Are you ready to take the plunge and start selling your product online? It can be a daunting task, especially if it’s your first time. But don’t worry, because by the end of this guide, you’ll have all the knowledge you need to successfully sell your product and avoid any critical mistakes.
With the right preparation and guidance, anyone can successfully sell online. There are certain steps you need to take in order to set yourself up for success. From understanding your target audience and choosing the right platform to price your product and market it effectively, we’ll cover it all.
By following the tips and strategies outlined in this guide, you’ll be well on your way to turning your passion into a profitable online business. So let’s get started!
By the end of this guide, you’ll have the knowledge and confidence to sell your product successfully and avoid common mistakes that many first-time sellers make. So, let’s get started on your journey to becoming a successful online seller!
This guide is targeted to enterpreneurs and startups who created a digital product and want to share it with the world.
What you will learn in this guide
- How profitable selling a digital product can be
- Where to sell your products
- How to price your product
- Strategies to promote your product
- Tips on closing a deal
- What you have to do to keep your customers satisfied
- Measuring and analyzing your performance
- Common mistakes to avoid
- A tool to help you succeed at sales conversations
How profitable is it to sell digital products?
Selling digital goods can be a very profitable venture, as they often have low production and fulfillment costs and can be sold to a global market. However, the profitability of selling digital products will depend on a number of factors, including the demand for your product, your pricing strategy, and the effectiveness of your marketing efforts.
To increase the profitability of your digital products, it’s important to thoroughly research the market and identify a specific need or problem that your product addresses. You should also price your product competitively, while still taking into account your production and fulfillment costs. Finally, effective marketing is key to getting your product in front of the right audience and driving sales.
It’s also important to continuously measure and analyze your performance, and make adjustments as needed to optimize your sales and increase profitability.
What is the best place to sell digital products online?
There are several options for selling your digital product. The best one is the one that:
- Fits your budget
- Doesn’t exceed your technical skill level
- Doesn’t take more time to setup than you are willing to invest
- Fits the niche of your digital product
- Is scalable enough for your long term goals.
Payment Processor
If you have your own website, you can use a payment processor such as PayPal or Stripe to accept payments for your digital product. You can add a payment button or form to your website and handle delivery of the product yourself.
PayPal vs. Stripe
These are the main differences between the two services:
Payment types
PayPal supports a wider range of payment types, including credit and debit cards, bank transfers, and PayPal balance. Stripe supports credit and debit cards, as well as a limited number of alternative payment methods.
Fees
Both PayPal and Stripe charge transaction fees, but the specifics of these fees vary. PayPal generally charges a higher percentage per transaction, but offers a lower flat rate for microtransactions. Stripe charges a lower percentage per transaction, but does not offer a lower rate for microtransactions.
Ease of use
Both PayPal and Stripe offer easy-to-use payment solutions, but PayPal may be more user-friendly for non-technical users.
Integration
Both PayPal and Stripe offer a range of integration options, including the ability to add payment buttons or forms to a website, as well as more advanced integration options for developers.
Security
Both PayPal and Stripe offer secure payment processing, but PayPal may be perceived as more secure by some users due to its longer history and more well-known brand.
Overall, both PayPal and Stripe are reliable payment processors, and the best choice for your business will depend on your specific needs and goals.
Platforms
There are many platforms available that allow you to sell digital products without the need for an e-commerce store. These platforms, such as Gumroad or Sellfy, handle all aspects of the sale, including payment processing, delivery of the digital downloads, and customer support.
Sellfy
Sellfy is a platform specifically for selling digital articles, including ebooks, software, and online courses. It offers features such as customizable landing pages, marketing tools, and integration with social media.
- Advantages:
- Customizable landing pages and marketing tools
- Integration with social media
- Drawbacks:
- May not offer as many features as more comprehensive platforms
- Fees can add up, depending on the plan you choose
Gumroad
One of the key features of Gumroad is its simplicity and ease of use. It allows creators to quickly and easily set up a store and start selling their products, and provides resources and support to help them grow their business. Gumroad takes a small percentage of each sale as a fee, and also charges a transaction fee for processing payments.
Advantages:
- Specialized platform for selling digital articles
- Simple and easy to use
- Offers resources and support to help creators grow their business
Drawbacks:
- Fees can add up, as Gumroad takes a percentage of each sale and charges a transaction fee
Appsumo
AppSumo is a unique platform in that it offers daily deals on tools and resources for entrepreneurs and small businesses. These deals typically offer steep discounts, often up to 90% off the regular price, and are only available for a limited time.
It has a large and engaged customer base, so if your product is a good fit for their audience, it could be a good way to reach numerous potential customers. However, keep in mind that AppSumo typically offers discounts on products, so you may have to offer your product at a discounted price in order to participate in a deal.
