Want to earn money online but not sure where to start? Digital products might be your answer! This guide will walk you through everything you need to know about creating and selling digital products, even if you're completely new to the game.

What Are Digital Products?

I have worked in technology my entire career. At one time I had a retail brick and mortar store. As you can imagine, with all of the overhead expenses associated with a physical location, margins on sales are very tight. With an online store expenses are not as high and good profits are more easily realized. I always believed an online digital product that can be sold over and over again was a great way to gain passive income and an evergreen source for income in the future.

Digital products are items that exist in digital form - think ebooks, online courses, templates, or software. The best part? Once you create them, you can sell them over and over without having to remake them each time!

Starting Your First Digital Product: A Detailed 3-Step Process

1. Find Your Sweet Spot

Look for Problems People Need Help Solving

Browse through forums like Reddit, Quora, or Facebook groups in your area of interest to identify common questions and pain points. Pay attention to questions that keep coming up repeatedly, as these indicate strong market demand that could be addressed with a digital product.

Think About What You're Good At

Make a list of your skills, hobbies, and professional experiences - even things you might take for granted could be valuable to others. For example, if you're good at organizing your finances, you could create budgeting templates; if you're a skilled photographer, you could create editing presets.

Research What Others Are Willing to Pay For

Visit platforms like Etsy, Gumroad, or Udemy to see what similar products are selling and their price points. Look for products with lots of positive reviews, as this indicates a proven market. Study their descriptions and features to understand what makes them successful.

2. Choose Your Product Type

Ebooks

Perfect for in-depth guides, tutorials, or storytelling. Ebooks can be created using simple tools like Google Docs or Microsoft Word, then converted to PDF format. They're great for establishing expertise in your field.

Online Courses

These can range from simple video tutorials to comprehensive learning programs with multiple modules. You can start with screen recordings and slideshows, then expand to more professional video production as you grow. Also checkout our course How to Create Your Own Passive Income.

Templates

These can include social media templates, business documents, or planning tools. Templates are popular because they save people time and provide professional results. They can be created in various formats like Word, Excel, Canva, or Photoshop.

Printable Planners

These help people organize their lives, businesses, or specific projects. You can create daily planners, meal planners, budget trackers, or goal-setting worksheets. They combine practicality with attractive design.

Digital Art

This includes illustrations, fonts, icons, or design elements that others can use in their projects. Digital art can be created using tools like Procreate, Adobe Illustrator, or even Canva for simpler designs.

Software Tools

These can be simple scripts, plugins, or full applications that solve specific problems. While they require more technical skills, they often command higher prices and can provide significant value to users.

3. Create Your Product

Focus on Solving One Specific Problem

Instead of creating a general "how to start a business" guide, focus on something specific like "how to set up your first Etsy shop for digital products." The more specific your solution, the easier it is to market and the more valuable it becomes to your target audience.

Keep it Simple but Valuable

Start with a basic version that solves the core problem effectively. For example, if you're creating a meal planning template, begin with a simple weekly layout before adding features like grocery lists or calorie tracking. You can always add more features based on user feedback.

Make it Look Professional

Use tools like Canva for design elements and maintain consistent branding throughout your product. Pay attention to formatting, typography, and overall presentation. A professional appearance helps justify your pricing and builds trust with customers.

Setting Up Your Store

Direct Selling Platforms

Gumroad

Perfect for beginners with its simple setup process and minimal fees. You can start selling within minutes by uploading your product and setting a price. They handle payment processing and digital delivery automatically.

Etsy

Ideal for reaching a large, established marketplace of buyers looking for digital products. Etsy provides built-in tools for managing orders and communicating with customers. Their search feature helps customers find your products organically.

SendOwl

Specializes in secure digital product delivery and offers features like affiliate programs and upsells. They integrate with existing websites and provide detailed analytics to track your sales.

Website Builders with Store Features

Shopify

Offers powerful ecommerce features and hundreds of apps to extend functionality. While it has a monthly fee, it provides professional features like abandoned cart recovery and detailed analytics.

Wix

Provides drag-and-drop website building with integrated ecommerce features. Their digital product selling features include automatic delivery and secure file storage.

WordPress + WooCommerce

Offers complete control over your store's appearance and functionality. While it requires more technical knowledge, it provides the most flexibility and lowest ongoing costs.

Marketing Your Digital Product

1. Social Media Marketing

Share Valuable Content

Post tips, tricks, and insights related to your product's topic. For example, if you sell meal planning templates, share quick recipes or food prep tips. Create a content calendar to maintain consistent posting.

Build a Following

Engage with your audience by responding to comments and participating in relevant conversations. Share behind-the-scenes content of your product creation process to build trust and connection.

Choose the Right Platforms

Focus on platforms where your target audience spends time. Instagram works well for visual products, LinkedIn for professional tools, and Pinterest for printables and planners. Study successful creators in your niche to understand what content works best.

2. Email Marketing

Build Your List

Offer a free sample of your product or a related helpful resource (lead magnet) in exchange for email addresses. Create a simple landing page explaining the value of your free offer.

Regular Newsletters

Send weekly or bi-weekly emails with helpful content, tips, and occasional promotions. Mix educational content with personal stories and product updates to keep subscribers engaged.

3. Content Marketing

Start a Blog

Write articles that address common questions in your niche. Use keyword research to identify topics people are searching for. Link to your products naturally within your content.

Create YouTube Videos

Share tutorials, tips, or product demonstrations. Videos help build trust and showcase your expertise. They also provide content you can share across other platforms.

Share Tips on Social Media

Create infographics, carousel posts, or short video clips with quick tips related to your product. Use relevant hashtags to reach new audiences interested in your topic.

Tools to Create Your Digital Products

Design Tools

Canva

Offers templates and easy-to-use design tools perfect for creating professional-looking products. Their Pro version includes additional features like background removal and brand kit storage.

Adobe Photoshop

Professional-grade software for creating high-quality graphics and designs. While it has a steeper learning curve, it offers more advanced capabilities for complex design work.

Writing and Research

ChatGPT

AI-powered writing assistant that can help generate ideas, outline content, and improve writing. Use it for brainstorming and getting past writer's block.

Google Docs

Free, cloud-based document creation tool with collaborative features. Automatically saves your work and allows easy sharing with others for feedback.

Grammarly

Checks spelling, grammar, and writing style to ensure professional-quality content. The premium version offers advanced suggestions for tone and clarity.

Quick Start Option: PLR Products

Understanding PLR

Private Label Rights (PLR) products are pre-made digital products you can modify and sell as your own. They provide a quick way to enter the market while you develop your own unique products.

Customization Tips

Always modify PLR content to match your brand voice and add unique value. Add your own examples, update the information, and improve the formatting to make it stand out.

Finding Quality PLR

Purchase from reputable PLR websites with good reviews and clear licensing terms. Look for PLR products that are well-written and include quality graphics. Our somewhat bias recommendation include Compass Point Digital Store

Remember

Success in digital products requires patience and persistence. Focus on creating genuine value for your customers, and be prepared to adapt based on feedback and market response.

Additional Resources

Communities to Join

• Digital Product School on Facebook: Connect with other creators, share experiences, and get feedback on your ideas.
• Reddit r/digitalproducts: Learn from discussions about digital product creation and marketing strategies.

Learning Platforms

• Udemy: Take courses on specific skills needed for your digital product business.
• Skillshare: Learn design, marketing, and business skills from experienced creators.
• YouTube: Access free tutorials and tips from successful digital product creators.

Start your digital product journey today - there's never been a better time to begin!