Starting your business with digital products can feel exciting, but there’s a lot to learn, and it’s easy to become overwhelmed. The good news is that you don’t have to have everything figured out from day one. You just need to start with one great idea and go from there.
This guide will walk you through a clear, manageable system for getting started and staying consistent. Consider it your gateway to greater professional freedom, financial independence, and meaningful work that you’re truly passionate about.
What are digital products? (And why they’re booming in 2025)
Digital products are intangible, replicable assets that are created, sold, and delivered in a digital format.
Popular digital products include:
- educational (e-books, courses, comprehensive guides)
- creative (digital art, design assets, photography)
- functional (planners, spreadsheets, templates, custom GPTs, AI prompt packs)
When a digital product is purchased, it’s delivered instantly through an automated platform. There’s no shipping or inventory involved, which makes it easy to scale quickly and reach a global audience.
Why are digital products booming?
It’s a little bit of a chicken vs. egg situation – supply fuels demand, and demand fuels supply. More creators are building digital products, and more consumers are buying them.
According to the Creators Economy Industry Report 2025, the creator economy generated $250 billion in 2030, and is projected to more than double by 2030. The digital-first economy is exploding as people spend much of their time learning, working, and shopping online.
Three key factors driving this growth:
- Remote work normalization: More people have skills worth packaging and selling
- Technology accessibility: Tools like Canva and AI make product creation easier than ever
- Consumer behavior shift: People pay premium prices for solutions to specific problems
More individuals are realizing they can take their skills, experience, and creativity and transform them into marketable assets whose earning potential often exceeds the traditional 9-5 income. These independent workers are not only earning more, but often report being happier, healthier, and more hopeful than their full-time counterparts.
At the same time, both businesses and individuals now want instant access to specialized knowledge, creative assets, and practical tools. Companies are moving away from agencies and buying directly from creators—it’s faster, cheaper, and often higher quality. Meanwhile, consumers are more protective of their time and gladly invest in digital products that meet their exact needs, from a Zone 7 Shade Garden Planner to a Stream Overlay Kit.
The real benefits of selling digital products (is it worth it?)
Unlike physical goods, there is no limit to the number of times you can sell a digital product.
Low overhead + no inventory = high-profit potential
The most significant benefit of selling digital products is that you can stop trading time for money. Once all of your automated systems are in place, your products sell while you sleep, travel, or work on other projects.
Beyond the financial opportunities, digital products offer:
- Creative freedom: You get to choose what to create, how it looks, and how you market.
- Ownership: You’re in control of your work schedule, plus the pricing, branding, and distribution of your products.
- Skill monetization: You can turn the skills and knowledge you already have into profit.
- Scalability: Start with one single, useful product, and build your portfolio as you learn what works and what doesn’t.
Bottom line: Digital products offer one of the most accessible paths to building location-independent income for content creators and entrepreneurs.
Are digital products passive income?
Short answer: Not exactly, but they can become automated income.
Digital products typically achieve 80-90% profit margins because there are no manufacturing, shipping, or storage costs eating into your revenue.
However, digital products do not necessarily equate to passive income. Earning passive income from your digital product requires significant upfront effort and ongoing maintenance. Look at digital products as automated income, not passive income.
8 profitable digital products to sell in 2025 (With niche ideas)
Here are some of the most profitable digital products to consider creating and selling this year.
Online courses & workshops
Online courses turn your expertise into structured learning experiences that typically include video lessons, assignments, and supplementary materials like reading resources.
The most in-demand online courses allow participants to learn from one another through live coaching calls, private forums, and discussion boards. Savvy creators learn how to funnel course participants into membership sites, where they offer exclusive content and build a community around their brand even after the learning session is over.
Niche ideas:
An online learning experience may be a good fit for you to sell if you have expertise in an in-demand area, especially if it can be hard for people to access local experts.
- How to build your business with cold pitches
- SEO for Etsy sellers
- Photography for short-form video
- AI prompt engineering for marketers
E-books & interactive guides
People value their time more than ever. If you can distill your expert-level knowledge into a concise, actionable resource, you can create a high-value e-book that commands $27-$97 per sale.
