The digital product industry is booming, offering entrepreneurs two major ways to profit: resell digital products or creating their own from scratch. Both have their pros and cons, but which one is more profitable in the long run? Let’s break it down step by step with real-world examples, advantages, challenges, and profitability potential.
Understanding the Two Models
1. Reselling Digital Products
Reselling digital products means purchasing or acquiring ready-made products (with resell rights, PLR, or white-label licenses) and selling them as your own. You don’t have to create anything from scratch.
Examples of Resellable Digital Products:
- PLR eBooks, courses, and guides
- AI-generated templates (Notion, Canva, Excel)
- White-label software and SaaS products
- Pre-designed social media templates
- Stock music, videos, and images
How It Works:
- You buy PLR (Private Label Rights) or white-label rights.
- You rebrand or modify the product if needed.
- You sell it on marketplaces like Etsy, Gumroad, or your own store.
2. Creating Your Own Digital Products
This involves building a completely unique product from scratch. You control everything—from the idea to execution, branding, and pricing.
Examples of Self-Created Digital Products:
- Online courses
- Membership sites
- Premium e-books or audiobooks
- SaaS tools and automation scripts
- Custom-designed UI kits or templates
How It Works:
- You research market demand and find a niche.
- You create the product (e.g., writing an eBook or recording a course).
- You market and sell it on your website or marketplaces.
Pros & Cons of Reselling vs. Creating Digital Products
Resell Digital Products
Pros:
- Low upfront investment (PLR/white-label products cost $10-$100)
- Instant time to market (Buy & Sell)
- Minimal effort required
- Good for quick earnings
Cons:
- Lower profit margins (since others sell the same product)
- Limited branding opportunities
- High competition
- Sales depend on trends
Create Your Own Digital Products
Pros:
- Higher profit margins (unique products can be premium-priced)
- Full control over customization and branding
- Long-term scalability
- Can become a recognized brand
Cons:
- Requires more time and effort
- Higher initial investment (if hiring developers or designers)
- Riskier if the product fails
Profitability Breakdown with Real Examples
Example 1: Selling an Online Course
- Reselling: Buy a PLR course on “Affiliate Marketing” for $50, rebrand it, and sell it for $30 per sale. Selling 50 copies = $1,500 profit.
- Creating: Develop your own course and price it at $199. Selling just 10 copies = $1,990 profit.
Winner? Creating your own course has higher profit potential but requires more effort.
Example 2: Selling Social Media Templates
- Reselling: Buy a pack of 100 Canva templates for $20, rebrand them, and sell them for $15 per set. Selling 100 sets = $1,500 profit.
- Creating: Design unique templates and price them at $30 per set. Selling 50 sets = $1,500 profit.
Winner? Creating your own templates lets you charge more, but reselling has an easier start.
Example 3: Software & Automation Tools
- Reselling: Buy a white-label chatbot SaaS subscription for $50 per month and resell it for $20/month to 20 clients → Monthly profit = $400.
- Creating: Develop your own automation tool for $5,000 in development costs and charge $50/month to 50 customers → Monthly profit = $2,500.
Winner? Creating software is more profitable in the long run but has a higher upfront investment.
Which is More Profitable? (Short-Term vs. Long-Term)
If You Want Quick Money → Resell Digital Products
- You can start today with low investment.
- No need for technical skills or product creation.
- Great for side income but harder to scale long-term.
If You Want a Long-Term Business → Create Your Own Digital Products
- Higher income potential due to premium pricing.
- Less competition because your product is unique.
- Can be turned into a full-time business or brand.
Best Hybrid Strategy: Start with Reselling, Then Create Your Own
If you’re unsure which path to choose, start with reselling digital products to learn how online selling works. Once you understand demand & customer preferences, create your own unique version and charge premium prices.
Step-by-Step Strategy for Maximum Profitability
Start Reselling (0-3 Months)
- Buy PLR courses, templates, or white-label software.
- Sell them on platforms like Etsy, Gumroad, or your own store.
- Test different products to find high-demand niches.
Improve & Modify (3-6 Months)
- Add unique value to PLR products (better branding, extra features).
- Bundle multiple digital products together for higher pricing.
- Learn marketing tactics to grow sales.
Launch Your Own Product (6+ Months)
- Identify which digital product sells best and create a unique version.
- Offer exclusive features to stand out from competitors.
- Build a brand instead of just selling generic products.
Final Verdict: Which One Should You Choose?
- If you want a low-risk, low-investment side hustle → Start with reselling digital products.
- If you want a long-term business that builds a brand → Focus on creating your own products.
- If you want the best of both worlds → Resell first, then create unique versions for higher profits.
Key Takeaway
Short-term profits? Reselling is easier. Long-term wealth? Creating is more profitable. Smartest move? Start with reselling, then transition to your own product to maximize earnings!