How to Earn with Digital Products: Proven Strategies from 4 Experts

Every day it seems to get easier to make, sell and profit from digital products. Still, questions need answering about all the bits and pieces, so I rounded up a group of friends to share their wisdom on the topic.

Want to get your share of passive income from this evergreen source? Keep reading!

Cindy Bidar

What types of digital products can people create and sell?

Digital products run the gamut from one-page printables to hours-long video courses. Basically, if it can be delivered over a wireless connection, it can be a digital product.

Deciding on the right digital product for you starts by answering three questions:

• What are your skill and frustration levels? If you love technology and
• learning new things, then all options are open to you. If you are easily
• frustrated and new to digital product creation, it’s best to stick to simpler
• offers for now, while you build up your skills.
• What are other sellers offering in your niche? There’s no need (and it’s
• almost always a waste of time) to create something no one has ever seen
• before. It’s better to offer a slightly improved version of a product that
• already sells well.
• What does your target audience need most in order to be successful? For
• some markets that might mean a video course. In others, a pack of
• checklists or templates is the perfect solution.

Where are the best places to sell my digital products?

As my Six-Figure Systems members will tell you, my favorite answer is “it depends.”

It depends on if you’re new or have an audience already. If you already have an audience, selling on your own site will let you keep a higher percentage of the sale. If you don’t have an audience and hope to leverage an existing user base, then selling on a site like Etsy or Gumroad is a good option.

It depends also on your market. Gumroad leans toward business-related products. Teachers Pay Teachers is where teachers and homeschoolers buy and sell lesson plans and other resources. Udemy and Skillshare focus on video courses in a variety of niches. Etsy offers up a little bit of everything with great success.

My best advice when choosing where to sell a digital product is to start where other, similar products are being sold. Don’t be afraid of the competition, embrace it. If your competitors are selling well on a platform, there is room for you as well.

Can I create and sell digital products with a small audience?

When my clients ask me how to build an email list, one strategy I always share with them is to “sell something.” Customers are some of your biggest fans, and they’ll make your audience (a.k.a. your email list) even more valuable.

Of course, you can’t sell anything without eyes on your products. You can borrow someone else’s audience to jumpstart your own:

• Sell your product on a platform that offers a directory, such as GumRoad.
• This lets you borrow their built-in audience.
• Offer an affiliate commission and invite others who do have an audience to
• share in your profits.
• Run ads on Facebook or Instagram or another social platform, effectively
• borrowing (ok, paying for access to) their worldwide audience.
• Leverage other platforms with existing audiences, such as Pinterest,
• YouTube, or even Google (using SEO).

What are effective marketing strategies for promoting digital products?

My two favorite promotional strategies are content and email. They work together to build brand awareness and make sales.

Use content—blog posts, podcasts, YouTube videos, and social media—to build your brand and to grow your email list, then sell your products through email.

Can digital products provide a sustainable source of passive income?

The word “passive” is a bit of a stinker, to me. Yes, I “make money in my sleep,” but it’s not passive. I put in a lot of hours creating the things that are now selling even when I’m not working. 

The truth as I see it is this: Digital products can and do create sustainable income that can far exceed the effort you put into them. However, it’s not no effort. In the beginning, as you’re building an audience, it may feel like you’re working for pennies. But that effort compounds over time. Like a snowball rolling downhill, it will begin to grow of its own accord.

That’s when the passive income will show up for you. The secret is simply having the patience to see it through.

If you want to really get clear on selling digital products (and more) and steadily growing your biz, download my C.L.E.A.R. Framework for eliminating overwhelm.

About Cindy Bidar

Lynette Chandler

What types of digital products can people create and sell?

Wow, there are so many options! Let me share a few that don’t always get mentioned:

• Business signage – Things like "Closed for the holidays" signs or business hours displays.
• Brand kits – Perfect if you have an eye for design! You can create color palettes, fonts, styles, and layouts for things like letterheads, websites, and business cards.
• Video scenes – Video creators constantly need graphics and scene templates. If you're comfortable with programs like Camtasia or other video editing/streaming software, this is a great option!