The most successful e-books include interactive elements– like checklists, fillable pages, prompts, and worksheets– to increase engagement and perceived value.
Niche ideas:
- SEO/GEO guides for content marketers
- Sustainability-focused content
- Guide to launching a photography business
- Digital declutter challenge
Pricing sweet spot: $37-$67 for comprehensive guides with interactive components.
Best for: Writers, consultants, and specialists who can package complex processes into simple, actionable steps.
Niche templates
Templates are one of the most in-demand digital products because they reduce the time and effort it takes to achieve a polished result. They’re plug-and-play systems built for Canva, Notion, Google Sheets, PowerPoint, and other popular tools.
Niche ideas:
- Canva social media bundles for coaches
- Google Sheets expense trackers
- Trello onboarding templates
- Figma website wireframes, app mockups, design systems
Software & micro-SaaS
Software and micro-SaaS (software as a service) target specific pain points with automated tools. While traditionally requiring coding skills, 2025 brings unprecedented opportunities for non-developers through no-code platforms. The rise of vibe-coding allows non-technical users to create prototypes of micro-SaaS tools that can be refined by experienced developers.
Unlike most other digital products, software can generate ongoing revenue from each customer through monthly or annual subscriptions.
Niche ideas:
- Email deliverability tracker
- Recurring revenue tracker for digital product seller
- Digital inventory system for handmade business owners
Digital art
Instead of selling a single print one time, digital art allows you to sell your creative assets again and again, to multiple people and in multiple formats. And if you ever want to include physical offerings as well, you can use platforms like Printify or Society6, which handle all of the printing and shipping.
Niche ideas:
- Inspirational quotes for home offices
- Seasonal outdoor collections
- Nursery prints with personalization options
- Faith and spirituality designs
Planners
Digital planner templates are functional printables that help people organize nearly every area of their lives– meals, habits, chores, budgets, and more.
Planners are also one of the easiest products to modify and offer as a completely new solution. You can take a workout tracker and tweak it to become a food diary, or offer your wildly popular household planner in multiple colors and layouts.
Niche ideas:
- Debt payoff tracker
- Holiday planner bundle
- Social media content planner for Etsy sellers
- Homeschool lesson planners
Authentic stock media
Authentic stock media features real people, real settings, and inclusive images– a far cry from the staged corporate stock that companies have used for so long. It’s a growing niche because organizations want to represent their companies with realistic media, especially in the age of AI.
Niche ideas:
- Work-from-home scenes
- Inclusive office teams
- Everyday family life
- Body positive fitness
AI & Web3 assets
AI and Web3 products are the newest– and fastest-growing– digital category. They include automation tools, prompt packs, and blockchain-based collectibles.
Because the niche is so new, few people are doing it well. If you’re ahead of the AI curve or confident in using blockchain-based tools, this is an area with tons of potential.
Niche ideas:
- AI prompt libraries
- AI-generated voiceover collection
- NFTs
- virtual collectibles
- Token-gated membership templates
Your 5-step plan to start selling digital products
Successfully selling digital products involves far more than spending a Saturday afternoon whipping something up on Canva. To build a sustainable income stream, you need to build a solid foundation before you begin creating and continue to invest in your business after you publish your products.
Step 1: Find your niche and validate your idea
Most creators rush straight to product creation and wonder why their beautiful designs don’t sell, but don’t realize they skipped the crucial second step: market validation.
Identify your niche
To find your niche, start with a simple formula:
Passion + Expertise + Market Demand
There is an overlap between what you love, what you’re skilled at, and what people are happy to pay for. You need to find it.
Start by identifying your target audience. Choose a topic or industry you’re most familiar with— you already know the pain points, frustrations, and even the exact phrases your audience uses.
Write one sentence that defines your niche:
I help [audience] achieve [result] through [format/product type].
For example:
- I help parents plan screen-free learning time through at-home STEAM activities.
- I help freelancers organize their client work through Notion dashboards.
Validate your idea
Here are a few tried and true methods to confirm that demand before you spend weeks creating:
1. Use keyword research tools.
Head to Ahrefs, Google Keyword Planner, or Ubersuggest. Type in phrases related to your idea like ‘digital planner for moms’ or ‘Canva templates for teachers.’
