I Tried Selling Digital Products for 90 Days

Summary

The speaker shares their experience of transitioning from a physical Etsy shop selling children's labels to a digital product shop, highlighting the benefits of scalability and location freedom. Despite facing challenges such as market saturation and piracy, they find joy in the passive income digital sales provide. With a lifetime revenue of $1,165 in three months, they discuss the importance of high profit margins and the potential to expand into print-on-demand services. The video also offers advice for beginners on choosing a niche and focusing on solid product ideas, standout photos, and SEO.

Takeaways

• 🚀 Starting an Etsy shop from scratch can lead to growth, as seen with the digital product shop's increase in visits and sales over three months.
• 📈 The shop's revenue increased from $182 in December to $283 in January, and then to $67.7 in February, totaling $1,165.110 in three months.
• 💼 The speaker finds the results impressive, especially considering the nature of the digital products being sold.
• 🏭 The speaker has experience running a physical sticker shop, which involves more labor and machinery compared to the digital shop.
• 🌐 Digital products offer scalability and location freedom, allowing sales without the need for physical fulfillment.
• 🌐 The downside of digital products is the saturation in the market, with global competition making it harder to stand out.
• 💼 Copying digital products is easy, leading to a high likelihood of piracy and competition.
• 💰 Digital products can have higher profit margins compared to physical products, allowing for more flexibility in business operations.
• 💡 The speaker suggests focusing on products or services one is familiar with and solving problems in a better way than what is currently available.
• 📸 For marketplace success, having a solid product idea, standout photos, and proper SEO are crucial.
• 🌟 Etsy is recommended as a beginner-friendly platform despite its challenges, offering opportunities for new shops to succeed.

Q & A

What was the initial goal of the speaker when starting their Etsy shop?

The speaker started their Etsy shop with the goal of selling digital products and growing the business from zero visits and zero sales.

What were the monthly sales and visit statistics for the speaker's Etsy shop in the first three months?

In the first month, the shop had 351 visits and $182 in sales. In the second month, there were 560 visits and $283 in sales. In the third month, the shop received 983 visits and made $67.7 in sales.

Why did the speaker find their results amazing despite the low sales figures?

The speaker found their results amazing because they were selling digital products, which have the advantage of being infinitely more scalable and requiring less labor compared to their physical sticker shop.

What is the main advantage of selling digital products over physical products according to the speaker?

The main advantage is that digital products are infinitely more scalable, can be copied and distributed for free, and do not require additional labor or resources for each sale, providing a sense of location freedom.

How does the speaker fulfill orders for their digital shop compared to their sticker shop?

The speaker fulfills orders for their digital shop by simply having the digital files ready for download, which is much easier and less labor-intensive than the process of printing, cutting, and shipping physical stickers.

What was a significant challenge the speaker faced with their sticker business during their trip to Disneyland?

The challenge was that they could not fulfill orders while on their trip because all the equipment and resources for making and shipping stickers were at home.

What is the speaker's perspective on the concept of 'location freedom' in relation to their business?

The speaker appreciates the concept of location freedom, which allows them to make money regardless of where they are in the world, and sees it as a major appeal of running a digital business.

Why does the speaker believe that selling products with a large profit margin is advantageous?

The speaker believes that a large profit margin allows for more flexibility in business operations, such as including bonuses and promotions, experimenting with new product lines, and investing in advertising and marketing.

What are some of the downsides the speaker has experienced with selling digital products on Etsy?

The downsides include the saturation of digital product niches, ease of copying digital products, piracy issues, and some customers' reluctance to spend money on digital products.

What is the speaker's plan for the future regarding their digital shop and sticker shop?

The speaker plans to continue running both shops, exploring the possibility of working with a print-on-demand provider to turn digital products into physical ones, and sharing more about their digital shop in future videos.

What advice does the speaker have for beginners starting an Etsy shop?

The speaker advises beginners to focus on products or services they know well, take standout photos, get SEO right, and stick to the basics. They also emphasize the importance of not comparing one's own business trajectory with others.