What Type of Digital Product Should You Create?

Digital products are increasingly the top choice of consumers. Whether it’s something as simple as a Kindle book or something more complicated like a video tutorial, digital products are increasingly being chosen. But what type of digital product should you create? Here are some of the major types and their associated pros and cons.

Kindle Books

If you’ve got a word processor then you can type away and let Amazon handle the conversion process into a Kindle format.

Which means that you’ve got an easy conversion process. All you need to do is come up with the content.

Amazon also handle all the sales and distribution. Sure, they take a commission for that, but within their preferred price range of $2.99 to $9.99, they’ll give you a generous 70% commission most of the time.

The negative is the price point of most Kindle books. Lots sell for 99 cents and that only pays out 35% royalties. So if you think you can be another John Locke and sell over a million sub-dollar Kindle books then you’ll make a decent income. But for mere mortals, selling a few dozen or even a few hundred low price Kindle books a month won’t allow you to quit your day job.

PDF eBooks

These are usually priced higher than Kindle books and you get more flexibility with layout (Kindles don’t even accept basic formatting such as tabs or bullet points).

PDFs are usually sold from your own site, so your “royalty” can be as high as 100% of the retail price, give or take payment fees. So a $7 PDF will earn you about the same as selling a $9.99 Kindle book. And chances are that it will be an easier sale from your own site rather than competing with hundreds or even thousands of other books on Amazon.

And if you can get as much as $17 or $27 (not that difficult, honest) then you’d need to be priced at $50 and above on Kindle to get the same earnings.

Which is long way of saying that if your information can sell for more than $7 then you should strongly consider selling it from your own site.

Audio programs

Back before the internet happened, these were the main way of distributing information products.

I’m not old enough to remember (honest!) but, originally, Nightingale Conant sold their audio programs on LP records. They then progressed to audio cassettes and then CDs and DVDs.

Audio products are generally higher priced than printed books or eBooks.

They have the added convenience that they are the only digital product that is truly independent. You can listen to them on your computer, anywhere else in your home or anywhere out of your home. So they can be listened to whilst jogging, commuting to work, driving or even being flown on a plane (except during takeoff and landing, of course).

So there’s a high level of convenience with audio programs and, for that, they generally command a higher price.

Video programs

In much the same way as a DVD typically sells for more than a CD, video programs generally command a higher price than any of the other formats we’ve discussed.

With today’s modern software and even a modestly specified computer, videos can be rendered quite fast. Sure, not as fast as audios, but still not too slow either.

There are also a wide range of options for video programs. You don’t need a camera to produce them – none of the products I’ve produced have been made with a video camera.

Instead, you can use software to record your voice and either screenshots or Power Point style presentations.

These work well as people can see what’s happening, rather than having to guess as they have to do when listening to an audio or scroll through screenshots as they’d have to do with an eBook.

Most things benefit from being able to see what’s happening as well as hear it described.

Which is why video generally commands a higher price point and are generally better accepted than the other digital product formats we’ve examined.