Selling digital products is one of the most accessible ways to grow your income and build a lasting online business. These products offer flexibility, scalability, and profitability while simplifying operations by eliminating inventory and shipping.
In this guide, you’ll learn everything about digital products: what they are, why they’re valuable, and how to create and sell them.
Related: 13 Profitable Digital Products And Where To Sell Them
What is a digital product?
A digital product is any intangible item or service created, sold, and delivered online. Examples include educational resources like online courses and eBooks, licensed assets such as stock photos and sound effects, and creative tools like video games or exclusive digital experiences. Licensing digital products can also generate ongoing income.
Digital products play a significant role in the rapidly growing global eCommerce industry. For example, online education—a leading category of digital products—is expected to reach $840 billion in market value by 2030. Digital products are also central to the booming eCommerce market, which is projected to surpass $6.8 trillion by 2025.
Creators and business owners choose digital products to increase income while simplifying operations. Because they can scale offerings to a broad audience without the complexities of inventory or logistics, digital products are an excellent choice for building sustainable businesses.
Read more: How to Automate Your ECommerce Business
Benefits of selling digital products
Digital products provide a range of advantages, making them an attractive option for building an online business.
- High-profit margins: Production costs are minimal, so most of the revenue from each sale contributes directly to growth.
- Low startup costs: There is no need for physical inventory or shipping, making it affordable to start.
- Automation capabilities: Platforms like Thinkific help creators save time by automating processes such as course delivery, customer onboarding, and updates.
- Scalability: Digital products can serve a large audience without requiring additional resources, making it easy to expand.
- Flexible sales options: To meet your audience’s needs, offer products through subscriptions, licenses, or one-time purchases.
- Lead generation opportunities: Free downloadable products, such as mini-courses or templates, can help you grow your email list, connect with potential customers, and build trust.
These advantages make digital products an excellent option for creators and business owners who want to grow their incomes and build lasting businesses.
Related: How to Build a Personal Brand (Complete Guide)
Types of digital products
Digital products come in a wide range of forms, offering creative ways to engage your target audience and grow your business. These products provide flexibility in delivering, monetizing, and scaling, making them valuable for creators and entrepreneurs.
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Digital downloads
Downloadable products give customers immediate access to files after purchase, making them convenient and scalable for creators. Examples include templates for resumes, websites, or presentations, printables like planners and checklists, and licensed materials such as stock photos, music, and video footage.
Licensed assets are popular in industries like marketing and content creation, with ongoing demand for high-quality visuals and audio. Platforms like Thinkific make it simple to sell downloadable products directly to your audience. Offering product bundles that combine related resources can provide even more value to customers.
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Online courses and Ebooks
Online courses and Ebooks allow creators to share their expertise in structured and accessible formats. With the growing demand for flexible learning options, these educational products meet the needs of learners who prefer remote education.
Popular course topics include sewing, yoga instruction, professional development, and coding. Cohort-based courses involving live, interactive sessions are gaining traction because they create a sense of community and offer real-time feedback. This approach often supports premium pricing.
Ebooks are another way to share knowledge through downloadable resources. Both courses and eBooks offer long-term revenue potential. Tools like Thinkific simplify the process of designing, launching, and delivering these educational products to your audience.
Read more: The Top 10 Online Learning Platforms for 2024
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Mobile applications
Mobile apps and software deliver solutions directly to users, making them versatile and accessible. Examples include games, learning tools, trip-planning apps, and meditation apps.
App monetization strategies include freemium models, in-app purchases, and subscription-based pricing. For creators without technical expertise, outsourcing development can bring an app idea to life. Social platforms are effective for promoting your app to a wide audience.
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Subscription or membership services
Subscriptions and memberships provide customers with ongoing value while generating steady revenue. Examples include coaching services, fitness classes, business tools, and private learning platforms.
Memberships can offer exclusive features like discussion groups, live workshops, and access to premium resources. Engaging members through high-quality content strengthens customer loyalty and helps grow online communities.
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Software as a service (SaaS)
SaaS products are web-based applications that generate revenue through a subscription model. Popular examples include Dropbox, Spotify, Salesforce, and Asana.
White-label SaaS products allow businesses to rebrand and sell pre-built software, creating additional revenue opportunities. While SaaS products often need ongoing updates and support to meet customer expectations, they offer significant long-term profitability.
Combining SaaS products with email and influencer marketing campaigns can help you attract potential customers and build lasting relationships with your audience.
Related: How To Monetize Your Expertise
Characteristics of successful digital products
Successful digital products are created to meet customer needs, provide value, and grow with demand. Key characteristics include:
- Market alignment: Understanding your audience and identifying market demand is essential. Use keyword research, Google Trends, and competitor analysis to explore customer interests and address market gaps. Testing smaller versions of your product can help validate ideas before a full release. Feedback from beta testers or focus groups helps refine the product to match customer needs better.
- User-friendly design: Products with intuitive navigation, clear instructions, and mobile-friendly interfaces keep customers engaged. A user-focused design makes the experience enjoyable and encourages repeat use.
- Scalability: When designed to support increasing demand, digital products can grow with your business. Scalable systems allow you to serve more customers without requiring significant process changes.
- Security: Protecting your digital products from unauthorized access and piracy is important. Tools like digital rights management (DRM) and watermarks can help safeguard your intellectual property, protect revenue, and build trust with your audience.
These elements contribute to creating digital products that resonate with customers, stand out in a crowded market, and deliver lasting success.
Related: How to Market Digital Products
How to sell digital products
After creating your digital product, the next step is to launch, market, and promote it to reach your audience and grow your business.
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Choose a platform
Decide where to sell your digital products. Options include established online marketplaces or hosting on your own website.