There are tons more ideas, and I share lots of them in my YouTube video.

Who should consider creating digital products?

I might be a little biased, but I truly believe everyone should find a way to create a digital product!

Just to name a few: photographers, web designers, musicians, filmmakers, graphic designers, attorneys, realtors, fitness instructors—honestly, anyone can do it.

What tools and software do you commonly use for creating digital products?

It’s tough to give a one-size-fits-all answer because the software you need depends on the type of digital product you're creating.

For example, I consider courses a digital product, but the tools for building a course are very different from those used to create printables. Likewise, a musician will need different software than a photographer.

That said, no matter what you're creating, you'll need a way to sell it—so having a shopping cart and a website is essential.

How can I identify a niche for my digital products?

Start by thinking about the group of people you’d most like to help or serve.

How big is that group? Are they actually spending money? If not, you might need to broaden your audience.

Where are the best places to sell my digital products?

I always recommend selling on your own website first. Even if you plan to use platforms like Etsy, it's best to start with your own site.

This way, you can direct customers back to your site, giving you more control. Plus, you won’t have to worry about fee increases or policy changes from third-party platforms.

Can I create and sell digital products with a small audience?

Everyone starts somewhere! It’s okay to have a small audience at first, but make sure your niche itself isn’t too small—that’s an important difference.

What are effective marketing strategies for promoting digital products?

I actually made a video on this topic! Check it out here.

Can digital products provide a sustainable source of passive income?

It can, but like anything else, if you don’t maintain it, it won’t last. The key is to be strategic—set it up in a way that requires minimal effort while still bringing in regular traffic.

About Lynette Chandler

Becky Beach 

What types of digital products can people create and sell?

From my experience and perspective, there’s almost no limit to what you can create and sell digitally. Some of the most accessible and in-demand types include:

• Ebooks and guides – great for sharing specialized knowledge or storytelling.
• Online courses and workshops – especially if you have a teachable skill or method.
  
• Notion templates, planners, and productivity tools – people love systems that save them time.
• Design assets – like icons, fonts, UI kits, or Canva templates.
  
• Digital art, illustrations, or printables – perfect for creatives.
• AI prompts or automation workflows – a growing niche in the era of AI.
  

Ultimately, if it solves a problem, saves time, teaches something, or inspires people — it can become a digital product.

Who should consider creating digital products?

Honestly? Anyone who has knowledge, skills, or creativity they want to package and share — especially if you’re looking for scalable income that doesn’t rely on trading hours for dollars.

• Coaches, consultants, and service providers who want to diversify their revenue.
• Educators and experts looking to monetize their experience.
  
• Creatives and makers who want to turn their art into digital assets.
• Solopreneurs or side hustlers aiming for more freedom and flexibility.
  
• Even niche hobbyists can do really well if they tap into a passionate micro-community.

You don’t need a huge platform to start — just clarity on what problem you solve and who you’re solving it for.

What tools and software do you commonly use for creating digital products?

My toolkit shifts depending on the product, but here are some of the essentials I (and many others) use:

• Design & Content Creation: Canva, Adobe Creative Suite, Affinity Designer
• Writing & Course Creation: Google Docs, Loom, ThriveCart Learn, Podia, or Gumroad
  
• Automation & AI Support: ChatGPT, Zapier, Many Chat
• Marketing & Sales: ConvertKit (email), Lead Pages (landing pages), Same Cart or ThriveCart (checkout)
  
• File Hosting & Delivery: Gumroad, Ko-fi, Lemon Squeezy, Payhip, Dropbox, Amazon AWS

AI is now central to my workflow — from ideation to scripting, and even product formatting.

How can I identify a niche for my digital products?

