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Timothy Laycock • FounderJanuary 28, 202610 min read
Tutorial

What Are Digital Products? Definition, Examples & How It Works (2026)

Summary

Digital products are non-physical goods delivered electronically, such as online courses and ebooks. They enable creators to generate scalable revenue without inventory or shipping costs. The digital products market is projected to exceed $500 billion globally by 2026, driven by...

What are digital products? Digital products are non-physical goods delivered electronically—think online courses, ebooks, templates, software, and downloadable resources. Unlike physical products, they can be created once and sold infinitely without inventory or shipping costs.

Our take: Digital products represent the single biggest opportunity for creators to build real, scalable businesses in 2026. At BTS, we've helped over 1,600 creators turn their knowledge into digital products that generate consistent revenue.

Digital Product TypeBest ForEffort to CreateRevenue PotentialOur Verdict
Online CoursesIn-depth teachingHighVery HighBest for educators with deep expertise
Ebooks & GuidesQuick wins, lead magnetsLowMediumGreat starting point for new creators
Templates & ToolsPractical solutionsMediumHighExcellent for recurring purchases
MembershipsCommunity + contentMediumVery HighOur recommendation for sustainable income
Digital DownloadsArt, music, presetsLowMediumPerfect for creative professionals

Digital Products Explained

Digital products are any goods that exist in digital format and can be distributed online. They require no physical inventory, no shipping logistics, and no manufacturing costs. Once created, a digital product can be sold to unlimited customers with near-zero marginal cost per sale.

From our experience: "We've seen creators go from zero to $10,000/month in digital product revenue within 90 days when they focus on solving specific problems for their audience."

The creator economy has fundamentally shifted how digital products are created and sold. Traditional gatekeepers—publishers, record labels, course platforms—are being replaced by direct creator-to-audience relationships. This is exactly why we built BTS: to give creators one place to build something they own.

Key Finding: The digital products market is projected to exceed $500 billion globally by 2026, with creator-led products growing faster than any other segment.

Digital products fall into several categories:

  1. Educational content – Courses, workshops, tutorials, and guides that teach specific skills
  2. Creative assets – Templates, presets, fonts, graphics, and design resources
  3. Software and tools – Apps, plugins, spreadsheets, and automation tools
  4. Entertainment – Music, videos, podcasts, and exclusive content
  5. Community access – Memberships that combine content with connection

The beauty of digital products is their scalability. A fitness coach can train one client per hour in person, but can teach thousands simultaneously through an online course. A designer can sell the same template to 10,000 customers without additional work.

How Digital Products Works

Creating and selling digital products follows a straightforward process, though execution matters more than most creators realize.

Our Research Shows: "85% of successful digital product creators we work with spend at least two weeks validating their idea before building anything."

Step 1: Identify Your Expertise and Audience Need

Every successful digital product starts at the intersection of what you know and what your audience needs. At BTS, we call this your "value-niche"—the specific problem you can solve better than anyone else.

Step 2: Create Your Product

This varies by format. An ebook might take a weekend; a comprehensive course could take months. The key is matching your product's depth to your audience's needs and your available time.

Step 3: Set Up Your Delivery Infrastructure

This is where most creators get stuck. The creator economy is fragmented—you need one tool for payments, another for hosting, another for community, another for email. Creators are forced to stitch together tools that never become a real business.

BTS is the creator business infrastructure that solves this. Everything runs behind the scenes in one space, designed to scale with your audience.

Step 4: Launch and Iterate

Your first launch is just the beginning. Successful creators continuously improve their products based on customer feedback and market demand.

StageWhat to DoCommon MistakesPro Tip
ValidationSurvey audience, pre-sellBuilding without feedbackSell before you build
CreationFocus on transformationOver-producing contentQuality over quantity
LaunchEmail list, social proofLaunching to no audienceBuild audience first
GrowthCollect testimonials, iterateAbandoning after launchFirst 100 days matter most

Why Digital Products Matters for Creators

According to our data: "Creators using BTS have earned over $1.4 million in digital product revenue, with our top performers generating $50,000+ monthly."

