Notice how each one solves a specific problem or offers a unique service.
5. Stock Photography and Graphics
For photographers and graphic designers, selling stock photography and graphics can be a great way to earn passive income.
High-quality, unique images are in demand for websites, marketing materials, and more.
When selling stock images, it's important to understand licensing options and choose the right platforms like Shutterstock, Adobe Stock, or Getty Images.
Effective keyword tagging is crucial to ensure your images are found by potential buyers.
Pros of Selling Stock Photography and Graphics:
Cons of Selling Stock Photography and Graphics:
This type of passive income product is best for photographers and graphic designers with a large portfolio of high-quality work.
Some Examples for Different Types of Graphics and Photography Include:
6. Audio Products and Music
The market for audio products such as music tracks, sound effects, podcasts, and audiobooks is growing. Creating high-quality audio content can attract a wide audience.
Distribution platforms like Spotify, Apple Music, and Audible are essential for reaching listeners and monetizing your audio products.
Understanding the legal aspects, such as copyright and royalty agreements, is also important for protecting your work and ensuring proper compensation.
Pros of Creating and Selling Music and Audio Products:
Cons of Creating and Selling Music and Audio Products:
This type of digital product is typically best suited for musicians, sound engineers, and audio producers.
领英推荐
Some Examples for Different Types of Music and Audio Products Include:
The great thing about music and audio products is that there are many different avenues for monetization outside of your stereotypical thoughts such as streaming through platforms like Spotify.
With sync licensing platforms you can create music and audio specifically for visual media like TV shows and movies, or you can even offer music production services such as sound design, or mixing and mastering, as a freelancer on platforms like Fiverr.
7. Membership Sites
Membership sites build communities around a niche topic, where members pay a recurring fee for exclusive access to content or services.
These sites work best when they offer valuable content that is updated regularly, while also fostering a sense of community among members.
Retention strategies should focus on engaging content, community management, and regular feedback loops to keep members satisfied and reduce churn rates.
Pros of Building Membership Sites:
Cons of Building Membership Sites:
Membership sites are best designed for experts and influencers who can provide ongoing value and community engagement.
Examples for Different Types of Membership Sites Include:
This is something that I am working on putting together myself right now, a free membership community for millennial content creators and solopreneurs who are on the journey of building passive income streams and building a life of freedom.
Even a free community can still be a great passive income revenue stream, because it can serve as the gateway to your other digital products and services while providing immediate value to your audience.
How to Decide Which Digital Product is Right for You
Now that you have an idea of some of the different types of digital products you could create in order to start building a passive income stream, how do you decide which digital product is right for you?
Let’s break it down.
Step 1: Assess Your Skills and Interests
Choose a digital product that aligns with your expertise and passion.
If you enjoy reading and writing, an eBook or blog subscription might be ideal.
If you have technical skills, developing software or an app could be a better fit.
If you watch Instagram Reels or YouTube videos every day, perhaps an online video course might be your thing.
Identify your strengths, interests, and resources.
Then create a list of potential digital products you could create based on these factors.
Step 2: Think About Your Ideal Audience
Get personal, think about yourself - what works or has worked best for you?
Here’s a secret tip: YOU are your target audience.
Remember it like this:
Consider what your target audience needs and prefers based on what you need(ed) and prefer(ed).
You can also conduct surveys or research to determine the most in-demand products within your niche.
Engage with your existing audience or potential customers if possible to get feedback on what types of digital products they are looking for.
Step 3: Evaluate Market Demand
Research the market to see which digital products are currently popular and profitable.?
Use tools like ChatGPT, Google Trends, keyword research tools, and competitor analysis to gauge demand.
Research market trends, demand, and competition.
Look for gaps in the market where your skills can provide unique value.
What kind of content did you struggle to find when you were searching for solutions to your own similar problems?
Step 4: Consider the Level of Effort and Resources Required
Some digital products require more time, effort, and financial investment than others.?
Assess your available resources and choose a product type that fits within your capabilities and budget.
For example, if you are starting from scratch or have $0 to invest, then you may want to focus on a product that costs nothing to make or host such an eBook.
Whereas if you already have existing products or money to invest, then you might benefit more from a product that requires a bit more upfront investment such as hosting costs (online courses, membership sites, etc.).
Don’t forget that time is a cost as well.
Do you have more or less time to put into building a digital product?
That can also play an important role in deciding what to start off with.
Step 5: Think About Long-Term Potential
Consider the scalability and long-term potential of each digital product.
Subscription services and membership sites often provide steady, recurring income, while eBooks and stock photography might offer more passive income opportunities.
Stay updated with industry trends and continuously learn new skills to adapt and expand your digital product spread.
By following these steps, I was able to successfully launch several passive income sites and products that provide continuous value to my audience while generating recurring revenue.
To ensure you're on the right path, break down your product creation process into manageable steps.
For instance, if you're creating an eBook, start with an outline, then move on to writing, editing, and finally, publishing.
I have found Taskade to be a great tool for helping me outline and plan my various projects and products.
Crush Your Limiting Beliefs About Digital Products
It’s common to believe that you need to be an expert or have a massive following to create a successful digital product.
And what's worse, there's so many "crappy" products on the market, that they can sometimes be given a bad rep.
You might even believe that digital products and online passive income are "a scam" based on your own past experience or stories from people you know.
The truth is, your unique perspective and skills are valuable.
And there are people willing to pay for you to help them get from where they are, to where you are.
Don’t let fear, ignorance, or perfectionism hold you back.
Remember, it's okay to start small.
Every successful entrepreneur began somewhere, and it's through consistent effort that they achieved their goals.
You have the potential to create something amazing.
Take that first step today, and you'll be surprised at how far you can go.
Here’s a quick 5-minute exercise you can do right now:
1. Grab a pen and paper and list out your top three skills.
2. Next, write down the types of digital products that align with each skill.
3. Finally, circle the idea that excites you the most.
This exercise will help you gain clarity on the best direction for you.
Consider using platforms like Teachable for online courses, Canva for creating digital prints, or Gumroad for selling eBooks.
These tools can simplify the process and help you get started faster.
Digital Products Offer Amazing Opportunities
Digital products offer diverse opportunities for generating passive income, providing a pathway to financial independence.
Creating a digital product involves assessing your skills, understanding your audience, evaluating market demand, considering the required effort, and thinking about long-term potential.
But at the end of the day, the most important aspect above all else is to simply get started.
Your first digital product won’t be the most incredible thing ever.
Your first digital product won’t let you quit your job or retire.
Your first digital product won’t be perfect.
But that’s okay.
The point is to start with one, then iterate and grow from there, with a focus on progress over perfection.
By leveraging your skills and passions, you can create digital assets that continue to pay dividends over time.
Tell me in the comments:
What’s one digital product idea that excites you more than any other?
I’d love to hear your ideas, and I'll reply to help get you started moving in the right direction!
Take that idea and start working on it today!
And if you found this article helpful, don’t forget to subscribe to stay updated on more tips and strategies for digital entrepreneurship.
#EmpowerYourself
- Zach
Hi ?? I’m Zach, I create content at the crossroads of business, technology, curiosity, and passion! I teach you the digital and mental skills necessary to earn online passive income and escape the matrix. ????
If you found this article useful, please consider subscribing on Substack or following me on Medium for more content like this!
You can also find tons of free, high-quality, super valuable online business and digital skills training on my website.
Thanks for reading!
This article was originally published on ZylerKade.com on September 3, 2024.