How Do I Choose the Right Digital Business for Myself?
A Simple Guide to Follow
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1. Know the Environment
Before you jump into any business model, it’s very important to understand the environment where you’ll be working. The digital space isn’t the same for everyone. A SaaS company works very different from a content creator or a store. Each model has its own needs, customer interaction styles, and chances for huge growth. So, the first step is to watch, learn, and think about where you want to go.
Ask yourself:
- What is my main product or service ?
- Who is my audience ?
- What problem am I helping them with ?
- Do I want to sell items, services, information, or experiences ?
By answering these questions, you can narrow down your options.
Your answers can show you the way to different digital business models, such as online stores, digital media, Software as a Service, freelancing, or consulting.
2. The Online Store Route: Sell Items or Digital Goods
Online shopping has grown a lot, especially with sites like Shopify, Etsy, and Amazon giving simple, scalable solutions. But you need to decide if you want to sell actual items or digital goods. The first option means handling stock, shipping, and customer service, while the second usually has lower costs but needs a strong marketing strategy to get people to download or access digital products.
Actual items are good if you have a special product, a niche market, or want to use existing platforms (like Amazon) to reach a worldwide audience. But that also means dealing with supply chains, returns, and keeping track of stock.
Digital goods (think e-books, classes, software) lessen these logistics pains but have their own challenges; competition can be fierce, and marketing is super important for success. Plus, you have to make sure your product is still valuable or always interesting to get returning customers.
3. Subscription-Based Plans: Create Regular Income
A subscription business plan makes money that keeps coming in. From subscription boxes to streaming services, the benefit is clear: steady cash flow. This model builds a loyal customer group over time. You’re not only selling a product or service; you’re building a community.
However, before jumping into this space, you should ask:
- Can I give enough value for customers to stay with me month after month?
- How will I keep my subscribers happy and reduce dropping out?
- What content or service can I offer regularly?
For example, SaaS companies thrive on subscriptions. But so do content makers who give premium memberships for special content, or even fitness guides who offer tailored workout plans.
Subscription models work best when there’s a steady flow of new value. Whether it’s regular updates to your program, a box of goodies, or unique content, if you can’t keep your customers returning, your business will have trouble lasting.
What do I do here?
I personally offer this newsletter in a subscription model which allows you to use community features on posts like commenting, gives access to deeper dives on free articles (members access guides, prompts, and action steps) + full library access. I do not charge big prices for this as I want the value to always be there for a very low cost that’s worth it to you and me to keep creating. (Find the right balance and stick with it your audience appreciated consistency.)
4. Freemium to Premium: Grow with Value
The freemium model has become very popular in the digital age. The idea is simple: give a free version of your product or service to attract users, and when they see its worth, encourage them to buy a premium version with more features, content, or benefits.
Examples like Spotify, LinkedIn, and Dropbox have done this well. However, freemium comes with a few challenges:
- How do you get free users to become paying customers?
- What extra features can you give that make the premium worth it ?
- How do you make sure your free version gives enough value to keep people interested ?
It’s a tricky balance—give too much away for free, and users might not want to upgrade; give too little, and you may fail to catch their interest. If done right, though, this model can grow very well and turn a simple idea into a profitable business.
5. Affiliate Marketing: Use Other People’s Products
Affiliate marketing isn’t about making your own product—it’s about selling others' products and getting a cut from each sale made through your unique link. In the influencer and blogging age, this model has grown fast.
Affiliate marketing works best if you have:
- A solid audience or platform (like a blog, YouTube channel, or Instagram presence).
- Trust from your followers—people are more willing to buy based on your recommendation if they think you're genuine.
But affiliate marketing needs a plan:
- How will you promote these products ?
- Which items fit best with your audience’s wants ?
- How can you boost your affiliate work without annoying your followers?
This model can make good money if you pick items with high commissions and find smart ways to blend them into your content. But it’s not a quick money scheme. It takes time to build trust, create your platform, and grow your audience before the commissions start coming in.
What do I do here?
I think of my affiliate offers as “my sub products”. This simply means I treat the as my sponsors or partners because they are. I do not market random items because that to me is low value. Instead I focus on a few core items (higher price tags) but they are the ones that will give you the most benefit
Thrivecart (lifetime course funneling sales system)
Hypefury (social media planner, writer, scheduler)
Convert Box (website sales management/ assistant)
An the occassional 1 or 2 based on my testing… the point is if you are going to add in affiliate products focus on a few core ones so your audience sees you using them more then a week. Thats the real key. (and try not to promote things you are not using unless you are running sponsored ads which is completely different)
6. Consulting/Coaching: Share Your Knowledge
If you’re skilled in a certain area, turning your expertise into a digital business can be greatly rewarding. The consulting or coaching model uses your skills to help others solve specific problems. Whether you’re showing people how to improve their digital marketing strategy, guiding entrepreneurs through their path, or coaching managers on leadership, there’s a market for almost any skill.
In this model, your time becomes the main product. But how do you grow when you’ve only got a limited number of hours each day? There are some pathways to consider:
- Group coaching lets you help many clients at once, raising your income per hour.
- Online classes are a natural way to turn your one-on-one knowledge into extra income.
- Workshops or webinars let you connect with a wider audience while giving hands-on help.
While the rewards can be great, especially if you’ve made a strong personal brand, there’s a challenge in constantly attracting clients. You’ll need to succeed at promoting your services and have a good way to manage clients.
7. The Creator Economy: Connect & Make Money
The digital creator economy is growing fast. Whether you’re a blogger, YouTuber, TikTok star, or podcaster, making money options are many. But how do you choose the right model in a field that seems so mixed?
- Advertising and Sponsorships: If you’ve built a strong audience, ads and brand sponsorships can be a big income source. This model works when you have good engagement and can draw advertisers wanting to connect with your audience.
- Selling Goods: If you have a personal brand or a loyal following, selling custom products (like T-shirts, mugs, or posters) can supplement your digital efforts.
- Tips and Donations: Platforms like Patreon let creators make money from their followers’ generosity in exchange for special content.
Success in the creator economy needs not only skill but a deep understanding of connection—how you communicate with your audience is more important than anything else. The more loyal and invested they feel in your story, the more likely they’ll want to support you financially.
Conclusion
The great thing about digital business models is that they are adaptable. There’s no single answer, and the key to doing well lies in knowing your own goals, strengths, and resources. Whether you choose SaaS, freelancing, online shopping, or content creation, what really matters is finding the right model for your way of life, skills, and dreams.
So, take time to investigate, try things out, and think. Your perfect business model will show up when you realize where you can add the most value—and where your passion lies. In the end, picking the right digital business model isn’t just about following the latest fad. It’s about playing to your strengths and creating a path that matches your long-term goals.
What to do Next? This is what I offer & How I Can Help You…
If you want to take a course they are about 3-4 hours long, provide targeted teaching, and you get your own members dashboard or you can become a member of this newsletter which is a great first step.
1.➡️ Digital Business Systems: Learn how to Create a content production system, Profitable Digital Products, & Grow an Audience that you can earn an income with in the creator economy.
2.➡️ Become a Member: Learn how to create multiple streams of income: You’ll get V.I.P. access to my business, research, and weekly Set Up Guides for building your brand that anyone can do. (Usually found in the members section at the end of the Free articles)
3. ➡️ Join my coaching program: I’ll help you grow your business by helping you define your target customer, create compelling products and services, generate more sales, and create systems that do the hard work for you. For serious entrepreneurs only.