When it comes to affiliate marketing, there are two primary types of products that you can promote: digital products and physical products.
So, which one should you choose?
On the surface, it might seem like promoting digital products is the way to go.
After all, they’re often cheaper to produce and easier to distribute.
And since more and more people are buying things online these days, it would make sense that promoting digital products would be a good way to reach your target market.
But there are also some advantages to promoting physical products over digital ones.
For one thing, people tend to spend more money on physical goods than they do on digital items.
And while it’s true that distribution can be a challenge with physical products, there are ways around that (like using fulfillment services).
So, which is the better option for you?
It really depends on your goals and your target market.
If you’re selling to a tech-savvy audience that’s used to buying things online, then digital products might be the way to go.
But if you’re selling to a more mainstream audience that prefers to buy physical goods, then promoting physical products could be a better option.
The Benefits of Promoting Digital Products as An Affiliate Marketer
When you promote digital products as an affiliate, you can earn some very lucrative commissions.
For example, many digital product creators offer affiliate commissions of 50% or more.
This means that if you sell a $100 product, you could earn a $50 commission.
And since most digital products have very low production costs, the margins are often quite large, which means that the affiliates can earn a very healthy commission.
High Conversion Rates
Thanks to the fact that digital products are often low-cost and offer instant gratification (e g customers can download them immediately after purchase), they tend to have much higher conversion rates than physical products.
This means that you’re more likely to make sales when promoting digital products than when promoting physical products.
And that means more money in your pocket!
No Shipping Costs
Since digital products are delivered electronically (typically via email or download), there are no shipping costs involved.
This is great news for both you and your customers because it keeps the cost of the product low and also eliminates any hassle or delay associated with shipping physical goods.
No Inventory Costs
Since there is no inventory involved with digital products, there are no inventory costs either.
This is another big benefit for both you and your customers because it keeps the cost of the product low and also eliminates any minimum order requirements that might otherwise be necessary if inventory was involved.
One of the best things about promoting digital products is that they can be easily scaled up or down to meet customer demand.
For example, if you have a popular eBook that’s selling well, you can simply create more copies (or digital versions) to meet the demand.
There’s no need to worry about manufacturing constraints or shipping delays because all you need to do is create more copies of the file and make them available for download.
Similarly, if demand for your product decreases, you can simply reduce the number of copies that you’re making available for sale without incurring any significant losses.
The Benefits of Promoting Physical Products in Affiliate Marketing
Increased Commission Rates
One of the biggest benefits of promoting physical products is that you can earn a higher commission rate.
Physical product companies understand that it costs more to ship a product than it does to deliver a digital good, so they’re willing to pay more to their affiliates.
This means that you can potentially earn more money by promoting physical products.
More Engaging Product Visuals
Physical products also tend to have more engaging visuals than digital products.
This is because people are naturally drawn to images of physical goods.
When you’re promoting a physical product, you can use high-quality images and infographics to really capture people’s attention and interest.
Another advantage of promoting physical products is that people can see tangible results from using them.
For example, if you promote a skincare product, your customers will be able to see a visible difference in their skin after using the product for a few weeks.
This tangibility can be very persuasive in getting people to buy the product.
Easier to Share
Physical products are also easier to share than digital products.
If someone loves the physical product they purchased from your affiliate link, they can easily share it with their friends and family members.
This word-of-mouth marketing can be very effective in driving sales and boosting your commission earnings.
Finally, many people find physical products to be more trustworthy than digital products.
This is because it’s harder for scammers to create fake physical goods than it is to create fake digital goods.
As a result, people are often more willing to buy physical products that they find through an affiliate link.
How to Decide Which Type of Product to Promote?
You’re an affiliate marketer.
You’ve been in the game for a while, and you’re ready to take your business to the next level by promoting higher-ticket items.
But there’s one big question you need to answer first: should you promote digital products or physical products?
Now we’ll explore the benefits and drawbacks of each type of product so that you can make an informed decision about which is right for your business.
The Pros and Cons of Promoting Digital Products
Digital products have a number of advantages when it comes to affiliate marketing.
They’re easy to set up and manage – you don’t need to worry about inventory, shipping, or any of the other hassles that come with physical products.
They have a global reach – anyone with an internet connection can buy a digital product, no matter where they are in the world.
However, there are also some disadvantages to promoting digital products.
Difficult to stand out in a crowded marketplace – there are literally millions of digital products available for sale online, so it can be tough to get your products noticed.
Prices are often low – since there are so many digital products available, customers are often able to find what they’re looking for at a lower price point than they would if they were buying a physical product.
Digital products can be easily pirated – if someone wants to get a copy of your product without paying for it, all they need is a computer and an internet connection.
The Pros and Cons of Promoting Physical Products
Physical products also have some advantages when it comes to affiliate marketing.
There is less competition in the marketplace – since there are fewer physical products available for sale online than there are digital products, it’s easier to get your products noticed.
Prices are often higher – since customers can’t simply download a copy of your product without paying for it, you’re able to charge more for your product than you could if it were digital.
Customers tend to be more satisfied with physical purchases – studies have shown that people tend to appreciate physical possessions more than digital ones, so they’re more likely to be happy with their purchase if they receive a physical product.
However, there are also some disadvantages to promoting physical products as well.
One is that they can be hard to set up and manage – you need to worry about inventory levels, shipping costs, and return/exchanges.
They have a limited reach – unless you’re selling through brick-and-mortar stores as well as online(which not all businesses do), your potential customer base is somewhat limited by geography.
Finally, customers may be hesitant to purchase high-ticket items sight-unseen – since they can’t try them out before they buy them, they may be concerned about whether or not the product will meet their needs/expectations.
So which type of product should you promote?
The answer is the definitive answer – it depends on your specific business goals and customer base.
If you’re selling lower-priced items and you’re focused on getting as many sales as possible, then digital products may be the way to go.
However, if you’re selling higher-priced items and you’re looking for quality over quantity, then physical products may be the better option.
The best way to figure out what’s right for your business is by experimenting with both types of products and seeing what gets the best results.
Whichever route you choose, remember that promoting affiliate products is all about providing value to your customers while also making money for yourself.
When done correctly, both digital and physical products can do just that.
Read our other article related to affiliate marketing below: