Most new affiliate marketers start their careers marketing physical products. The belief is physical products are known and thus are easier for new affiliates to sell than digital products. I fell into that trap when I began as an affiliate marketer.
In reality, digital products are not as difficult to sell as you may think. They are one of the best ways to make money as an affiliate marketer.
The commission rate for physical products averages only 5% to 15%. The commission rate for digital products is 50% to 75% per sale.
You can find digital products to sell in just about any product niche. One of the best affiliate networks to find thousands of digital products to sell is Clickbank.
What are Digital Products
Digital products as described here are products, such as e-books, music files, software, and digital images which the manufacturer creates once. The manufacturer then stores the product on a digital product marketplace. The product is then delivered to the buyer's email inbox in an electronic format. Affiliates find the products in the marketplace, and then markets them on their blogs or via email.
The digital product is delivered to the customer in am email that includes a link to download the product, or is immediately downloaded to the buyer's computer after purchase.
Downloadable digital products you can sell or promote as an affiliate marketer can be:
- Online courses you download to your computer
- Subscription services
- Web-based programs you access with a login ID and password
- Audio or music products
1. Digital Products Have Better Commission Rates
While it is definitely easier to sell physical products, the commission rate for these types of products is exponentially lower than for digital products.
The commission rate for digital products ranges from 50% to as much as 90% of the product sales price. Physical products have a commission rate of 4% to 15%.
The commission rate for digital products are much higher, since the product is essentially created once. The product is then sold hundreds, thousands or even millions of times.
Lately, several physical product affiliate networks have been reducing their commission rate to 1% to 5%, thus making it more difficult to make money as an affiliate marketer. This is another reason to sell digital products.
2. Delivered To The Customer Immediately
Digital products are perfect for today's instant gratification society, where people want what they want as soon as they desire it. This process of receiving a digital product after purchase can take just a few minutes.
Physical products require:
- order processing,
- shipping and
- long transit times taking several days to several weeks, especially for international orders.
3. Digital Products Have Up sells
One of the best reasons for affiliates to sell digital products are the up sells. Upsells are basically add-ons to the basic product, which can increase your commission.
The basic product can be inexpensive, and the up sells can add features or can turn the basic product into a premium product, with a significantly higher sale price.
As an affiliate you can make significantly more commission per sale if the customer buys the up sells.
4. Upsells include the following options:
- premium versions of the product,
- additional product offerings and
- product bundles.
- These up sells can add anywhere from 30% to nearly 100% increase in commission you receive per sale.
5. Subscription Services are Popular Digital Products
Affiliates can sell digital products, such as software, digital products, and memberships as a subscription service. The buyer pays a monthly or yearly fee to use the product. As an affiliate, you receive a commission each time the customer purchases or renews the service.
6. Advantages of Being An Affiliate for Digital Products
The advantage of being a Clickbank affiliate or other digital network, is that you don't have to spend weeks or months creating the product or course yourself. You don't have to deal with any potential legal issues, handle refunds or anything else. Your job is to sell the product.
The seller may produce several types of marketing material, including a video sales letter (VSL), text sales letter, banners or creatives the affiliates can put on their blogs, and emails you can send out. All of these marketing materials include your unique affiliate ID, so the seller knows who referred the sale.
Digital products, which includes e-books, e-courses, software and subscription services for example, are downloaded to the buyer's computer after purchase, or are given a unique login and password to access a product or service hosted on the provider's website.
Since these products are basically created just once and sold over and over again, the product owner can offer a much more generous commission rate, as compared to a physical product, due to the seller has much greater overhead costs included in the production, marketing and sale of the product.
7. Learn How to Sell Digital Products
Too many new affiliates think you can read some blog posts, and boom you're an affiliate marketer. I'm sorry to be the barer of bad news. Following this model is the fastest way to end your affiliate marketing business before it even got off the ground.
8. Where to Find Digital Products to Sell
The best marketplaces to find high quality digital products to market as an affiliate are:
- Best Free Affiliate Marketing Software for Publishers - 01/14/2021
- Affluent affiliate marketing aggregation software for Publishers - 12/23/2020
- Easy Pro Funnels Review - 10/16/2020