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Etsy is a massive online marketplace, with an annual revenue of over $2.5 billion dollars (source). Yeah, you read that right. Billion. Dollars. But did you know that in addition to handmade crafts, Etsy is also a huge market for digital products?
Every day thousands of people are going to Etsy and search for digital products related to hundreds of different niches. So if you’re looking to start making some money on autopilot, I’ll show you how to create passive income from Etsy digital products in this article.
What Are Digital Products?
Digital products are anything that can be delivered via a computer and the Internet. No physical product is shipped to the customer.
Examples of digital products include pdf files, ebooks, JPEG images, SVG cut files for Cricut or Silhouette machines, online courses, recorded meditations, etc.
Why should I build a digital product income stream?
Digital products are completely passive income after you create them
Once they’re made, it doesn’t matter if you sell 50 or 500 of them. There’s no additional work on your part after the sale. This creates a huge opportunity to get some passive income into your business model, especially if your main source of income is from the services you offer. Having a digital product side business is the best companion to a service-based business.
They don’t cost much to create
Usually, all you need is your own computer, access to the Internet, and some kind of program or software to use to make your products. The biggest initial investment in creating digital products is time.
But after they’re made, there’s no limit to how many you can sell because no further cost or time on your part is needed.
They have huge profit margins
A low-cost product that doesn’t require any shipping fees or additional time after it’s sold? The profit margins on digital products are huge. You can even have a big Black Friday sale and still be making bank.
They can support the rest of your business
If you already have an existing business, adding some digital products to your offerings can open your business to potential clients that maybe couldn’t afford your main offerings (eg. selling an ebook or printable planner for a lower price than a physical one), or who are looking for something else to complement what they’re already getting from you (eg. a printable workbook you sell along with your other services).
How do I decide what kind of digital products to sell?
I would first suggest deciding if you want your digital products to be part of your overall existing business or something on the side (eg. I sell planners and social media templates that go along with the tips about blogging and online marketing on this blog. You can check them out in the shop!).
Or you could be a real estate agent but absolutely love crochet so you want to have a completely unrelated side Etsy business selling your own crochet patterns. That’s perfectly fine too!
But most importantly, make sure you choose something you enjoy making. Digital products do take a bit of time to create initially, so make sure you’re in a niche that you actually like, not just something you think will sell well.
What Digital Products Sell Best On Etsy?
Speaking of selling well, if you’re looking for some inspiration, here’s a list of some of the best-selling digital products on Etsy:
- Planner printables (printable cleaning schedules, monthly/weekly planner layouts, fitness journals, meal planning sheets, daily agenda printables, financial tracking sheets, etc.)
- Anything wedding-related (printable invitations, bridal shower games, bachelorette party games, table name cards, thank-you cards, printable wedding planners and checklists, etc.)
- Anything baby-related (printable nursery art, baby shower invitations, birthday party invitations, baby shower games, birthday party decoration SVG cut files, thank-you cards, printable pregnancy and baby journals, etc.)
- Printable wall art (with typography quotes, funny quotes for the laundry room/bathroom, etc, abstract minimal designs, prints of herbs or quotes for the kitchen, etc.)
- Sewing and crochet patterns
- Coloring pages and activity books (for both adults and children).
Etsy is a marketplace for handmade goods and craft-related products, so it’s no surprise that the best-selling digital products are in the realm of papercraft and art.
That doesn’t mean that only craft-related things sell well on Etsy, however. You can make a printable workout tracker, for example, for your fitness coaching business. Or if you sell your own handmade jewelry, you could create an ebook about working with the material you use for others to learn your craft, and show step-by-step pictures or link to private YouTube video tutorials from within the ebook itself.
Opportunities like these to create digital products that make you passive income can be huge profit boosters to your business.
How Do I Make Digital Products To Sell on Etsy?
This varies depending on exactly what type of digital product you want to make, but for most projects I highly recommend Canva. It’s what I use exclusively for the digital products I sell and for all of the marketing material I make for my blog. The paid version is amazing and offers things like exclusive templates and graphics you can use in your designs along with the ability to upload your own custom fonts and keep your exact brand colors within easy reach, but even the free version is more than enough to start making some passive money with digital products!
I wrote a blog post here that takes you through the step-by-step process of creating a printable product to sell on Etsy.
How do I get my products noticed in the Etsy marketplace?
Initially, it can take a bit of time before you’ll get that first sale. Etsy SEO plays an important role in the chances of your listing appearing in Etsy’s search results. After you’ve created a few listings for your shop, I’d recommend reading this blog post I wrote for a crash course in getting more sales for your shop.
That’s the beauty of digital products though, once they’re made all you really need to focus on is marketing them and getting traffic to your listings! You can spend more time driving traffic to your shop and creating new products to expand your offerings because you’re not spending time shipping physical products or providing a service-based product to a client.
So if you haven’t considered adding passive income from Etsy digital products to your collection of income streams, I strongly encourage you to give it a shot! Your digital products can be an excellent side income or even one day become your main income.
The limit truly does not exist.
I hope this article was helpful to you! And remember, on Wednesdays we wear pink.
FAQ: Creating Passive Income on Etsy
What are digital products, and how can they generate passive income on Etsy?
Digital products are items that buyers can download and use electronically, such as printables, digital art, eBooks, or digital planners.
They can generate passive income on Etsy because once created, they can be sold repeatedly without the need for physical production or shipping. Sellers create the product once and sell it to multiple customers, making it a source of passive income.
What types of digital products are popular on Etsy for generating passive income?
Some popular digital products for generating passive income on Etsy include:
– Printable art and posters
– Digital planners and organizational tools
– Templates for social media graphics or presentations
– eBooks, guides, and tutorials
– Printable stickers and labels
– SVG files for crafting and cutting machines
– Stock photos, fonts, and clipart
How do I create and design digital products for selling on Etsy?
To create digital products:
– Choose a niche or category based on your interests and skills.
– Use graphic design tools like Canva, Adobe Illustrator, or Procreate to design your products.
– Pay attention to high-quality visuals, formatting, and usability of the product.
– Save your designs in the appropriate file formats (e.g., PDF, JPEG, PNG) for easy downloading by customers.
How do I price my digital products for optimal passive income?
Pricing digital products involves taking into account factors like:
– Time and effort to create the product
– Perceived value and uniqueness of the product
– Market demand and competition
– Target audience’s willingness to pay
Experiment with different price points and monitor sales to find the optimal balance between profitability and customer interest.
What are some tips for marketing my digital products on Etsy?
To market your digital products:
– Optimize your product titles and descriptions with relevant keywords to improve visibility in Etsy’s search results.
– Use high-quality images and showcase different variations or applications of your digital product.
– Leverage social media, email marketing, and collaborations to promote your Etsy shop and reach a wider audience.
– Offer limited-time discounts, bundles, or exclusive deals to attract potential customers.
– Encourage happy customers to leave reviews and provide testimonials to build credibility and trust with future buyers.
Happy Selling!
For more Etsy success tips, visit the Etsy section here.
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