In the digital landscape, creating products for immediate download is one of the quickest ways to build a sustainable business. Digital products — training courses, membership sites, website themes, apps, and more — often benefit from low ongoing costs after the initial production. Profit margins will typically be greater than ecommerce products, without the risk of stock issues. While there are many benefits, low barriers to entry mean that competition can be fierce. To stand out in a crowded marketplace requires a clear strategy, allowing your product to get noticed and promoted.
Pinpoint Your Audience
When dealing with competition, having a clear understanding of who your audience is will give you a distinct advantage. Selling to a carefully targeted group of people should be easy, so spend time initially researching who will want your product. To accurately pinpoint the audience, look at the demographic data for similar products using tools like SEMRush and Alexa. Build up an avatar of your perfect customer, allowing you to craft your sales process with someone in mind.
Build a Sales Funnel
A sales funnel will allow you to maximize your profit from each sale. When every customer interaction is made to count, you can afford to pay more for advertising and overall customer acquisition. A proven sales funnel involves driving traffic to a landing page, offering a free gift in exchange for an email address, sending a series of emails that increase desire for the product, optimizing the sales page for conversions, and offering upsells after the initial purchase.
Paid advertising is the quickest way to bring targeted traffic to your offer. Platforms like Google and Facebook let you target precise demographics, so you can put an offer in front of your ideal customer. This initial traffic can be used to test your offer, finding any flaws you might not have anticipated. With a good conversion rate, you can then feel comfortable spending time on other traffic sources.
Content marketing is an effective way to prove your knowledge and authority within a niche. By creating and distributing quality content, consumers will gradually be drawn toward you. If you can inform and engage a group of people consistently, when you make an offer they will likely accept. Content marketing might not bring immediate results, but it can be used as a long-term strategy to cultivate an audience.
Search Engine Optimization
SEO is another strategy that takes time to come to fruition. However, a site ranking for a number of prime keywords can receive consistent traffic with a low maintenance cost. If you have developed your content marketing strategy effectively, many authority sites will be linking to you. These authority links, along with social media and press releases, can be enough to build strong rankings.
Due to the often high profit margin of digital products, you can afford to pay a good commission to affiliates. Most successful affiliates will recognize a quality product and offer, but they may already be promoting an alternative. If you can provide a good commission and proof of conversion rate, though, you can often tempt them to run tests on your product. Affiliates can ramp up your sales considerably, driving a large amount of new traffic to your site. To get started, approach prominent bloggers and sites with clear details of your offer.
Understanding your audience, building a funnel, and reaching your audience is the basic blueprint for success with digital products. There are varying levels of complexity to each stage, but the fundamental process can remain fairly simple. If you can reach the right people with the right offer, the sales process can largely take care of itself.