Sell more digital products with these 3 advanced pricing strategies

Digital Products Commerce
10 min read
In this Article

You don’t need to spend your life savings on your business idea. Less than $100 per month is enough to turn your digital business into a full-time income.

That makes digital products the ideal choice for writers, coaches, and consultants looking to build a sustainable business. Digital products can be sold for $100 thousands of times, but cost less than a few hundred dollars a month to maintain (sometimes way less!). No matter how many people buy your digital product, that maintenance cost stays the same.

But not every digital product can be sold for $100. Especially for new creators, pricing can be a challenge. How much is your digital product worth? You can’t find a spreadsheet online that tells you what you should charge. It all depends on what you’re offering and the value (a.k.a “How much is this worth to me?”) your customers see in it.

That’s where pricing strategies come in. As a digital product creator, the right pricing strategy can help you make more from the digital products you’re already selling—without adding more hours to your workweek.

Try out these 3 advanced pricing strategies to earn more from your digital products.

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As a creator, you deserve to get paid for your work. ConvertKit Commerce is ready-made to help you sell digital products.

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3 advanced strategies to maximize conversions and revenue

digital product pricing

These advanced pricing strategies are built on tried and true marketing principles. They’re the type of strategies that will work, as long as you put some elbow grease into them. You don’t need to be a professional marketer or have any marketing experience at all, to get started using them. You just need to understand why they work.

We bet that you’ve seen at least two of these pricing strategies in the wild before—as a customer. As you read through them, think about what your experience was like on the other side.

  • How much were you willing to pay when the price was determined by you?
  • How quickly did you buy that product on sale?
  • Which subscription option did you lean towards last?

These pricing strategies have worked on you before…and us! They’re great ways to get your future customers to realize that today is the day to make the purchase and read your ebook, buy your digital course, or hire you.

It’s time to put on your marketing hat…

Have your customers decide how much they want to pay for your products

The Pay What You Want Pricing strategy (PWYW for short) lets your customers choose how much they want to pay for your digital product.

We know—this sounds crazy at first. Let them choose how much to pay? It’s easy to think people will take advantage and you’ll make close to no money on your digital creations as people coyly throw you $1 for your hard-earned work.

That was a chance Yes Theory was willing to take when they premiered their documentary The Lost Pyramid in the Pay What You Want model. “Yes Theory’s manager, Zack Honarvar, suggested using a “Pay What’s Fair” pricing structure. And immediately and unanimously, we decided: To watch The Lost Pyramid, you could pay as little as $1 or as much as you think is fair,” explains Yes Theory team member Kate Ward. The documentary creators ended up seeing donations ranging from $1 to $1,000 (!) to view early access to their film.

To set up a PWYW pricing, use ConvertKit to give your audience the choice as to how much they want to pay for access to your digital creation. Let’s put our CEO hat on for a second—you can choose the minimum amount you’ll accept for it so you can make sure your digital product is profitable (because even creators need to focus on profit margins).

pay what you want ConvertKit
Sell digital products using the Pay What You Want feature on ConvertKit.

Create urgency to buy with discounts, sales, and launches

We’re sure you’ve experienced this marketing strategy before. Anytime you see “Sale” on a product, you see urgency at play. Using urgency to market products works so well because it forces action. Instead of letting somebody think about buying your digital product for weeks, months, or even a year—you’re telling them that the time to buy is now. This pushes people to take action and make the purchase instead of pondering it indefinitely.

Freelance writer Kaleigh Moore uses urgency to sell her ebook, Write Better Right Now. Here’s a look at the email she sends to her subscribers telling them that there are only 24 hours to get her book at a discounted price. If subscribers don’t buy it today, they’ll have to buy it for an additional $10 tomorrow. That $10 discount can get more subscribers who might be on the fence about buying her book to decide that today is finally the day to take action on their freelance writing dreams.

Digital product pricing example
Kaleigh Moore uses urgency to sell her book, Write Better Right Now. Image via Kaleigh Moore.

You can create urgency with discount codes, sales, or launches. Your discount codes can expire within a certain timeframe, your sales can run for just the weekend, and your launches can only allow a certain amount of customers. These are all ways to set up urgency for your digital products. Use ConvertKit’s countdown timer to show your audience how little time is left to get your products. You can add the countdown timer to your newsletters, sequence emails, forms, and landing pages.

ConvertKit countdown timer
Use ConvertKit’s countdown timer in newsletters, sequence emails, forms, and landing pages.

Create multiple subscriptions tiers with varying services and commitments

Multiple subscription tiers give your audience the chance to choose how much they want to spend on your service and what they want to get in return. This gives your fans the option to buy the package they need at a price point that works for them, maximizing conversions—and your bottom line.

