How To Make Money By Starting a Digital Products Business in 2024

Last updated: 21/03/2024 Written by: Ruby Layram

Selling digital products has become a popular business venture in 2024. This is mainly due to the fact that this business model has very low start-up costs and can be run from anywhere in the world. Digital products are a great way to step into the world of online entrepreneurship without having to handle physical inventory or fulfillment.

If this sounds like something that you would like to start, our guide on how to start a digital products business will walk you through everything that you need to know. I will also be sharing my own experience of selling digital products to shed light on the realities of this online business idea.

What Are The Best Digital Products To Sell?

When it comes to starting a digital products business, it's important to choose the right products to sell. In this section, we will explore some of the best digital products to sell in the UK market.

We choose the best digital products by asking our Instagram community what products they have had success with selling. These products have proven to be profitable and popular, making them ideal choices for aspiring entrepreneurs.

1. Ebooks: Selling ebooks is a popular choice among digital product creators. They are relatively easy to create and have a wide audience appeal. Whether it's a self-help guide, a recipe book, or a fiction novel, ebooks offer a lucrative opportunity to share your knowledge and creativity.

2. Online Courses: The demand for online learning has skyrocketed in recent years. Creating and selling online courses in niche areas of expertise can be a highly profitable venture. From language courses to fitness programs, the possibilities are endless.

3. Templates: Digital templates are pre-designed files that users can customize to fit their needs, such as resumes, planners, or social media graphics. They make excellent digital products to sell because they save time for customers, offer a convenient solution for common needs, and can be easily accessed and downloaded online.

4. Software and Apps: Developing and selling software or mobile apps can be a lucrative business. From productivity tools to gaming apps, there is a constant demand for innovative software solutions.

5. Photography and Stock Images: If you have a passion for photography, selling stock images can be a profitable venture. Businesses and individuals are constantly in need of high-quality images for their websites, marketing materials, and social media posts.

When choosing the best digital products to sell, it's essential to consider the profitability and market demand. Conducting market research and identifying niche areas can help you find profitable opportunities. Additionally, it's important to create high-quality products that provide value to your customers, ensuring their satisfaction and repeat business.

Where Can You Sell Digital Products?

In today's digital age, there are numerous platforms and marketplaces available for selling your digital products online. Whether you're an artist, writer, photographer, or entrepreneur, these platforms provide a convenient and accessible way to reach a wide audience and monetize your creativity and expertise.

Etsy

Etsy is a popular online marketplace known for its focus on handmade and vintage items. However, it is also a great platform for selling digital products. Whether you create printable art, digital patterns, or even e-books, Etsy provides a dedicated section for selling digital downloads. You can set up your own shop, showcase your products, and reach a large community of buyers who are actively searching for unique digital content.

Amazon

As one of the largest e-commerce platforms in the world, Amazon offers a vast customer base and extensive reach for selling digital products. With services like Kindle Direct Publishing (KDP), you can easily publish and sell your e-books, comics, and other digital publications on Amazon's Kindle Store.

Additionally, Amazon's Merch by Amazon platform allows you to create and sell custom digital designs on various products like t-shirts and hoodies.

Social Media

Social media platforms like Facebook, Instagram, and Twitter are not only great for connecting with friends and sharing updates, but they also offer opportunities to sell digital products.

You can leverage these platforms to promote and sell your digital products directly to your followers by using features like Facebook Shops, Instagram Shopping, and Twitter's Buy Now buttons. These platforms enable you to reach your target audience, engage with potential customers, and drive sales through social media marketing.

Shopify

Shopify is a popular e-commerce platform that provides entrepreneurs with the tools and resources to create their own online stores. With its user-friendly interface and customizable templates, Shopify allows you to build a professional and attractive online storefront to showcase and sell your digital products.

It also integrates with various payment gateways, making it easy for customers to purchase your digital goods securely and conveniently.

Teachable

If you're an expert in your field and want to share your knowledge through online courses, Teachable is an excellent platform to consider. Teachable allows you to create and sell your own digital courses, providing a comprehensive platform for hosting, marketing, and delivering your educational content.

