By Ruben Daniel | On July 7, 2013 In Blog, Content Monetization
Digital Content on the web seems to be so cheap. Sometimes it’s even free. We wrote an entire article focused on why you should charge for your content and you should read it if you haven’t already.
Today, I want to provide you with some strategies that can help you deal with the pressure to sell digital content for low prices. It is true that digital content, on average, should be cheaper than physical products. But we have so much more flexibility when selling content online, that we shouldn’t be making less money in the long run.
Think Higher Margins and Better Monetization Models
Start by thinking of the higher margins that digital products provide. You don’t have to worry about shipping costs, fulfilment costs, storage costs, etc. Distributing content online is just cheaper to do and cheaper to get started with. These higher margins will help if you have to sell your content for lower prices.
Then, you need start exploring other ways to monetize your content, ways that can only work on the internet. One of these ways are subscriptions. They are perfect for digital content and can be pretty lucrative. Let’s say you charge your customers $15 a month to access your library of content. They pay the fee for 12 months before unsubscribing. You earned $180 from one customer. How much would that customer spend on individual products?
You could also rent your content to your customers. Once their access expires, they are notified to be brought back to your site. Can you upsell them on other products when they are brought back? Can you offer promotions on similar products, repeating the same cycle over and over again?
Creation Costs Can Be Decreased
You can also start rethinking the way you produce content. If you are distributing content in DVDs right now, then you are forced to do the entire DVD in one project. This makes the project very expensive upfront and makes it harder to update the content on the DVD in the future.
Now lets move to digital distribution, where you can upload a new product in minutes. You don’t have to do an entire DVD in one project. You could spread the production costs over months, releasing only small parts of your content at a time. You could also work towards creating a series of videos, creating anticipation among your customers. Check out our past article on creating content with a budget of $100.
Creative Ways to Upsell Other Items
Finally, online distribution can open new avenues for you to make money. Imagine you sell Yoga videos and you have really awesome content. After your customer purchase a Yoga video, you could offer to sell them the equipment that is being used in the videos e.g. the yoga mats, the pants, etc.
Upselling becomes easier when you are able to visually show the product you’re upselling and when you are able to show how the product is useful. Perhaps you want to offer some form of advertising to potential companies within your same industry.
What other ways can you think of monetizing your content? Let me know in the comments.
Photo by Ryan McFarland