This is the second and final article on how to sell and profit from digital products. In part 1, we covered many of the benefits of digital products over physical goods as well as the marketing philosophies to help you build an audience for your products. Today, we will be discussing more of the tactics required for a successful digital product business. There's also a dark side to this world, which we'll get into towards the end. Let's jump in.
Remember how one of the best things about digital products is that you don’t have to ship anything? Your profit margins are much higher, and fulfilling orders is so much easier! You still have to deliver the product to the customer, but e-commerce software will do that for you, so you don’t have to be involved at all.
At the end of 2012, I was talking with a good friend of mine who runs a small custom woodworking company. We were discussing business over the last year and a few things we learned. While his business did about double the revenue that mine did in 2012, I made considerably more profit.
That’s when it sank in how unusual my business really is: Instead of having a 10 to 20% profit margin like many businesses, I had an 85% profit margin in 2012. That actually could have been much higher, except that I spent some money on equipment (I needed that 27-inch display) and hiring freelancers. After creating each product, I have only 5% in hard costs for each sale. And the product can be sold an unlimited number of times.
Launching a new product — especially your first — can be incredibly daunting. Even knowing where to turn for help can be hard. So many blog posts are full of free advice on how to successfully launch that I almost didn’t write another one.
But many of the posts I read for my first product launch didn’t help me very much. The material was too fluffy, the marketing ideas were vague, or the advice didn’t apply to my tiny business. Having launched five new products in fewer than nine months, I’ve turned product launches into a science.
Why use icons? Design is all about communication: it doesn't matter how important or exciting the information that you're sharing is if you fail to hook your visitors. When initially viewing a website, most users will first scan the page for visually interesting content, and only after something grabs their attention will they actually begin reading. Icons are a simple, effective way to draw users into the content of your website.
Icons serve the same psychological purpose as paragraph breaks: they visually break up the content, making it less intimidating. A well-formatted page, with text broken into easily accessible paragraphs and accented by icons, is easy to read and visually interesting enough to sustain the user's attention. So, stop wasting time writing so much content that no one will read, and start using icons!
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