Look for:
- Search volume: 500+ per month
- Low to medium competition
- Intent-based phrases like ‘template’ or ‘printable’
2. Check communities and social media.
Hang out where your audience is to see exactly what they’re talking about.
Join Facebook groups in your niche. Look at what members are posting and replying– some of the most authentic insight is often hidden in the comments!
Reddit is one of the most underrated goldmines for customer research. Because profiles are completely anonymous, most users feel free to be completely transparent about the exact issues they’re facing.
You can find a subreddit for almost any niche you want to target. Browse through some of the posts to find the most common complaints. You can even paste links to a few of the most recent popular posts and ask an LLM to summarize the most common sentiments.
3. Validate demand on marketplaces.
The easiest place to start is Etsy. Search for your product idea and look at shops with multiple sales and strong reviews.
Pay attention to the way sellers title and tag their listings, what keywords they use, and how product images are presented. Take notes on pricing, formats, and design style.
Then, start to dig deeper into customer feedback. Note what people love, but most importantly, look for gaps. Are buyers requesting features that don’t exist yet? What do reviews complain about?
You can also expand your research to other digital product marketplaces like Gumroad and Amazon KDP.
4. Talk to your target audience.
Yes, it’s uncomfortable, but it’s a critical step to ensuring your product is a good market fit.
Start small with people in your circle who fit your audience. Pick their brain to learn about their experience with the topic.
Then, talk to a broader target audience. Make a transparent post in the Facebook groups and Reddit communities you already joined:
“I’m working on a new resource for [audience] and would love your honest thoughts. What would be helpful?”
To gather specific data and encourage participation, include your questions in a Google Form or Typeform and offer participants a small freebie for completing the survey. Ask:
- What’s your biggest frustration with [topic]?
- Have you purchased a digital product for this before?
- What would make you consider buying one?
- How much would you expect to pay?
- What would keep you from buying a resource?
5. Analyze your competitors
Find 3-5 competitors who already serve your target audience. You can revisit Etsy, but also consider using a Google search and social media search to find brands that sell on multiple platforms.
Take notes about:
- their product lineup and pricing
- customer feedback (like the gaps we talked about earlier)
- unique angles
6. Take preorders
You don’t have to have your product ready to begin selling it.
Jenna Kutcher is a well-known online marketer who often pre-sells or soft-launches her digital products. Her reasoning?
“When people are willing to invest before your offer is fully built, that’s a powerful signal that there’s demand. And if they’re not? That’s a gift too! It means you can pivot before you spend months creating something no one is ready for.”
Step 2: Create a high-value digital product
Once you’ve confirmed demand, it’s time to create something worth paying for.
Focus on the exact problem you can help solve
Specificity sells. Don’t worry that you’re decreasing your potential buyer pool– you’re actually connecting with a highly-qualified audience that’s ready to make a purchase.
Targeted solutions like ‘Excel calculators for mortgage brokers’ consistently outperform generic templates like basic habit trackers.
Differentiate, don’t duplicate
After looking at dozens of competitors, it’s tempting to copy their tried and true approach, but you’ll see greater success by standing out in a saturated market.
To stand out:
- Show social proof like real-life use cases, mockups, or before-and-after visuals.
- Choose unexpected design elements that don’t fit the ‘aesthetic’ of your niche.
- Offer both a printable and editable digital format of products whenever possible.
- Share your ‘why’ behind a product or brand.
Choose the right tools
The type of digital product that you’re offering will dictate what tool you use to create it, and in some cases, you may use multiple tools.
Here are some of the most popular tools and what you might design with each:
| Canva | templates interactive guides printable planners |
| Piktochart | presentation decks educational PDFs |
| Adobe Express | lead magnets |
| Notion | digital planners interactive templates |
| Trello | productivity systems onboarding templates |
Start small, but think big
Start with one product– or a handful– as you get into the swing of things, but plan to expand strategically. Top Etsy sellers have 50-300+ listings with mastered title/tag optimization, not just one amazing product.
Nicole Burke, founder of the 7-figure online business Gardenary, started with a single online course– Salad Garden School. She wanted to teach people about some of the easiest vegetables they could grow in their garden.
