When you create your own eBook and sell it online, you will typically keep 95% of every sale you make. Now that does not included marketing expenses. I'm talking about infrastructure related expenses.
In the case of digital products that includes website maintenance, payment processing, and product delivery. Paid advertising is not factored in here.
Now let's see how much we'll make from the same piece of content in paperback format. After all expenses have been paid (excluding marketing expenses) you can expect to keep about 30 - 40% of each sale.
Let's take a look at Amazon.com. A paperback there may sell for about $12. That means you'll make roughly $3-4 for every book sold.
If you take the same book and put it on the Amazon kindle store in digital format it may sell for $3.99 a copy. But this time you'll keep about $3.25 at least from each sale.
Now, which way could you expect to get more sales?
If you're a customer looking to purchase this book would you rather pay $3.99 or $12?
Would you rather wait 3-5 days (and pay even more for shipping costs) or download it to your phone or iPad instantly?
So, not only will you get a higher profit margin with the digital format, but you'll potentially get more sales too!
What if you're marketing this book on your own site? Would you like to make 40% or 95% on each book sold? Also, do you want to have the headache of dealing with the distributor, refunds, returns, repackaging, etc? Heck you almost need to hire a VA just to deal with that!
The upside to physical products is that they provide much more credibility and personal branding to the author than digital products. When the paperback book you wrote is sitting on someone's bookshelf next to John Maxwell and Napoleon Hill you get instant guru status simply for being there.
As far as personal branding goes, you get your face all over the place. Having real, tangible book that you can use as a business card goes a lot further than letting someone download your ebook.
For all the reasons I just mentioned it seems like only the truly successful entrepreneurs are the ones who can afford to deal with the nuances of physical product creation.
You can absolutely make money with either a digital or a physical product. If you're strictly looking at profit margins then digital is the way to go. However, if you want credibility and guru status then you may want to publish a paperback.
If it's your first time at selling your own information products online then I would suggest the digital route. After you have a few successful products under your belt then use the profits to cover the additional expenses of creating a physical product. Then you'll gain guru status in your niche!
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