Plug “How to Make Money Online” into a search engine and you’ll get more than 160 million results. It’s becoming much more common for people to look to the internet as a way of making a living. Research tells us that the traditional model of master-servant employment relationships are breaking down and being an independent worker is a growing segment of the workforce.
Internet marketing has exploded over recent years and is now mainstream. Corporations large and small have embraced it and independent operators are often innovators in the field even though they have much smaller budgets.
If you’re looking to generate passive income and make a lot of money in the process then a digital product business might well be right for you.
What’s a digital product business? Digital products are those that exist in a digital form and include things like software, eBooks, e-courses and computer games. They offer one of the best business models and we’ll set out below what makes them a solid choice for making money online.
Few if Any Overheads
First up, with a digital product there are basically no overheads. Now you may have some initial overheads while you’re creating your product but from then on you can then sell as many copies as you like with no need to pay for additional materials or anything else, unless you are using delivery such as Cd’s, DVD’s or USB’s. Each sale after you cover your initial costs will be 100% profit and very few other business models can lay claim to that.
The Income is Passive
Depending on how you deliver your online product, little effort is required to attend to each sale. Create once, sell often. For example if you set up an online store anyone can visit that store any time of the day or night totally independent of you and buy your products. The total buying process can be automated so the principle is that you create your product and system once, market the product regularly to make sure people know about it and where to buy it then focus on creating your next product. Rinse and repeat.
No Stock to Carry
One of the biggest expenses in a tradition product business is warehousing and storing the products until sold. With a digital product you require zero physical space for stock and that means you don’t need to rent a warehouse or fill your front room with books waiting to be sold. You may have some expense digital space though this is manageable.
It will take virtually no time for you to break even and to start generating real profit as there is next to no investment required. A domain name and hosting may be about it. The low barrier to entry means there’s little risk so you’ll be able to start your business without taking out a huge loan and putting your family in financial danger.
Because you don’t have any physical stock you won’t have stock going missing or customers claiming they never received their goods. Digital products don’t require physical delivery – everything is done digitally. They’re cheaper and faster in every way.
So, hopefully this has explained the value of operating a digital product business. It’s easy, low-cost and within the reach of almost anyone to be able to do. Of course there are other models business for an online business. This is only one … but it’s a very good one!