- Advantages:
- Large and engaged customer base
- Offers daily deals on a variety of tools and resources
- Strong focus on building a community of entrepreneurs and small business owners
- Drawbacks:
- May require you to offer your product at a discounted price in order to participate in a deal
- Limited to offering products that fit the AppSumo audience and business model
- Fees may be higher than other platforms, depending on the deal you offer
Third-Party Store
You can also sell your product through a third-party website, such as Etsy or Amazon. These websites handle payment processing and customer support, and allow you to reach a wider audience.
Amazon
Advantages
- Large, established marketplace: Amazon is one of the largest and most well-known e-commerce platforms, with a large and diverse customer base.
- Wide range of products: Amazon allows you to sell a wide range of products, including physical and digital products.
- Easy to use: Amazon provides a user-friendly platform for selling products, with simple tools for listing and managing products.
- Customer support: Amazon offers extensive customer support, including tools and resources for sellers.
Drawbacks
- Fees: Amazon charges fees for selling products, including a referral fee based on the category of the product being sold.
- Competition: Amazon is a large marketplace with a lot of competition, which can make it harder for individual sellers to stand out.
- Limited control: As a seller on Amazon, you have limited control over the design and layout of your product listings.
Etsy
Etsy is mainly known for selling selfmade physical products, but you can also use it to sell digital products.e
Advantages
- Niche marketplace: Etsy is a marketplace focused on handmade and vintage products, which can be an advantage for sellers of these types of products.
- Lower fees: Etsy charges lower fees compared to Amazon, including a lower referral fee for sellers.
- Creative control: As a seller on Etsy, you have more control over the design and layout of your product listings.
Drawbacks
- Limited product types: Etsy is focused on handmade and vintage products, so it may not be the best platform for selling digital products.
- Smaller customer base: Etsy has a smaller customer base compared to Amazon, which can make it harder for sellers to reach a wide audience.
- Limited customer support: Etsy offers limited customer support compared to Amazon, with fewer resources and tools for sellers.
E-Commerce Store
An e-commerce platform is a software solution that allows businesses to create an online store and sell their products or services over the internet. E-commerce platforms typically provide a range of features and tools to help businesses manage their online store, including:
- Customizable storefronts and product pages
- Payment processing and integration with payment gateways
- Inventory management and order tracking
- Marketing and SEO tools
- Customer service and support tools
There are many e-commerce platforms available, ranging from comprehensive solutions like Shopify and WooCommerce to specialized platforms like Gumroad and Sellfy, which are specifically designed for selling digital products.
The best one for your business will depend on a number of factors such as your budget, the type of product you are selling, and the features you need.
Shopify
Shopify is a comprehensive e-commerce platform that allows you to sell both physical and digital products. It offers a variety of features and tools, including customizable storefronts, payment processing, and marketing tools.
- Advantages:
- Specialized platform for selling digital products
- Customizable landing pages and marketing tools
- Integration with social media
- Drawbacks:
- Limited to selling digital products
- May not offer as many features as more comprehensive platforms
- Fees can add up, depending on the plan you choose
WooCommerce
WooCommerce is a free plugin for WordPress that allows you to turn your website into an online store. It offers a variety of features and integrations, and is a popular choice for small and medium-sized businesses.
- Advantages:
- Free to use and customize
- Integrates seamlessly with WordPress websites
- Large user base and community of developers
- Drawbacks:
- Requires some technical knowledge to set up and customize
- Can be resource-intensive, depending on the size and complexity of your store
- May require additional costs for features or extensions, as well as hosting and a domain name
Ultimately, the best platform for selling your digital products will depend on your specific needs and goals. It may be helpful to try out a few different platforms to see which one works best for you.
A simple payment processor may suffice for your first product but if you plan on selling many products in the future you may want to use an e-commerce platform from the get go.
My recommendations
Quick and easy but no control
- Etsy
- Gumroad
Most control & customization but complicated
- Your own website with a payment processor
- WooCommerce plugin
Easy & Scalable but expensive
- Shopify
Quick win
- Appsumo (use this in conjunction with another method)
How to price your digital product
Pricing your digital product can be a challenging task, as you want to set a price that is competitive and reflects the value of your product, while also taking into account your production and fulfillment costs. Here are some steps you can follow to help you price your digital product:
Determine your costs
The first step in pricing your digital product is to determine your costs. This includes the cost of creating and producing the product, as well as any ongoing costs such as hosting fees or subscription fees.
Research the market
Next, research the market to see what similar products are being sold for. This will give you a sense of the going rate for products in your market, and help you determine if your price is competitive.
Consider the value of your product
In addition to your costs, you should also consider the value that your product provides to the customer. A product that solves a significant problem or fulfills a strong need may be able to command a higher price than a product that offers less value.
