Selling Digital Products: Types and How to Get Started
Working with digital product sales has been highly profitable lately.
Digital entrepreneurs—people who essentially make a living by creating and distributing quality content—have brought about a true revolution in contemporary learning.
And it’s not just me saying this; the numbers speak for themselves: during the pandemic, the market grew by 224%, according to Pequenas Empresas & Grandes Negócios.
Now that the pandemic is over, the sector shows no signs of slowing down. On the contrary: while Brazilian retail saw a 16% decline during Black Friday 2023—an alarming figure—digital product sales grew by 26%.
This market isn’t going anywhere anytime soon. It’s not a passing trend; online learning is the real “new normal,” and those who have valuable content to share are seeing significant success.
Today’s article is for those who are in that exact situation: you have content but aren’t quite sure where to start.
We’re going to discuss the different types of digital products, the best-sellers, where sales take place, and how to create them.
Shall we get started?
What Is a Digital Product?
A digital product, as the name suggests, is a product that does not exist physically and is only sold and consumed via the internet.
This includes a wide variety of products, from software and full publications to serialized content, such as newsletters.
Typically, when we think about selling digital products, we immediately think of courses and e-books. But they’re not the only options out there.
Everything—absolutely everything—that exists solely on the internet and is sold qualifies as a digital product. This includes games, NFTs, purchased or rented movies, and more—all falling into the same category.
The digital product market is highly attractive to new entrepreneurs because of the simplicity of content creation.
Since everything can—and is—monetized, beginner sellers can create simple content and sell it at relatively low prices.
With this lower barrier to entry, entrepreneurs can start selling right away and profit from volume.
Naturally, digital product sales are closely tied to the success of your marketing strategy.
Without marketing, you risk becoming just another name in a vast sea of entrepreneurs using the same tactics.
But we’ll talk more about digital product marketing throughout the article. For now, let’s dive into the various types of digital products, which are more diverse than you might think.
Shall we?
What Are the Types of Digital Products?
The most common digital products we see online are courses and e-books—there’s no doubt about that.
In fact, when we discuss the best-selling digital products later on, we’ll see that these two categories consistently rank at the top.
However, they’re not the only types of digital products. There are many others that we already purchase and use regularly, but we don’t necessarily recognize them as digital products in the same way.
In this section, we’ll explore these categories further. You’ll probably recognize all of them, but understanding them in more depth will help you determine which ones make the most sense for your business.
Let’s go!
Infoproducts
“Digital products” and “infoproducts” are essentially synonyms, but the latter term is usually reserved for the most common types of digital products, including:
- Online courses
- Newsletters
- Webinars
- E-books
- Lectures
- Immersion events
These are by far the best digital products for those who are just starting out and need to make sales quickly.
While these products aren’t necessarily easy to produce, they are relatively simple. Many entrepreneurs create them on their own with minimal investment.
For a course, you’ll need a camera, good lighting, and a microphone. For e-books, you won’t even need that—just time and perhaps the help of a designer if you’re not proficient in graphic editing software.
That’s why beginners often prefer these infoproducts—they’re simpler and cheaper to produce. But there are other ways to sell digital products. Take a look:
Blockchain and NFTs
Selling NFTs is also considered selling digital products.
However, since the technology’s launch, we haven’t seen mainstream markets embrace this type of product as they have more well-known infoproducts.
To break it down, blockchain is a decentralized network that facilitates financial transactions using tokens.
NFTs are tokens within the blockchain, and their value is determined by how many people want to own them.
For example, a highly respected digital artist releases an NFT within a specific blockchain.
The value of that NFT is based on the demand for it—how many people want to buy it.
If this sounds like financial speculation à la Wall Street, that’s because it essentially is. This is what determines the value of assets within the blockchain and, by extension, NFTs.
It’s a complex topic, but NFTs are still profitable within the digital product market.
However, this field is best suited for those who already have a deep understanding of the market, as buying and reselling assets is always a risky business that requires expertise.
SaaS
SaaS stands for Software as a Service—or software as a product.
Many people don’t view SaaS products as infoproducts or digital products. They are more commonly referred to as “platforms” or simply “products.”
But we’re including them in this list because digital entrepreneurs often have the capability to create them but don’t find many online resources discussing this opportunity.
