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Ever browsed a library of videos, downloaded an audiobook, or scheduled a telehealth appointment? All three activities are types of digital products, which run the gamut from software and multimedia to digital services and online platforms.
If you’re considering making a digital product, this primer can help you get started.
What is a digital product?
Digital products are non-physical services and products that are made, shared, and used online. On Squarespace, for instance, you can make video pages, Member Sites, and online courses to share your expertise.
Here are some other examples of digital products.
Services: Digital services are businesses that people use online. For instance, Uber, the ride-sharing app, connects riders with drivers. Online coaching or fitness classes are also digital services.
Downloadable products: Downloadable products are non-physical files. Examples include ebooks, mobile apps, design templates, software plug-ins, high-res photos, and free music downloads.
Video pages: On Squarespace, users can create a video page, or a browsable library of videos, with a pricing plan. Individual videos or the whole library can go behind a paywall, which users can access for free, a one-time fee, or on a subscription basis.
Member sites: As its name suggests, member sites require payment to access written, audio, and video content. Many businesses use these to build a community, strengthen vendor-customer relationships, and create a stream of revenue.
Now that you’ve read up on the basics, let’s explore how to create digital products.
Choose your focus
When deciding what digital product to create, it helps to consider the pain points you’re trying to solve for your particular business. Are there opportunities you feel your business has missed? How would creating a digital product put your business ahead of the pack?
You’ll also want to consider what your customers want and need. Is there a particular product or service that your customers always request? How would creating this product help you meet those customers’ needs?
Finally, consider how in-depth you’d like to go on a topic. If your plan is to share a checklist, then you probably won’t need a whole ebook. But if a skill requires more explanation or demos, an online course may be a good option. In short, the more robust the content, the larger the format should be.
See tips for selling different types of digital products
Get to know your audience
Once you’ve selected a digital product, it’s time to tailor it for your audience. But who is your audience and how do they interact with your brand?
One way to get acquainted with your audience is to conduct market research. Many small business owners attest to the power of in-person conversations, while others swear by keeping close tabs on online ratings and reviews. Still others follow insights gleaned from social media or website interactions.
However you choose to conduct your research, you’ll want to know why your audience turns to you and what your business does well. What do customers get from your business that they just can’t find anywhere else?
Here are some other questions to keep in mind as you research your audience.
Where does your audience live?
How old are they?
Where did they first hear about your product?
Why did they choose your product?
How does your product meet their needs?
What do they think your business can do better?
Would they buy from you again?
What changes would they like to see in your product?
These details can help you determine how you speak to potential customers, what you sell, and how you price or promote your products.
How to get started
Now that you’ve chosen your digital product, here are a few steps to help you create and launch it.
1. Make a landing page
Most business owners would agree that putting a simple landing page with an email sign-up on your website is an ideal starting point. This will prime your audience for the upcoming launch and help your product get indexed by search engines.
A landing page is a good way to validate your idea, as most people won’t share their email if they’re not interested in a product.
2. Test your digital product
Once you’ve created your product, you’ll want to test it to work out the kinks. Creating a beta version allows you to see if small tweaks or bigger updates are needed.
To test your product, gather a small group of testers, who may include potential customers or friends, and offer them free access to the beta version. Consider handing them a survey so you can record all their insights, which you can use later to improve your product.
Here are some questions to ask beta users.
Did the product solve your problem?
What did the product do well?
What problems did you encounter while using the product?
What did you feel was missing from the product?
What would you like to see in the product?
How would you improve the product?
3. Determine timing and pricing
Timing is everything when it comes to launching a new product. From seasonality, which can affect when a product is in demand, to market conditions, which may impact how well a product performs, there is no shortage of factors to keep in mind when timing the launch of your product. Customer feedback is also important, and should play a key role in your planning.
Pricing is another consideration to keep in mind. What’s the value of your product to customers? Does it save them time or money? Once you’ve accounted for fees such as marketing and web hosting, consider how much value your product creates for your customers and what competitors are charging. If it saves time or money, then you’ll want to price it accordingly.
4. Promote your digital product
A great way to get your audience pumped for your product? Make the launch feel like an event. Keep the conversation going after the launch to keep attracting new customers. The more you hype up the product, the more excited your audience will be.
Here are some common ways to market your digital products online.
Paid ads
Podcast appearances
メールマーケティング
SEO
Offer discounts
Sponsored posts
Customer testimonials
Membership communities
Read the full guide to selling digital products
Benefits of creating digital products
Whether you’re just starting out or exploring a new way of earning money, digital products can be a good starting point. Many digital products come with low startup costs and the potential for ongoing passive income.
Low overhead cost: Digital products don’t carry many costs. That means no fees for raw materials, manufacturing, storage, or packing. No shipping expenses. No trips to the post office.
Ability to automate: It’s easier to automate fulfillment of digital products, from deliveries or booking to follow-up emails.
Easy to scale: With digital products, you never run out of stock, so you can sell unlimited copies to different customers.
Positions you as an expert: Sharing quality content is a time-tested way to share your expertise and build your reputation.
Flexibility: From memberships to music, art, and ebooks, there are plenty of options for digital products or services. Once it’s created, you can always go back to add updates to keep things fresh.