With features like course customization options, student engagement tools, and the ability to set your own pricing, Teachable empowers you to build a profitable business selling digital educational products.

When choosing a platform to sell your digital products, consider factors such as your target audience, product type, and pricing model. Each platform has its own unique features and benefits, so take the time to research and evaluate which platform aligns best with your business goals and objectives.

By diversifying across these platforms, you can expand your reach, increase your sales, and establish a successful digital products business online.

Is Digital Products a Lucrative Online Business to Start?

In this section, we will examine the potential profitability of starting a digital products business. We will provide statistics and trends on digital product sales in 2024 to give entrepreneurs an understanding of the market and its growth potential.

Overall, selling digital products can be a very lucrative business to start. The profit margins for digital products can be high due to the fact that digital products are very low cost to create and can even be created for free.

Furthermore, selling digital downloads comes with low overheads which means that you can keep most of the profits that you make.

The main challenged faced by digital product entrepreneurs is getting enough traffic to make consistent sales. This can be difficult if you are not experienced in driving traffic and persuading customers to click ‘buy’.

Digital Product Sales Statistics 2024

1. Digital products business profitability is on the rise, with a projected growth rate of 10% in 2024.

2. The global digital products market is expected to reach $74 billion by 2025.

3. Online business opportunities in the digital products industry are vast, with a growing demand for various types of digital content.

4. E-books and online courses are among the most popular digital products, with high sales and revenue potential.

5. The increasing adoption of digital platforms and the convenience of purchasing and accessing digital products contribute to the positive sales trends.

6. Entrepreneurs who tap into the digital products market can benefit from low overhead costs and the ability to scale their business quickly.

By leveraging the right strategies, entrepreneurs can capitalize on the digital product sales trends and find success in this lucrative online business.

How To Start a Business Selling Digital Products Step-by-Step

In this section, we will provide a step-by-step guide on how to start a business selling digital products. Follow these key steps to set up your online venture and position yourself for success in the digital marketplace:

Step 1: Pick a niche

Identify a specific market or audience that you want to target with your digital products. Research existing demand and competition within your chosen niche to ensure you have a viable market to enter.

It is a good idea to choose a niche that you already have some skills and experience in. This will help you to create high quality digital products and will make it easier for you to sell them to your audience.

Questions to ask yourself when choosing a niche:

1. What topics or industries do I have expertise or knowledge in?

2. Who is my target audience, and what are their pain points or needs?

3. What digital products am I passionate about creating?

4. What is the market demand for potential niches I'm considering?

5. How competitive is the market in each potential niche?

6. Are there any emerging trends or opportunities in specific niches?

Step 2: Write a business plan

Outline your online business goals, strategies, and financial projections in a comprehensive business plan. This will help you clarify your vision and make informed decisions as you start and grow your digital products business.

Top Tip: I created a digital planner (one of my digital products) that contains tons of helpful worksheets for business planning. This is the planner that I wish I had when I first started my online business. You can grab it for less than the price of a coffee here.

Step 3: Create a product

Develop high-quality digital products that cater to the needs and desires of your target audience. This could include ebooks, online courses, software, templates, or audio/video content. Invest time and effort into creating valuable and unique offerings.

You can create digital products for free using platforms such as Canva. I would recommend using the product yourself to check that it does everything that you wanted to.

Also read: 12 digital products that you can make on Canva

For example, when I created my digital planner, I printed out the worksheets and used them as if I were starting a new online business from scratch. This was the most effective way to determine whether or not the planner contained everything that I needed it to.

Remember, focus on quality, and make sure that your product stands out from your competitors. You need to believe in the value of your product to be able to sell it.

Step 4: Create an online store

The next step is to create an online store or website where customers can browse and purchase your digital products.

Choose a user-friendly platform that supports secure transactions and enables smooth customer experiences. Good examples include Etsy and Shopify.

As a beginner, it is a good idea to choose a platform that has low-costs and a user-friendly design. You could also start off by simply sharing your products on social media and create a simple sales funnel that buyers can be sent to.

Step 5: Choose a primary traffic source

Select the primary channel through which you will drive traffic to your online store. This could include search engine optimization, social media marketing, email marketing, content marketing, or paid advertising. Focus on strategies that align with your target audience's preferences.

