Download this article as a PDF: How a Popular Couple Selling Digital Products and Making $600,000 Per Year.
It is no secret that in the world of business, be it digital products or physical, runs based on supply and demand. For every age group, there happens to be a demand for a very particular set of products, both digital products and materials available in the market.
The wisest move for any potential or professional entrepreneur for selling digital products is to meet people’s demands by following the interest of every age group in particular.
Meet Cinnamon and Jason, the entrepreneurs behind Pixie Faire, and loving parents to their lovely daughter.
They realized the vast interest of young girls for dolls when their daughter turned six years old.
As an excellent designer and a brilliant dressmaker herself, she was more than qualified to cater to this newfound interest of her daughter.
Hence began the doll clothing business, which made her daughter a star in the neighborhood and gives rise to the most significant internet marketplace for doll clothing.
Following is an interview with Jason about “how selling digital products online have turned their business into such a success“.
Describe the type of your business and about your product in short.
We manage the largest marketplace on the internet for various clothing patterns for dolls at Pixie Faire, which features more than 50 indie designers. We also offer online training courses on sewing, designing, and making clothing and craft business patterns. We also sell our doll clothing, trends, and designs under our label Liberty Jane Clothing.
How much profit are you presently making every month?
Our estimate for the total profits by selling digital products for the year is about $600,000 US, which is around $50,000 US per month, although there is some seasonal variation to this number.
How did you come up with this particular business idea of selling digital products? What kind of market research did you have to undertake to make this possible?
My wife, Cinnamon, did detailed market research with our daughter! Many mothers find out that when their daughters reach the age of six or seven, they get captivated with dolls. So we were introduced to the market through them only.
What gave us a unique opportunity is that my wife is an exceptional dressmaker and a brilliant designer.
Her mother worked for a fashion house in Los Angeles, and Cinnamon grew up knowing how to sew at a professional level. So she started making dolls’ clothes for our daughter, and she would go for her dance classes, and all the mothers and kids would ask: “where did you get that?” and “how can I get it?”
We started selling our product with an eBay store in early 2008 and then began publishing our patterns about 18 months later.
How did you fabricate or source your product? What were some of the significant issues you learned during this process?
We were very clear about the decision that we did not want to outsource manufacturing to China or any other foreign country. Even though we have been reached out to by people who offered to do this for us multiple times, it was our collective decision not to let that happen.
Instead, we tried different methods such as women working from home for us and collaborating with the regional dressmakers.
We could not find a solution that we could imply with success, though, so for the first year and half of the business; my wife was on the sewing machine with basically no break to fulfill customer demand.
How did you decide to sell digital products alongside physical products? What kind of market research did you have to do?
We were earning a maximum of $1000 US per month and were struggling to scale any further. We knew that digital products were excellent goods if they worked out for your specific market and also that sewing patterns have been around for generations!
Now that we already had our sewing patterns, it was quite natural for us to sell them as PDFs as downloads.
In the first month that we tried out the digital downloads market, we gave away several of our patterns for free and sold about 11. It was a small start, but it scaled very quickly.
Last month we had over 43,000 downloads of our patterns, almost all through SendOwl. In total, we have now had more than 700,000 designs downloaded. This pattern model business scaled very well.
The following is a small tutorial video from Sewing With Cinnamon channel:
What are the problems you faced while scaling the digital delivery business model?
We started by selling patterns under our website, Liberty Jane Patterns, but when we began to feature other designers, we came across a branding problem.
We then re-launched the website about 18 months ago as Pixie Faire, which happened to be a more generic brand that many independent designers could publish on their own. It has become the largest marketplace on the internet for doll clothes patterns and a fun corner of the online universe for selling digital products.
In terms of approaching the designers, we reach out to the ones we like, and we also recruit the people who enquire about working with us. We now have a third channel as well – training courses.
What are the other challenges you face selling digital products?
The most significant challenge to us is that of the delivery process. We started to scale our business with a website on WordPress and various digital delivery tools, but something would always turn against us.
When we have nearly 43,000 transactions in a month, factors like bandwidth, the reliability of the host, and the shopping cart functionality matter a lot.
We soon left our WordPress platform and moved to Shopify and SendOwl. Shopify and SendOwl have solved so many of our significant problems.
They work. And it’s a fantastic experience.
What are the channels that are currently generating the most traffic and sales for you at the moment?
The very first marketing tool that we actively worked on was YouTube. We made and uploaded videos about our work with our daughter as our spokesperson. YouTube worked out very well for us.
We also found out that many people wanted to use our patterns for their sew from home business
We have thus created the Liberty Jane Partners Program. We now have about 1,600 people that use our designs for sewing from home purposes, and we can reach them through a newsletter and a blog.
What other essential advice can you offer to entrepreneurs who are looking to start a successful e-commerce business?
The most important or rather crucial aspect is to focus on your product strategy clearly and to work out whether your product has a high probability of success in the first place.
There happen to back corner on the internet where people are actively looking for solutions to their problems, and no one is serving them. Those are the most exciting niches for a budding entrepreneur to discover.
Now that you have read about Cinnamon and Jason’s firsthand success story and hopefully all your questions and doubts about beginning your online business empire have been answered, we hope to soon hear about your own success story.
Till then, keep brainstorming, keep yourself informed, keep on dreaming!
Frequently Asked Questions
How to define a digital product?
The term “digital products” refers to the intangible assets offered on the internet in a digitized format. It aims to educate and train a specific group of users that consume it.
2. Online courses
4. Music etc
What are the ways to create a digital product?
You can create a digital product in 3 ways:
1. Do It Yourself Method(DIY): where you take charge on your own hands
2. Outsourcing: getting in touch with freelancers to work for you
3. Partnering with Experts.
What digital products sell the best?
The most profitable digital products to sell online are :
3. Audio Files and Music Production Software.
How do you make money selling digital products?
1. Sign up for an easy and free platform to test the waters regarding the supply and demand of your product.
2. Price your product in a wise way. Affordable to begin with and increase when the need is higher.
3. Market your digital product in every way possible. Use various platforms for selling your digital products.