The Difference Between Digital Products and Digital Service

I understand this question regularly: “Eric, I needed to start an online business. However, I don’t know how to start. Should I begin from digital products, or should I begin from digital services?” And my answer for every one of these while has been this: “always choose digital products.”

You might be shocked to see my answer to be digital products. Countless individuals have been telling me they’ve specific expertise, and it is wiser which they use their knowledge in the shape of providing service to others so that they may earn money from their expertise. I would like you to believe further, can’t you package your knowledge in the shape of digital products and sell it online?

Here’s one dirty little secret of these two options, or I should say, the dirty little secret of online business: Digital products may be automated entirely while digital service cannot do so. In other words, when you have your digital products Designs, you’re making your system to be on automatic pilot. You no longer must be in the equation to make money. You generate income when you work, generate income when you fish, generate income when you hike, generate income when you walk, generate income when you eat, and the coolest part is that you generate income when you sleep.

But when you decide to choose the digital service, if you don’t are satisfied with working as a company hour to generate income, this choice may not be ideal. When you’re able to create your digital products, you simply do the job once. Once it is up there in the machine, or commonly called the sales to funnel, it can be run automatically. You do not have to monitor the web site 24/7 just to ensure money can come in. You do not have to assist the customers in checking right out of the sales funnel because everything is arranged and built systematically.

Here is the inevitable rule in the digital service world: you have to stay the machine or equation to make money. Try to consider it. You’re providing service to other people. If you go wrong, who will give you the service to your customers? Nobody except you! That’s why in digital service, you’re earning stop when you stop working. You might be arguing with me that to supply digital service will enable a reliable income. This, to a particular degree, is true. But make an effort to think outside the box. When you can sell your service in the shape of digital products, could you increase your profit margin? And when you build trust with your customers (which I assume you’re adding real values/solutions for their life), you can always promote them with backend products. Is it possible to observe how powerful digital product has become? 

Most internet users are very acquainted with physical products. Before the web came along, most of the products sold were physical and tangible products such as, for example, TV, furniture, clothes, and toys. You can offer details that the five senses demanded, such as, for example, sight, hearing, smell, touch, and taste. Many offline stores have moved over to the web world, such as Barnes and Nobles, banks, pharmaceutical stores, and clothing stores. Online stores have lower overhead costs.

So why am I recommending digital products over physical products? The shipment. One limitation of worldwide sales of physical products in E-bay is the shipment costs for oversized, bulky items. It is possible to pay $20 to have a fridge hauled to your residence, but when you purchase it from another country, it’ll cost you a few hundred dollars at least. You need a spot to store these physical products while selling them, and warehouse storage cost money. You should use drop ship supply to your customers. However, your profit margin drops dramatically. If your products need special storage like refrigeration, the costs will escalate.

That is where digital products that can be downloadable have an advantage. It is possible to store digital work on your hard disk, and nowadays, digital storage devices prices have dropped and depreciated rapidly as time passes as technology progresses. Delivery is a snap, just allow your customers to download it off the internet.

There are a few downsides to digital products, though, but they are relatively minor for their advantages. I’ve been aware of people’s sanity affected when their precious digital products are lost when their hard disks crashed, or once the servers were suffering from viruses that wiped out all the data. Even though equipment to store them and host websites on a larger scale might be expensive, nowadays, choices are aplenty when it arrives at shared hosting, which can lower costs.