Some products exist only on a computer, however, they are still sold for real money. Examples of these include eBooks (which are just like normal books but instead of a hard copy they are just a file which you can download), training courses, software and much much more.
The advantage of selling digital products is that you don’t have to pay any manufacturing or distribution costs. Once you’ve made the product, everything you sell is virtually profit! This is why many people create their own digital products themselves, for example writing an eBook on a subject, and then selling it.
SO WHAT MAKES DIGITAL PRODUCTS DIFFERENT TO PHYSICAL PRODUCTS?
- Immediate Gratification : Unlike a physical product, say a book, you do not have to travel to a bookstore or wait for the book to be sent by mail to you. Instant gratification is available by downloading the digital product. Think Amazon 1-Click or Apple’s iTunes Store. No more waiting.
- Manufacturing and distribution: Unlike a printing press or manufacturing operation, digital products have no need of physical warehouses.
Digital products are stored in ones and zeroes in cheaper and cheaper storage area networks, distributed on increasingly cheaper networks.
- Incremental Updates: Because digital products are strings of zeroes and ones, they can be updated rapidly and republished faster than physically.
- Interactivity and big data: This is the area where the technology and understanding of the consumer and product interaction meets big data and massive processing capability. The ability to write content and follow the user’s interactions with the content to gain insight and understanding has never been better
- Requires storage: Digital products require some kind of personally accessible storage. Think hard drives, USB keys, Dropbox, Google Drive, SkyDrive
- More open to fraud than a physical product: The simple fact is a string of ones and zeroes is more easily copied than a bound physical book.
- Never run out of stock with digital products
- Benefit from lower inventory, shipping and warehouse costs
- Reach international markets with less hassle
- Work wherever and whenever you want
- Automated functions make selling easier
There’s money to be made in both physical and digital products. For hassle free trading, use digital products, but whatever products you choose, competitors abound, so you have to exercise the right marketing strategies to win.