Strategies to Improve Your Digital Product Sales

When it comes to online businesses, most people assume the best option is e-commerce – or selling physical products to customers. However, when you sell digital products, you have many opportunities out there.  And you don’t even have to worry about managing inventory or shipping obstacles.

That said, while it’s relatively easy to make and scale digital products, selling them can be a little more challenging. Fortunately, with platforms like Hotmart, you can sell digital products more easily and get your business to the next level. Here are the top strategies to improve your digital product sales.

Why are digital products so popular?

Because practically everyone is online, digital products are more popular than ever before. In 2019, the global market for digital goods was around $167 million, but it’s expected to reach around $400 million by 2026. As more people get used to the idea of purchasing these items, demand for them will increase.

That said, some digital products are more desirable than others. As a creator, you need to know where you put your time, energy, and resources, so you can succeed. Some of the best-selling items include:

• E-Books – If you’re knowledgeable about a subject, you can create a comprehensive e-book and sell it to your audience. More people are used to reading on a digital screen, so e-books are far easier to publish.
• Software – Apps, games, and other programs enhance our daily lives. If you can create an app that satisfies a need, you can potentially get a ton of sales from it.
• Courses – While an e-book can offer valuable information, online courses go a step further and empower users to apply that information to something tangible. Share your insight and expertise and make money while doing it!
• Digital Art and Graphics – Illustrators and artists can make money by selling copies of their most popular pieces, or they can earn commissions from fans.
• Virtual Events – Technology makes it easier to host a virtual event, and you can charge for admission or use the event to sell other digital products.

Types of digital products and how to sell them

If you want to sell digital products efficiently, you need to know the best strategy for the type of product you’re selling. As a rule, these items can get broken down into several categories:

• Evergreen Products
• Subscription Products
• Launch Products

While some items may not fit neatly into one category or another, they encompass the vast majority of digital goods you can sell. So, let’s break down each type and how to sell them.

Evergreen Products

Most digital products will fall under this umbrella unless you’re selling items related to a specific trend or promotion. For example, if you make an e-book about generic stock trading insights, that would be considered evergreen. However, if the book relates to trading stocks during a pandemic, it would become obsolete once the pandemic subsided.

Realistically, your main inventory will be evergreen products, and there are many ways to market and sell them. The primary goal is to ensure your products are valuable, so your customers feel satisfied with their purchases. That said, you can always update and upgrade items based on user feedback, making them even more valuable in the future.

How to Sell Evergreen Products

Virtually all sales tactics will work for evergreen products because they don’t become obsolete. However, one of the best strategies is to buy one, get one free (BOGO). Because your customers will get a freebie with their purchase, they’re more likely to close the sale. That said, the free item should also be valuable or enhance their purchase.

For example, if you’re selling one e-book, you might give another one away for free. Capstone is an educational site that sells both physical and e-books for students and teachers. The company runs a BOGO promotion, so customers can get double the value with qualifying purchases. If you’re selling multiple high-quality e-books, this strategy can help boost sales almost immediately.

Subscription and Recurrence Products

Subscription products can be an excellent source of revenue because customers pay monthly, quarterly, or annually. So, the more people subscribed to your product, the more consistent your earnings. While there will always be some churn, the goal is to produce content that users will want access to for the long term.

Some examples of subscription products include:

• Entertainment and Content – If you produce content regularly, you can offer a subscription, so users can get access to your new pieces when they’re released.
• Software – Most online software these days requires a subscription to use it. Gone are the days of “pay once, and it’s yours,” so consumers are used to this model. In this case, you need to provide updates and customer service so existing subscribers will keep their accounts active.
• Members-Only Communities – Customers are often willing to pay monthly subscriptions to be part of a high-value community. These communities allow members to access exclusive perks like content, events, webinars, and more. The more exclusive and valuable the community, the easier it is to maintain loyal subscribers.
• Courses and Educational Materials – If you’re selling multiple courses that run for several weeks or months, a subscription model makes a lot of sense. This way, members can access multiple courses or get discounts on them as long as they’re a member.

Overall, this type of digital product requires ongoing effort on your part to ensure long-term subscriptions. However, if you’re passionate about what you’re selling, it’s easy to invest more time and energy into providing better service to your customers.

How to Sell Subscription Products

There are several tried-and-true methods for selling subscription products, depending on the materials you’re providing. Here’s a rundown of the most popular.

Discounts and Coupons

You can create all kinds of coupons and discount codes to entice new (or previous) users to sign up. Some examples of discount options include:

• Pre-Pay Discounts – If most of your customers stay subscribed for six months or longer, you can offer package deals. For example, if a user pays for a six-month subscription upfront, they can spend a lot less than they would if they paid monthly.
• Time-Based Offers – Maybe you want to boost subscriptions for a specific month or season. So, you can use an offer code that expires after a specific period (i.e., “good until January 31st”).
• First-Time Discount – You can offer discounted subscriptions to first-time customers as a way to bring them to your content.

