The Enormous Profit Potential of Digital Media Products
- July 13, 2016
- Posted by: iNurture
- Category: Blogs
Do you have any idea about what is so common between the racing game on your console, the weather app on your smartphone and the imaging tool used in a medical care facility? All these come under the category. It is to be noted that they are not easy to build. Different teams of experts and specialists in digital media are required for building these products. However, prior to knowing the profit potential of these products, it is important to understand what digital media is exactly.
What is Digital Media?
Digital media is basically content stored in a digital format which is distributed online. These products are widely being used in the present world. It has also been found that a major shift from the use of conventional media has already taken place in different industries and even in the industries that have nothing to do with digital one and these include education, government and health industries.
Digital media is a photo, video and audio content which is digitally compressed or encoded. Encoding content is a procedure that involves converting video and audio input into digital media files like Windows Media file. Once it is successfully encoded, it can conveniently be manipulated and rendered with the use of computers. It can even be transmitted over different computer networks.
The industries which make effective use of digital media
Advertising and Marketing
Where are Digital Media Products Found?
These are found in:
Games-mobile, online and console
Mobile Applications and Websites
Understanding the Profit Potential
There are a large number of this products found online and these include computer software, website templates, graphics, eBooks and many more products. In spite of the huge availability online, there are many people who do not have any idea about the enormous profit potential that these products possess. They can fetch huge profits for their users and the profits are generally greater in comparison to the profits fetched from the use of conventional physical products. You can understand the profit potential by an example.
Suppose that you decide on setting up a store for selling a branded mobile phone. This involves making a good investment and asking the mobile company to give you the best price for 10 mobile phones. Suppose that the price of the branded mobile phone set by the manufacturer is $400 and you bought 100 mobile phones from the manufacturer at $200 each. This might sound like a great deal but in reality, it is not. Here, it is important for you to consider that you will not be the only supplier for this branded mobile phone in your area. You will have good competition as there are others who are also into selling the same mobile phone in the same area. Your competitors might have bought the same phone from the same manufacturer at a lower price than you. Since you need to compete with the other suppliers, you drop the price of the phone at $270 but you did not take the shipping costs into consideration. This way your profit margin gets killed. This is not the case when you deal with these products.
How About Using Such Products?
Take another scenario into consideration. You have a clear understanding of a branded mobile phone that you like to deal in and you create an eBook on the Steps that need to be followed in getting the Best out of the Branded Mobile Phone. Creating the eBook will not take much time. You can write it in a couple of hours including some screen shots for making the eBook look pretty. Finally, you will have to burn the matter onto a good quality CD, place a label on it and put the CD into an attractive case. The case will also have a label. The total cost of producing the eBook is said $2 and you offer this eBook for sale through an online shopping portal at $20. This will have you making 1000% profit. There is a complete absence of competition because you have created your very own product and you can easily create the same product whenever you get an order. So, there are no inventory costs as well. This is the profit potential possessed by digital media products.
Digital media products have great income and profit generation potential, provided they are used smartly.
Pic courtesy: www.pixabay.com