5 Benefits of a Digital Product Business by Tony de Bree.

5 Benefits of a Digital Product Business.

If as a founder of a startup, you’re looking for an innovative business model that allows you to generate genuinely passive income, then setting up a digital product business is the right thing to do.


Digital products are products that exist solely in a digital format and include software, eBooks, e-courses, podcasts, videos, GIFs, graphics and headers for your social media for instance. They also just so happen to offer perhaps the best business opportunity of any type of product for any founder of a startup or even CEO of a scale-up as an extra source of income next to the ‘Big Idea’ or even as the main source of income for your innovative business model itself. So read on to find out what makes them such a great choice for making money online.

1 No overheads

Right away, with a digital product you have no overheads. That is to say, you might have overheads initially while you’re designing and developing your digital product but from that point on you will then be able to sell as many copies as you like with no need to pay for materials or anything else. Every sale will be 100% profit which can’t really be said about any other business model.

2 It’s truly passive income

Of course some services are also like this. If you are a writer or web designer for instance, then you probably won’t have to spend any money to make money and that means that you can keep 100% profit.

But where a service business falls down is in the fact that you will be exchanging your time for money. This in turn means you’ll need to constantly be available at specific times of day and you might even need to travel. And writing does take time and you can not really scale that business, except by teaching and training other people for instance.

A digital product though is truly passive. Once you have set up an online website and you have people visiting your site, you can make money while you sleep or while you’re on holiday somewhere sunny.

3 No physical storage

With a digital product you require zero physical storage space for your product and that means you don’t need to rent a warehouse or fill your front room with books. Depending on the type of digital product, you do need digital storage space of course. And depending on the type of digital product, that can still mean some investments.

4 No large investments upfront

Just as there are no overheads, there is also very little investment upfront necessary. This means it will take barely any time for you to break even and to start generating real profit. In turn this also means that there’s no risk so you’ll be able to start your business without taking out a huge loan and putting your family in danger. You will however need to purchase software and other tools to produce the digital products like videos or graphics. There are however currently a lot of SaaS-tools on the market that I will tell you about that you can use to generate nice incomestreams!

5 No physical delivery

As though all that wasn’t enough, digital products require physical delivery. That means you won’t have stock going missing or customers claiming they never received their goods. Digital products are cheaper and faster in every way. You have to set up a website of cours to sell your digital products, but you can also sell them on large electronic marketplaces we will tell you about.


Setting up your own digital business is from my own experience since 2001 a great way to either enhance your core business model and profitmodel or actually create a real innovative businessmodel itself in what we will call later on ‘The Customer Experience Dimension’ of innovative business models.

And that is why if you purchase ‘Kan het vliegen? Van idee tot succcesvolle startup’ you will be able to download at the end of the 23rd of April 2017 a free eBook on how to create your own digital business with eBooks as one of the examples.

If you want to read more blogs in English, just bookmark the category ‘English blogs’ on this site and ‘How To Build a Digital Product Business?’ is the first free ebook you can download when you purchase ‘Kan het Vliegen?’.

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If you want to learn more about the sharing economy, startups, scale-ups, innovation, Fintech, RegTech and much more, then follow Tony de Bree on Twitter : @tonydebree and @fintechtrends and on LinkedIn here.