The benefits of creating and selling digital products

In today’s digital age, creating and selling digital products has emerged as a lucrative opportunity for individuals and businesses alike. Digital products offer a range of benefits, from scalability and low production costs to global reach and passive income potential. In this article, we will explore the numerous advantages of creating and selling digital products and highlight why it has become a popular avenue for online entrepreneurs.

The benefits of creating and selling digital products

Digital products are where it’s at! There are so many benefits to selling digital products. It’s easy to get started and they can be extremely profitable. Smart entrepreneurs and creatives all over the world are developing digital products. 

You can do this too. In this article we’ll share the top benefits of selling digital products. We’ll share some challenges too. Last, we’ll also show you how to get up and sell in no time with WordPress.

Low Production and Distribution Costs

One of the key benefits of digital products is their low production and distribution costs. Unlike physical products, digital products are created and delivered electronically, eliminating the need for manufacturing, inventory, packaging, or shipping. This significantly reduces overhead expenses, making it a cost-effective option for entrepreneurs. With minimal upfront investment, individuals can create and sell digital products, allowing for higher profit margins.

Scalability and Global Reach

Digital products offer scalability and the potential for a global customer base. Once created, digital products can be replicated and delivered to an unlimited number of customers without any additional costs. This scalability allows entrepreneurs to expand their reach and generate income on a larger scale. With the ability to sell to customers worldwide, digital products have the potential to reach a global audience, transcending geographical boundaries and opening up new market opportunities.

Passive Income Potential

Creating and selling digital products allows for the potential of generating passive income. Once the product is developed and made available for purchase, it can generate revenue without requiring continuous active involvement. Unlike a traditional job where time equals money, digital products can be sold repeatedly without the need for constant effort. This passive income potential provides individuals with the opportunity to earn money while focusing on other pursuits or creating additional digital products.

Value and Convenience for Customers

Digital products offer value and convenience to customers. With instant access to digital downloads, customers can enjoy the benefits of the product immediately after purchase. Digital products such as e-books, online courses, templates, or software provide solutions, knowledge, or entertainment that cater to the specific needs of the target audience. The convenience of accessing these products digitally enhances the customer experience and increases their satisfaction.

Creative Expression and Expertise Showcase

Creating digital products allows individuals to express their creativity and showcase their expertise. It provides a platform to share knowledge, skills, and unique perspectives with a wide audience. Entrepreneurs can leverage their expertise in various fields to create educational content, guide others through online courses, or provide specialized services through digital mediums. This creative expression not only generates income but also establishes the creator as an authority in their niche.

Easy Updates and Adaptability

Digital products offer the advantage of easy updates and adaptability. Unlike physical products that require costly and time-consuming revisions, digital products can be easily modified, updated, or expanded based on customer feedback or market demands. This flexibility allows entrepreneurs to refine their products, stay relevant in a rapidly evolving digital landscape, and cater to changing customer needs. The ability to adapt and improve digital products ensures a higher level of customer satisfaction and longevity in the market.

Reduced Environmental Impact

Creating and selling digital products aligns with sustainability and reduced environmental impact. Unlike physical products that require resources, materials, and energy for production, digital products have a minimal ecological footprint. They eliminate the need for physical manufacturing, packaging, and transportation, reducing waste and carbon emissions. Choosing digital products over physical alternatives contributes to a more sustainable business model and supports environmentally conscious practices.

Lower Barriers to Entry

If you have any creative skills – in writing, design, music, video, computers, coding education, or any other field – you can make digital products. There is nothing stopping you!

  • It’s generally faster to make a digital product than a physical one.
  • You just need a high quality product, a Stripe or PayPal account, and a marketplace or website to sell your product on. 
  • There is much less risk and financial investment. As we showed above you have less overhead and larger potential market than with a physical product store.
  • You are also less -or completely not- dependent on others. You won’t have to have suppliers, manufacturers, or shipping and fulfillment vendors. It’s possible to get started all by yourself. 
  • You can get started with just a computer and an internet connection. 

Profit margins are irresistible

One of the most appealing benefits of digital products over physical products is the likely high-profit margin.  Without the costs of physical materials and other expenses listed above, your profit margins are very likely to be higher.

