If you’re looking for a business model that allows you to generate genuinely passive income and to make a lot of money in the process, then a digital products business might just be right for you.
Digital products are products that exist solely in a digital format and include the likes of software, eBooks, e-courses and computer games. They also just so happen to offer perhaps the best business opportunity of any type of product, so read on to find out what makes them such a great choice for making money online.
1 No Overheads
Right away, with a digital product you have no overheads. That is to say, you might have overheads initially while you’re developing your product but from that point on you will then be able to sell as many copies as you like with no need to pay for materials or anything else. Every sale will be 100% profit which can’t really be said about any other business model.
2 It’s Truly Passive
Of course some services are also like this. If you are a writer or web designer for instance, then you probably won’t have to spend any money to make money and that means that you can keep 100% profit.
But where a service business falls down is in the fact that you will be exchanging your time for money. This in turn means you’ll need to constantly be available at specific times of day and you might even need to travel.
A digital product though is truly passive. Once you have set up an online store and you have people visiting your site, you can make money while you sleep or while you’re on holiday somewhere sunny.
3 No Stock
With a digital product you require zero digital space for stock and that means you don’t need to rent a warehouse or fill your front room with books.
4 No Investment
Just as there are no overheads, there is also very little investment necessary. This means it will take barely any time for you to break even and to start generating real profit. In turn this also means that there’s no risk so you’ll be able to start your business without taking out a huge loan and putting your family in danger.
5 No Delivery
As though all that wasn’t enough, digital products don’t even require delivery. That means you won’t have stock going missing or customers claiming they never received their goods. Digital products are cheaper and faster in every way.
6 International Markets
Unlike physical products, digital products don’t have barriers such as customs or shipping restrictions. When you sell downloadable products, it doesn’t matter how far away your customers are–you can reach anyone anywhere as long as they have internet access. “You can reach millions of potential customers that are thousands of kilometers away from you.
Instead of having a 10 to 20% profit margin like many businesses, you can have 85% profit margins or more. That actually could have been much higher, based on your production equipment (display, video, software) maybe hiring freelancers. After creating each product, you might only have say 3-5% in hard costs for internet connection, electric, paypal fees etc. And your product can be sold an unlimited number of times.
Compare that to a standard retail or physical business, which has to bear not only the material cost for each new project, but also the time, because everything is manually done.
Because there is nothing to manufacture or ship, your day-to-day involvement can be quite limited. Its possible to take multi-week trips during which you can just check in every few days.
Digital business models can work for books and training, but also with tools, themes, plugins, software and so much more! I’ve seen plenty of creators sell everything from Photoshop brushes to songs to WordPress plugins, often making $3,000 or more per month!
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