As her audience grew, Nicole decided to offer the Gardenary Consultant Certification and the Kitchen Garden Academy, appealing to a broader audience of both new gardeners and experienced professionals. On top of these cornerstone courses, her website also hosts offerings including short courses, kits, planners, guides, workbooks, and e-books, all centered around the one topic Nicole has proven her expertise in.
With time and consistency, you can scale your digital product business in a similar manner.
Step 3: Set up your business legally (Don’t skip this!)
Getting your legal ducks in a row can feel overwhelming, but it protects your income, content, and mental health.
Choose a business structure and open a business bank account
Most new creators choose one of two options:
- Sole proprietor: Simplest option, but does not protect your legal assets.
- LLC: Adds legal separation between you and the business, providing liability protection.
→ If you’re just getting started and want to keep things simple, begin as a sole proprietor. Once your digital product business earns steady income or you plan to expand, upgrade to an LLC for liability protection and long-term security.
Next, file your business with your state’s Secretary of State website and secure an EIN (Employee Identification Number) through the IRS website.
Using your EIN, you can open a business bank account. This keeps your business and personal finances separate to simplify accounting and avoid tax headaches.
Set up tax collection
For US-based sellers, digital products are treated just like any other business income. That means that you’re expected to pay income tax, which typically includes both federal and state tax. In addition, you’ll also owe self-employment tax, unless you structured your business otherwise.
Things get a little trickier when it comes to sales tax, because sales tax is determined by the location of the buyer. While most US states do impose sales tax on all digital products, other states only tax certain products, or have no state sales tax at all. The EU requires VAT on all digital goods, while Canada, Australia, and other countries charge GST/HST.
If you sell through platforms like Etsy or Gumroad, they typically collect and remit taxes automatically. If you sell through your own platform, ThriveCart handles tax calculations for you.
Even with automation, keeping in compliance can be challenging. Use tax software or talk to a local CPA to avoid any issues.
Protect your intellectual property
In most countries, including the US, your digital product is automatically copyrighted the moment you create it. This grants you the right to reproduce, distribute, display, and generally use it however you please.
For greater legal protection, register a product with the US Copyright Office (currently costs $45-$65 for most electronic filings). This provides a public record that you own your product and the ability to sue for infringement. Most creators only register their most popular or signature assets, like a best-selling course or a library of templates.
With every product, include a clear license statement, telling buyers what they can and cannot do. A general Terms of Use sounds something like this:
“This product is for personal use only. You may not resell, redistribute, or
claim it as your own. Commercial use or sharing is prohibited.”
Add terms and policies
Create a Refund Policy to protect against unwarranted chargebacks and disputes. Because you collect customer data, you also need a Privacy Policy linked within your website.
Step 4: Choose the best platform for your product
The best platform for selling your product is the one that matches how your ideal customers already shop. For example, Etsy is ideal for design-focused products like printables or planners because shoppers there are looking for low-cost downloads, but ThriveCart is better for higher-ticket offers like courses or memberships.
| Marketplaces Best for beginners who want immediate traffic. | Etsy | + Built in audience+ Easy setup – High fees- Limited control over branding |
| Amazon KDP | + Amazon traffic+ Printing handled for you – Strict formatting rules- Royalty payments | |
| Your own store Best for building long-term brands and higher margins. | Shopify | + Full control over storefront+ Ideal for scaling – Complex setup- Monthly cost |
| Thrivecart | + No monthly fees after purchase+ Combines checkout, course hosting (via Learn+), and affiliates – Requires marketing to drive traffic | |
| Direct-to-creator platforms Best for simple, no-code setups and minimal tech maintenance. | Gumroad | + Quick and painless setup+ All-in-one platform – High fees for monthly income <$1,000- Limited branding |
| Payhip | + Free to start+ Custom storefront – Best for small product catalogs | |
| Podia | + Versatile product options+ Customizable storefront – Limited analytics and SEO tools |
Many creators start on Gumroad or Etsy, then graduate to ThriveCart or Shopify as their audience and offerings grow. This allows them to get started with minimal setup, but eventually gain greater control over branding, pricing, and customer relationships.