Essentially, a SaaS product is stored on the vendor’s servers and accessed by customers via login credentials.
Leadster is a SaaS product: when you sign up for our platform, you don’t need to download anything—it’s accessible online, just by entering the URL.
Other tools work the same way. Some of the most well-known in Brazil include RD Station, Rock Content, HubSpot, and more.
We’ve talked extensively about SaaS-based businesses in previous articles. Check out these resources below:
➡️ Is the SaaS Business Model Right for Your Company?
➡️ The SaaS Sales Process: Build, Scale, and Profit!
➡️ The 20 SaaS Metrics That Companies Track
However, there’s another type of digital product that’s similar to SaaS but with one key difference. Take a look:
SaaP
This acronym stands for Software as a Product.
Here, we’re talking about software that isn’t hosted on the developer’s servers but is instead downloaded and installed directly onto customers’ devices.
This was the only digital product model available from the 1990s until the early 2000s.
Back then, the process was manual: you had to go to a store, buy a CD-ROM with the software, take it home, and install it.
If you lived through that era, you probably remember it well. If not, you might be surprised to learn how software sales used to work.
Even today, this model still exists alongside SaaS. Antivirus programs, VPNs, and specialized software continue to be sold this way.
Windows and the entire Microsoft Office suite operate under this model.
Adobe products do as well. If you want to see a clear distinction between SaaS and SaaP, try a free trial of Photoshop and another of Figma—Photoshop requires a download, while Figma is accessed via a browser.
Typically, SaaP products require either a one-time purchase or a license fee before use.
What Are the Best-Selling Infoproducts?
Now that we’ve defined digital products, let’s dive deeper into the reality of those looking to sell them.
But first, let’s clarify something: not all digital entrepreneurs create their products from scratch.
In fact, many people sell digital products created by others—this is known as Affiliate Marketing.
In this model, you focus on promoting other people’s infoproducts and earn commissions on each sale.
This is a somewhat controversial topic, as not everyone takes Affiliate Marketing as seriously as dedicated content production for selling digital products.
However, the vast majority of the best-selling info products share a common trait: they leverage Affiliate Marketing for promotion.
And since we’re talking about info products, let’s get back to the topic.
I conducted research using Hotmart’s report on the best-selling courses of 2023, and these were the most frequently appearing categories:
Online Courses
Online courses are by far the largest market for digital products today.
This is due to two main factors: the ease of content production and the high demand for this type of product.
Online courses, especially those that are more professional and come with certifications, can be decisive factors for people seeking job relocation, promotions, or even drastic career shifts.
According to Hotmart, these are the globally best-selling course categories:
- Finance and Business
- Teaching and Academic Studies
- Career and Personal Development
- Health and Sports
- Marketing and Sales
A large portion of beginners in digital marketing today start with courses.
Instead of spending four years in college learning general advertising concepts, it’s preferable to focus on specific points—something that courses deliver much better.
For example: some advertising programs today barely touch on topics that were trending a decade ago—like Inbound Marketing or Influencer Marketing.
Online courses are characterized by their specificity. Instead of presenting a broad academic and theoretical background, they focus on a particular topic with more examples, case studies, and practical work.
E-books
E-books are by far the easiest digital materials to produce.
Think about what it takes to prepare a course. You need to:
- Define what your course will teach
- Prepare lessons
- Buy equipment
- Learn how to use it
- Choose a platform and upload the course
- Create snippets for ads
- Work on marketing
- And, of course, closely monitor sales
An e-book is quite different. You don’t need to buy anything, and if you have design skills, you don’t even need to hire anyone.
You also don’t need to record or edit anything—a process that could easily take at least a month, even if everything goes smoothly and you’re a great videomaker.
E-books are like courses but in article format. They come in all shapes and sizes, from simple ones with just a few pages to dense ones that resemble full textbooks.
The length and complexity of the material are up to you. But neither determines success—you could have a massive, highly polished e-book that sells poorly or a smaller one that sells exceptionally well.
It all depends on your marketing, your target audience, and how well what you offer resonates with them.
Newsletters
Believe it or not, paid newsletters exist!
And more than that—they are a fundamental part of digital product sales, even though they are more exclusive.
Newsletters are usually much cheaper than full courses and e-books.