Free Trial

If you’re confident that your content is valuable enough to keep new subscribers hooked, a free trial offer can work wonders. Because there’s no commitment upfront, most new customers are willing to give your product a spin. Then, once they see the value of what you’re offering, they’re more willing to pay for their subscription. This way, you sell digital products that your customers already believe in.

Another advantage of free trials is that you can customize them as much as you want. A trial can last as little as a few days, or it could be a full month for free. For example, Spotify offers a free month to new subscribers, so they can listen to their favorite music and build playlists before paying for the full service.

Free Plan Upgrade With Subscription

This option works well if you have tiered subscription levels. For example, basic users may get less content or functionality, while premium users get extra content and services. One way to entice more users to upgrade to the higher-cost plan is to offer it free with a new subscription. Then, once the trial ends, the user can either continue paying the premium price or get downgraded to a lower level.

Launch Products

Technically, any product could get “launched,” so this isn’t a specific type of digital product. However, launches usually happen with software and apps, so customers are more used to launch promotions with these products.

The goal of a product launch is to build hype around the item and to get as many customers as possible as soon as it becomes available. This strategy works well to sell digital products, but you have to know how to build an audience first. Here’s an overview of different launch methods that can work for your business model.

Internal Launch

In this case, you’re promoting the product to your existing customer base. The advantage of this strategy is that you have a captive audience. Since your existing customers know the value of what you have to offer, they’re more willing to buy other products from you. Also, if you have a subscription-based product, you can offer discounts to members as a way to entice new users to sign up.

Flash Launch

This strategy is based on building momentum and creating a limited-time offer, for example, offering discounted prices to the first 50 customers. By creating such a limited offer, it’s easier to build buzz and get more sales right away. Flash launches work well for everything from evergreen content to seasonal items.

Relaunch

Just because you launched a product before doesn’t mean you can’t relaunch it. This strategy is good if you have some high-quality products that have been pushed aside by newer, trendier options. The other advantage of a relaunch is that you can use social proof to entice new customers. For example, you can gather testimonials from existing customers and leverage those for a new launch promotion. Also, if you’re relaunching the product with new features or upgrades, you can target existing customers and offer an exclusive discount.

Seed Launch

This strategy can be a little risky because you’re launching without a completed product. This usually happens with software, and the goal is often to gather user data and fix issues before finalizing the product. Seed launches can also work well if you need to release the product in stages. This way, you can get feedback and adjust each subsequent stage accordingly.

Seed launches can also be an excellent way to raise money for product completion. For example, maybe you’re working on a course and only have the first few sessions finished. A seed launch allows you to earn money from those sessions and use those funds to make the rest.

VIDEO: How to sell digital products online? Discover all the possibilities | Hotmart Tips

Additional tips to sell digital products

We’ve only scratched the surface of how to sell your digital products to the masses. Here are some other ways you can promote your items and make them more appealing to customers.

 

View this post on Instagram

 

A post shared by Hotmart US (@hotmart.en)

Offer Multiple Payment Methods

Online shopping has become far more comprehensive in recent years, and customers want multiple payment options when buying products. In addition to credit cards and checking accounts, you can offer third-party providers like PayPal, Skrill, and more. Also, with cryptocurrency becoming so popular, you may decide to accept one or more of them as payment.

Invest in Buyback

Existing customers are far easier to sell to than new ones. So, it’s usually better to target your current user base with new products and offerings. This strategy really works when you’re selling a course because you can offer additional courses or add-ons to current students. This way, you can keep the momentum going while they’re already invested in your product.

Invest in High-Quality Customer Service

As a business owner, you have a responsibility to your customers. Your relationship with them doesn’t end once the transaction is finished. Instead, you should have a comprehensive customer service strategy, so each user feels like they’re valued. One of the best ways to capitalize on this strategy is to use customer relationship management (CRM) software. This way, you can build profiles on all of your users and get to know them individually.

Increase the Perceived Value

There’s an old saying in sales: “don’t sell the steak; sell the sizzle.” When marketing your digital products, don’t focus too much on the features and benefits. Instead, sell new users the value of the product and how it will improve their lives.

For example, let’s say you’ve created an online real estate investment course. Rather than promoting your knowledge of the industry or the ease of the course itself, focus your marketing on the financial freedom that students could enjoy by investing in real estate. If you can feed into their desires, they’ll view your course as more valuable, making them more willing to pay for it.

Utilize Bundling Options

Bundling is an excellent method to sell digital products, especially when each item within the bundle is related. Bundles automatically increase the value of the product, and they’re easy to create when everything already exists online. That said, this tactic only works well if you have many products to offer. Similarly, if you create add-on pieces to existing products, you can bundle them so users don’t have to pay full price for an add-on item.

Work With Affiliates

Affiliate marketing is an excellent way to sell products to new customers. With this strategy, you work with affiliates who have extensive captive audiences. As long as you can create a compelling partnership package, you can increase your customer base immediately and improve your bottom line. The affiliate gets a commission from each sale, so it’s a win-win for everyone involved.

Are you ready to sell digital products? Let Hotmart help you succeed

Hotmart makes it easy to create and sell digital products to your customers. We also have tons of tools to help you analyze what’s working and adapt your strategy accordingly. Contact us today to find out more.