Digital products are among the top passive income sources for creators. Many top writers make thousands of dollars selling digital products to their audience.
Some examples of such products are e-books, courses, guides, templates, software/apps, memberships, webinars, etc.
If you want to earn passive income as an online creator, build digital products. Here are seven reasons why:
1 — Easy to make
A simple idea can be turned into a digital product with only a few hours of work.
Making digital products requires two things:
- A sellable idea: Something that adds value to an audience. You should be specific to a niche so that you can target interested people.
- Specific skills: These include writing, filming video and editing, building templates, coding, or designing.
If you have no skill, you can hire someone with it to create the product for you.
Digital products are easy to create once you have the two essentials ready. As I said, they only take a few hours to build.
2 — Lower cost
Building digital products takes less time, effort, or financial investment.
All you need is a laptop, an internet connection, research, and some skills.
However, you might need some other equipment depending on the type of product you are building. For example, you should have a video and microphone to film videos for your course.
But that can also be done with minimum investment.
3 — Infinite amount of stock
Digital products don’t need inventory, and they don’t have a fixed quantity.
You can sell unlimited numbers of copies. Once you create them, you can sell them for an infinite amount of time.
Physical products have limited stocks. They need to be restocked once you sell the amount you have.
4 — Instant delivery
Digital products don’t have packaging, shipping, or delivery costs. It’s because they are delivered instantly.
The buyers will receive the products as soon as they make the payment. They can download (or access) the content instantly.
Digital products are hassle-free; no shipping, logistics, or delivery partner is required.
5 — Create once, sell forever
The beauty of digital products is that they can be sold forever.
You just have to work on building them once. Buyers can access the content as long as you want it to happen.
Digital products are the best form of passive income because they allow you to make money even when you are not working or focusing on other essential tasks.
Your products can be sold twenty-four hours.
However, some digital products need regular maintenance and updates. For example, apps and software become outdated and might need an upgrade.
6 — Less maintenance
As I said, except for a few digital products like apps and software, most don’t need to be maintained regularly.
You only have to work on your product once; the copies can be sold thousands of times.
You can forget about your product, yet it will still make you money in the future.
7 — Higher profits
The profit margins in digital products are incredibly high, considering they do not require much investment.
Plus, no middle parties will take away the profit margins.
You might have to pay transaction fees to the platforms you use. Except that, there are no costs included.
Further, you can also set whatever price you want for your products. Unlike physical products, for which you need to consider the market prices.
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Thanks for reading. To learn how to write online and earn passive income, check out my e-book, Online Writing for Newbies.
