What is Digital Product: The Ins and Outs for Creators & Entrepreneurs

Did you know that the digital goods market is valued at USD 124.32 billion in 2025 and is projected to reach USD 416.21 billion by 2030?

See how the demand for digital products is increasing day by day!

That's why we are giving you this detailed blog on "what is digital product". If you are a creator or entrepreneur who intends to start a business with digital products, this detailed guide will help you get started from scratch.

Let's not stretch the introduction; start the blog.

So, What Are Digital Products?

Before knowing the digital product, you have to know the physical one.

Physical products are tangible, real-world items that you can touch, use, and own. These include everything from clothing, electronics, and home appliances to books, tools, and furniture. 

These physical goods require manufacturing, raw materials, logistics, and storage, making them more resource-intensive to produce and deliver.

On the other hand, digital products are those you can't touch, aren't in physical form, or even eat (jokes apart).

Digital products are goods that exist in a digital format. They are digital files that people buy, download, and use online.

These can be ebooks, music, videos, digital art, software, online courses, NFTs (non-fungible tokens), AI-generated content, and virtual goods sold within video games, such as gems and coins.

However, these products are usually delivered instantly via an app, email, or a direct download link from an e-commerce website, without even holding physical inventory.

Let's Know The Types of Digital Products (with examples)

There are many types of digital products you will see, and each one provides a different purpose for creators and buyers.

Listing them here, checkout:

1. Educational Digital Products 

These are designed to teach, guide, solve real problems and offer practical skills. 

People appreciate these because they can learn new things whenever and wherever they want. And the people who make them can easily teach what they know.

Some examples like online courses, e-books, worksheets, and study guides.

2. Creative Digital Products

Perfect for designers, artists, and creators who want to monetize their talent without physical production. 

These are like graphics, templates, fonts, icons, and design files. All of these help people to save time and make their projects look better. 

3. Software & Tools

These things are designed to be a specific problem solver that helps users work faster, manage tasks, or automate their workflow. This category offers extremely high scalability and recurring income potential.

They can be apps, plugins, extensions, or small tools that solve a problem. 

Let's see an example- 

A mobile app that tracks your habits or a website plugin that adds a new feature. Here, the "mobile app" and "plugin" are problem solvers.

4. Entertainment-based Digital Products

These products do more than just give information; they also get people involved, entertain them, and make things entertaining. They're in high demand and serve a wide range of people.

In this group are music, videos, animations, and digital art. People enjoy them for enjoyment, to relax, or to get new ideas, and this helps creators show off their skills to the world.

5. Community Access-type

These are high-value digital products built around connection, networking, and shared learning.

Community includes membership groups, private forums, online clubs, and premium communities. Creators can offer members special content, live sessions, or support in a friendly, helpful space.

Here's a listing of 20 digital products you can learn more about and how to start building them.

The Benefits of Going Digital

The core reason people create digital products is to sell them online. 

While some creators use them as freebies or giveaways, or upload them to free platforms for visibility, the primary goal remains the same: earning income by offering valuable digital assets to their audience.

Here are some of the benefits you will find while selling digital products:

#Work From Anywhere

One of the best things about selling digital goods is that you have a lot of freedom. You don't have to work in an office, a warehouse, or a retail store.

You can make, manage, and sell your products from anywhere as long as you have a laptop and an internet connection.

#Extremely Low Startup Costs

Digital items do away with the primary costs of running a traditional business, such as making things, packaging them, storing them, and shipping them. Your main investment is your time, skills, and the tools you use to create the product.

#No Inventory or Shipping Hassles

You don't have to worry about keeping things in stock, keeping track of your inventory, dealing with delays from couriers, or paying for storage. Once your digital file is created, any customer can access it right away, without any extra work or cost.

#Unlimited Growth
Digital things don't run out as physical ones do. You can sell the same thing to one person or a million people without having to do more labor. This endless scalability makes it easy to produce more money without having to build new things all the time.

#High Profit Margins

The profit margin per sale is much bigger because there are no shipping or material charges. Once you make a digital product, every sale after that is practically 100% profit. This makes digital products one of the best ways to make money online.

#Passive Income Potential

After you make and upload your digital product, it can continue to sell around the clock without you having to do anything. With the proper marketing and SEO strategy, your digital product can generate income even when you're not working.

If you have time on your watch, you can take a look at this $0 journey to make a digital product.

Popular & Profitable Digital Product Ideas in 2026

By reading the steps above, you may have decided which digital products you will use for your business.

But if you're still figuring out what to sell online, we've compiled some ideas through internet searching and with our hands-on experience.

Here they are:

• Graphics and Digital Art: If you have experience with art and design, you can monetize your creative process. Graphics, art, and other products, such as templates and filters, can be sold on their own or as upgrades to graphic design sites or social media services.

• Software and Games: Make games or apps that meet a certain requirement. You can make money through direct sales or in-app purchases, no matter what kind of device you have.

