Four Strategies to Start Promoting Digital Goods – By Cristian Miculi

by Colleen on June 13, 2014

tl;dr – Compliment current promotions, bundle, cross-promote, and become an advertiser yourself with digital goods.

The worldwide digital goods market was estimated to reach $140 billion in 2013, with most sales in the North American and Asia Pacific markets, thanks to a compound annual growth rate of 15 percent expected through 2015, according to the PWC Global Media and Entertainment Outlook 2011. feedfront-issue-26-cover-small

The 2013 AffStat report clearly shows that at least 40 percent of affiliates belong to a dedicated digital goods affiliate network – but that means 60 percent don’t!

If you’re not already promoting digital goods, you’re missing out on important revenue. Why not enter this space?

Promoting digital goods is much easier than promoting physical goods, since you don’t have to worry about inventory or shipping costs. Plus, customers get immediate gratification after purchasing a digital product or subscription.

Now that I have you thinking about the opportunity, let’s go through 4 strategies that will help you get an accelerated start in promoting digital goods:

1. Complement current promotions with digital goods. Say you’re working in the travel niche promoting tourism packages. It would be a great idea to offer your clients eBooks about the destination they’re thinking of going – e.g. “tips from locals for getting the most out of Amsterdam,” or even eBooks to help them create an itinerary. If you promote electronics on your website, think about offering software to go with laptops and tablets, or an eBook that teaches users how to conserve energy.

2. Bundle current products with content subscriptions. This way, your customers will see the added value and you will see added revenue in your account the following month when some (most) subscriptions will renew. For example, you could offer a complimentary 30-day subscription to a gardening magazine along with a $30 minimum purchase of seeds. The following month, when users renew, you earn commission on these renewals.

3. Create another channel for promoting digital goods, but use your current audience to get started. Cross-promote physical and digital products on your websites. Use social media communication channels to understand customer needs. Send your current users a newsletter with some trial downloads or software deals (for example) related to their existing purchases, and use banners pointing your new software deals dedicated website. Don’t be afraid to try the affiliate game in the mobile area via your own app.

4. Become an advertiser yourself. We’re discussing affiliates here, but in the software space, there are many white-label opportunities you can take advantage of. Usually, you’ll have to pay an upfront fee plus a revenue share on the sales to come. You can have your own antivirus or registry cleaning solution, sell it online, and get your own affiliates for that product as well.

To wrap this up, I definitely recommend giving digital goods your best effort.

The key is to start promoting something relevant to the audience you can get. Be sure you choose the best platform that can deliver the product catalog and features you need for the digital goods you want to promote.

Cristian helps software advertisers and affiliates grow their online sales in the Avangate Affiliate Network.

This article appeared in issue 26 of FeedFront Magazine, which was published in April 2014. http://issuu.com/affiliatesummit/docs/feedfront-26

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