It’s quite common to find them priced between $0.20 and $4. Selling them for more than that can be challenging, but it’s not impossible—some go for hundreds of dollars.
I personally recommend that only experienced professionals in their field work with newsletters. They may seem like the simplest digital product to create, but they can be deceptive.
Selling newsletters is a weekly commitment, so even though the content is simple, it still demands a lot from the creator.
You need to keep a constant eye on market trends to always have relevant topics and avoid losing subscribers.
Podcasts
Podcasts are also part of digital product sales, though they are not as popular as courses, e-books, and newsletters.
This is largely due to the podcast format itself but also because of the vast number of free podcasts available online.
It’s tough to compete with free podcasts, many of which have been running for years as part of larger marketing strategies.
Because of this, free podcasts already provide a huge amount of content, making people hesitant to spend money on something they can get for free.
But if you want to work with paid podcasts, there is still a market—you just need to stand out significantly.
Webinars and Talks
This is another interesting segment that started gaining traction in the post-pandemic world.
Webinars and talks were not very popular a few years ago. However, when the pandemic forced many marketing events to go online, the market expanded.
Today, there are already paid events held entirely online, and demand continues to grow in this area.
To succeed in selling digital products through webinars and talks, you need big names. Your event’s success depends on the quality of its content, which, in turn, depends on the quality of its speakers.
It’s also important to note that webinars and talks typically have two pricing models: live access and on-demand access after the event
This second option is almost like a course.
So, if you want to sell these types of digital products, you’ll need a dedicated videomaker who can both manage live streaming and edit the recordings into structured modules.
What Are the Most Used Platforms to Sell Digital Products?
Now that we’ve covered the best-selling digital products, let’s talk about where they are sold.
There are some market leaders and other more niche-focused platforms.
Choosing the right platform is crucial. Some courses may perform well on a generalist platform but not sell at all on a specialized one—and vice versa.
Here are the five most-used platforms for selling digital products, along with some tips to get started today.
Hotmart
🤑 Seller fee: 10% + $0.20 per sale
Hotmart is the leading platform for digital product sales in Brazil.
To give you an idea, Hotmart gets nearly 3 million monthly visits on its Brazilian site alone, according to internal Semrush data.
That’s around 100,000 visitors per day!
Hotmart supports multiple types of info products, including all the ones mentioned in this article. However, it is a generalist platform.
It also allows the sale of licensed products, enabling Affiliate Marketing.
However, there’s an important restriction: a licensed product cannot teach customers how to sell the same product.
For example, Hotmart does not allow a course that teaches people how to sell that exact same course, as this would resemble a pyramid scheme.
Other than that, Hotmart is quite permissive—you can sell anything that isn’t illegal.
To start selling, simply sign up on their website and set up your account.
Udemy
🤑 Seller fee: Revenue-sharing model, calculated case by case
Udemy is also an excellent platform for selling online courses, but it is more specialized than Hotmart.
Professionals seeking highly specific courses in their field often look on Udemy first. It is well-known for courses in marketing, finance, design, and development, among others.
Because of this business-focused positioning, Udemy is not the best place for lifestyle or nutrition courses.
However, it’s where you can charge higher prices for more in-depth courses.
Selling on Udemy is straightforward—just sign up as an educator, register, and start uploading your videos.
Alura
Alura is the leading platform for technology-related courses but does not allow users to sell their own digital products.
However, it’s worth mentioning due to its unique business model.
Instead of selling individual courses, Alura operates like a SaaS product.
It requires a monthly subscription and grants access to unlimited courses.
This could be an interesting idea for those interested in the SaaS business model—instead of launching a single course, you could create an entire platform that aggregates multiple courses.
Of course, you’d need to consider server costs and other infrastructure expenses.
Herospark
🤑 Seller Fee: 7.9% per digital product sale.
Competing with Hotmart, Herospark is another major platform for selling more generalist courses.
However, its main differentiator is the platform commission fee, which they claim to be the cheapest on the market.
And out of all the platforms we analyzed here, it’s true that Herospark has the lowest fee.
Although Herospark is not as popular as Hotmart in direct sales, it is quite popular among digital product sellers.