While coaches can vary subscription tiers based on services, paid newsletters often work best when selling longer subscription terms. The Profile, a newsletter written by Polina Marinova Pompliano, lets people choose how much they want to pay for a subscription. The longer somebody subscribes, the cheaper it is for them to get access. A monthly subscription costs $10/month and annual subscription costs $50/year ($4.17/month). Polina also has a pay what you want option for her Founding Members. These ‘members’ can choose how much they want to pay for a yearly subscription—no questions asked.

Digital product pricing
The Profile uses subscriptions and pay what you want pricing strategies. Image via The Profile.

Create multiple subscription tiers using ConvertKit Commerce (you can also create PWYW pricing!). With ConvertKit Commerce, you can sell digital products and subscriptions using customized product pages and sales funnels. You don’t have to be an experienced marketer to use our features, creators (with minimal marketing experience) are using ConvertKit Commerce to sell their products every single day.

Your digital products can be value-based vs. cost-based

Selling digital products can turn a few hours of your time spent creating into a passive income that continues for months or even years. You won’t need to spend half, or more, of your profit on upkeep—you’ll get to keep the majority of your profit and put it back into your business or buy yourself something fancy.

That’s the pro of digital products. You can focus on value-based pricing instead of cost-based pricing.

Cost-based pricing is based on how much it costs to produce something. For example, when you sell 1-hour consultations, you need to price each consult based on your hourly consulting rate. That could be $100 or $1,000, but it needs to be worth your time based on your expertise. If it takes you 2 hours of preparation before a consulting call and 5 hours of work after your call to get the client the materials discussed, then that’s 8 hours of work total. You’ll need to price your consulting call accordingly to make sure that you’re profiting off these calls (and they’re not holding you back from your income goals).

Digital product pricing
Kendra uses cost-based pricing to determine the price of her coaching program. Image via Kendra Tillma.

Cost-based pricing will require plenty of clients or customers to reach your profit goal for your digital product. Think of it this way—if you sell a $1,000 consulting package, you’ll need to sell 10 packages per month to make $10,000. So, part of your work will be spent on the consulting deliverables, and the other part spent on getting more customers and clients.

Value-based pricing is based on how much a product is worth in the eyes of the customer. Let’s say that you sell a course that teaches freelance graphic designers the basics of starting their design business. You only need to make that course one time, but you can sell it 1,000 (plus!) times in the future. This means that you don’t need to take into account the hourly rate that you did for your cost-based consulting package. Instead, you’ll price your course based on how much your customer is willing to pay for it.

If your course on Building Your Freelance Graphic Design Business is based on your experience growing a $100,000/year graphic design business, you can price it based on the likelihood of a student making $100,000 from your course. Generally, you can price a course like this around $3,000-$10,000 based on how much detail, accountability, and guidance is inside.

Authority Nathan Barry
Nathan Barry prices his digital book Authority at $39. Image via Nathan Barry.

That’s why we love merch and physical products—but we favor digital products. These products are not only easier to deliver (you can set up automated delivery in ConvertKit!), but you don’t have to worry as much about your pricing. Since digital products don’t require the investment that physical products do, your pricing can just focus on the value.

What does your customer get from buying your product?

  • 100 amazing recipes?
  • A guide on how to make $10,000 from being a graphic designer?
  • Private consulting from yours truly?

These are all highly valuable products—that don’t cost a lot of money to make or maintain.

Being a digital creator opens up a world of possibilities for income streams, and these advanced pricing strategies are just going to help make it easier to sell more products.

Earn more on digital products by using pricing strategies

Selling digital products can turn a few hours of your time spent creating into a passive income that continues for months or even years. You won’t need to spend half, or more, of your profit on upkeep—you’ll get to keep the majority of your profit and put it back into your business or buy yourself something fancy.

With ConvertKit, you can use our commerce tool built for creators to use all 3 of these pricing strategies simultaneously on your different digital products. Our pay what you want feature can give your audience the option of how much they want to buy your products for. You can also add countdown timers to landing pages and emails to create urgency around your product launches and sales. And, you’ll be able to choose subscription tiers for each of your products.

Sell digital products with the commerce tool built for creators like you. Click here to look inside ConvertKit Commerce.

Start selling within minutes

As a creator, you deserve to get paid for your work. ConvertKit Commerce is ready-made to help you sell digital products.

Get paid with ConvertKit Commerce

Eva Gutierrez

Eva Gutierrez is a freelance content writer specializing in writing for companies with marketing-related products, like education platforms and SaaS. She writes articles and newsletters that build and nurture relationships with her clients' leads while showcasing their expertise and leadership in their industry. You can find her tweeting about writing tips, marketing strategies, and the psychology behind buying at @TheEvaGutierrez.

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