• Communities: Building an online community can provide value through membership-based access to exclusive content, discussions, or resources. This creates a steady stream of income while fostering engagement.

• Web-based Applications (SaaS): Develop cloud-based software where customers pay for online subscriptions. With no installation or update requirements, SaaS products are easily scalable, and you can add capacity as your customer base grows.

• Ebooks & Guides: Passionate for writing? Ebooks offer a simple way to reach a broad audience. If you love to write guides, fiction, or how-to manuals, you keep most of the profits while bypassing traditional publishing processes.

• Stock Photography: If you have photography skills, sell stock photos to publishers, advertisers, and content creators. You can earn income through licensing photos for repeated use, offering either exclusive rights or royalty-free access.

• Online Courses and Tutorials: If you're really good at a lot of topics, you can help others learn new ones by making courses and tutorials. Making video tutorials, live webinars, or one-on-one lessons and courses can make a lot of money.

• Templates and Printables: Templates are easy to make and give you actual value, whether you need them for contracts, social media postings, spreadsheets, or daily tasks. People are happy to pay for them since they obtain solutions that are ready to use without having to start from zero.

• Membership Content: Create a membership-based business model in which customers pay for access to exclusive content. This can be a blog, training videos, or resources that provide ongoing value to subscribers.

However, don't limit yourself! The digital product market is constantly growing and evolving. 

If you have a new and unique idea, go for it. Being one of the first to launch an original business can be a great way to succeed and inspire others to follow.

Now, How Will You Create a Digital Product?

Let's say you are at your desk with a fresh idea, turning your idea into something tangible. It can be a digital course, a template pack, or an ebook.

But don't know how to create a digital product?

We are here to guide you; you just have to follow them:

Step 1: Pick Your Niche

First off, it is vital to pick a niche based on your interests, skill set, and feasibility. When you find a potential niche, ask yourself:

• Is there a niche that I'm more interested in? 

• What's the degree of my experience and skill set? 

• How much competition exists in your niche? 

• Do I have the prerequisites to pursue it? 

While you're at it, don't buy that idea that seems to give you money. Choosing any niche will make you good money if your product solves a problem. 

Sure, some may be too competitive, but your level of interest will be a significant driving force in beating your competition.

Step 2: Do Market Research (& Validate the Idea)

Although you are with the idea that interests you. But market research is also essential to understand what people are talking about and what they need.

However, here are some tactics you can implement:

• Keyword research: Use a keyword research tool to see how many people are searching for your topics. This will give you an idea of the opportunity size of each one.

• Google Trends: Search your topics on Google Trends. Look for topics that are growing in interest. This means the opportunity size will continue to grow.

• Facebook groups: There are Facebook groups dedicated to every niche and audience imaginable, making them a great place to learn what your potential customers care about.

• Industry forums: Forums dedicated to hobbies and communities in your industry can help you learn more about what people want and need in your broader industry.

• Product reviews: Read reviews of your products and competitors' products to get ideas. These could come from the reviews on product pages as well as standalone reviews on blogs and other websites.

Hope the market research results sync with the ideas you have found. But sometimes you need to validate the idea too.

Simply craft a smaller version of your idea and let it grow. The goal is to get something out into the world as soon as possible so you can put your idea to the test and improve it from there.

Step 3: Create Your Digital Product From Scratch

Next, we're down to the meaty part of the process- it's now time to create your digital products.

This is the step where you can let your creativity flow to produce something that sets you apart from competitors, appeals to your audience, and reflects your personal brand.

Here are the 4 essential steps:

A. Write engaging copy

Whether you're creating downloadable workbooks, templates, or an online course, the key to creating and selling digital products is to make sure your copy is on point. 

Make sure your writing is:

• Tailored to your target audience

• Clear and concise 

• Straightforward and easy to follow

• Drives your customer to take action

Your copy should be a reflection of you. This is a chance to show your customers who you are and what makes you unique, so let your personality shine through.

Here are some tips to help you write compelling copy:

• Don't be too formal: Brands are increasingly turning away from overly formal, stuffy content in favour of something that feels more authentic to their customers. 

• Include personal anecdotes and examples: Your audience chose you because they connect with you and your experience- share more about your personal story to add colour to your copy and increase the value for your customers.

• Add humour (if needed): Make your copy more fun by incorporating it. Think: witty jokes, memes, and exaggerated statements. 

After writing your content, read it back to yourself out loud. 

- Does it make sense? 

- Does it sound like you? 

If not, go back and edit until it does.

Take inspiration from other businesses when writing your content- but first, try to find your own voice that feels right for you and your brand.

B. Design the visuals

There is a wide range of design tools to help your digital products look polished and professional while also showcasing your brand personality.

The easiest and most free way is using Canva. Although Figma also gets the limelight, but it has learning curves (we feel). That's why Canva is still a better option to start with.