I look for the sweet spot between what I know, what I enjoy, and what people are willing to pay for. A few prompts that help:

• What questions do people ask me over and over again?
• What do I wish I had when I started [X]?
  
• What pain point can I solve better, faster, or differently?
• Is there a community I'm already a part of that I understand deeply?
  

Also, I use tools like Reddit or even AI like ChatGPT to spot recurring pain points in specific communities. That’s often where the gold is hiding.

Where are the best places to sell my digital products?

There are a few solid routes, and I usually recommend choosing based on your audience size and goals:

• Gumroad, Payhip, Ko-fi – perfect for indie creators, low friction and easy setup.
• Etsy – great for design assets, templates, or printables (especially for creative niches).
  
• Your own site (via ThriveCart, Podia, Kajabi, or Shopify) – best for long-term brand control.

I like to start with platforms that have built-in traffic (like Etsy) and eventually transition to selling on my own site for better margins and email list control.

Can I create and sell digital products with a small audience?

Absolutely — and in many ways, it’s actually easier with a small, engaged audience than a large but cold one. I focus on creating high-value offers for people who already trust me. Even with under 500 followers or email subscribers, you can launch something meaningful.

Plus, digital products are easy to test and iterate. I often recommend creators start with a minimum viable product (MVP) — something simple like a $10 template or a short PDF guide — and build from there based on real feedback.

I have a free digital product launch workbook I’d love to share with you. Request it here.

What are effective marketing strategies for promoting digital products?

For me, it’s all about building trust and value before the pitch. Here’s what I’ve found works:

• Teach publicly – share what you know on Twitter, LinkedIn, Instagram, or YouTube.
• Email marketing – my favorite long-term asset. Start your list early, even with 10 people.
  
• Give away value-packed freebies – lead magnets that solve a tiny problem and build momentum.
• Collaborate and cross-promote – other creators are not competition, they’re potential allies.
  
• Launch in public – showing the behind-the-scenes process builds curiosity and credibility.
• Use AI to amplify – I often repurpose content using AI tools to multiply my reach.
  

The key is consistency + relevance. It’s not about shouting louder — it’s about saying the right thing to the right person at the right time.

Can digital products provide a sustainable source of passive income?

Yes — but “passive” often means “front-loaded.” I’ve found that once the initial product and systems (like delivery, automation, marketing funnels) are in place, it can become low-maintenance income. But it still takes upfront effort, strategy, and iteration.

The real win is that unlike services, digital products don’t require me to show up in real time — they scale me. And when done right, they compound: your early products fund your next ones, build your brand, and deepen your audience’s trust.

About Becky Beach

Karon Thackston (Me!)

Who should consider creating digital products?

In my opinion, every small businessperson should take advantage of the passive nature of these products.

There is a huge list of digital products that are not difficult to make. Many can be created in 15 minutes or less. Once they are finished, you can sell them in a multitude of different places to generate passive income. Wouldn’t it be awesome to spend an hour setting up a new digital product that will bring you passive sales for an unlimited period of time?

If you are a coach, you could do checklists or planners or trackers. Perhaps quick-start ebooks or full-blown training courses.

Food bloggers could create recipe cards, meal planners, kids nutrition checklists and so many others.

Some of my best-selling digital products bring in about 1/3 of my total income every year. And they do it passively (once they are created and set up, of course).

I guess a better question might be, “Who wouldn’t want to consider creating digital products?”

What tools and software do you commonly use for creating digital products?

My go-tos are:

• Canva for creating digital products with more graphic elements. I also use it for making the images for my sales pages/listings. The free account has a lot of good stuff, but I chose the paid version because I wanted the background remover, the ability to create and share templates and other features.
• Google Docs is awesome for checklists, planning sheets, worksheets/workbooks, ebooks and more. It’s free to use and your digital products can be interactive because of the sharing feature.
• Google Sheets is another overlooked wonder. Any type of spreadsheet or process tracker can be quickly made using this free software. Just like with Google Docs, your products can be used by groups which is a huge benefit.
• Zoom is what I use to record my digital training products. I have a free account that allows me to record up to 40 minutes at a time. Most of the sessions in my trainings are less than 40 minutes each so it works out great for me.
• aMember is my choice for selling my courses. It has a one-time fee and offers the features I need.

