7 Highly Profitable Digital Products That You Can Sell Online

Digital products compete with their own. They are pretty easy to distribute, can be replicated infinitely, and are usually simple to create. They allow you to solve other people’s problems and needs from the comfort of their own home. Selling digital products is one of the most suitable forms of online business for creative artists, educators, and freelancers looking for new income streams. 

Companies of all sizes that are undergoing digital transformation to stay ahead of the competition are not immune to this trend. Many online entrepreneurs have built entire businesses around these immaterial goods because of their popularity and easy distribution channels or perhaps launched digital product lines in addition to the physical items or services they offer.

The true power to sell digital downloads lies in the fact that a digital product is created only once and can be sold millions of times to different customers without having to restock your inventory. 

Any skilled individual is perfectly capable of creating a digital product worth sharing and selling. No factories, materials, or staff are required. All you need is a computer, a sprinkle of drive and passion, and your creative mind. 

What Is A Digital Product? 

A digital product cannot be tasted, touched, or held - yet everyone consumes it on an everyday basis. From music to videos, e-books, and online courses, digital products are everywhere around us.

By definition, a digital product is a nonphysical asset or piece of media that can be sold and distributed repeatedly online. Digital products most commonly consist of streamable or downloadable files, such as PDFs, MP3s, video formats, templates, and plug-ins. 

Digital products are generally easy to create, cost almost nothing, and are one of the best ways to generate top-notch income. They also allow you to create additional products for your existing customer base, generating even further income without having to do any additional marketing.  

Benefits Of Selling Digital Products

Creating such products comes with numerous benefits and advantages that make them uniquely attractive to sell: 

• Low overhead costs. You won’t have to hold an inventory or receive any shipping charges. 
• Great profit margins. The goods won’t cost you anything, as they are only made once and repeatedly sold afterward. You will be able to retain the majority of your sales in profits. 
• You work with flexible products. You might offer a free product or a sample of your product to build your email list, sell licenses to use your digital products, and offer paid subscriptions for exclusive digital content. 
• eLearning is the future of education. Keep in mind that the industry is expected to be worth $331 billion by 2025.

Highly Profitable Digital Products That You Can Sell Online 

1. Educational Products As eBooks & Courses 

eBooks are still the buzz these days, mainly because of the ever-growing digital publishing industry that has grown to nearly $18 billion in the US. Part of their popularity is owed to their easily consumable nature thanks to e-readers like Amazon Kindle and Kobo. Also, they are quite easy to produce as you can share almost anything you know or are passionate about in written text form. 

Another option is online courses, which are best suited for in-depth content. Even though they require upfront effort,, such as creating a presentation or recording a video walk-through, know-how courses will never disappear from the online world.  

2. Licenses To Use Your Digital Assets 

There is a global natural system of licensed digital assets uploaded by professional creatives for other creatives to use their work. By offering licensing rights to individuals or businesses, you can charge for the use of your photographs, music, and videos in your own store or through specialized eCommerce platforms.

If you decide to sell some of your work online, you must protect your profitable digital products with the required watermarks and other relevant security measures. 

3. Software 

Another growing industry in which you can participate is software. Companies worldwide are expected to spend around $913 billion on enterprise software in 2023. These numbers tend to only go up, making it obvious that if you can write code, you can pretty much sell it.

Software is practically any solution or service powered by code. It comes in many different forms, such as desktop software, web-based apps, mobile apps, or themes and website templates. If you have ideas and knowledge that can potentially solve problems, you might develop profitable products to sell online. 

4. Expertise & Services

Even though with services, your “inventory” is limited to the number of working hours you can accommodate, they tend to pair well with digital products mostly because of their opposite nature. In addition, customers often receive digital products as part of their purchases, along with many other services. 

For example, a personal fitness trainer might deliver a workout plan as a digital product. Given this, you can position certain services as packages containing profitable digital products. You can also always offer your expertise and services as downloadable products. 

5. Games

Game developers might take advantage of the ability to sell their digital products directly to their customers.

The traditional distribution channels come with pros and cons, the cons being directly connected with profit-sharing obligations to the intermediaries or publishing studios. By offering their products on e-commerce platforms, game developers get to protect their profit margin and keep the revenues. 

6. Digital Templates And Tools

These products can also take the form of nonphysical tools that help professionals perform tasks that are outside their skill set or take up an enormous amount of time. If you have the skills to develop one, you can sell your digital solution to a specific audience that will greatly benefit from your template/tool. 

These include resume templates for job seekers, product mockup files for entrepreneurs, software for businesses, icons, fonts and UX Kits for web designers, among others. 

7. Music Or Art 

If you are a professional musician or artist, you have probably already explored ways to monetize your talents or the audience you are constantly building.

Have you ever considered that as a musician, you can sell ringtones of your music, or that an artist can turn their art into purchasable phone wallpapers? If not, you can experiment with different formats to see what your audience wants without much risk through digital products such as those mentioned above. 

Top Platforms for Selling Digital Products

If you're looking to sell profitable digital products, there are many platforms you can consider. 