Browse their library of ready-made templates and customize them to create unique, high-quality digital products tailored to your target audience. 

Then, simply add in your copy or content and any images, diagrams, or infographics.

C. Add multimedia elements

Depending on the type of digital product you want to create, you can also enhance your content with multimedia elements.

Choose additions that will be valuable to your target audience, including: 

• Interactive quizzes

• Embedded videos

• Audio files

• Animations

Think about how you can enhance your content to make it more helpful, engaging, and fun for your audience.

D. Finish with Review & edit

When you've created your content, go over it to find errors.

It can be beneficial to step away for a few days and then come back to your product draft with fresh eyes. New eyes can easily spot errors and areas for improvement.

At this stage, you can also send your product to a select group within your audience to gather feedback before rolling it out to everyone. 

Listen to their opinions and suggestions and tweak your digital products to make them as helpful as possible for your target audience.

Sell Your Digital Products

You have a digital product; now the question arises: where do you sell them?

However, the good news is that selling digital products today is easier than ever, thanks to platforms designed specially for creators, entrepreneurs, and small businesses.

Here they are, listed are some popular platforms for selling digital products:

There's no single "best" platform — only the best one for your goals. 

• If you want simplicity, go with Gumroad or Sellfy. 

• If you need a complete website store, Shopify is perfect. 

• For overall teaching, coaching, website creation, and selling digital products, EzyCourse is your go-to choice.

To make an informed decision about the digital products selling platforms, you can read this blog about the Best Platforms to Sell Digital Products. 

Although you can sell these digital products on your own website, too. If you don't have a website, you can check out how to build a small-business website blog.

Challenges & Solutions when Selling Digital Products

Selling digital products is exciting; you create something once, and it keeps selling on its own. 

But let's be honest: it's not always smooth sailing. After years in this space, we've seen creators (including myself) run into a handful of familiar roadblocks. 

The good news? Each one has a fix. 

Let's break them down in a simple, relatable way.

1. Piracy & Unauthorized Sharing

One of the most challenging realities of digital products is how easily they can be copied or shared without your permission. It's a sinking feeling when you find your product circulating for free somewhere you never intended.

Solution:
You don't need to panic—just add smart, non-intrusive protections. Platforms like Gumroad, EzyCourse and Teachable come with built-in DRM. 

You can also use watermarks, unique buyer IDs, or gated course access to make sharing inconvenient. And including a clear terms-of-use page helps set expectations early.

2. Standing Out in a Crowded Market

With so many people creating digital products these days, it's easy to feel like you're just one more voice in a noisy room. Even the best creators sometimes struggle to stand out.

Solution:
Get specific about who you're creating for. Niche down. Instead of selling "productivity templates," make productivity templates for freelance writers balancing multiple clients. 

Add your personality to your marketing, share your story, and showcase reviews or examples. A strong personal brand naturally cuts through the noise.

3. Technology & Delivery Issues

If you've ever had a customer complain about a broken download link or trouble accessing the course they just paid for, you know how stressful it can be. Tech issues can dampen excitement fast.

Solution:
Use platforms that automate the entire delivery process- EzyCourse, Sellfy, Shopify's digital downloads, or Gumroad. They handle everything from checkout to instant access. 

Before launching, test your product flow end-to-end as a real customer would. A little preparation saves a lot of headaches.

4. Figuring Out the Right Price

Pricing digital products is surprisingly tricky. You may charge too little, and people assume it's low-quality; charge too much, and they hesitate. 

So, finding the middle ground isn't always obvious.

Solution:
Try value-based pricing. Look at what your target audience needs, see what competitors charge, and then offer your pricing. 

However, most of the business is conducted through tiered packages. You can also test discounts, bundles, or upsell options to understand what resonates with customers. Keep an eye on your analytics, and adjust as you learn.

Here is a detailed guide on business pricing strategies to make your product pricing smoother.

5. Customer Support & Retention

It's easy to assume digital products won't require much support. But customers still run into login problems, questions, and minor issues along the way. Ignoring these hurts your reputation.

Solution:
Automate the basics with FAQs, simple help videos, or chat widgets like Intercom or Drift. 

For deeper engagement, build a small community on Facebook Groups, Discord, or another platform. This turns your buyers into long-term supporters who stick around and recommend you to others.

Ready to Build Your First Digital Product?

If you've made it this far, you now understand what is digital product, why they matter, and how creators and entrepreneurs all over the world are building entire businesses around them.

However, a digital product, in a nutshell, is: messy at first, magical later.

They won't make you rich overnight. You'll deal with piracy, slow launches, and imposter syndrome. 

But once you solve a real problem for real people and package it once, price it right, and protect it, you've built an asset that pays you forever.

You don't need a big audience or fancy funnels. You just need to ship something valuable.

So stop waiting for perfect. Launch the e-book, music, templates, the course, the preset pack, the membership—whatever's been sitting in your drafts.

Build it once. Sell it forever.