In today’s rapidly evolving digital landscape, diversifying your revenue streams is not just a smart move—it’s vital. Digital products provide an excellent opportunity for entrepreneurs and digital creators to create additional income while offering immense value to their audience.
In this blog post, I’ll share a step-by-step guide on how to effectively sell digital products online, even if you’re a complete beginner.
How To Make Passive Income With Digital Products
Digital products are an incredible way to add extra income to your business. This year, I made about $225,000 with digital products. I’m here to show you how to do the same, starting from content ideation to setting up a sales engine.
But before diving into the step-by-step guide, let’s first understand what digital products are and why they’re an excellent option for online entrepreneurs.
What are Digital Products?
Digital products are intangible goods that can be downloaded or accessed online. They are created in a digital format and include items such as e-books, printables, courses, webinars, stock photos, templates, and more. Unlike physical products, digital products don’t require inventory management or shipping costs, making them a low-risk option for selling online.
Benefits of Selling Digital Products
- High Profit Margins: Once created, digital products have minimal costs.
- Scalability: Serve unlimited customers without increasing inventory.
- Flexibility: Sell products anytime, anywhere.
Step 1: Identify Your Audience’s Needs
Understanding what your audience wants is crucial. Here’s how you can do it:
- Analyze Your Content: Look at your analytics to see which types of content perform best.
- Engage With Your Audience: Check comments and direct messages for recurring questions or needs.
- Competitive Research: Look at what your competitors are offering. Adapt and improve upon their ideas.
Step 2: Define Your Target Audience
One of the biggest misconceptions is thinking your product is for everyone. Narrow your focus:
- Who will benefit most from your product?
- What are their pain points and goals?
- Example: Social media prompts for 20-something Instagram users vs. 30-something YouTube users.
Step 3: Decide on the Transformation
Your product should offer a clear transformation. Ask yourself:
- What problem does your product solve?
- How will your customer be better off after using it?
- Example: A digital product that provides social media prompts helps users post more consistently, potentially increasing their engagement and followers.
Step 4: Choose Your Digital Product Type
Based on your content and audience needs, decide whether an eBook, online course, or workbook suits best:
- EBooks: Easy and straightforward to create.
- Online Courses: Offer in-depth knowledge and interactive learning.
- Workbooks: Provide practical exercises to apply knowledge.
Step 5: Select a Platform
Choosing the right platform is critical. I recommend Kajabi, an all-in-one platform that makes it super simple to sell digital products:
- Features Include: Printable templates, workbooks, eBooks, coaching memberships, and more.
- Advantages: In-depth analytics, marketing tools, easy payment options, and full content ownership.
- Special Offer: Kajabi is currently offering a 30-day free trial. Start your free trial here.
Alternative selling platforms I can recommend are Podia, Teachable and Send Owl.
Podia is another all-in-one platform that allows you to build a website, sell digital products, manage your email list and more, all under one subscription.
Teachable is best known and used for selling and hosting courses. I personally use it for my signature course.
Send Owl is a low-cost solution for selling smaller digital products such as templates, PDFs and eBooks.
Step 6: Create Your Product
Start by working on your product, and turning your idea into reality.
- Ebook: Structure your content into chapters and sections. Use free tools like Canva to design a professional-looking cover.
- Online Course: Plan slides, videos, and interactive exercises. Record with free software like Loom or OBS Studio.
- Workbook: Design printable worksheets or use an online form platform like Typeform.
READ NEXT: How to Write an Ebook that Makes Money on Autopilot
Don’t aim for perfection. Focus on creating a Minimum Viable Product (MVP):
- Get Feedback: Launch your product and gather feedback to improve it over time.
- Iterate and Improve: Use customer feedback to make necessary adjustments and add value.
Step 7: Craft Compelling Product Descriptions
A great product description does more than describe; it sells:
- Be Clear and Specific: Highlight the benefits and who the product is for.
- Use SEO Keywords: Help your product get discovered online.
- Incorporate Customer Feedback: Use testimonials and common phrases your audience uses to resonate with potential buyers.
When creating a product description, it’s essential to paint a vivid picture that connects emotionally with your audience. Begin by telling a story or sharing a relatable scenario that your target audience might experience.
This approach creates an instant connection and demonstrates that you understand their needs. As you describe the benefits of your product, focus on how it can make their lives easier, happier, or more successful.
Step 8: Use Visuals
Show, don’t just tell:
- Mockups: Create visual representations of your product.
- Screenshots: Provide glimpses into what your customers will get.
- Video Clips: If applicable, short previews can be incredibly engaging.
Step 9: Set Your Price
Pricing can be challenging but don’t undervalue your product. Consider:
- The value of your transformation
- Production costs (e.g., design, hosting fees)
- Comparison to similar products on the market
Step 10: Market Your Product
Marketing is essential to drive sales:
- Email Campaigns: Reach out to your subscribers with well-crafted emails.
- Social Media: Leverage your social platforms to promote your product.
- Collaborations: Partner with influencers or other creators in your niche.
Optional: Set Up Your Sales Funnel
Creating a sales funnel is one of the most nurturing ways to guide potential customers towards making a purchase. Start by mapping out the journey your audience will take from discovering your product to completing the sale. Consider offering valuable content that leads into your product pitch, such as blog posts, webinars, or free resources. This not only establishes trust but positions you as a helpful authority in your niche.
Key Components of a Sales Funnel:
- Awareness Stage: Use social media, guest blogging, and email marketing to reach potential customers.
- Consideration Stage: Share testimonials, case studies, and engaging content that showcases the benefits of your digital product.
- Decision Stage: Create a clear, compelling call to action, and provide limited-time offers or bonuses to encourage immediate purchases.
Remember, the goal is to build a supportive relationship with your audience, helping them feel positive and confident about their investment in your product. By nurturing this relationship at each stage, you’ll foster trust and increase your chances of conversion while creating an ongoing connection that can lead to repeat business.
Selling Digital Products Concluded
Selling digital products can transform your business and provide immense value to your audience. Remember, the key is to understand your audience, offer a clear transformation, and continuously improve based on feedback.
Ready to turn your knowledge into a profitable digital product? Start your free trial with Kajabi today and take the first step towards diversifying your revenue streams.
Start Your Free Trial with Kajabi
By following these steps, you can start making additional money in your business with digital products. If you want to learn more about the types of products that sell the best or how to develop them in more depth, check out this video where I talk all about it.
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