For online courses, Thinkific offers tools to create and sell while giving you full control over your branding and revenue. Digital downloads, like templates or planners, can be sold directly from your website or through marketplaces that align with your audience.
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Develop a marketing plan
A clear marketing plan helps attract customers and keep them engaged.
- Build a landing page that clearly communicates the value of your product.
- Use lead magnets like free templates or mini-courses to grow your email list and spark interest.
- Share your product through social media platforms and email marketing campaigns to reach a broader audience.
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Implement pre-launch strategies
Pre-launch activities create excitement and encourage early sales.
- Offer preorders to test demand and secure early customers.
- Provide discounts or exclusive bonuses to incentivize early adopters.
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Create an affiliate program
Collaborate with influencers or creators in your niche to broaden your reach. An affiliate program allows partners to promote your product to their audience in exchange for a commission, increasing visibility and sales.
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Analyze competitors
Look at businesses that sell similar digital products to identify opportunities and areas for improvement.
- Note what they do well and where they might fall short.
- Use this information to refine your approach and understand customer preferences.
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Collect feedback and review
Customer feedback plays a vital role in improving your product and building trust.
- Use tools like Google Forms or Typeform to gather detailed input.
- In-app review prompts make it simple for customers to share their thoughts.
Refine your product based on this feedback to better meet customer expectations and maintain satisfaction.
Related: How to Create Digital Products
Future trends for digital products
The digital product industry is evolving, offering new opportunities for creators and businesses to deliver innovative experiences.
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Artificial intelligence (AI)
AI is transforming how digital products are created and experienced. Online courses can use AI tools to develop adaptive learning paths, making content more engaging and relevant for each user. Membership platforms can offer personalized recommendations based on customer activity, encouraging ongoing participation. Chatbots and AI assistants enhance customer interactions with fast, accurate support.
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Personalized experiences
Creators are focusing on customization to meet the specific needs of their audiences. Learning platforms can suggest courses tailored to individual progress or goals. Libraries of downloadable products can highlight content aligned with user preferences, helping creators build stronger connections with their audiences.
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Blockchain technology
Blockchain is advancing security and transparency for digital transactions. Creators can sell limited-edition NFTs, giving buyers exclusive digital art or content ownership. Blockchain tools also make licensing digital products like music and stock photos more secure and manageable. Subscription services can use blockchain to streamline access and improve member management accuracy.
These trends highlight the potential for innovation in digital products, offering creators opportunities to deliver more engaging, secure, and personalized experiences to their audiences.
Related: Advantages and Disadvantages of Selling Digital Products
Start your digital product journey with Thinkific
Digital products reshape how creators and businesses connect with their audiences and generate income. Whether you’re ready to launch a course, offer templates, or grow a membership community, Thinkific provides the tools to support your goals.
With Thinkific, you can bring your ideas to life, create meaningful communities, and deliver lasting value to your customers. Start building your digital product business today and experience the possibilities Thinkific offers.
Try Thinkific for free and discover how this platform makes creating, marketing, and selling digital products easier.
FAQs
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What tools can I use to create digital products?
Using the right tools can help bring your digital product idea to life. Thinkific is a digital platform designed to create and deliver educational products like courses and workshops, which can serve as a valuable source of income. For creators looking to design eBooks or printables that complement or replace a physical counterpart, tools like Canva and Adobe InDesign are excellent options. App development tools like Flutter and Appgyver make it possible to build mobile apps, even for those without advanced technical skills.
Thinkific also offers features for creating online communities and offering exclusive content. These tools allow you to engage your audience and generate passive income through memberships or yearly subscriptions. They minimize overhead costs, helping you focus on developing products that resonate with your audience.
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How do I price my digital products?
Setting the right price for your digital product starts with understanding your target audience and the value your product provides compared to similar offerings. Consider whether your product serves as a digital alternative to a physical item or fulfills a unique need for your customers. Evaluate production costs, hosting expenses, and your desired profit margin.
Pricing options could include one-time purchases, yearly subscriptions, or tiered pricing to appeal to different customer segments. Discounts or introductory offers can attract early buyers and build momentum for your digital platform.
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What are the benefits of selling digital products?
Digital products offer creators and business owners a flexible source of income without the challenges of managing physical inventory. They can be delivered instantly through digital platforms, reaching potential customers worldwide. Selling digital products also allows you to scale your business easily, as products can be shared with a large audience without the additional costs tied to physical goods.
Recurring revenue models, such as yearly subscriptions or memberships, can help you generate consistent income while nurturing your audience. These products also allow you to share your expertise and create meaningful connections through online communities.
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Are there risks involved in creating digital products?
Cybersecurity and piracy are common risks for digital products. Protecting your work with digital rights management (DRM) tools or watermarks helps safeguard your intellectual property and maintain your source of income. Another important step is monitoring your digital platform for unauthorized sharing.
Staying current with technology and trends can help you remain competitive in this fast-paced industry. Taking these precautions will also support the longevity and success of your digital product idea.
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How do I market my digital products?
Effective marketing connects your products with potential customers. Start with a landing page that clearly communicates the value of your offering. Use free resources like printables or other downloadable products to grow your email list and generate interest.
Collaborating with affiliates or influencers can introduce your product to wider online communities while advertising on platforms like Google or social media expands your reach. Limited-time offers or bonuses can encourage customers to take action and support your digital product’s success.
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What types of digital products can I create?
Digital products come in many forms, giving creators a wide range of opportunities to connect with their audience. Examples include online courses, eBooks, templates, and printables. Subscriptions and memberships allow you to offer ongoing value, while mobile apps provide scalable solutions that align with your business goals. Each product can serve as a stand-alone offering or complement a physical counterpart, helping you build a sustainable and profitable source of income.
This blog was originally posted in April 2024, it’s since been updated in January 2025.