Set a price
Based on your costs, market research, and the value of your product, set a price that you believe is fair and competitive. It’s a good idea to test different price points to see what works best, and be open to adjusting your price as needed.
Offer discounts or bundles
You may also want to consider offering discounts or bundle deals to encourage sales. For example, you could offer a discount for customers who purchase a bundle of your products, or offer a limited-time discount to drive sales.
By following these steps, you should be able to set a price for your digital product that is fair, competitive, and reflects the value it provides to your customers.
Strategies to promote your digital product
There are many strategies you can use to promote your digital product and drive sales. Which one is the right for you will depend on your writing skills, available time, budget and people skills. Ideally, you should choose a combination of some of the most effective ones:
The lead magnet
A lead magnet is a piece of valuable content or offer that is used to attract and capture the attention of potential customers. Lead magnets are typically used to generate leads, or contact information from prospects, in exchange for something of value.
Lead magnets can be used in a variety of ways, such as:
- Offering a free download or access to a resource, such as an e-book, template, or tool
- Providing a free trial or demo of a product or service
- Offering a discount or coupon for a product or service
- Running a contest or giveaway
Lead magnets can be an effective way to attract and engage potential customers, and can be a valuable part of a marketing strategy.
The landing page
A landing page is a standalone web page, created specifically for the purpose of a marketing or advertising campaign. It is designed to direct the visitor to take a specific action, such as making a purchase or providing their contact information.
Landing pages are typically focused on a single product, service, or offer, and are meant to convert visitors into customers or leads. They often include a call to action, such as a button to make a purchase or a form to fill out to request more information.
Landing pages are an important part of a marketing campaign, as they provide a focused and specific destination for visitors. They can be used in conjunction with a variety of marketing tactics, such as email marketing, social media marketing, and paid advertising.
Overall, landing pages are a valuable tool for businesses looking to drive conversions and generate leads.
Email marketing
Email marketing is a form of digital marketing that involves sending marketing messages or promotions to a list of subscribers via email. It is a way to reach and engage with potential customers, and can be an effective way to promote products and drive sales.
Email marketing can be used to send newsletters, promotional offers, event invitations, and other types of content to subscribers. It allows businesses to target specific segments of their audience and personalize their messaging, and provides tools to track the success of campaigns and measure metrics such as open rates, click-through rates, and conversions.
Overall, email marketing is a cost-effective and measurable way to reach and engage with potential customers, and can be an important part of a comprehensive marketing strategy.
Content marketing
Content marketing is a marketing strategy that involves creating and distributing valuable, relevant, and consistent content to attract and retain a clearly defined audience. The goal of content marketing is to establish trust and credibility with your audience and ultimately drive profitable customer action.
Content marketing can take many forms, such as blog posts, articles, videos, podcasts, infographics, and social media posts. It is typically used to educate and inform the audience, rather than directly promoting a product or service.
Content marketing is often used to build brand awareness and credibility, generate leads, and drive sales. It can be an effective way to engage with customers and establish yourself as a thought leader in your industry.
Overall, content marketing is a way to attract and retain customers by consistently creating and distributing valuable and relevant content that addresses their needs and interests.
Online advertising
If you have the budget than online advertising is the quickest way to get your product to sell. It can take many forms, such as display ads, search ads, social media ads, and video ads.
Online advertising allows businesses to reach a specific audience by targeting their ads based on factors such as demographics, interests, and location. It can be a powerful way to drive traffic and sales, as well as to build brand awareness and credibility.
There are many platforms available for online advertising, including search engines like Google and Bing, social media platforms like Facebook and Instagram, and display networks like Google AdSense. These platforms typically use a pay-per-click or pay-per-impression model, in which the business pays a fee each time an ad is clicked or displayed.
Influencer marketing
Influencer marketing involves partnering with individuals who have a strong online presence and influence over a particular niche or audience. These individuals, known as influencers, can be social media personalities, industry experts, or bloggers, and have the ability to reach and engage with a large audience through their platforms.
Influencer marketing is often used to promote products or services to a specific target audience, and can be an effective way to reach a new audience and increase brand awareness and credibility.
Influencer marketing can take many forms, such as sponsored blog posts, sponsored social media posts, or sponsored video content. Influencers may be paid a fee or receive a commission for promoting a product or service to their audience.
Overall, influencer marketing is a way for businesses to reach a targeted audience and promote their products or services through the influence and credibility of trusted individuals.
How to keep customers happy and coming back
Keeping your customers happy is important because of three reasons:
- You can collect positive reviews and promote them on your landing page
- Satisfied customers may reccomend your product to other people who will turn into new customers
- If you plan on selling multiple products, happy customers will likely buy from you again
There are several strategies you can use to keep your customers happy and coming back:
Offer excellent customer service
Providing timely and helpful customer service can go a long way in keeping your customers happy. This can include responding to inquiries and complaints quickly, providing helpful information and resources, and being friendly and professional.