What types of digital products can people create and sell?

The list is practically unlimited because it keeps growing. So many previously physical products are now available as digital downloads. Plus, the continued advancement of technology mean that new digital products are necessary to fill the needs.

Some of my favorites are:

• Reminder cards
• Phone wallpaper
• Virtual backgrounds
• Digital invitations
• Retractable banner templates
• Signs
• Cheat sheets
• Online training
• Printables
• Content templates
• Copywriting templates
• Checklists

And so many others.

How can I identify a niche for my digital products?

One of my favorite ways is to use ChatGPT. I simply asked it, “How can I identify a niche for the digital products I want to sell?”

Look what it kicked out!

________________________________________________

1. Start with What You Know or Love

Think about:

• Your hobbies or interests (e.g., fitness, travel, budgeting, parenting)
• Your professional background (e.g., teaching, design, real estate, therapy)
• Communities or subcultures you're part of (e.g., gamers, homeschoolers, minimalists)

2. Identify Specific Problems People Have

Ask:

• What do people in this area struggle with?
• What are they trying to save time on?
• What do they need help organizing, planning, or understanding?

Look at forums, Facebook groups, Reddit threads, blog comments, or product reviews. These are goldmines for real-world problems.

3. Look for Gaps in Existing Digital Products

Go to Etsy, Creative Market, or even TikTok and search for digital products in your area of interest. Ask:

• Is the market flooded or underserved?
• Are most products too basic or too advanced?
• Can you offer a new twist or bundle?
• Are there specific audiences being ignored (like teachers in small schools or new solopreneurs)?

4. Combine Two Niches for a Unique Angle

Examples:

• Planners for busy pet sitters
• Budget trackers for couples planning a wedding
• Wellness journals for burned-out healthcare workers

Cross-niche products often face less competition and attract highly motivated buyers.

5. Test with Search Trends and Keywords

Use free tools like:

• Etsy search bar (autofill suggestions show what people are looking for)
• Google Trends (see if interest in your niche is growing)
• Ubersuggest or Keywords Everywhere (for keyword volume)

6. Check for Willingness to Spend

Some niches are interested but not buyers. A good niche:

• Has a real need or pain point
• Has products that solve it
• Has people willing to pay for those solutions

7. Validate with a Small Test

Before going all in:

• Create 1–3 simple products for your chosen niche
• Put them in your shop/site
• Track what gets views, clicks, and sales
• Use customer questions and feedback to improve or expand

Want help brainstorming a list of potential niches based on your experience, interests, or types of products you want to make? I can help with that — just tell me a bit about what you're thinking of selling!

__________________________________

Where are the best places to sell my digital products?

I sell mine on my site, through my email list, on Etsy and Zazzle. But I’m also going to start listing some of them at Gumroad to see how they do.

Here’s a list of Etsy alternatives that you might find helpful.

Can I create and sell digital products with a small audience?

Oh yes! You can even create and sell digital products with no audience.

If you have people who are interested in what you sell, you can make money. As your audience grows, you can make more money.

If you are selling on a marketplace such as Etsy, Zazzle, Gumroad or others, you don’t need an audience at all. You will attract traffic from the visitors to the marketplace.

It usually takes a little time for you to get noticed in a marketplace setting but it is often a good place to start because, as you make sales, you can also grow your own list.

Can digital products provide a sustainable source of passive income?

You bet! There are courses I created 15 years ago that I still get sales for today. There are digital products (cheat sheets, etc.) that I’m also still earning from that I made years ago.

In my opinion, digital products are an awesome way (and one of my favorite ways) to bring in passive income!

About Karon Thackston

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