Virtual or Physical Product?.What is YOUR strategy and WHY?

by adils29

Posted: 13 years ago 7 replies

INTERNET MARKETING

What is your personal opinion of VIRTUAL vs PHYSICAL product in the MLM space? Which product category has been found to be most successful in the industry and why?

My personal analysis is that since we are primarily using the internet to promote and sell our product in this industry , isn't a VIRTUAL product easier and quicker to promote and sell , and especially with no shipping hassles involved?

Your valuable feedback is welcome here!

Cheers,
Adil

#physical #productwhat #strategy #virtual

ViperChill

13 years ago

I've personally never dealt with physical products, for a few reasons. Firstly, they cost a lot more to manufacture, and you can't guarantee you will sell all of them. Secondly, you have to factor in shipping costs and physically ship the item around the world.

I have focused on virtual items for a long time and will continue to do so because sending the product is free, and the creation of duplicates (to sell) is also a free process. That's just me though

I know there is a lot of money to be made in selling physical products, I just, personally, wouldn't want to deal with that hassle right now.

Thanks
1 reply

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Matt Morgan

13 years ago

Originally Posted by ViperChill

I've personally never dealt with physical products, for a few reasons. Firstly, they cost a lot more to manufacture,

But the cost of production gets recovered when you charge a 'higher' price for the item. You can charge $300-$4000 for a Dvd/cd rom physical version.

Originally Posted by ViperChill

you can't guarantee you will sell all of them

I would love to meet somebody who sells 'all' of his products.

You can't guarantee you will sell all of virtual products either, but you can always improve your marketing funnel.

As for physical products, fulfilment companies each work differently.

Originally Posted by ViperChill

Secondly, you have to factor in shipping costs and physically ship the item around the world.

Similar reply to above, you charge higher, and most of all your affiliates can see the higher price and higher commission so can join the bandwagon to promote your product.

Virtual or Physical Product?.What is YOUR strategy and WHY?

If it is your first time then try the virtual first, just to get the idea of what is involved in product creation. After some experience you can try to move to the physical,

if you feel you are ready to try that. Don't just do it because I said!

[ 1 ] Thanks
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adils29

13 years ago

Originally Posted by Matt Morgan

But the cost of production gets recovered when you charge a 'higher' price for the item. You can charge $300-$4000 for a Dvd/cd rom physical version.

I would love to meet somebody who sells 'all' of his products.

You can't guarantee you will sell all of virtual products either, but you can always improve your marketing funnel.

As for physical products, fulfilment companies each work differently.

Similar reply to above, you charge higher, and most of all your affiliates can see the higher price and higher commission so can join the bandwagon to promote your product.

If it is your first time then try the virtual first, just to get the idea of what is involved in product creation. After some experience you can try to move to the physical,

if you feel you are ready to try that. Don't just do it because I said!

Thanks Matt:
Makes sense!..

Adil

Thanks
1 reply

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Devid Farah

13 years ago

Hi Adil,

Although i dealt with both,i prefer virtual products because of how easy it is to sell it and how much money you save in selling fees when comparing it to physical products.

You don’t have to pay for shipping. Everything is instant: customer pays, they download product.

There is no need to restock. You can easily “tweak” a virtually product if the sales aren’t good; if a physical product isn’t selling then you are pretty much stuck with it.

However, I do agree that the margin of profit is generally greater for physical products.

At the end of the day, it all depends on the demographics of the people you are targeting.

Thanks
1 reply

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adils29

13 years ago

Originally Posted by Devid Farah

Hi Adil,

Although i dealt with both,i prefer virtual products because of how easy it is to sell it and how much money you save in selling fees when comparing it to physical products.

You don't have to pay for shipping. Everything is instant: customer pays, they download product.

There is no need to restock. You can easily "tweak" a virtually product if the sales aren't good; if a physical product isn't selling then you are pretty much stuck with it.

However, I do agree that the margin of profit is generally greater for physical products.

At the end of the day, it all depends on the demographics of the people you are targeting.

Thanks Devid..Good Point about researching about your target market and what they are looking for!..I guess that is the first step before doing anything!

Adil

Thanks

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rickfrazier1 13 years ago

I'm not selling into the MLM space, but do sell both electronically delivered (digital)and physical products, in very different environments.

For general purposes, I like the ability to sell digital products without the hassles of manufacturing, warehousing, and shipping. On the other hand, there's nothing like selling a physical product to give you the feeling of accomplishment (I sell art objects).

For MLM purposes, I would expect the greatest long term results from selling physical products that are consumed (not hard goods, like art). Look at companies that sell diet supplements (vitamins, minerals, other supplements), or those that sell cosmetics. Both of these markets generate long term customers. If you can sell a good product that people like, they will continue to buy for a very long time. This makes for good MLM products. You can be assured that your customers will continue to purchase for a long time, and that you are selling into a market that is ever-expanding.

Perhaps a membership or continuity product would be similar for selling digital products via MLM, but even a good continuity product has a realatively short lifetime, compared to the physical products like supplements or cosmetics.
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- KEY 13 years ago
  
  been using Kunaki and will be a lot more in the
  future.
  
  being able to deliver videos on a DVD saves a lot
  of CPU and bandwidth and I feel that having a
  physical product laying around someone's workspace
  has got to keep you a few degrees more memorable
  in people's minds...add in that stealing your work is
  quite a bit more difficult.
  
  but that is for large video series, for smaller things
  it just makes sense to have immediate digital delivery.
  
  Thanks
  
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Virtual or Physical Product?.What is YOUR strategy and WHY?

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