How do I price a digital product?

Updated

Price the outcome, not the effort

Price a digital product on the result it gives the buyer, not on the hours it took you to make. Find three comparable products, start in the middle of their range rather than below it, and raise the price each time you improve the product. Business buyers pay more than consumers for the same file.

Buyers do not know how long you worked. They know what changes for them, and that is what they are paying for.

Cheap is the risky option

Very low prices attract the buyers who refund most, complain most and value the product least.

They also signal that the product is thin. Raising a price often increases sales rather than reducing them.

A simple starting method

Look at three comparable products and find the middle of their prices. Start there, not below.

Then adjust for who you are selling to. A template that saves a business owner a day of work is worth a share of a day of their time, which is usually far more than sellers charge.

Raise it as the product improves

Each time you add something buyers asked for, put the price up. Tell existing buyers first and give them the update free.

That loop — improve, raise, tell — is how a small product becomes a real one.

FAQ

Questions, answered straight.

Is it better to price high or low?
Higher, within reason. A low price signals a thin product and attracts the buyers most likely to refund. Most first products are priced under what they are worth.
How much should I charge for my first product?
Take the middle price of three comparable products and start there. You learn more from one real sale at a fair price than from ten at a token one.
Should I offer pricing tiers?
Two or three tiers usually raise the average order value, if the difference between them is obvious. Five tiers just confuse people into buying nothing.
Do discounts work on digital products?
Time-limited ones do. A permanent discount simply becomes your price and makes the original number look dishonest.
What about pay-what-you-want pricing?
Most people pay the minimum you set. Use it to build goodwill or an email list, not to earn a living.
Should I raise my price later?
Yes, every time the product gets better. Tell existing buyers first and hand them the improvement free, so the rise reads as fair rather than sneaky.

Sell it inside your Whop.

MKKT adds a store to your community. Upload the file, set a price, share one link.