Digital Products Vs Physical Products Showdown: Which Is Better? – FA188

Tropical Island sea kayak paddling in the Philippines

What Kind Of Business Should You Build?

Terry Lin of joins the show from Vietnam as guest co-host to help you decide if you should start a digital products or physical products business, or whether you should add either to your existing business. Terry takes the side of physical products since he is busy building (Tim is a customer).

Tim takes the side of digital products as he is building software and currently sells infoproducts. You’ll be salivating at the prospect of starting or adding digital products to your business when you hear why you should.

Listen in as Terry and Tim battle it out over which business is better…

Digital Product Pros

  • Very High Margins
  • Infinite Shelf Space
  • Fast Production
  • Cheaper To Start And Test

Physical Product Pros

  • World Still Runs On Physical Goods
  • People Love Physical Products
  • Greater Acceptance Of Higher Prices
  • Customer Can Be Strong Brand Ambassadors

Enjoy Your Foolish Adventure.

Digital Products Vs Physical Products Showdown: Which Is Better? – FA188
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  1. My experience:

    I used to have a physical products store in a small and very specific niche (capoeira clothes and equipment) and sales were virtually effortless; people needed the stuff, there were few suppliers, and as mentioned in the episode, people are used to paying for physical stuff.

    However, profit margins were extremely slim, and the fact that we were doing customer-designed clothing – they could choose any color combination in pants/shirts – meant we couldn’t hold stock, we had to custom-manufacture each piece and it took time; people sometimes got impatient (shipping from Brazil, too).

    Now I’m in infoproducts with a MUCH bigger list and a much lower percentage of buyers – the sell is harder – working on improving that, though!

    Have to say I side with Tim and prefer infoproducts, first of all because I love producing them, and second because they’re more automated. Yes, with dropshipping and employees you can automate physical products, too, but my capoeira store never got to that stage; we were packing packages in the living room :-p

  2. Guys! Thanks for the small mention.

    Interesting to hear both sides of the coin on this. In a fashion business where we develop a new line of products at least 2-3x’s a year, I might say “hey, maybe the info product would have been a better choice. You make one product and market and sell the heck out of it for months or years”. The grass is greener situation. But, at the same time, I don’t have any interest in even developing any info or digi products at the moment. I wouldn’t even know where to start. But I can for sure come up with tons of new physical products to manufacture for the next season and down the pipeline.

    Developing new products so frequently is a bit challenging, but it’s exciting at the same time. If I develop new products every few months, that might take away from the long ball marketing that I could be doing if I was selling one product, or even a stable line of products. If I’m fulfilling orders at home (which we do at the moment), it takes time away from product development and manufacturing, AND marketing. So we have to optimize for all of them.

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