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Difference Between Physical Products and Digital Products

Galib Hossen // 2021-10-18 //  Mins Read

Starting affiliate marketing is not so complex task but I have seen some confusing characters who don’t understand if they go through physical products or digital products. So today I will explain the difference between physical products and digital products to understand two types of products properly and I am sure you will not have any more confusion about physical and digital products.

Difference between Physical products and digital products

Physical products

Digital/Virtual Products


Not touchable

Product cost

No product cost

Delivery cost

No delivery cost

Store cost

No store cost

Low commission

High commission

Definition of physical and digital products

Physical Product

Physical product is product which can be touched physically and can be shipped to customer after selling it.

The examples of physical products are table, chair, laptop, mobile and anything which is physically touchable.


Digital Product

Digital products are the products which are not touchable, available only online and could sell only through digitally and only for digital use.

Some examples of digital products are software, ebook, video courses etc.

I hope you understand the difference between physical and digital products but there are different types of affiliate marketing facts depending on the difference between physical products and digital products which I will discuss now.

Affiliate marketing facts for physical products

Difference Between Physical Products and Digital Products

Manufacturing cost

Once the product is finished it needs to remake every time. Suppose your mobile, it is yours but a new mobile have to manufacture if your friend want a mobile also. With manufacturing cost it has some more cost.

Delivery cost

A physical product need to deliver somewhere to the customer after selling it. So manufacturer has to bear the delivery cost.

Store cost

Science physical products are touchable and it occupies a space so bearing the store cost is compulsory for physical products.

Out of stock

Physical products need to remake again and again and that’s why it is very possible to remain out of stock the product you are promoting.

Low commission

Now you can understand why physical products offer low commission. These four types of costs are responsible for getting low commission. It is very hard to get 20% of commission from a physical product.

Affiliate marketing facts for digital products

Difference Between Physical Products and Digital Products

No product cost

There is no product cost because software or ebook or a video doesn’t require to make repeatedly to sell it. So there is no product cost.

No delivery cost

A digital product doesn’t required to deliver anywhere after sale it. It just needs to download by a single click.

No store cost

Digital product doesn’t need to store anywhere if it needs it is not costly. Suppose a video, you can store it on your pc or your hosting server and that is not so costly.

Always in stock

Now it is easily to understand why you can get high commission by promoting digital product. I have seen the lowest commission rate in my marketing life is 30% and you can get highest 70% - 75%.There is no chance to get a digital product to be out of stock. How a video can be out of stock or how an ebook can be out of stock.

High commission

Now it is easily to understand why you can get high commission by promoting digital product. I have seen the lowest commission rate in my marketing life is 30% and you can get highest 70% - 75%.

My simple suggestion to choosing product type

Now you know what happens with physical products and digital products and I am sure that you are thinking to not to work with physical products. But this is a bad idea.

There are numerous amount of affiliate marketers are working with physical products and they are doing very well. It depends on your interest and your knowledge base.

If you want to go through digital products then well and going through physical product that also be well. Main thing is your affiliate marketing strategy, that should be perfect.

If you run it according to perfect strategy then both physical and digital products will able to make you suitable earn.

I suggest you, if you have any option on your niche to combine physical products with digital products then you should take that advantage. From my point of view it will be great idea.

Suppose you are in health niche then there are available plenty of physical and digital products. You can easily combine weight loss drinks or supplements with health related ebooks.

 As far I know most of the physical products have it’s related digital products. So visit 9 newbie friendly affiliate network to find your passionate product and try to combine. If it is not possible then no tension, go with your interest and start marketing strategically and you will sure be succeed.

I have found some low competitive micro niche for doing affiliate marketing. If you are interested to get succeed fast you should go through low competitive micro niche.


What I have told you by this time that was totally from my experience and my experience also say that hesitating about choosing physical products and digital products should be prohibited.

Go according to your interest and work with products which will help your user really.

Meet the host

An affiliate marketer with an addiction of travelling. He believes that nature starts working to make happen that people believe.

Having an incredible vision and persistence to never give up, he built his 6 figure online business with the power of belief, hard work and smart decisions.

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