Making a Profit Selling Digital Media Products

A CMO Council study found that globally 46 percent of users with a digital device used social media to make purchase decisions. Another study corroborating this trend showed that 52 percent of retail traffic now originates from mobile devices. With increased focus on mobility, the retail sector has been the primary segment which has received a complete overhaul. It is not only the tangible material which is in demand due to easy accessibility through online portals, but they contribute a huge share in the retail market as well. They not only include images, videos, and content; it can be anything, a software, an animation tool, an application, a theme, or maybe an e-book.

It is not only large businesses who have benefited from digital media. A lot of individual operators and small scale businesses gather profits selling them. They have the versatility of being sold multiple times, unlike customary media, which require manufacturing time and costs. Making profits selling this product is relatively easier than traditional methods of promoting a product because they have the following advantages.

There are plenty of digital formats for different media and as many platforms to market the product. The product that they are selling is not limited to a specific region or country, they can market it all across the globe through social media or other digital marketing techniques.

A unique characteristic is that they are never out of stock. Manufacturing and storage costs are almost negligible, so as long as the product remains relevant to their customers, it can be sold endlessly. Although there are some research and development costs, but large margins of profit can be made selling them due to zero packaging and shipping costs. There are also no costs for inventory or warehouse management.

Since digital media can be accessed by millions of users across nations, digital products do not incur any custom duties or other taxes. And since every transaction is done online, the distance between a buyer and seller becomes irrelevant.

If an automated system is installed to sell this product it can make the product available twenty-four hours a day. Since zero or a minimal manual effort is required, profits can be made on their own with a simple and integrated system in place. Another major advantage of selling them is no scope of error. Since it is not a tangible product, a digital product cannot be lost or misplaced.

Since there are numerous advantages of selling this product online, the competition is also immense. A fool proof strategy must be developed to ensure profits are generated even in the competitive landscape. There are some key questions which a digital media developer must address before he or she begins to sell their products online.

First, an understanding of the market for the product is crucial. Studying the demand and supply of the product that they are intending to sell is the next step. An ideal market is where the demand for a digital media product is higher than the supply.

Second, in case there many suppliers and the demand and supply ratio are inverted, they need to assess what they can offer more. They allow creativity and execution of imagination are most unique ways. Developing the software or animation tool to stand out amongst the existing products can be the key to building a profitable market base.

Third, it is relatively easier to find a market where there are high demand and low supply, and develop a product for that niche market. Profits through selling are guaranteed if the product reaches its right clientele. And less competition would ensure regular sales and stable profits.

Fourth, before they begin to work on a digital media product, a blueprint including production and marketing costs, and expected profits is significant to generate. Expenses that they will have to incur, time which they will need to devote and the realistic amount that they will charge from customers are some key factors which need to be taken into consideration. If the return on investment is worthwhile, only then they must pursue to create a digital media product.

Lastly, creating a digital media product which will have prolonged use, rather than something which is based on short-term gains, is more successful. Brainstorming and building a product which will always be in demand can be done through an extensive market analysis. Therefore, careful planning and preparation is the key to making profits selling Digital media products.

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