Three digital product business models: recurring (subscriptions), standalone (one-time purchases), and experiential (live events or coaching). Start with standalone products to build skills before moving to recurring or experiential models.
There are really only three types of digital product business models. So you have recurring, you have standalone and you have experiential. Recurring is anything that recurs. So this would be a paid newsletter, this would be SaaS, this would be a membership community. And the logical fallacy is people think that when something is recurring you charge less, which means more people will buy it. The cheaper something is, they think more people will buy it, thus they will make more money. And it's actually the complete opposite. Whenever you charge less, that means you need more volume in order to sustain the amount of revenue that you're trying to do. And also the cheaper something is, the more churn that you're going to have. So in this weird way, the less that you charge, the higher the expectations from whatever customer you're trying to attract. The middle tier is something standalone. So this would be like a text and video course. It's a one time payment, it would be 200 bucks or 300 bucks. And you're getting answers to some sort of problem, right? You're buying information. I recommend that most people start with selling a standalone product because it's the thing that teaches you all of the skills that you need. For all the other business models. The advanced version of standalone is something that's experiential. So this is where you might take the same information from a low ticket digital product, but apply it and connect it with something that's more experience driven, like a cohort based course or like a group coaching program. You're basically taking the information and you're bolting on coaching or consulting. And both ends of the spectrum, whether you have low ticket recurring or higher ticket experiential, both are actually more advanced, they're more difficult to execute. The middle piece, something standalone, is where you build all the skills. It's much easier, it's much faster to monetize, and you can't sell something recurring until you first learn how to sell something that's standalone.
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