What digital products are and how to make money with them

What digital products are and how to make money with them

What are digital products? Who can create them? Where do I sell my digital products once I've created them? Read on and find out!

For a few years now, the market of digital products has been making a lot of success among people who are interested in and curious about digital entrepreneurship. Thanks to this business format, many people started from scratch and achieved success that they never before thought possible. And as we deal with this here at Hotmart on a daily basis, it is up to us to teach you all about this universe. This post will explain what a digital product is and how to make money from this kind of business. Shall we?

What is a digital product?

Digital products are, for the most part, educational materials that are created in a digital format, and distributed online. They have become popular in the world of entrepreneurship due to their incredible reach and therefore, the possibility of scaling profits. For the user, also, consuming digital content is advantageous, since it makes knowledge more accessible and more practical to acquire.

Who can become a digital producer?

As cliché as this may sound, the truth is that anyone can become a digital producer. What will make a difference between those who achieve success and those who don’t is the persistence and thirst for learning. If you wish to become an entrepreneur, know that having a success mindset is as important as the success itself.

How to create excellent digital content

  • “I have an idea!”

You don’t need to wait for something that is incredibly innovative to call it a “good idea”. If you have an idea that adds value to a group of people, you are ready to start working. The first step is simpler than you might think. If your plan is to create a course in an ebook format, start writing. If it is to make video lessons, record your first video. Even if it doesn’t turn out exactly the way you planned it to, you will have a prototype of your digital business. After taking this first step, you need to validate your business. We will talk more about this in this post!

  • “I have a skill!”

Maybe you have a skill or talent but have no idea of how to make it into a business enterprise. Carry out a thorough research about everything in that universe and how you can teach what you know in the format of a digital product.

  • “I don’t have an idea”

If you still haven’t got a concrete idea of what to make, but you sense that there are many opportunities in the market of digital products, don’t worry! A valuable tip is to pay close attention to the world around you and try to identify the needs of people around you. The demand for something different and new doubts arise every day, you just need to find out what they are. Websites such as Quora, Reddit and Yahoo Answers can help you out in this research.

Start with your passions and hobbies, and if you still haven’t got any, this is a great moment to start! Also, search for other digital products and find inspiration in innovative business enterprises.

If you are not an expert, be thirsty for knowledge! You can create a digital product without being a specialist. At first. But if your idea is to become an authority on a certain subject, it is imperative that you master everything about it, otherwise, how will you be able to have credibility with your clients?

Participate in events about entrepreneurship and digital market. This way you will have the opportunity to be in contact with fascinating people, who are experienced, and you would never have the chance to meet by chance. Pay attention to hacks and interesting stories that may inspire you. Follow some of the main events in the digital entrepreneurship market: Fire and the Traffic & Conversion Summit (San Diego, CA) are great sources of learning!

What are the main formats of digital products?

There are many different kinds of products and the best format is the one that best transmits the content, in the most adequate way, to your client. For some business enterprises, an ebook is efficient and practical, because it is very easy to access. For more complex materials, video lessons are better, because the student can learn more from an audiovisual resource. These are the most common formats for digital products:

  • Ebooks, Courses, Manuals
  • Subscription services
  • Members sites
  • Test preparation workbooks
  • Music
  • Ringtones
  • Reports and Market Research
  • Software and online services (including SaaS)
  • Mobile apps
  • Screencasts
  • Video Lessons
  • Lectures
  • Films
  • Templates
  • Source codes, Scripts
  • Images
  • Photos
  • Icons
  • CD-Keys (and other Serial Codes)
  • Digitized magazines
  • Papers and Articles
  • Supplementary products

Nothing prevents you from making different formats available for one single product. Your ebook, for instance, could also come in video and audio formats. You audiovisual course can also be accompanied of a supplementary consultancy in different channels, such as Facebook and Whatsapp. You determine the best approach, always focusing on your audience profile.

Pricing

You have to take a couple of things into consideration before setting a price for your digital product, such as: expenses with the production, prices from the competition, audience profile, an estimate of profit and the value of the product for the client. This last item is very important, as it is an indicator of how valuable and useful the content is for your client, and the higher it is, the more you can charge for your product.

How to validate your product in the market

The best way of testing your product and really know if it is a good idea is… by testing it! It may seem obvious, but many people try to make something perfect in their first attempt, without understanding how the product would do in the market. This is also true for digital products. And here we have something called Minimum Viable Product (MVP). If your idea is to create a complete course on Coaching, for example, you can record some videos and make them available for a small group of people, a sample of your audience. Then you can validate your product with other professionals who are experienced in the digital market, ask them what they would do differently, and how you can improve. Test as many times as needed. With an approved MVP, it is time to start your sales strategies.

Where to sell your digital product

To build digital visibility, it is highly recommended that you have a website. It is an integral part of all your online promotion strategy. What’s more, there are digital products platforms, such as Hotmart, which provide you will all the infrastructure you need to make online sales, including real monitoring of sales, members areas, payment methods, among other functionalities every digital producer needs. You can research about the best platform for your business enterprise with other digital producers who already use this kind of resource.

Which tools to use for the promotion

There are many different channels for you to promote your products, but, once again, you must be where your audience is. Below we have a list of the main channels used by the majority of the digital entrepreneurs:

  • Email marketing: Email is a very powerful tool and you have to consider it one of your main allies from now on. If a person gives you his or her email address, it means you have their permission to talk directly to them. There are many email marketing tools that allow you to send personalized emails and analyze metrics. MailChimp, for example, is one of them, and you can use it for free to start your business. To learn more about email marketing strategies, read our post here.
  • Social Media: The big advantage of social media is that you can engage and speak your reader’s language. But, pay attention: each social media network has its peculiarities. Creating a new account in every new network that pops up can make you lose focus. You can use the Buzzsumo tool to understand the performance of your topic in the different social networking sites.
  • Blog: Blogs are one of the major strategies in Content Marketing, as they aim to add value to people who read your materials. Keep your blog active with relevant content that teaches about your market, and, with a well-planned strategy, your audience will naturally get to your product.
  • Affiliate Program: By signing up for an affiliate program, you find people who are interested in promoting other people’s products. For every sale made, they get a commission and both producer and affiliate win. The big advantage here is that your product gets more visibility and the chances of making sales increase!

Golden tip: stay updated!

This tip is for those who can really see the potential in the digital market. If your objective is to become a great digital producer, and, maybe, an authority in your market, it is time to produce rich, epic materials, which add real value to your audience. What does that mean? It means to keep up with the latest news about the market, interview your audience and find new opportunities. Always know what the major players are up to, and keep your strategies updated. And always count on us for more tips on the digital market.

Now you are ready to create your digital product! If you liked our content, click on “I want to learn more” to receive more information directly to your email inbox!