Passive Income

Boost Digital Product Sales Using This ONE Calculation

How To Know Your Digital Product Will Be Profitable?

Photo by Austin Distel on Unsplash

When I started selling digital products on Etsy, I needed help finding the right price to ensure a good return on investment for my time and expenses. I had no business knowledge then and made the mistake of pricing my products too low.

This was until I came across a game-changing solution that ensured my digital products were profitable: the contribution margin calculation! 🎉

Let’s face it, pricing your products can be tricky. You don’t want to price too high and scare away potential customers, but you also don’t want to price too low and barely cover your costs. It’s a delicate balance that can make or break your business.

That’s where the contribution margin calculation comes in handy. It’s a simple yet powerful tool that can help you determine the best price for your digital files, ensuring you cover your costs while making a healthy profit.

So, let’s dive in and see how it works!

✅ Step 1: Gather Your Costs

To start with the contribution margin calculation, you must gather all the costs of producing and selling your digital files, which…