One of the most frequently asked questions I get about Internet marketing is whether or not someone should sell their product as a digital product or ebook people can just download or be emailed -- or a physical product that has to be fulfilled and shipped out by regular postal mail. Which one is better? Which one is more profitable? Which one makes for a better business? My answer: Mix it up. For example, Ive got several different products. Some are digital ebooks and audio files, some are physical. And I have this rule of thumb I've developed after a lot of trial and error where anything under $100 can be digital and anything over is physical. For example, I have one product that was selling digital for $297. I got a lot of sales...but about a 50% (or more) refund rate! Since turning it physical -- putting the main manual in a binder and putting all the audio on a series of physical CD's -- the refund rate has practically vanished. On the other hand, I have found when I keep the digital products below $100 I have virtually no extra refunds. Now, I can't guarantee this will be the same for everyone, but this has worked for me and is certainly worth testing if you are struggling with whether or not you want to go digital or physical. |