High Demand, Low Overhead: How To Profit From Selling Digital Products

Digital Media Ideas

Tim Ferriss stated in his book, The 4-Hour Workweek, that “there is one class of product that meets all of our criteria, has a manufacturing lead time of less than a week in small quantities, and often permits not just an 8–10× markup, but a 20–50× markup.”

Information products are generally easy to manufacture, are low cost, and difficult for others to duplicate. In the below articles, How To Profit From Selling Digital Products, Nathan Barry outlines what you should and shouldn’t focus on to be a successful digital product company.

Building an audience
Learn to teach. Sharing information is key. Provide your audience with knowledge and they will flock to you, eager to learn/buy more.

Pricing
Pricing is flexible and tricky to get right, so experiment with it. One simple method that could triple your revenue is tiered pricing.

Sales & Fulfillment
One of the greatest things about digital products is that you do not have to manufacture/ship anything. But, finding the right payment processor can be key.

Product Launch
The idea of marketing is simple, but executing a plan can be anything but. A good product launch requires a strong launch sequence. Build anticipation and excitement before giving customers the opportunity to buy.

Be sure to check out part 1 and part 2 of this article series for more details.

Using The Power Of Flexibility To Attack Uncertainty In Your Startup

Man With Umbrella

Every company is going to deal with unforeseen circumstances. When companies fail to maintain some level of flexibility, these issues tend to present a larger problem. Using the following tips can allow your company to avoid a pitfall:

  1. Frequent forecasting – Don’t limit yourself to yearly budgets. Traditional business models are not flexible enough to account for unseen risks.
  2. Maximize efficiency by automating data collection – Managing data takes away from the actual metrics and analysis.
  3. Communication within the workplace – Create a self-sufficient network within the company so that there are no surprises. Know what risks lie ahead and adjust accordingly. When a network of information is developed and maintained, opportunity will present itself.
  4. Streamline processes – Efficiently condense time consuming processes. One of them is creating financial reports. The quicker those reports get out, the quicker you are informed, and the quicker you can neutralize the competition.

Read the entire article and learn more about turning uncertainty into a competitive advantage at entrepreneur.com.

How This Serial Entrepreneur Made All Eight of His Companies Profitable

Throwing Money

All entrepreneurs are aware of the risks of starting a new business – most will never make it big. Some might say the odds are against you. But not if you’re Steve Jillings, who has either founded or taken over 8 startups and grown them all into large, profitable business.

What’s his secret? He has several and isn’t shy about sharing.

First, tap talented leaders that you’ve worked with before to develop your management team. Always be recruiting top talent. Set the vision and then delegate to these capable people so you can focus on strategy. Additionally, spend time and money wisely. Watch costs – spend money on important things like meeting customer needs. Take great care of your largest customers that make up the bulk of your revenue.

Do you agree? What other advice would you give to entrepreneurs looking to make it big?

Check out the full article at inc.com.

Porter’s 5 Forces Explained in 2 Minutes

Porter's Five Forces

According to Harvard Business School professor Michael Porter, size doesn’t matter – profitability does. Profitability is impacted by 5 forces – buyers, suppliers, substitutes, new entrants, and existing rivals.

Check out this video to see this concept explained in just two minutes!

Why You Should Let Organic Innovation Drive Company Profits

Creative Paint and Lightbulb

Every company begins with an idea. Good ideas, when executed properly, make money. These ideas come from people – everyday people just like you. So, why not develop “your secret supply of innovation”?

Initiate productive questioning within the company – Encourage employees to think “What if” during designated brainstorming sessions.

Allow employees to dream – Have your team anonymously submit “dream goals” they would like to see accomplished in the quarter.

Think scale – Does the idea pass the eye test? Does it mesh with your growth strategy? Can that idea be interwoven into the growth culture efficiently?

Turn dream to reality – If the above answer is a yes, then let it take off. Allow a team member undertake the idea as their personal innovation project. This is part of the larger trend to allow the team to run with their ideas. Reward their initiative by giving the individuals ownership of their own risks and innovations.

For more insight, read the full article at inc.com.

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