• Shopify: The most widely used Shopify platform allows you to set up a store to sell your products online.
• Etsy: You can create your online ideal store for handmade or unique items, and Etsy lets you reach a large audience who are interested in creative products.
• Gumroad: If you're selling digital downloads like eBooks or music, Gumroad is a good platform.
• Teachable: For those who want to offer online courses, a platform for digital products called Teachable provides tools to create and sell your courses effectively.
• Podia: Similarlar to Teachable, Podia allows you to sell online courses, digital downloads, and memberships.
• Creative Market: If you're a designer and want to sell fonts, graphics, and other design assests; you can consider Creative Matket.
• ClickBank: This platform is known for digital products like eBooks and software, offering a large marketplace for such items.
• Amazon Kindle Direct Publishing (KDP): If you're an author, KDP lets you publish and sell eBooks to a global audience.
• Sellfy: Sellfy enables you to sell digital products, subscriptions, and even physical goods through your own online store.
• Payhip: This platform allows you to sell digital downloads and memberships with a focus on simplicity and ease of use.

These platforms are accessible to sellers worldwide, so you can choose the one that best fits your products and target audience.

Challenges and Considerations in Selling Digital Products

Selling digital products seems to be exciting, but establishing some income streams or brands online will come with its own set of challenges.

"There will always be obstacles & challenges that come your way. Building mental strength will help you develop resilience to those potential hazards so you can continue your journey to success." - Amy Morin.

Let's understand those challenges.

1. High Competition

• Market Saturation means that many creators are already selling similar digital products. Standing out from them requires innovation or differentiation in your digital products.
• Brand Recognition: Gaining trust and visibility among competitors is very important but also challenging, especially for new entrants.
• Marketing Noise: Where you want to spread awareness through advertising to make your market aware of products, customer acquisition will cost you more. 

2. Pricing Strategies

• Perceived Value: Unlike physical products, digital goods lack tangible qualities. Buyers often gauge their value based on presentation, branding, and social proof.
• Pricing Models: You need to select a pricing model that will help you generate revenue. These can be one-time purchases, subscription-based models, or freemium approaches.
• Discounting Challenges: When you give too much discounts, then buyer seems less interested in your products and it lost the effect of the value. 

3. Understanding the Target Market

• Customer Needs: Deep market research is essential to identify pain points and tailor products to address specific problems.
• Diverse Demographics: Digital products often appeal to global audiences with varying preferences, economic conditions, and cultural norms.
• User Feedback: Maintaining relevance requires regular engagement and updates based on user input.

4. Intellectual Property and Piracy

• Unauthorized Sharing: Digital products are easy to copy and distribute, leading to revenue loss.
• Copyright Protection: Implementing effective DRM (Digital Rights Management) solutions without inconveniencing users is a delicate balance.

5. Technology and Platform Dependency

• Platform Reliance: Selling through third-party marketplaces (e.g., Amazon, Etsy) may incur high fees or dependency on their policies.
• Technical Issues: Ensuring a smooth user experience with downloads, compatibility, and customer support is critical.

6. Marketing and Visibility

• SEO and Content Marketing: Driving organic traffic to your sales page requires strategic content creation and optimization.
• Social Media Presence: Building a community and engaging with potential customers demands consistent effort.
• Advertising Costs: Running paid campaigns can be expensive and may not guarantee returns without proper targeting.

7. Scalability and Growth

• Infrastructure: While digital products are scalable, managing increased traffic and ensuring reliable delivery requires robust infrastructure.
• Customer Support: Scaling operations often demand enhanced customer support systems to address user inquiries efficiently.

“Every project is an opportunity to learn, figure out problems and challenges, to invent and reinvent.” - David Rockwell.

Key Considerations for Success

• Unique Selling Proposition (USP): Your digital products should be identical and stand out from the market.
• Data-Driven Decisions: Use an analytics tool, such as In-Build or Google Analytics, to optimize marketing strategies and understand customer behavior.
• Ongoing Learning: Learning is also required to stay updated on trends, tools, and customer expectations in the digital marketplace.

Marketing and Promotion Strategies For Launching New Products

So, when launching new products, especially digital ones, marketing comes into play. Here are my suggestions on how you can market them:

First, you should implement SEO techniques to enhance your product's visibility on search engines. This enables natural searching, which means identifying the people who are likely to visit your site while looking for the products you offer.

It also possible to implement the use of affiliate marketing ,where you look for affiliates who will market your products in return for a commission. It’s a win-win.

Proper content marketing is a must. Content that is useful and, at the same time, promotes your product will keep the target audience interested and engaged, be it blog posts, videos or anything else.

An effective way is also the use of e-mail marketing. You can directly get in touch with your potential customers through emails and send them offers and promotions to make them buy.

It can also be used with growth marketing. Try out different strategies to see which one increases sales and user participation best.

It also can use influencer marketing to get more people to visit your site. They have followers, and when these influencers promote your product, they attract more customers.

Remember paid ads. They can help you get fast exposure and put your product in front of likely buyers.

Finally, do not forget about the social media platforms. Create exciting campaigns that encourage users’ engagement, for instance, through contests or participation in promotion,s as this helps in creating a brand community.

Final Thought

Without the need to hold inventory and without selling physical products, businesses based on digital products can be tested and launched with little risk. With a little upfront investment of time and your skill, you can come up with an irresistible value that can pay for itself over time. Plan your perfect project, execute, and deliver!