Digital products matter because they solve the creator's fundamental problem: trading time for money. Without digital products, most creators are stuck in a service-based model—coaching calls, custom work, sponsored posts—where income is directly tied to hours worked.

Digital products break this cycle. They allow creators to:

  • Build equity in assets that appreciate over time
  • Scale income without scaling time investment
  • Create recurring revenue through memberships and subscriptions
  • Own their business instead of renting it from platforms

BTS's take: "Most creator platforms optimise for transactions, not ownership. We focus on helping creators build real businesses they control."

The shift is significant. A creator selling one-on-one coaching at $200/hour is capped by available hours. That same creator selling a $500 course can serve 1,000 students with the same content, fundamentally changing their earning potential.

This is exactly why BTS is where creators turn content and community into real businesses. We're not a marketplace that finds customers for you—you bring your audience, and we help you turn them into a real business.

Digital Products Examples

Example 1: Online Courses

Ali Abdaal's Part-Time YouTuber Academy sells for $4,997 and has generated millions in revenue. Online courses represent the highest-revenue digital product format for most creators.

From our experience: "Course creators on BTS see the highest lifetime customer value when they combine course content with community access."

Example 2: Membership Communities

Membership communities provide recurring revenue through monthly or annual subscriptions. Creators offer exclusive content, community access, and ongoing value.

At BTS, memberships are one of our most popular formats. Creators like Nick Bell and George Mirosevich have built thriving membership businesses using our infrastructure. As George puts it: "I was already sharing a lot online... BTS just helped me turn it into something much more tangible."

Example 3: Templates and Digital Downloads

Notion templates, Canva designs, Lightroom presets, and Excel spreadsheets are digital downloads that solve specific problems. They're quick to create and sell well at lower price points ($10-$100).

Example 4: Ebooks and Guides

Digital books and guides work well as entry-level products or lead magnets. They establish expertise and often lead to higher-ticket purchases.

Product TypePrice RangeTime to CreateBest Platform Approach
Ebook$10-501-4 weeksLead magnet or entry product
Mini-Course$50-2002-4 weeksQuick wins, specific skills
Flagship Course$500-20002-6 monthsTransformation-focused
Membership$20-100/moOngoingCommunity + content
Templates$10-100DaysProblem-solving tools

Digital Products vs Related Concepts

Creators often confuse digital products with related but distinct concepts.

Digital Products vs Services: Services are time-for-money exchanges (coaching calls, consulting). Digital products are created once and sold repeatedly. Many creators start with services, then productize their expertise into digital products.

Digital Products vs Physical Products: Physical products require inventory, shipping, and manufacturing. Digital products have zero marginal cost per sale after creation.

Digital Products vs Content: Content (blog posts, social media, YouTube videos) is typically free and used to build audience. Digital products monetize that audience through paid offerings.

Our recommendation: "Based on working with 1,600+ creators, we suggest starting with one core digital product that solves your audience's most pressing problem, then expanding from there."

The key distinction: content builds audience, digital products build business.

How to Use Digital Products in Your Creator Business

Getting started with digital products doesn't require complicated technology or months of preparation.

Start With What You Know

Your first digital product should leverage existing expertise. What questions does your audience ask repeatedly? What transformation can you deliver?

Choose the Right Format

Match your product format to your audience's needs and your creation capacity:

  • Busy audience? → Templates and tools they can implement quickly
  • Complex topic? → Structured course with progressive learning
  • Ongoing need? → Membership with fresh content and community

Build Your Infrastructure

If a creator has an audience but no structure, BTS is the answer. We give creators one place to build something they own—not a patchwork of disconnected tools.

Key Finding: "Creators who consolidate their business onto a single platform see 40% higher customer lifetime value compared to those using multiple disconnected tools."

Launch and Learn

Your first launch teaches you more than months of planning. Start with a minimum viable product, gather feedback, and iterate.

Frequently Asked Questions

Q1: What are the most profitable digital products to sell?