Step 5: Price your product for profit
Pricing digital products can be tricky, but research shows that the sweet spot for pricing usually lands between $27-$97. This range is high enough to feel premium but still low enough for impulse buys.
There are a few different approaches you can take to pricing:
- Competitor-based pricing is determined by how others in your niche are pricing similar assets. Set your price slightly lower, equal, or higher, depending on how you position yourself.
- Value-based pricing is based on the transformation or outcome your product provides. It’s best for established creators who can provide proof of results.
- Tiered pricing offers multiple levels of your product at increasing price points, each with additional value or content.
For example, Tiago Forte utilizes tiered pricing in his course The Annual Review, which walks members through a framework in which they reflect on the past year and set goals for the upcoming year.
- $499 for the Self-paced Edition that includes recordings, templates, and community access
- $1,994 for the Essential Edition, which adds on 5 interactive live sessions with Tiago.
- The $5,0001:1 Coaching Edition includes everything in the Essential Edition plus 3 personal coaching sessions with Tiago.
Your pricing won’t be as high (starting out), but you can structure your offers in Basic, Pro, and VIP tiers that build on each other.
How to market your digital product (Even without a big following)
Your target audience won’t just magically find your new digital product– you need to help them get there. Most failures happen because people focus on building perfect products but skip the active selling, outreach, and platform-specific SEO.
Effective marketing increases your viability and builds trust with followers. Use a combination of the strategies below to grow your audience and drive consistent sales.
Content marketing & SEO
Once you’ve launched your website or product page, keyword-rich content attracts organic content and establishes your authority.
Content marketing comes in many different forms. SEO blogs are a popular one, but you can also promote your brand and products using:
- YouTube tutorials that link to your product in the description
- SEO-optimized landing pages
- tutorials and guides that solve a problem related to your product
- Podcasts or guest interviews where you share your expertise
- Pinterest pins linking directly to your blog or shop listings
Email marketing
Email marketing is a critical component of any online business because it allows direct ownership over your audience– no more moody algorithms or platform dependency.
To build and use your email list:
- Create a lead magnet like a free e-book or webinar replay.
- Welcome new subscribers with a drip campaign of 3-5 automated emails that introduce your story, explain your product, and provide a first offer.
- Send regular newsletters with updates, tutorials, and behind the scenes check-ins.
Nurture campaigns educate your audience about your brand and emphasize the authority you have on your topic. Share personal stories and quick tips that subscribers will appreciate. These emails deepen your relationships and keep you at the front of readers’ minds, which is why nurtured leads make 47% larger purchases than non-nurtured buyers.
When you’re ready to promote a new product, send a launch sequence. Diane Foster, owner of Etsy store PixelsLane, suggests a 5-day campaign for digital downloads:
- Day 1: The problem your product solves
- Day 2: Walkthrough product features + share a quick win
- Day 3: Social proof or use cases
- Day 4: Common objections + answers
- Day 5: Final reminder before doors close or price increases
Community engagement
To connect with your target audience, show up where they are– or better yet, create a space for them to gather.
For example, the Facebook group Travel Mom Squad: Travel on Points currently has more than 86,000 members who trade tips and stories on traveling using credit card points. Group admins Alex and Jess host the Travel Mom Squad podcast and offer The Award Travel Academy, where members learn step-by-step travel hacking strategies.
This Facebook group acts as both a community hub and soft marketing channel. Alex and Jess demonstrate their authority, answer questions, and offer value long before they try selling.
Even if you don’t want to facilitate an entire group, you can:
- Join Facebook groups, Reddit communities, and Discord servers related to your niche.
- Offer thoughtful feedback and share small wins.
- Build relationships with moderators and other members who may later share your product for you.
- Gently point people toward your product when it’s actually a good-fit solution.
Collaborations
When you tap into someone else’s audience, you gain instant credibility and visibility, even if you’re just starting out. Here are several ways to collaborate effectively:
- Use guest content and co-marketing to partner with other creators. Write guest blog posts or co-host a live workshop.
- Use affiliate partnerships to offer creators a commission for each sale they drive.
- Combine complementary products to create joint offers with other sellers (a graphic designer partners with a copywriter to offer Canva social media templates + copy).
