There are so many different kinds of digital products on today's market, it can be difficult to understand which are the most popular and how you can capitalize on that popularity. While the options are nearly endless, there are certain kinds of file and digital product types with greater sales potential than others. To get your business off to a strong start, it's always a good idea to explore these options and apply the information you uncover to your unique business model.
File Types
The file format and extension you choose will depend largely on the product you're selling. For instance, most music is sold in MP3 format. To target audiophile customers with high demands for sound quality, lossless formats like FLAC are also available, though less common.
Ebook file types are specific to devices. Amazon's Kindle device accommodates a few different formats, but the native format which is best suited to the device are .mobi files. Barnes and Noble's Nook utilizes .epub files, and there are a number of other popular file formats designed for other devices. For this reason, it's always wise for digital goods merchants specializing in ebooks to offer their files in a wide variety of formats. PDF is always a good choice given that people can view them anywhere on any device.
Video files work well with MP4 files. Some other popular choices are mov or wmv formats.
Depending on what type of product you plan to sell, you may also be faced with choices regarding the best file format for your digital goods. A bit of research into the most commonly used and popular types for products similar to your own is a great way to make your decision.
Product Types
If it's available as a physical product, there's a good chance you can also purchase a digital goods version. Additionally, there are some types of popular products which are only available as digital goods. Here are just a sampling of the product types successful digital merchants are making a profit on in their stores:
- Ebooks
- Digital Music
- Audio Books
- Videos
- Documents
- Video Games
- Smartphone Apps
- Software Programs
- Beats
- Digital Art
- Photographs
- Craft Patterns
Bundles
One surefire way of attracting customers' attention is to offer a product they perceive to be a good value. This is where product bundles really shine. Purchasing several different products in one bundled download at a lower price than each of the products separately is a good value for your customers, but it can also be lucrative for you. In many cases, a customer will purchase a bundle which includes products they would otherwise have chosen not to purchase, simply because of their perception of value. Where they might otherwise have decided to buy only one of your products, instead they opt to spend more on several they might not have considered before. Product bundles can be a big earner for you, and a good value for customers.
Subscriptions
Is your digital goods business plan built around the idea of regularly updated content? Instead of forcing customers to check back for updates, why not consider a subscription plan? This encourages customers to sign up for recurring purchases, generating residual income for you while providing a consistent sales history. Your customers may forget to purchase the newest issue or edition if they have to make the effort to seek it out on their own, but a subscription charges their account automatically and gives them access through no effort of their own. The subscription sales model is booming in popularity, in both digital and psychical goods. Think digital systems built around recurring billing, like Netflix or Hulu, and physical subscription boxes like Birchbox or LootCrate.
Assignment:
- How can you optimize your business with subscriptions, bundles or other enhanced services?
- What file formats are best suited to your business?
- Brainstorm ideas for enhanced service possibilities while researching file format information to build your knowledge base.