How to find the right price point for your digital download with these 4 easy steps
After you’ve come up with ideas for your digital downloads, and made your first product, you’re onto the fun part: pricing. How much should you charge? Here are 4 tips to help you set the right price for your digital downloads.
Step #1: Price for scale
Digital downloads are a form of passive income—you create the product once and earn from recurring sales.
In order to make those recurring sales, you want to aim for volume. For this reason, it’s good to start with digital downloads that sit at a lower price point (e.g. $2.99–$30). It’s a much smaller barrier for people to buy, and will lead to faster sales that don’t require too much consideration. This pricing strategy is all about scale. Start small, and grow from there.
Step #2: Tier your pricing
As you scale your digital downloads store, you can then start offering a mix of products at different price points to meet different budgets. Say, 3–5 digital downloads at low price points ($2–$20), 1–3 at a mid price point ($20–$50) and 1–2 at a high price point ($50+).
Your casual followers will be more likely to buy products at entry level price points. Think one recipe card, or a very basic beauty routine for no more than $20.
In contrast, your core audience will be more likely to invest in digital products that solve very specific pain points. Typically, the more niche your content, the more you can charge. Whether they’ve been following you for a long time, or they’re an existing customer, they already know you and trust you. And so, they will be happy to spend on more advanced products at premium prices.
Tip #3: Trust decades of pricing psychology
Charm pricing is the term used to describe the idea of making a product appear more affordable, by ending the price in an odd number (for example: $199).
This is down to something called the “left-digit” bias. Research shows that humans subconsciously round the total down to the number on the left ($100), rather than rounding it up to the nearest whole number ($200). So, for example, if you’re thinking about selling your digital product for $10, try $9.99 instead. According to the book Priceless by William Poundstone, charm prices outsell rounded prices by as much as 24%.
Tip #4: Compare the market
While you’re looking for inspiration from other creators when coming up with your digital products, take note of the prices. What are they charging? Do they have pricing tiers? Is there an average price point in your industry? This will help you to stay aligned with what people are used to in the market. Or, it will inform you what you need to do to price higher.
Even if you feel like a lot of creators are making digital downloads in your niche, there’s room for everyone. You have an engaged audience who trust your expertise—so don’t be tempted to always price less than others in your industry. Price for the value you provide.
Set a price and start selling with Bio Sites
You don’t have to sign up to a marketplace to start selling your digital products. You can sell them directly through your link in bio.
Add a Digital Downloads section
Connect your payment method (e.g. Stripe or PayPal)
Upload your files
Set a price (now you know how)
And sell, sell, sell!
Now your digital products are live, read our tips on promoting your store and converting your audience.