Will it be hard to get started in terms of the ‘digital stuff’ like building a website, marketing, emails, and social media? Sure. But remember, if you are selling physical products you’ll still have to do all those things. You’ll still need a website and/or eCommerce platform for payments, delivery, and customer accounts. You’ll still build a website and do digital marketing and connect with customers.

You’ll have the digital side and the physical side of the business (managing manufacturing, supply chain, fulfillment and shipping). With digital products you’ll be able to do less, or better do more digital, and do it better. You can focus on marketing (growth) and customer happiness. This will very likely lead to higher profits and faster profits.

Digital Products Last Forever

Unlike physical products, digital products are not subject to wear, tear, or deterioration. There is little risk of them becoming permanently obsolete. There is no storage or warehousing to cause problems. No worries about earthquakes, hurricanes, floods or tornadoes (or global pandemics). Digital products may become less relevant over time as technology changes. But they can be updated, upgraded, and improved. 

This makes it possible for them to last pretty much forever. Digital products can be used indefinitely, remaining in the same condition they were in on the day of purchase. Most digital products actually get better over time. As long as they are updated and improved as needed.

Easier to manage, sell, and deliver

Managing your digital products is far easier than dealing with physical stock. You really only need digital storage and a website (or marketplace) to keep things organized. There is far less to do in terms of day-to-day management. You don’t have to stock shelves, manage supply chain logistics, or deal with shipping. Your digital product store is always live and serving your goods to customers 24/7.

Selling digital products is more streamlined. Potential customers just check out photos (or a demo) of your product and hit a button to purchase if they want it. No one has to find and travel to your store. No one has to wait days or weeks for delivery. Your customers just pay and get their digital files. Customers make use of your products right away.

Direct lines of communication

Digital products offer unique ways to communicate directly with your customers. You can even build entire communities around your products. Your customers get their product delivered via email. So you have a way to connect and reconnect with your customers. This is not the case at a physical store where the customer just walks out after their purchase. There are lots of ways to help and stay in touch with your customers. This can also lead to more sales. Here are some ways to connect with customers that are a natural fit for your digital products:

  • Email your customers a newsletter with tips, related products, tutorials, and even industry trends
  • Offer online courses or training on your website
  • Use social media to connect with customers on an ongoing basis
  • Offer them exclusive private ways to communicate with you:
    • Private Slack channel
    • Special email list
    • Facebook Group
    • LinkedIn Group
    • Discord Server

Your products are digital, so your customers and potential customers are on the internet. Put that to your advantage!

Personal freedom and lifestyle

When you run your own digital product business it opens up a lot of options. You can live anywhere in the world you want to live. You can have more control over your time. Make your daily and weekly work routine look just how you want it. You will be more free to hire people from anywhere in the world. You can have a store with great customer support 24 hours a day, and no one on the team has to work long hours, if you live all over the world.

Digital products, along with working smart and hard, can be a ticket to an entirely new lifestyle. Lots of people talk about the freedoms and lifestyle, but many forget about this other key benefit of selling digital products.

Frequently Asked Questions

Why should you create a digital product?

There is no need for specialized manufacturing machines or materials for production. Most of the work can be done single-handedly. There are many digital tools – both paid and free – on the market, that can be used for creation of digital products.

Is creating digital products worth it?

Digital products typically have much higher profit margins than physical products. And because you don’t have any production costs to worry about, you can scale up infinitely without ever having to worry about replenishing your inventory—all of which makes for an easy and very lucrative business model.

Why digital is good for business?

Digitalizing allows businesses to gather critical data about their operations, customers, and market position. Better decision-making processes allow business leaders to make use of this valuable information to make well-informed choices.

Why is digital important for business?

Digital transformation can help businesses save costs by reducing manual labor, streamlining processes and improving productivity. For example, by adopting cloud storage, businesses can save on hardware costs and reduce the need for physical storage.


The benefits of creating and selling digital products are undeniable. From low production costs and scalability to global reach, passive income potential, value for customers, creative expression, and reduced environmental impact, digital products offer a multitude of advantages for online entrepreneurs. Whether you’re an expert in a particular field or have a creative vision to share, embracing the world of digital products can provide a pathway to financial success, personal fulfillment, and a thriving online business.

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