For example, if your target audience is aged 16-24, social media may be your best bet. However, of you’re targeting a professional audience aged 24+, you should start with SEO and email marketing.

Step 6: Use marketing to generate traffic

Implement effective marketing strategies to drive targeted traffic to your online store. Develop compelling content, engage with your audience on social media, optimize your website for search engines, and utilize email marketing campaigns to attract potential customers.

Your marketing strategy will act as the bridge between your customers and your products. Therefore, you should spend time perfecting this area of your business. If I were to start selling digital products online again, I would invest most of my initial budget into marketing efforts to speed up the process of making an initial sale.

Also read: How to promote your side hustle

Step 7: Use automation to scale your business

Integrate automation tools and systems into your digital products business to streamline operations and scale your operations. Automate processes such as social media messaging, customer support, email marketing, and analytics to save time and improve efficiency.

One of the most popular automation tools that I have seen is automated Instagram DM’ing. This involves using automation to DM followers whenever they comment specific keywords on your posts. It is a very effective tool that makes it possible to connect with potential buyers without actively being online.

My Experience Selling Digital Products and Top Tips for Success

In this section, I will share my personal experience as a successful digital product business owner and provide valuable tips to help others achieve success in their ventures.

From my experience, the key to starting a successful digital products business is being a good salesman. You need to understand how to persuade people to buy a product that they could otherwise create themselves or find elsewhere for a potentially cheaper price.

When you start your online business, I recommend spending the majority of your time on marketing and building a strong social media presence. Most of my digital product sales come through Instagram even though my website gets way more organic traffic. This is because people tend to buy from people and social media allows you to connect with your audience on a personal level.

Selling digital products can be a rewarding and profitable business if approached with the right strategies and mindset. Here are my top tips for success:

1. Use Upsells to Maximize Each Sale

One effective strategy I've found is to offer upsells to customers during the checkout process. By showcasing complementary products or premium versions of the product they're purchasing, you can increase the value of each sale. This can significantly boost your revenue and customer satisfaction by giving them more options and enhancing their overall experience.

2. Offer Freebies to Attract Customers

Enticing customers with freebies can be an excellent way to build trust and obtain valuable email addresses. By offering valuable digital products or resources for free, you can establish your expertise, showcase the quality of your offerings, and capture leads for future marketing efforts.

Consider creating free samples, guides, or templates that showcase the value and unique selling points of your paid products.

3. Build an Email List and Use This to Sell

Building an email list is a crucial component of successful digital product marketing. By capturing the email addresses of interested prospects, you can nurture relationships, provide valuable content, and promote your products directly to interested individuals.

Create compelling lead magnets, such as exclusive discounts, ebooks, or email courses, to incentivize sign-ups and keep your audience engaged.

Remember to use email marketing effectively by providing valuable content and personalized offers tailored to your subscribers' interests and preferences. By maintaining regular communication and building a relationship of trust, you can effectively market your digital products and generate consistent sales.

By implementing these strategies and combining them with a customer-centric approach, you can increase your chances of success in the competitive digital products market. Continuously innovate, adapt to industry trends, and prioritize customer satisfaction to achieve long-term growth and profitability.

Conclusion

Starting a successful digital products business in the UK in 2024 requires careful planning and execution. Throughout this article, we've explored the key steps, strategies, and platforms for creating and selling digital products. By following these guidelines, entrepreneurs can navigate the digital marketplace with confidence and increase their chances of success.

We have discussed the definition of digital products and highlighted the different types available. Whether it's e-books, online courses, or digital artwork, there is no shortage of opportunities to create and sell digital products that cater to various customer needs and preferences.

Furthermore, we have identified some of the best platforms for selling digital products, including popular marketplaces like Etsy and Amazon, as well as social media platforms, Shopify, and Teachable. By choosing the right platform, entrepreneurs can maximize their reach and connect with their target audience effectively.

Ultimately, starting a digital products business in the UK in 2024 can be a lucrative endeavor. The digital market is thriving, and with the right strategies in place, entrepreneurs can tap into its growth potential.

FAQs