Be transparent and honest
Customers value honesty and transparency, so be open and honest with them about your products, services, and policies. This can help build trust and loyalty.
Provide real value
Focus on providing value to your customers by offering high-quality products or services that meet their needs and exceed their expectations.
Show appreciation
Show your customers that you appreciate their business by thanking them for their purchases, offering loyalty rewards or discounts, and asking for their feedback and suggestions.
Keep in touch
Stay in touch with your customers by sending newsletters or promotional emails, or connecting with them on social media. This can help keep your business top of mind and encourage repeat business.
How do you measure and analyze the performance of your digital sales?
By tracking key metrics and analyzing customer behavior, you can identify which sales strategies are most effective and make adjustments as needed to drive more sales and improve conversion rates.
Track website traffic
Use tools such as Google Analytics to track the number of visitors to your website, as well as the sources of that traffic. This can help you understand how people are finding your website and what pages they are most interested in. Some tools like Shopify have analytics build in.
Analyze customer behavior
Use tools such as heat maps or session recordings to understand how customers are interacting with your website and what pages or products they are most interested in.
Use A/B testing
A/B testing involves testing two versions of a page or element on your website to see which performs better. This can be a useful way to optimize your website and improve conversion rates.
Monitor customer feedback
Pay attention to what customers are saying about your products or services, and use this feedback to make improvements and drive sales. This can include monitoring reviews and ratings, as well as tracking customer support inquiries and complaints.
By tracking and analyzing these metrics, you can gain a better understanding of the performance of your digital sales and make informed decisions about how to optimize and improve your sales effort.
Reasons Your Digital Product Isn’t Selling and what you can do about it
There can be many reasons why your digital product isn’t selling. Here are a few potential reasons and what you can do about them:
Lack of marketing
Even an outstanding product doesn’t sell itself. If you are not effectively promoting your product, it is unlikely to generate sales. Consider implementing a comprehensive marketing plan that includes tactics such as content marketing, social media marketing, and email marketing.
Poor website design
If your website is difficult to navigate or not visually appealing, it may be turning off potential customers. Consider improving the design and user experience of your website to make it more appealing and easy to use.
Competition
If there are similar products available on the market, it may be difficult to stand out and generate sales. Consider differentiating your product and highlighting its unique features and benefits to set it apart from the competition.
Overpriced
If your product is priced too high, it may be struggling to sell. Consider conducting market research to determine the appropriate price point for your product and adjusting your pricing accordingly.
Poor product quality
There is also the possibilty that your product just isn’t ready to sell. You can do survays and ask for feedback to get a sense of what could be improved and what customers are missing from your product.
By addressing these potential issues, you can improve the chances of your digital product selling successfully.
Making sure your product doesn’t get pirated
If your product is easy to duplicate you may want to take a few precautions to limit illegal sharing.
Use license agreements
By including a license agreement with your digital products, you can establish the terms and conditions for use of the product, including prohibiting unauthorized copying and distribution.
Monitor for pirated copies
Use tools such as Google Alerts or Mention to monitor the internet for pirated copies of your products. If you find a pirated copy, you can take action to have it removed or report it to the appropriate authorities.
Make it easy to purchase
One way to combat piracy is to make it easy and convenient for customers to purchase your products legally. This can include offering a range of payment options, providing excellent customer support, and offering competitive pricing.
Educate your customers
Inform your customers about the negative consequences of piracy, such as supporting illegal activity and harming the creators and owners of the product. Encourage them to support your work by purchasing your products legally.
You did it!
Congratulations on reading the complete guide! By following the steps outlined in this guide, you should now have the knowledge and tools you need to successfully sell your digital product and avoid critical mistakes.
I hope that you found this guide helpful and that it has provided you with the confidence and resources you need to launch your digital product with success. Remember to focus on creating a high-quality product that meets the needs and expectations of your target audience, and to implement a comprehensive marketing plan to promote your product and drive sales.
Don’t be afraid to experiment and try new things as you learn and grow your business. Selling a digital product can be a rewarding and lucrative business, and with hard work and dedication, you can achieve your goals and achieve success.
Thank you for reading and best of luck with your digital product!
Need more help? Try my Animated Pitch
If you have found this guide helpful and are looking for additional support in selling your first digital product, feel free to reach out to me.
Additionally, I offer a template called the Animated Pitch, which is a powerful tool for creating the perfect presentation to sell your digital product to prospects. This easy-to-use video presentation includes high quality 3D animations and is designed to help you effectively communicate the value of your product and persuade potential customers to make a purchase.
I believe that everyone should have the opportunity to succeed in the digital market, and I am committed to helping you achieve your goals.
