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So, you have been musing over a particular business idea for a while now, or you are seeking to generate some online passive income to meet your needs. Or maybe you are just tired of your 9-5 job and want to find a way to monetize your passions and become your own boss!

Somehow, you’ve heard of digital products, but you are new to this. You know nothing about selling or developing digital products. 

What are digital products and what makes them different from the regular products you buy on amazon? How can you create digital products and is it really cost-effective? Why should you choose digital products instead of physical products? 

These are a few of the questions that tend to come up when talking about setting up your own digital products online business.

Well, no need to look any further! I created this guide to give you everything you need to know about digital products!

What are Digital Products?

Digital products are intangible products (and sometimes services) that are sold and purchased electronically and are usually consumed electronically. It can also be seen as intellectual property, sold by the owner to a consumer. The owner can choose to sell the full rights of the product to the buyer or sell the product to several buyers to generate an income.

Some common examples of digital products are:

  • e-books
  • web designs
  • software packages
  • music
  • pictures
  • videos and many more!

Prior to the pandemic, selling digital products was becoming equally popular as its physical counterpart.

In 2020, retail e-commerce sales worldwide grew by more than 25% according to Statista. Additionally, according to the same source in 2020 more than two billion people worldwide were involved in the purchase of goods and services online.

Services or products that were predominantly offered in person or through brick-and-mortar establishments are now being offered electronically. Examples include exercising, teaching, shopping, banking, or attending parties or meetings.

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Digital Products vs. Physical Products

Well apart from obvious reasons such as increased health safety, here are 10 reasons you should launch your own digital products.

  • Digital products require relatively less start-up capital than a physical product and less overhead costs.
  • No need for inventory or physical storage arrangements.
  • No need for shipping or freight costs
  • Digital products do not require the same type of infrastructure that a brick and mortar business would need.
  • Customers usually can receive the products immediately after purchase.
  • It usually doesn’t require special government licenses or approval
  • This is a great way to earn some passive income online as you can create one copy of a products and then license for several buyers to use.
  • Diversify your current source of income, example teach in the class-room as well as offer tutorials or online courses at a competitive price.
  • Your customer- base is no longer limited to your local area, today’s advanced technology gives you access to a global target audience.
  • Reduced government interference and taxation.

Digital Products Ideas

Now that you have an idea of what are digital products. Do you have what it takes to create your own?
What are you going to specialize in? Do you need to be tech-savvy? What products generate more income?

All these are valid questions in deciding what digital product you want to market. Digital products usually fall under the very broad categories:



This can take the form of:

  • online courses
  • online dance classes,
  • music videos,
  • movies,
  • documentaries,
  • online conferences, or
  • exercise programs.

There are numerous options to be explored under videos, but the general idea is to be able to teach, entertain or communicate different information in video format.



Documents are a very popular kind of digital product. It includes but is not limited to:

  • e-books
  • templates
  • guides
  • printable
  • flyers
  • posters
  • custom-made or premade scripts
  • blog pdf
  • planners
  • journals and
  • presentations.

Usually, this class of products generates completely passive income. One copy can be made which, can then be sold or licensed out to several users at the same time.

Read More: Starting a Blog: What You Need to Know and Steps To Get Started



A common form of this is music. Slowly with time, DVDs, CDs, and VCRs have become obsolete. Sites like Apple Music, Spotify, ReverbNation, and iTunes have since taken over the market as more and more upcoming artists use online platforms to record and market their music. Another form of audio digital products can be podcasts, audiobooks, or sound ware.

Digital Graphics

These include:

  • font designs,
  • animations,
  • icons,
  • logos,
  • themes,
  • web designs,
  • themes or
  • clip-arts

These are just a few ideas that you can explore if arts, creativity, and graphic designs are your thing.


Apart from having a course teaching persons professional photography, you can share your stock photographs on numerous platforms. A lot of companies, content creators, and professionals are usually seeking quality photographs. You can start by offering some free and over-time offer premium packages at a reasonable cost (but more of that in another article).


Games, Software programs or Apps

If you are tech-savvy or a computer programming and coding whiz, then this is also a great opportunity for you to launch your digital product and monetize those skills. These days apps (short for applications) have become just as popular as software programs. Furthermore, some companies or individuals are seeking persons to help them develop apps or software packages to market their products. This category of digital products tends to be a very lucrative one.

