Recession-Proofing as a Creator: Why You Should Sell Digital Products in 2024
simple products make big money in the long run
It’s important to diversify your income streams and build different revenue channels as a creator, so you have more control and security over your monthly income
I am pretty sure you must have heard about it in the news already. Not only that but you must have seen this on your grocery bill as well. I have heard this many times from top finance experts that the time to invest is now.
Why invest even if you are making thousands of dollars per month?
Because it’s like everything is on sale.
So what’s actually going on?
Well, this we call inflation.
I see many creators and influencers depend on brand deals. Many think that they’ll get a few hundred thousand dollars and can set on a cruise vacation for a lifetime. I, myself never believed in depending on brand deals much. Anytime they can change their mind!
If your income is dependent on someone else — directly or indirectly — then you aren’t an independent creator at all!
Whether you are a writer (writers don’t get much brand deals), Instagram influencers, or YouTubers.
No matter what your job is. No matter what your platform is. No matter what is the size of your audience.
I strongly believe in building a brand around ourselves and making money without depending on any third party.
So what’s the answer to that?
Create your own products.
I strongly believe that this is a great time to start protecting our bottom line by decreasing your financial dependence on any third party (brand deals, affiliate products). I must tell you that there are many opportunities you can tap into to diversify your income.
One simple way to do so is by creating and selling your own digital products — here’s why.
Why diversify your income?
Diversifying your income is a smart financial strategy for several reasons. Here are some key benefits:
1. Risk Reduction — Relying solely on one job can be risky. If you lose that job unexpectedly, having other sources of income can provide a financial cushion.
2. Stability and Consistency — Different income streams can grow at different rates. By diversifying, you can potentially increase your total earnings over time.
3. Explore New Opportunities — Creating passive income streams (like rental properties, investments, or royalties) can free up time and provide financial security.
4. Financial Goals and Independence — Diversified income can help you reach financial goals faster, whether it’s saving for retirement, buying a house, or starting a business.
5. Tax Efficiency — Diversification can also offer tax advantages. Some income types may have different tax rates or come with deductions that can help optimize your tax situation.
6. Personal Fulfillment — Working on different projects or ventures can keep things interesting and fulfilling. It allows you to explore diverse interests and passions.
7. Preparation for Emergencies — Diversifying income is akin to building a personal financial safety net. If one stream of income is affected by an emergency, having others can help you weather the storm more effectively.
8. Retirement Planning — Diversified income can contribute to your retirement savings. This ensures you have multiple sources of income during retirement, such as pensions, investments, or rental income.
Creators, it’s time to diversify your income
It’s not only because of the recession but whatever the case is, creators/writers should always diversify their income.
I make a full-time income from self-publishing platforms alone. But that doesn’t mean I will sit around on those money. I went beyond self-publishing by building a brand around my name.
Pen name in my case. I have two now in case you wanna know. I strongly advise you to use your real name instead of a pen name.
I am pretty sure that you may not be able to rely as heavily on brand deals. So don’t panic. For such cases, you need to just start generating revenue from other sources.
In short, writers, diversify your income.
even if companies cut their marketing budgets, still we all can make money from -
- Digital products
- Services
- Merch (very rare but works!)
- Affiliate marketing (promote products you strongly trust)
So in short — Build multiple income streams. If one of them slows down, you’ll still have other sources to supplement your income.
How to build new revenue streams
I follow a very simple rule.
first, find what you already know or skills you have.
Find out what your audience would like from you
You may consider starting a paid newsletter, creating an online course, or offering private-access content (bonus: this last one means you’ll build a community, which will give members an added reason to keep coming back). Start small and focus on creating one new revenue stream at a time to avoid feeling overwhelmed.
Focus on developing a new revenue stream. That could include creating a YouTube profile so that you can monetize by having people watch your videos. Perhaps you’d like to devote more time to affiliate marketing and developing material aimed at selling a specific product so that you can earn a commission through your links.
There are several strategies to generate additional revenue streams. Finally, there’s no one-size-fits-all method. Different combinations of income sources will benefit different authors. So, start by determining what your audience expects from you, and then design a product around that.
Why creators should sell digital products
Regardless of the type of creator you are, making and selling digital products is one of the simplest methods to diversify your earnings.
Digital products are downloaded items that can be ordered and delivered online. From e-cookbooks to daily mental health checklists, you may build an almost limitless amount of digital products based on your niche, expertise, and target audience.
These digital downloads may be considerably more profitable than you realize. Once you’ve built a digital product, you can generate ongoing passive revenue with little work on your side. Consider the royalties that an artist continues to collect on a song even after it has been written and released. Digital items are similar in that, while making one takes time and effort upfront, it may be sold indefinitely and repeatedly with little more labor once completed.
7 Benefits of Selling Digital Products
I hope I have convinced all the creators out there to diversify your income as much as possible. I am always looking for new side hustles. I am always making efforts to add more small income streams to my portfolio. And the best one out there is creating digital products.
If you are in search of a sustainable income stream then creating and selling your digital products might just be your best bet.
Here are just some of the benefits of exploring this revenue stream:
1. Build up your brand, in a way that you control
№1 thing I like about this business is — I have total creative control over the digital products I create. My products are based on what I want to sell and what I believe in. I consider these digital products to be an extension of my brand and expertise, allowing me to carve out a path into the future of my choosing. They represent me and where I want to go, not another brand’s marketing agenda. This is important.
2. Open unexpected doors
Creating a digital product does more than just provide a new source of revenue; it also gives me surprising insight into my audience and what they like. This insight guides me to create even more engaging content and profitable products.
3. Grow your audience
When I build content and products tailored specifically for my audience, it signals to them that I understand their needs and preferences. This creates a bond between us and allows me to connect with them on a deeper level. By consistently delivering what they want, I not only attract more like-minded followers but also open up new opportunities to collaborate with other creators. It’s all about meeting their expectations and building a community around shared interests.
4. Attract new brands
Yep, it’s ironic: Creating digital products to decouple from brand dependency could lead us to attract new brand sponsorships. Why? Great digital products — and their sales performance — are a fantastic way to catch a brand’s eye while helping to grow credibility within my niche.
5. Strengthen your financial security
Loosening my brand dependence will also provide me with revenue that I control, meaning that getting paid won’t be up to another business’ financial performance or their opinion. This will continue to be a massive plus even after the economy bounces back.
6. Generate passive income
As I’ve mentioned before, a digital product truly is the gift that keeps on giving. Once you create it, you can sell it as many times as you like with essentially little to no added work.
7. Boost your bargaining power
Finally, when I’m not financially dependent on brands, I can be pickier about the contracts I accept — including what I promote, how I do it, and how much I charge.
Create your first digital product!
I hope you are excited about your digital journey. Whether you are a writer a creator or an influencer, why wait for the right moment to kick in?
We have assets. we have skills. Now time to put it into practice.
Ready to get started? Grab Build Once, Sell Forever — How I Create & Sell Digital Products With Gumroad. It’s an ebook to help you set up your online store, figure out what type of digital product is right for you, and save time creating it. You’ll learn how to measure whether your idea has the potential to sell, and what to do if competition within your niche is too high.
Remember, whether you’re a a beginner or seasoned creator, selling digital products is always a future-minded move — the kind of move that will help you make bigger leaps.
I hope you like the article. If you want more articles like this you can sign up for my newsletter — Wealth Creation for Writers
