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Not long ago, if you wanted to hear the newest hottest album from Taylor Swift, you would have to get up from your chair and go to an electronic store hoping they had the album you wanted in stock. Then you would come back home, pop the CD into your CD player and enjoy her 42nd breakup song.
Less than 15 years ago, if you wanted to watch Jurassic Park from home, you would have to go to a movie store called Blockbuster’s and rent the VHS. What was even more infuriating was that you would have to rewind the movie if the last person before you didn’t.
Oh, how things have changed my friend. Because we live in an internet age, digital products are becoming much more mainstream. I will highlight 6 reasons why you should have a digital product in this day and age.
1. Digital Products Build Trust and Credibility
If you’ve been around my blog long enough, you will know that credibility and trust is one of the biggest topics I continually pitch. I will not shut up about it haha.
Creating a digital product is a great way for you to build credibility with your audience. Not only does this mean your audience trusted you enough to purchase your digital product, it also means they are trusting you to deliver the content you have promised.
Digital products also build credibility by giving them an in-depth view of your mind, creativity, and expertise.
A rule of thumb for creating digital products is to under promise and over deliver.
Anytime you can smash expectations, you will be building a much stronger relationship with your audience.
2. You Don’t Have to Deal with Inventory Stress
The subheading speaks for itself. You don’t have to deal with suppliers, inventory fees, and lost or damaged goods. This makes having digital products absolutely amazing! All your effort can go just into your product so that it can provide your audience value.
There’s no physical packaging and shipping involved! The internet allows your audience to receive their purchase instantly.
3. Low Start-Up Cost
The startup cost is very subject to the digital product you are creating. If you are designing and scaling a full-blown software, that will cost you a hefty amount based on its functionality. For the other types of digital products such as members, eBooks, courses, and podcasts, they will generally have a lower entry price.
The key ingredients you will need to pay for is:
- Computer Equipment (which you most likely have)
- Recording Equipment
- A Platform to host your product on
If you don’t have these things, prices could start to go up, but check out my resources page where I share the tools I use and some free tools to help you keep costs as low as possible.
4. You Can Serve a Larger Audience More Efficiently
Digital products allow you to serve a larger audience more efficiently because you can create a solution and redistribute it easily to solve many people’s problems at the same time.
Unlike traditional classrooms or event auditoriums, you can serve hundreds of millions of people around the world with digital products.
The analogy I like to use for this is when it comes to music. Before there was downloadable MP3’s, artists were hindered based on the production capabilities and distribution of their CD’s. Too many CD’s and a bad hit left stores overfilled with useless albums. Too little, and customers were upset because they can’t find a copy in sight.
Now that we have iTunes, Spotify, and so many other music platforms, artists can consolidate their music to a few platforms and distribute it to the world.
5. Digital Products Mean Larger Profits
Because digital products are generally downloadable, meaning there are no costly production processes involved. You don’t need to pay for material and all that other jazz. This means you get to pocket over 90% of the proceeds from a digital product if you have set it up correctly.
You are essentially cutting out the middleman and process that would mark up the cost of your goods.
You still will need a payment processor such as Stripe and PayPal though. They generally charge about a 3% transaction fee for the product owner.
Even with that in mind, it’s still much more profitable than physical products. Digital products also allow you to have complete control of your pricing and discounts as well. The more valuable content you begin to add to your digital product, the more you can charge for it because it appreciates in value.
6. Digital Products Are Simpler to Maintain
If you have an eBook or course, it’s a lot easier to keep up to date than physical products. Updating digital products could just simply mean adding more content and then reuploading it so that the new content gets added to the existing product.
You can quickly edit content in the event that certain processes or instructions have changed.
Digital products truly give you that flexibility to make those on the fly changes.
If you aren’t creating digital products yet, I highly recommend everyone to begin doing so. The further into the digital world we go, the more digital products will become mainstream.
This was a straightforward blog. The proof is in the pudding guys. If you enjoyed this or have any questions about digital products, feel free to drop a comment below. Definitely join our awesome growing community on Facebook as well.
Until next time,
Dream Big, Think Different.
Nathan Mensah, Make sure you don't miss any critical aspects to building your personal brand by using this FREE 5 step checklist!
Founder, WiFi Mocha
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