Today, the opportunities/ possibilities for creating your own digital product are endless. From photography to online vocal lessons, to exercise and gym videos, travel guides, or manuals, there is no shortage of ideas on the market, neither is there a shortage of customers.

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How to create your own digital product

So, you are now convinced about starting your digital products online business. You have done your research and you are excited as your brain is teeming with so many brilliant ideas. The problem now is you are not sure which one would be most profitable, or how to go about launching your product. We will break down this process into 5 basic steps.

1. Brainstorm

Look for a problem and see how you can offer a solution. See challenges around you as opportunities, look for things that are currently in demand in your industry. It is advisable to explore a field or industry which you are passionate about, or you are skilled in, or have some level of expertise.

Write down your ideas and carefully examine the pros and cons. Don’t be too quick to ditch “bad” ideas as these sometimes prove to be very profitable. One thing you may want to consider is the type of income you want your product to generate:

  • completely passive,
  • semi- passive or
  • active.

This will determine the specific type of digital product you will offer.

For completely passive income an example is an e-book. You create one copy, and this copy can be sold to several consumers.

An online course can bring semi-passive income, which is a higher level of income than passive income. This will require periodic updates or revisions of the already existing digital product to keep your customers connected and seeking more.

An active income will require more frequent updates, usually, this comes in the form of membership subscriptions and income is more frequent.

2. Research


The next step after your idea pitch is to do in-depth research on the different ideas you came up with. It is one thing to have an amazing idea that seems feasible; however, it is crucial to get your facts and data to back up your business venture.

You need to find out:

  • who is your target audience
  • how can you reach them
  • how is your product of choice usually marketed or sold
  • what is the track record of profitability for this product over the years
  • what is the required maintenance for this product to generate the desired revenue?

Test your product

Maybe you decide to sell stock photos, now there are many such products already on the market. What can you do differently or what unique twist can you bring to your potential customers that will set you apart from those already on the market?

Try giving some free products and observe how the market responds to them. You can also use this opportunity to build a customer email base to who you can eventually sell premium stock photography packages.

Quality over quantity

After ensuring the practicality of your digital product idea and building a customer base, when you are ready to begin selling it is important to consider providing quality products to your customers. You don’t want to generate thousands of dollars in one sale but end up with disgruntled customers and angry reviews.

Also, you must remember to set your prices at a reasonable rate. Compare what is already on the market or in the industry and set your prices accordingly. Based on the nature of your digital product, you can choose to sell at a price lower than what is already on the market to pull in new customers or if you know what you are offering is unique and persons are willing to pay for it, then you can set at the market price or even higher.

Fran Powers has a strong background in digital marketing and a love for wealth management. She uses these skills to empower those who are willing to learn. You can reach her on Linkedin.


  1. Ingrid Robins December 24, 2021 at 3:01 am - Reply

    Thank You for Sharing.

    You have covered Digital Products in-depth and I have learned a lot from your blog post.

    You have explained what Digital Products are and also went into detail about what the difference is between Digital Products vs. Physical Products.

    I am looking forward to creating my own Digital Products now. I already created several YouTube Shorts. I got into Affiliate Marketing afterwards.

    You got a wide array of products you can create which is very impressive and interesting.

    I have learned a lot from your blog/post that I can use for my own business.


    • Fran Powers December 24, 2021 at 3:57 am - Reply

      Thanks, Elke! I’m glad you loved the post. YouTube shorts are great. Have you ever considered TikTok as well? I bet you’ll do great. Appreciate you reading my post. ~Fran

  2. Steve December 24, 2021 at 3:02 am - Reply

    A very well-written article on digital products. I am thinking about putting together an E-Book. do you have any recommendations on how to go about it or who could do it for me? I also noticed you said you were on Linkedin, the same as me. I would love to be able to follow you. Can you provide me with your LinkedIn contact details, please? 



    • Fran Powers December 24, 2021 at 3:55 am - Reply

      Hi Stephen! Thank you! I’m glad you enjoyed this post. We should definitely connect on Linkedin. If you search Francine Powers, you’ll find me easily. Can’t wait to chat more! ~Fran

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