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 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.
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.