Digital Product Types
Digital products are easy to create, and almost 100% profit, just a small fee for processing credit cards, and since you’re watching this now you have all the tools and resources you need to create digital products avaliable 🙂
There are three main types of digital products:
1) Product we read
2) Products we listen to
3) Products we watch
(You can also create mobile apps, computer programs and software, but that is advanced technical stuff which we wont talk much more about here in PLF, at least for now, maybe in version 2.0, since I used to create apps for both iPhone and Android, so maybe later:))
So, eBooks, audio and video are the more doable options for most people
eBooks were some of the first digital products that I created, my first eBook was 42 pages and $27
The second one was 23 pages and $97, it’s not about how many pages you write, but the value of the content in there
If there was a eBook on the secret of how to fly, you would probably not really care if the secret was revealed in 20 or 200 pages
Pros
– Only have to create a digital product ONCE
– Digital so no production cost
– No need have stock & ship stuff
– Can totally automate/make your business/income passive – Can become a asset
– Can easily create your own schedule – Very broad price range (1-5k)
Cons
– Computer work, sitting in the dirty electromagnetic field around the computer, staring into crystal screens.. vs working with your hands
– Not everyone is fit to teach stuff
Tools & Tips:
For eBooks, any writing software which you like which can export pdf files, you can then sell these, or simply give them away for free to get people to join your email list
I used www.myecovermaker.com for creating covers of my eBooks, like this:
For audio, when recording audio I simply used Garage Band on the Mac.. 🙂
for PC you can get something like Audiacity, and when recording watch out for external noises, for example a little wind can destroy the recording
For video, well this depends if you’re doing a Direct to Cam, Full Motion, Screen Cam, or a Keynote Presentation Video, so we’ll quickly get to know all the options here
Direct to Cam = Just you and the camera on a tripod, or you in front of the webcam
Full Motion = When you are in the video with a camera man, moving, or out with a Camera Stick
Tools:
HD-Camera, Tripod Lightning, Green Screen, Camera Stick.. or just a normal camera, or the phone
Screen Cam = Is simply when you record the screen of your computer showing something on there
Tools:
For PC: Camtasia for recording and something like Sony Vegas for editing maybe?
For Mac: Screenflow has both recording and editing
Keynote Presentation = Is a presentation with slides which you simply read along and record, you can build these in PowerPoint or Keynote
Tools:
PC: Powerpoint + Camtasia
Mac: Keynote + Screenflow
Video Hosting:
s3amazon
wistia
jwplayer
vimeo
Digital Product Packaging:
– Myecovermaker
– Hire graphic designer to work with
– www.fiverr.com
What are the “Normal Price Ranges” for digital products today?
The key to pricing here is knowing what the normal price ranges of that particular industry are, what other people in your market, niche, area of business are doing and charging
Commonly products like this sell for around:
- eBooks $19-197
- Audio Programs: $19-297
- Video Programs & Courses: $97-2997, most commonly between $497-1997
Video has a much higher perceived value than written stuff today, so if you have written work, you might for example easily be able to restructure that book or eBook into a video course and increase the value a lot, or well not the value, but the price 😛
For example a $19 book could be turned into a $100-2000 video course, or you could offer audio along with the text and maybe increase the price a bit that way also
You can also turn whats written into a event or a workshop to be able to charge higher prices
It’s easier to sell 5-10 products for $997 per month than to sell 500-1000 for $10 per month
And having one or a few higher price digital product promotions running on autopilot in the background making a few sales here and there can really free up time to engage in more intimate work, such as consulting/coaching/events or work with the hands, like my small paintings and art prints, or just to simply as extra financial lubrication enabling being in the flow enjoying life without being restrained by money
Since the profit is almost 100% with digital or information products, lets do some quick math
Most people would probably agree that if they somehow managed to earn $10,000 per month that would be more than enough for them and their family to live a good life, to live a Lifestyle of Freedom, so lets do some quick math with the common price points here, just to illustrate that the number of sales you need to make to support your lifestyle can be very underwhelming..
Imagine that you created a product with each of these price points, to make $10,000 per month you would need to sell:
If your product sold for $37: 10,000 / $37 = 225 per month
225 / 30 = only 7,5 sales per day to make $10,000 per month If your product sold for $97:
10,000 / $97 = 103 sales per month,
103 / 30 = only 3,4 sales per day to make $10,000 per month
If your product sold for $297:
10,000 / $297 = 33 sales per month..
33 / 30 = only 1,1 sales per day to make $10,000 per month If your product sold for $997:
10,000 / $997 = 10,3 sales per month
10,3 / 30 = only 0,33 sales per day, 2,5 sales per week.. to make $10,000 per month
So as I hope this example has been able to illustrate, you can now see that the number of sales needed to make $10,000 per month with 100% profit products is kind of underwhelming…
As you see none of this would involve selling hundred and hundred of products per week, and seeing that you probably don’t need to generate $10,000 per month to feed yourself and the family you’d need even less sales, usually way less 🙂
It’s fun to play with math like this, and it was useful to illustrate an example, how easy it is to making your living without a “normal j.o.b”, but there is no need to get too focused and anxious about getting the money, just do you and trust nature
Next: Interactive Services