An info product is any product that can be digitally created, sold, and transferred to your customer. Information products have almost zero production, storage, or distribution costs. This gives info products a nearly 100% profit margin and an ability to scale that other product types can’t compete with.

Common examples of info products consist of computer software, apps, courses, e-books, dating sites, etc. We have a list of info-product examples later in this post.

Info Products Have No Production or Distribution Costs

I got my start selling white-label physical products through Amazon.com. While it doesn’t sound very complicated, there are a ton of costs from this business model.

First, you have to buy the product from the manufacturer, pay a freight forwarder to have it shipped to the US, pay import taxes at customs, the list goes on. With physical products, you get nickelled and dimed at every step of a long supply chain.

Selling digital products cuts out all of those costs. When a customer purchases, the end product is transferred from your server to their computer at the speed of light. This makes it a fantastic business model for small players. They won’t need to negotiate the best rates with a dozen people in the supply chain.

The scariest moment of my physical products business was the first big order of widgets that I made. I had to spend $20,000 to get 1,200 widgets from China to California with no guarantees that I’d make that money back.

It was a scary 5-week wait, but the products arrived, and they sold out instantly. Great news! Except I now had to wait another 5 weeks to restock the widgets so I could continue selling. During those 5 weeks, I lost thousands of customers and my high Amazon ranking.

With info products, you don’t have the same limitations on how many widgets you can sell. Stocking 100,000 copies of computer software are no different than stocking 1. This means you can go from a tiny business to a substantial business overnight.