Digital products - what is there and how can I work on it eCommerce Gain a foothold in the market?
If one hears selling or making "digital products", one first of all believes that these are a strange invention of the modern age. Because what are those for products? You can touch a product, right?
What are digital products anyway?
That's just not possible with digital products. They come in the form of music, videos, books or online classes, and you can spend a lot of money since iTunes and Co. have sharpened our senses that it's illegal to simply download these products from the Internet for free.
It is not that long ago that many of us did just that. Thus, at the end of the 90 years of the last century, there was a run on sites like Napster and Co., which shared a content that they already owned, and in return they could also download content.
Of course, there was a quick push forward. After all, artists, whether musicians, actors or authors, should be paid for their work. And that's perfectly true, of course.
Since then, many small businesses and even more sole traders have noticed that they too digital products can produce and sell.
The advantages of digital products
The advantage is obvious. Once you've created the product, you can sell it for years without incurring significant costs. However, that does not mean that it's easy to create a digital product. If that was it, everyone would do it. For who does not want to sell as many products as possible without further manufacturing costs?
You should think about it that way. A baker bakes his rolls, cakes and pastries in the morning to sell them. He has to do this every day, because the pastry from the previous day is old and tastes no later than the third day. The sequence is clear: you bake and sell. Every day. In addition, you have to buy new raw materials every day to make the products.
A musician, on the other hand, records his song and offers it on various platforms such as iTunes or Amazon Music and many more. He sells his product, in this case his song or album, without ever using raw materials again. And of course that's why famous artists often make a lot of money with their products. They create their album once and then have it sold by their record labels, for example.
That's exactly how it works with actors. For months, a film is filmed with many actors and incredible equipment and then sold again and again - often decades.
So you too can benefit from digital products
Let's take a look at that in a nutshell. Even sole traders or small companies can create digital products and distribute them on the Internet. The same applies to them: Once the product has been created, there are hardly any costs for the production. Of course, the costs of marketing remain. But every entrepreneur has it. Because the sentence "who does not advertise, who dies." Applies to every entrepreneur, whether small or large, alike.
So the question is whether you can forego significant revenue long enough to create a digital product. After all, creating an online course or a book takes much longer than baking sandwiches and cakes. Of course, this is completely meaningless. But the question an entrepreneur has to face is precisely this: can he spend his resources, in this case time and equipment, long enough to create his digital product?
Let's say you want to create an online course. For a good online course you can easily ask for 100 Euro and more. So the product is fixed, the selling price too.
Then you need some equipment for it. In that case, that would be a video camera, a computer, a video editing program and the appropriate lighting. If you already have a computer, it means that you need to spend a few hundred dollars on the equipment. Much more important, however, is the time and resources, such as people you need to build your product. After all, when you start recording, you can not be in the business, and you will need to be a co-worker.
So you should plan exactly what your digital product will cost in manufacturing. You should look to see if you can do this alone in your spare time, or if you really plan on creating a timeframe in the core business for your product. In addition, you should then calculate exactly how long it takes for you to recoup the investment you need to make.
How much does it cost to create your digital product?
Let's say you are a photographer and sell photo prints as well as frames, photo books and much more. So while you're taking your online photography course, you can not stand in your store and sell your products there. This inevitably means that you need an employee who costs money for this time. Of course, the equipment you need to build costs money. However, you can also use this for countless other online courses.
So if you need two weeks to create it, you'll need to pay an employee to cover your time during that time. Keeping these points in mind will help you figure out quickly what your cost of creating your digital product will be and how much the investment you make will pay for it.
After all, if you have the product, you also need customers. Otherwise you will not get your investment back.
You can sell your digital product in many ways. If you have a stationary business, you can do yours video course Burn to a DVD or burn and distribute in your store. You can also do this online, through your own website.
But you have to advertise in some way. You can do this completely free if you participate in social media or through Facebook and Google Adwords when you are ready to pay for advertising. This is often worthwhile. That's the way to get customers and spend your product without spending any more time.
Of course, there is nothing wrong with doing both free and paid advertising. In our article 5 tips on how to optimize your online shop today you will find too optimization Tips for your own shop.
Creating a digital product requires overcoming some hurdles. However, once mastered, it is true that you have generated more or less passive income and can thus create a foundation for the future, a future in which one may no longer be in his or her home from morning to night Shop want to sell.
But before you decide to become a digital entrepreneur, you should look at the pros and cons and even figure out what it costs to make such a product. As you can read in this article, the financial outlay depends on many factors. Of course, if you already have equipment and do not have to employ any people to implement your product, it will cost a lot less to build.
In addition, once you've created a product and sold it, you've got the time and equipment to create more digital products, no matter what they look like.
For example, if your first digital product is an eBook, you can also use this to create an online course. Or you can create an Audiobook from your eBook - your imagination knows no bounds here.
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