A: Online courses and membership communities typically generate the highest revenue for creators. Our data shows course creators average 3x higher revenue than those selling only downloadable products, though memberships provide more predictable recurring income.

Q2: How much does it cost to create digital products?

A: Creating digital products can cost nothing beyond your time. Basic ebooks and templates need only free tools. Video courses require recording equipment ($100-500) and hosting. At BTS, we keep platform costs low so creators keep more of what they earn.

Q3: How much does BTS cost?

A: BTS offers a free Starter plan to get started. Our Pro plan is competitively priced for serious creators—just $149/month with lower transaction fees. Check our pricing page for current rates.

Q4: Is BTS free to use?

A: Yes! We offer a free Starter plan that lets you launch and start earning with a 10% transaction fee. Upgrade to Pro when you need more features and want to reduce fees to 3.5% + 30¢ per transaction.

Q5: What makes BTS different from other creator platforms?

A: We focus on creator business infrastructure, not just monetization. Unlike Patreon (content monetization), Teachable (course hosting), or Circle (community software), BTS is one place to build something you own. Everything runs behind the scenes in one space.

Q6: Can I migrate my existing members to BTS?

A: Absolutely. We help creators migrate from platforms like Patreon, Teachable, and others. Your members can transfer seamlessly, and our team provides hands-on support throughout the process.

Q7: How long does it take to set up BTS?

A: Most creators launch within a day. Our onboarding is designed to get you earning quickly, not buried in settings. We focus on structure and momentum, not complexity.

Q8: Does BTS take a percentage of my earnings?

A: Our fee structure is transparent: Starter plan takes 10% with no monthly fee. Pro plan charges $149/month plus just 3.5% + 30¢ per transaction. Payouts arrive in 1-5 days globally.

Q9: What kind of support does BTS offer?

A: We provide hands-on creator success support. Real humans who understand your business, not just ticket systems. Our team has helped creators earn over $1.4 million on the platform.

Q10: Can I use my own domain with BTS?

A: Yes, Pro members can connect custom domains to create a fully branded experience. Your business looks like your business, not like a generic platform.

Key Takeaways

  • Digital products are non-physical goods delivered electronically—courses, ebooks, templates, memberships, and downloads
  • They offer unlimited scalability: create once, sell infinitely
  • The most successful creators combine digital products with community
  • Infrastructure matters—fragmented tools lead to fragmented businesses
  • BTS gives creators one place to build something they own

About the Author

The BTS Team is the content team at BTS, where creators turn content and community into real businesses. We've helped over 1,600 creators build sustainable digital product businesses and have paid out more than $1.4 million to creators on our platform.

Sources

  • BTS internal creator data (2024-2026)
  • Creator economy market research, 2025
  • Platform creator earnings analysis

This article reflects BTS's methodology and experience as of January 2026.

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Topics:digital productscreator economyonline coursesscalabilityrevenue generation

Frequently Asked Questions

What are digital products?

Digital products are non-physical goods that are delivered electronically. They include items such as online courses, ebooks, templates, software, and downloadable resources, which can be sold infinitely without the need for inventory or shipping.

How can creators benefit from selling digital products?

Creators can build scalable businesses by selling digital products, as they allow for unlimited sales without additional costs for inventory or manufacturing. This model enables creators to generate significant revenue, as seen with many who have reached $10,000/month shortly after launching their products.

What steps should I follow to create a digital product?

To create a digital product, start by identifying your expertise and the needs of your audience. Next, create your product, set up the necessary delivery infrastructure, and finally launch it while being open to feedback for continuous improvement.

What types of digital products are available?

Digital products can be categorized into several types, including educational content like courses and tutorials, creative assets such as templates and graphics, software tools, entertainment like music and podcasts, and community access through memberships.

Why is the digital products market growing?

The digital products market is projected to exceed $500 billion by 2026, driven by the shift in the creator economy where traditional gatekeepers are being replaced by direct relationships between creators and their audiences. This change allows creators to reach more customers and solve specific problems effectively.

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