How to determine the cost to create your digital product?

Your aim here is to determine if the cost of making the product allows you to make a profit. In other words, can you create, produce, and market a product and make a profile with consideration to what the customer is willing to pay?
The good news is that if you’re developing it at home, for example, in the evenings after work, there may be few overheads. You can also save money by promoting the product on social media sites, guest posting, and writing articles for industry publications.
However, as you begin to scale, which hopefully happens if the business kicks in, you’ll need to allocate some funds to the following areas:

  1. Advertising cost – the cost of ad campaigns for your product, for example, Google Adwords, Facebook Ad, as well as in newspapers, sponsored posts, or offline advertising.
  2. Distribution cost – if you’re selling digital downloads, such as online courses or ebooks, you’ll need someone to take the payments as well as help setup affiliate programs. The most popular include Clickbank $49.95 to setup plus percentages of each sale, $5/month, Shopify, 1ShoppingCart, Digital River and a range of others.
  3. Production cost – how much does it cost to hire a software developer, graphic designer, voice-over artist for tasks that you may not be able to handle?

Of course, you may be able to do this yourself but the time, cost, effort and quality may delay your product development. In retrospect, trying to do everything myself just to save a few hundred dollars was a mistake.
For example, I got ALL the graphic design work for this site for less than eighty dollars on If I tried to do this by myself (as I did in the past) it would have taken weeks and the results would have looked amateurish anyway. Now, it finally looks professional. I’m certain this helps sales.