7 Actionable Steps To Start A Digital Products Small Business

Forbes

08-05-2025

Turn your expertise into a business that runs without you.
You don't need a warehouse to start a business. A digital products business sells value, not stuff. Physical inventory ties up cash and creates logistical headaches. Meanwhile, digital entrepreneurs turn their knowledge into assets people can buy round the clock. The same product sells once or a thousand times without additional cost.
When done right, it creates freedom, impact, and income that grows far beyond what's possible trading time for money.
I sold my social media agency in 2021 and have since built multiple income streams through digital products. The contrast is striking. My agency required 20 team members to serve clients. My digital products business needs just me, my VA and my AI. With a few key systems we reach thousands of customers worldwide.
A digital products business sells downloadable or digitally accessible items that provide value without physical delivery. You create something once, set up systems to deliver it automatically, and earn money repeatedly without additional time investment.
Many digital entrepreneurs get stuck here, creating products nobody wants to buy. But successful digital entrepreneurs do the opposite. They identify the problem first, create simple solutions, price based on value, and test ideas before investing significant time. This guide means you can too.
Digital products come in many forms and here are some examples:
Comprehensive teaching on a specific topic, usually delivered through video, text, and supporting materials. Courses work best when they lead to a specific, desirable outcome for a defined set of customers. Structure the content as a toolkit like this, creating a clear pathway to success for your audience, with quick wins and measurable progress.
Fill-in-the-blank documents that save time and reduce guesswork. These sell well because they deliver immediate value. People buy templates because they want results without creating systems from scratch.
Subscription-based access to content, tools, and connections. The recurring revenue model provides stability, while the community aspect increases retention. Focus on creating consistent value that justifies the ongoing investment. The bigger the group, the more value members get.
Digestible knowledge in downloadable format. Lower price points make these accessible to a wider audience, and they can serve as entry points to higher-priced offerings. Write them to solve specific problems, not just share information.
Digital utilities that automate tasks or provide specialized functions. While these require more technical development, they can command premium prices when they solve significant pain points. Both one-off and recurring payments can work for software.
The best digital product comes from your existing expertise. If you're a marketing consultant, perhaps it's campaign templates. If you're a fitness coach, it might be training programs. A top coach can make the AI version of them to replicate their coaching without physically being there.
Listen to what your audience already asks for. Pay attention to the questions that repeatedly come up in your work. Consider three factors when selecting your product:
The intersection reveals your winner. Start there.
Your first digital product should be simple to create yet valuable to buy. Choose one that matches your skills and solves a real problem. Find their real pain points; ones they would pay to overcome.
Before building anything, validate your idea by posting content about the topic. Watch which posts get engagement, questions, and direct messages. Test your offer before even making it. That's market research at no cost, showing you what resonates before you invest significant time.
Unlike services, digital products scale without extra hours. But you need three essential components: a sharp offer, a landing page that converts, and a payment system.
Start simple with platforms that handle the technical aspects for you. Kajabi, Podia, Gumroad, and ThriveCart can process payments, deliver products, and manage customers without requiring technical expertise. Pick one platform instead of cobbling together multiple tools that might not work well together.
Don't just hand over a file. Make the experience feel valuable and professional. Create a clear onboarding process that helps customers implement what they've purchased. Consider how you'll deliver the product, what instructions to include, and how to follow up.
The way people feel about your product determines whether they'll recommend it. A thoughtfully designed experience turns one sale into many through word of mouth and builds a business that doesn't rely on you.
Don't undercharge just because your product is digital. Price based on the outcome, not the file size. Customers buy outcomes, not files. If your template saves someone 20 hours of work, that's valuable regardless of how long it took you to create.
Start with research. What do similar products sell for? What results does your product deliver? How much would someone pay for those results? Then set a price that reflects this value while remaining accessible to your target audience.
You don't need a massive audience, just a clear niche and consistent content. Teach what you know, show results, and give away value that earns attention. Then offer the shortcut through your product.
Pick one platform where your ideal customers spend time. Focus your energy there instead of spreading yourself thin across multiple channels. Consistency beats occasional brilliance when building an audience.
Don't spend months building something nobody wants. Pre-sell your product, run an alpha test, or release a mini version. Learn what people actually want before going all-in.
The most successful entrepreneurs test ideas quickly, collect feedback, and adjust. This approach reduces risk and ensures you're building something people will pay for.
The upside of digital products is freedom and scale. The downside is noise and competition. You might need to update your product or launch something completely new on a regular basis. Success comes from creating quality, showing up consistently, and thinking long term.
Your knowledge becomes your asset, and digital products turn it into income. Don't underestimate the work required to get this off the ground. It won't be easy, but it will be worth it.
Turn your expertise into a business that runs without you. Pick your product. Build the systems. Design the experience. Price it properly. Get visible. Test your idea. Understand the trade-offs. Each step moves you closer to a business that generates income while you sleep. Package your knowledge right and the world will pay for your expertise.