Which business model is most suitable for the sale of digital goods?

If you are selling digital products, you probably receive 80–10% royalty. This means, in many cases, the author only receives a small portion per sale. For physical goods, such as paperback books, the picture may be much worse. Although I must say that now, there are services, which pay 90–80% royalty for virtual goods. However, I wonder which model is beneficial to the author. How much money are they willing to pay to sell their works. Of course, the digital products, “always are enough at your warehouse”, and if you have a good distributor providing sales, then it will probably neutralize any commission.

However, we decided to experiment and proposed a new business model — a subscription with a fixed price of $1 for each file sold, monthly.

This means, that until your product is on our platform, you pay $1, monthly. This model is quite unusual, but it raises some questions to the whole ecosystem and the sales process. What have we learned? If an author has content, which attracts buyers, then this model is highly profitable for a seller. For example, if the value of your book is $19, and it sells well, you receive 100% of the royalty, and your monthly cost is only $1.

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