One of the best ways of making money online is by creating and selling your own digital products. This could be anything from online courses and software to eBooks and digital music. However, though selling your own digital products offers numerous advantages, it also has some downsides.
1. It enhances your reputation
Having your own digital product causes people to perceive you as an expert in your niche. This is the case whether you are an online copywriter, personal coach, web developer or graphic designer. Being viewed as an authority will make you stand out from the competition. As a result, it will be easier to raise your rates to match your perceived value.
2. You have more control
Selling your own digital product allows you to have control over factors such as features, pricing, promotion, and updates. As the owner, you are free to make decisions which you deem best for yourself as well as for your customers.
3. No revenue sharing
Unlike affiliate marketing where you are only paid a percentage of the sale, selling your own digital product allows you to retain the entire revenue. This means that you have the opportunity to earn a higher income. In addition, you could even consider hiring several affiliates to promote your digital product.
4. Opportunity to earn residual income
When you create your own digital product, you can then make money even when you are not actually working. For instance, once you make an eBook available for download, people will buy it even when you are asleep. Therefore, the more digital products you have the more residual income you can make from your business.
1. It can be costly
In most cases, you will be required to invest a lot of cash, effort and time to create your own digital product. You might have to buy the necessary tools or software, or even hire an expert to create the digital product for you. In addition, you will have to incur the costs of promotion.
2. You might require some expertise
To create and sell your own digital products, you might need to acquire some skills first. This could mean signing up for an online course and spending countless hours researching. You will need to spend a significant amount of time learning your subject as well as your audience.
3. Customer service is your responsibility
When you are selling a digital product, customers will have questions about payment, refunds, or downloading your digital product. You will therefore be required to offer some kind of customer support. This might not be very demanding for simple digital products such as eBooks; however, more customer support is needed for digital products like WordPress themes.
4. No guarantee of profit
When it comes to creating your own digital product, there is no guarantee of sales or profit. People might not like what you have to offer and could choose to buy from the competition. As a result, your investment of time and money might end up being wasted.
Before deciding to sell your own digital products, take time to analyze the advantages and disadvantages. This will enable you to make a more sober decision.