Depending in what niche and where do you want to sell them.

I found that physical products sell good on the internet if they are products that people consume. Works very well on specific niches. Pharmacy, for example.

Info products usually pay you more though. I personally go 50/50 depending on the niche.

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All things considered, physical products have a better conversion rate (at least in my own experience).

depends on the niche... and the age range of who you're targeting... Older people tend to prefer buying tangible products... as opposed to younger people that prefer instant delivery of goods.

It depends on the market. What are they already buying? Mostly physical products or info products?

Once you've found that out then start promoting so you can grab a piece of the pie.

- Sam

Ps. Try selling both and see what response you get. You may surprised what you find out from actual testing.

Pick a niche where you can sell both physical and info products.

For example:
Niche - lawn care
Physical products - lawn mowers from Amazon.com
Info products - lawn care tips ebooks from Clickbank

I try to sell both, but physical usually has high conversion rates. However, you make more profit from info, so you really need to look at profit per 1000 visits for both to determine which is 'better', though I would still promote both.

Digital products (excluding porn), especially info products, make up a very small percentage of the money that gets spent online.

Put it this way. How many people out of your circle of non-IM friends do you know who buy ebooks or how-to videos or any of the other stuff that you'd usually find on clickbank? Now look at how many of them have bought something from eBay, Amazon, or some other site selling physical products?

With physical products, conversions are plentiful and competition is light. They're marketed in a more straightforward manner (look at the average Amazon product page and compare it to a clickbank sales letter... yikes!) and they're familiar to the customer.

If you stumble on an untapped market or a golden keyword for digital products, jump on it. The huge commissions per sale will keep a grin on your face for a long time to come. If you're looking for a reliable source of income, or you want more conversions off of less traffic, go for physical products. The commissions may be lower, but the increased conversions will make up for it.

I've got to agree with Chris Koltai.

Digital products appear to have much higher commissions but as an example, you can be an affiliate for Fujinon binoculars which retail for up to $18,000.00. Then you have to deal with competition, which is as strong as the price! Solution- Learn SEO. Like any business, effort produces results.