Among the advantages it offers, we can highlight:
- Payment within 2 days after the course purchase;
- Lower fee;
- No contract commitment;
- Dedicated account manager;
- Checkout process with a 93% conversion rate.
Of course, these are the advantages listed on Herospark’s website. I recommend testing it yourself to confirm, okay?
How to Create a Digital Product?
Now that we’ve talked about the business aspect of selling digital products, we need to focus on the practical side—how to actually create a digital product.
This is definitely the most hands-on part of the article, but also the hardest to write. 😅
That’s because digital products are incredibly diverse, as you’ve already seen.
It’s not that there’s no step-by-step recipe, but rather that there’s no point in following a recipe for cake if what you’re making is pudding.
So, in this part of the article, we’re going to talk about the whole kitchen.
We won’t go into the tiny details of producing each type of material, but we will dive deep into the operational and logistical aspects of selling digital products in practice.
All set on your end? Then let’s begin!
Defining What It Will Be
First things first: what type of material will you create?
This depends on your production capabilities. You should create the content that you can produce at the lowest possible cost.
For example: If you don’t have a camera or a proper setup to record a course, start with a simple eBook.
If you don’t know how to create an eBook and hiring a freelance designer is too expensive, go for a newsletter.
Selling digital products works like this: you either create what you’re capable of, or you hire people to do it for you.
Of course, this requires marketing research to understand what is viable for you and what isn’t.
Maybe the course you want to create has high demand and little competition, meaning less risk for you to invest.
Doing this groundwork beforehand helps avoid losing money or missing out on potential profits.
Budgeting for Materials
This step is an extension of the first. It’s best to discuss budgeting as a separate topic.
Every business venture requires investment. There’s no way around it. What you do need to understand is how much this investment will cost you.
Start by making a list of what you don’t have but need: A website? Microphones? A dedicated email? Camera and lighting? Freelancers (designers, copywriters, ghostwriters)?
Then, research prices. Look for discounted items and avoid overspending in the beginning.
For example: If you’re creating a course, you don’t need to film everything in 4K. Maybe just the promotional trailer.
Lastly, compare prices and check where it’s best to buy your materials. Also, go through your list again—can you cut anything unnecessary?
Tip: Try to save as much as possible in this uncertain early stage. As your digital products gain traction, you can invest in better equipment and resources.
Creating the Course
Creating your course: the most exciting part of the job!
This is where you bring together all your knowledge in the field and create structured material based on what you want to teach.
This process is very specific and depends on numerous factors. But the key is knowing how to organize your time.
Since the material is already outlined, the first step is structuring it properly.
If it’s a course, how many modules? If it’s an e-book, how many chapters?
You’ll need to handle transitions, define exercises, and structure everything according to your topic.
This organization is what will make your course sell through word of mouth. And, of course, it will also help you sell future courses to those who already know you.
Choosing the Right Platform
Be very careful when selecting a platform to launch your course.
At first glance, they may seem similar for general courses, but niche platforms tend to favor specific types of content.
It’s also worth paying close attention to the platform’s policies, especially how commissions are charged.
Udemy, for example, does not have a fixed rate. This can be beneficial in some cases, but fees can easily reach double digits.
The best approach is to choose a platform that offers high visibility, lower fees, and aligns with your course’s needs.
Pricing Your Digital Product and Marketing It
Pricing is crucial for your digital product.
That’s because pricing itself is a form of marketing. For example, a course priced at $10 already communicates a lot—it’s likely quick, not in-depth, etc.
The first key aspect is understanding how to position yourself through price.
The second aspect is calculating how much you’re spending to create your content and how much you’ll invest in marketing strategies.
Marketing itself will rely heavily on paid media. You can complement it with other strategies, but the reality is that without investing in paid ads, growth might be too slow.
Do I Need a Website to Sell Digital Products?
No, you don’t need a website to sell digital products. However, the best digital courses usually have one.
A website makes it much easier to manage paid media campaigns, consolidate all your courses in one place, and offer a better experience to your visitors.
If you’re considering a website, don’t forget to check out Leadster!
Our chatbot helps capture and qualify leads in a simple way for your site visitors—and even simpler for you, since all you need to do is set up a few flows.
Try our tool today! Just click the banner below. I’ll be waiting for you, okay?
Thank you for reading, and see you in the next article!
