how to create residual income from digital products

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EncoreEntrepreneur .NET Residual Income from Digital Products Creating and selling digital products is probably one of the most lucrative ways to generate residual income. The advantage of selling digital products is there are no manufacturing or distribution costs. Once the product is made, every sell is pure profit. Another advantage to selling digital products is that is scalable, meaning that regardless of whether you sell one product or 1,000,000, no additional work is involved once you have the infrastructure set up.

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Selling digital products is one of the most lucrative ways to generate residual income. With no manufacturing/distribution costs, every sale is pure profit.

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Page 1: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

Creating and selling digital products is probably one of the most lucrative ways to generate residual income. The advantage of selling digital products is there are no manufacturing or distribution costs. Once the product is made, every sell is pure profit.

Another advantage to selling digital products is that is scalable, meaning that regardless of whether you sell one product or 1,000,000, no additional work is involved once you have the infrastructure set up.

Page 2: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

Income potential:The spectrum of income for digital products is all over the map ranging from tens of dollars a month to tens of thousands and more. Things that dictate our income depend on the market niche, demand, competition, the complexity (value) of our product, and our efforts to overcome any barriers to entry.

One way to exploit our efforts is to repurpose our products to derive additional sales from different media. For example, we can repurpose an eBook by making an audio version, a video version, and/or a slide show presentation using the same content. We’ve already done the heavy lifting when we initially produced our product. It just makes sense to offer additional means for it to be purchased and consumed.

Page 3: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

Note: These days Kindle books are hot sellers and proven to be lucrative sources of residual income . However, there are additional steps involved and things to consider to successfully launch a Kindle book. Get Kindle Revolutions to learn on the ins and outs of becoming an Amazon Kindle publisher.

Page 4: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

Difficulty:While writing an eBook or producing other digital media may seem overwhelming, but in the big scheme of things, it really isn’t. Even if writing content isn’t your cup of tea, consider outsourcing. You can outsource everything from content development to the entire process depending on your level of skill and/or desire. Depending on your content and the scope of your project, outsourcing can cost from less than $100 to several thousand but you’ll never know until you do some investigation. Check out several sources such as odesk.com, elance.com, or freelance.com to kick off this project.

Page 5: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

EncoreEntrepreneur .NET

Define Scope

of Product

Page 6: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Analyze your audience. Know who you’re writing for, what are their needs, wants, problems, fears, or passions.

EncoreEntrepreneur .NET

Page 7: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Define the scope of your product. What is the topic and your goals, what hasn’t been covered, what could be done better…what is the “Unique Selling Proposition”? What will be the title?

EncoreEntrepreneur .NET

Page 8: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Create an Outline for your product. Define the major and minor points, define the different parts and the order they will be presented.

EncoreEntrepreneur .NET

Page 9: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Develop/Write your Product. Whether your end product is an eBook, an audiobook, or just about any other media, you’ll need written content to begin.

EncoreEntrepreneur .NET

Page 10: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Format the Product. This is where you prepare your product, in the media of your choosing, for your customer. Put your best foot forward here.

EncoreEntrepreneur .NET

Page 11: How to Create Residual Income from Digital Products

Digital Product

Development

Create Outline

Develop/ Write

Product

Analyze Audience

Format Product

Launch Product

Define Scope

of Product

Launch the Product. Prepare the product for delivery to your customer then, make it available. You’ll also need to do some marketing to “get it out there” for your customer to discover.

EncoreEntrepreneur .NET

Page 12: How to Create Residual Income from Digital Products

Passive Income Process

for Digital Products

Your Website

Product Sales Page

Shopping Cart/ Payment Processor

ProductDelivery

Your Account(PayPal, Google Checkout, etc)

EncoreEntrepreneur .NET

Page 13: How to Create Residual Income from Digital Products

Passive Income Process

for Digital Products

Your Website

Product Sales Page

Shopping Cart/ Payment Processor

ProductDelivery

Your Account(PayPal, Google Checkout, etc)

We’ll need someplace to “meet” our potential customers.

Usually this is a dedicated website (recommended) but could also use blogger.com, wordpress.com, etc.

EncoreEntrepreneur .NET

Page 14: How to Create Residual Income from Digital Products

Passive Income Process

for Digital Products

Your Website

Product Sales Page

Shopping Cart/ Payment Processor

ProductDelivery

Your Account(PayPal, Google Checkout, etc)

The sales page will provide our customers information about our product, enticing them to make a purchase with a call to action.

EncoreEntrepreneur .NET

Page 15: How to Create Residual Income from Digital Products

Passive Income Process

for Digital Products

Your Website

Product Sales Page

Shopping Cart/ Payment Processor

ProductDelivery

Your Account(PayPal, Google Checkout, etc)

We’ll need a shopping cart/ payment processor to take the order. I suggest e-junkie.com. They offer a completely automated way to deliver our product while also getting us paid.• We put their code on our sales

page to make the purchase• They deliver the product• They pay us (via PayPal or Google

Checkout among others)

EncoreEntrepreneur .NET

Page 16: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

It’s hard to get more passive than that after you get the product developed.

Visit encoreentrepreneur.net to get more ideas on building a passive retirement income empire.

Page 17: How to Create Residual Income from Digital Products

EncoreEntrepreneur .NET

Residual Income from

Digital Products

Attribution: A good number of the concepts presented here are derived from Pat Flynn’s eBook, “eBooks The Smart Way.” You can get a free copy of Pat’s eBook on his site, “Smart Passive Income” by signing up for his newsletter. You’ll find more detail than I presented here and while it’s targeted for eBooks, with some imagination, many of the concepts can be applied to digital products in general.

A word about Pat. Pat is a young man with a truly inspirational story and a model for those seeking passive income to supplement their retirement income. His generosity for freely sharing information is unparalleled. Visit his site at this link.