- Host joint giveaways with other sellers.
The risks of selling digital products online (And how to avoid them)
Digital products offer high margins and scalability, but that doesn’t mean they’re risk-free. Watch out for these common challenges and learn how you can navigate each.
Risk 1: Market saturation
The low-barrier entry to digital product selling means that the market can quickly become crowded. The oversaturation makes it hard to stand out or make you feel like you need to slash your prices.
Mitigation strategies
- Choose a really specific niche, especially if it’s one the general public couldn’t follow.
- Develop a unique brand voice & visuals that stand out from competitors.
- Use content marketing– blogs, videos, etc– to educate your audience and prove your expertise in the topic.
Risk 2: Digital piracy
Digital files are easily copied, shared, or redistributed without your permission. You can’t completely prevent piracy, but you can minimize its impact on your business.
Mitigation strategies
- Host products on ThriveCart or ThriveCart Learn+ to secure delivery and access.
- Add subtle branding– like your logo– to downloadable content to keep your name attached to your products.
- Include a Digital Product License Agreement within your download.
- Use Google Reverse Image Search to check for illegal reuploads of your product– and issue takedown notices for unauthorized copies.
Risk 3: Platform dependency
Many creators rely heavily on third-party platforms like Etsy or Teachable. It’s convenient to build your online story on a website that does most of your hosting, checkout, and advertising for you, but this convenience comes at a cost— the platforms control:
- access to your audience
- pricing policies
- fee structures
- product restrictions
And although you do your best, it’s next to impossible to please every customer. Even two poor reviews on Etsy can push your store into the abyss of search results or temporarily hide your listings from buyers.
Mitigation strategies
- Build your own website or landing page where you host your content and catalog.
- Connect with your audience through email marketing.
- Sell across multiple platforms.
Conclusion
Successful digital product sellers aren’t just lucky. They’re strategic, consistent, and deeply committed to understanding their target audience.
Start small, validate your idea, and focus on solving one specific problem better than anyone else. As you grow your confidence and your audience, your revenue will follow.
The best time to start is today.
Start your entrepreneurial journey today
Join thousands of others who have monetized their knowledge
Frequently Asked Questions (FAQ)
How much does it cost to start a digital product business?
The cost to start a digital product business is minimal and depends on what you want to invest in tools and branding.
For products like e-books, printables, templates, and workbooks, startup expenses range from $0-$300. Online courses can cost a little more to launch, ranging from $200-$1,000, depending on your hosting and video setup.
Startup costs typically include:
- Creation tools: Canva, Loom, CapCut, and PDFescape to create visuals and downloads.
- Selling or checkout platforms: ThriveCart Learn+, Gumroad, or Shopify to handle sales and delivery.
- Optional website costs: WordPress, Showit, or Squarespace if you want a branded storefront.
- Optional marketing costs: email platform, social media scheduler, and ads.
- Design and branding: Fonts, mockups, or stock photos to make listing look professional.
Start with free or low-cost options and upgrade as your business grows. Most creators scale their tech stack gradually.
How much do digital product owners make?
Digital product income varies widely, depending on what you sell, how you market it, your audience size, and what systems you’ve put into place. As with any business, higher effort often results in higher revenue.
The digital product space can feel like an all-or-nothing game. On Reddit’s r/digitalproductselling you’ll find people without a single sale 6 months in, and others celebrating thousands in weekly revenue.
The average creator earns between a few hundred to a few thousand dollars a month selling digital products. This income scales with time, effort, and experience.
Established sellers with multiple products and automated funnels often experience $10,000 monthly revenue once they have a system in place, even with a small audience.
Can you sell digital products on Amazon without an LLC?
Yes, you can sell digital products on Amazon without an LLC. When you register as a seller, you will select None, I am an individual for your Business type.
However, you still must comply with all state and local regulations, including tax guidelines and any licensing requirements. Without an LLC, you operate as a sole proprietor, meaning you are personally liable for all debts, disputes, and legal responsibilities related to your business.
An LLC isn’t necessary, but it offers valuable liability protection as your business grows. If you’re not ready to form your LLC now, consider registering later as your sales and audience increase.