What Are Digital Products and How People Actually Make Money from Them

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Not that long ago, “selling something” usually meant stocking shelves or shipping boxes. Today, it could mean uploading a file from your laptop and watching someone buy it on the other side of the world. That’s the world of digital products—a space that has quietly turned ordinary skills and ideas into income streams.

I still remember a friend of mine, a graphic designer, who uploaded her very first set of Instagram templates to Etsy. She didn’t expect much, maybe a few sales over the course of a month. But the next morning, she woke up to an email: “You’ve made a sale.” That small $6 notification was the moment she realized her work could keep earning while she slept.

What Counts as a Digital Product?

Digital products are simply items that exist only in digital form and are delivered online. Think of eBooks, stock photos, online courses, mobile apps, printable planners, or even sound effects for video creators.

What makes them special is that they can be duplicated infinitely at almost no cost. Write an eBook once, and you can sell it ten times or ten thousand times without printing a single copy. That’s why many entrepreneurs see them as a smart way to build something scalable.

The demand for the things that we can create is not hard to understand. People demand fast, cheap, and convenient! Instead of waiting several days for a book from Amazon, they can download a PDF immediately. Instead of paying for coaching, they pay for an online course, and do it at their own pace.

From the creator’s perspective – freedom! No need for a warehouse or shipping labels, just your laptop and an internet connection. You will do work of course, but customers expect support, don’t pay attention to updates, and won’t care if the experience is mediocre. It’s a very different balance compared to physical goods.

Where Do People Sell Them?

There are many ways to go about it. Some creators like the built-in audience a marketplace provides, while others want the control afforded by a storefront.

Marketplace – marketplaces like Etsy, Creative Market, etc. are a great way to sell templates, printables, or design assets.

Course platforms – educators and coaches typically go with Udemy or Skillshare, so they have access to global students.

Direct selling toolsGumroad, Payhip, and Sellfy are all great options to deliver digital files directly to an audience.

Personal website – if you are someone who has the time and resources to take it a step further, it’s possible to have your own site and host it (with WordPress or Shopify) and have freedom for branding and ultimate control.

Each has its pros and cons and there are trade-offs for every option in the same way a marketplace like Etsy has visibility but with fees, whereas your own website has more marketing responsibility but more control.

How Do People Actually Make Money?

Here’s the part many gloss over: making money with digital products isn’t automatic. You need a mix of a good product, the right audience, and steady promotion.

  • The product: It should solve a problem, save time, or inspire someone.
  • The audience: It’s easier to sell when you know exactly who needs what you’ve made.
  • The promotion: Social media, newsletters, collaborations, even word of mouth—these matter as much as the product itself.

That same designer friend I mentioned earlier? Her first $6 sale turned into $600 within a few months, not because the templates were flawless, but because she kept sharing them on Instagram, talking to her audience, and refining based on feedback.

A Thought to Leave You With

Digital products are not a magic button for overnight wealth. They take effort to create, market, and improve. But they’re also one of the few ways to separate your time from your earnings.

If you’ve ever thought,

I wonder if someone would pay for this skill or idea I have

chances are, they might. The real question is whether you’re ready to package it into a digital form and put it out into the world.

Who knows? That first small notification—“You’ve made a sale”—might be closer than you think.

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