SELLING SOFTWARE: WHAT ARE THE COSTS

A nice benefit of selling software online is that you simply do not have the big expenses associated with businesses that sell physical products.  You don’t have inventory or storage costs, because you don’t have to keep anything on hand. You don’t have packaging and shipping costs, because you don’t have a physical product to package and then ship.  You don’t even have reproduction or manufacturing costs, because you don’t have to create anything except a link where people can download their software.

With no inventory to keep on hand and ship, that also means that you don’t have to spend money leasing warehouse or office space, nor do you have to pay for gas and other transportation costs to get to and from your office and the post office.

In many cases this also eliminates the need to hire employees (at least at the beginning), because you don’t have extra work to do such as keeping track of inventory, shipping, answering phones, fulfilling orders, etc.  With an online business selling digital products, many people can make a six figure income without the need for employees.

When you do sell a product, your actual expenses involved in that sale will be very minimal.  This doesn’t take into account the marketing expenses involved in making a sale, as those are investments – once you get a customer, that customer is yours for life if you treat them well.  As such, any marketing expense (such as paying an affiliate a commission) is really an investment that grows.

So what is your real cost for this business of selling software online? You want to know?? Then come back....
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