What’s a Digital Product? (And Why Should You Have One?)

The coolest thing about online business? There’s really no limit as to what you can create, sell, and buy online. 

We can digitally tip creators on TikTok simply because we love their content so much. We can find an online course for almost anything these days. We can get books delivered to our digital reading devices without stepping foot in a store or library. And who knows what’s in store for the future, right?

But for those who offer unique services or online programs, trying to find “hands-off” ways to share our expertise and make money might feel impossible — we’re not influencers or course creators, right??

Lucky for you, there’s a little something we know can help: digital products.

But what is a digital product, exactly? And why should they be a part of your offerings? Let’s dive in!

What qualifies as a digital product?

A digital product isn’t like a physical one; your customers won’t walk away with something tangible they can hold in their hands like a candle, some wine glasses, or a new laptop. 

Although a digital product is sold online, it doesn’t have a physical form. Instead, digital products can come to life as:

  • E-books
  • Templates
  • Tutorials + guides
  • Workbooks
  • Podcasts
  • Subscriptions + memberships
  • Software programs
  • Art (like digital prints, patterns, backgrounds, etc.)
  • Photos + photo presets
  • Gift cards
  • And so much more!

Wait… why aren’t courses included on this list???

You’re probably wondering, ‘Where do courses fit in with this list?’ We’ll be honest: We don’t consider courses a digital product. That’s because they usually involve your presence in some way, shape, or form. Whether that’s through video tutorials, 1:1 calls, or group sessions, you are typically part of the course, which in our opinion, disqualifies it as a true digital product.

Why you should have a digital product (or several!)

Even though creating a new digital product (or several) takes a lot of upfront work, the payoff is totally worth it. That’s because there are so many long-term benefits to them.

They’re evergreen

Just like online programs, digital products are evergreen. This means that they’ll always be relevant and accessible to your audiences. Certain digital products – like templates or software programs – may need updates periodically. Otherwise, digital products hardly ever have an expiration date or shelf life like physical products, making them that much easier to manage.

Providing more value for your audiences

Sometimes, audiences don’t need the entirety of what you currently provide. For example, if you have a full-service offering that requires a large investment, audiences might be hesitant to pull the trigger. Maybe they’re on a budget, can’t justify the time commitment, or only need certain aspects of your full-service offer.

Filling those gaps with digital products is the perfect solution! It shows your audiences that you’re willing to meet them exactly where they are – while still providing your value for them. Not to mention, your audiences will usually have the best feedback for what their needs are, which can spark so many new ideas for digital product creation. Win-win!

Expanding your expertise

Your unique expertise shouldn’t be limited to what you currently offer. It should be expanded to as many realms that make sense for you and your audiences! Think of it like repurposing content.

Say you film a video for your YouTube channel. Ideally, that video would be repurposed into a blog, some social posts, and a reel so you can remain consistent across channels. So, think of what you currently offer now. How can that be repurposed? Is it a how-to guide? A workbook? Something else?

Don’t let this part overwhelm you, though! Just as we mentioned above, sometimes it’s taking only a piece of what you offer and expanding that into a digital product. You shouldn’t spend hours spinning your wheels trying to re-invent what you already offer.

Growing your passive income

Another great feature of digital products? They can be a set-it-and-forget-it(-for-the-most-part) offer. Once you put in the work to bring a digital product to life, all that’s left to do is sell it…over and over and over again. 

Unlike physical products, you don’t have to fulfill customers’ orders manually – it all happens automatically. This means, for the most part, nothing is required of you! All you have to do is sit back, help your audiences, earn that passive income, and look ahead to your next goal! Speaking of…

Scaling your business

Digital products are great for scaling your business in more ways than monetarily (although we love that, too). Once you’ve stepped outside your comfort zone to create one digital product, what’s next?

  • Another digital product?
  • A library of digital products?
  • Launching a podcast?
  • Repurposing your services into a membership?

The possibilities are endless! 

Another aspect of digital products we love? You can scale your business without spending more money. With physical inventory, scaling your business typically means expanding into new spaces. Maybe you need a storefront, more warehouse or storage space, employees to manage everything…it’s a lot of overhead costs, right?

But with digital products, you don’t have to invest more money to scale your business. Yes, the creation of your digital products will take some upfront time and money. But once it’s finished, it’s finished. You don’t have to order more of this or fulfill more of that. In other words: your digital products are never out of stock! How amazing is that?

Hey! Check this out.
The Freebie Funnel Kit