8 Mistakes to Avoid When Building a Digital Product Business

  • Post last modified:January 20, 2025
  • Post category:Business
  • Reading time:12 mins read
You are currently viewing 8 Mistakes to Avoid When Building a Digital Product Business

Starting a digital product business is exciting. You’ve got ideas, motivation, and a vision of turning your expertise into something profitable. But let’s be real for a second—building a digital product business is not all smooth sailing. There are some common mistakes that can trip you up, especially if you’re starting out. The good news? You can totally avoid them with a little heads-up.

In this post, we’re going to chat about some of the biggest mistakes new digital product creators make—and how to sidestep them—so you can build a successful business without unnecessary headaches.

#1 Skipping the Research Phase

We’ve all been there—so excited about an idea that you just want to dive in and start creating. But before you get too far, it’s crucial to do your research. One of the biggest mistakes is creating a product that you think is amazing, without knowing if there’s a demand for it.

Here’s how to avoid it:

  • Talk to your audience: Whether it’s through social media, an email list, or even friends and colleagues, ask people in your niche what problems they’re facing or what kind of solutions they’re looking for.
  • Validate your idea: Create a survey, run a poll, or even test the waters with a freebie to see if people are interested in what you’re offering. It’s much better to pivot early than spend time on a product no one will buy.

#2 Trying to Be Everything to Everyone

When you’re just starting out, it can be tempting to create a product that appeals to the masses. After all, the bigger your audience, the more sales, right? Wrong. One of the most common mistakes is not niching down enough.

Why it’s a mistake:

  • Trying to appeal to everyone usually results in a generic product that doesn’t speak to anyone specifically. People want solutions that feel tailor-made for them.

What to do instead:

  • Get specific: Focus on a niche where you can really provide value. Who are you creating this product for? The more specific you are, the easier it will be to market your product and connect with the right audience.

#3 Overcomplicating the Product

New creators often think that to be successful, their digital product needs to be massive—a 20-module course with worksheets, videos, quizzes, and bonus materials. While it’s great to offer value, more doesn’t always mean better.

Why it’s a mistake:

  • Overcomplicating your product can lead to overwhelm—not just for you as the creator, but also for your customers. Plus, it can delay your launch by months as you try to get everything “perfect.”

How to avoid it:

  • Start small: Focus on delivering one solid, actionable solution. A shorter, more concise product can be just as effective (and easier to create). You can always add more content later or create new products as you grow.

#4 Ignoring Marketing Until After the Launch

Let’s say you’ve spent weeks (or months) creating the perfect digital product. You’re proud of it, and now you’re ready to launch it to the world. But here’s the thing—if you haven’t been building your audience and creating buzz beforehand, you’re setting yourself up for disappointment.

Why it’s a mistake:

  • Too many people think that if they just launch, customers will come. But without an audience, it’s like throwing a party without sending out invitations.

What to do instead:

  • Start marketing early: Build your audience while you’re still in the creation phase. Share behind-the-scenes content, run a waitlist, or offer a freebie to get people interested before you launch. That way, when it’s time to sell, you’ve already got an engaged group of people ready to buy.

#5 Underpricing Your Product

Pricing can be tricky, and one of the most common mistakes is setting your price too low. It’s easy to think, “If I make my product cheaper, more people will buy it.” But that’s not always the case.

Why it’s a mistake:

  • When you underprice your product, you can devalue it. People may assume it’s not high-quality, or you’ll end up attracting buyers who aren’t serious about solving their problem.

How to avoid it:

  • Price based on value: Focus on the results your product provides, not the amount of content. If your product can save someone time, make their life easier, or help them make more money, it’s worth more than you think. Don’t be afraid to charge what your product is worth!

#6 Not Testing Your Product Before Launching

Another rookie mistake is launching your product without ever testing it. You might assume that once it’s live, people will just figure it out, but that’s a risky move.

Why it’s a mistake:

  • Without testing, you run the risk of launching with errors, confusing instructions, or missing elements. That can lead to refunds, bad reviews, and frustration for both you and your customers.

What to do instead:

  • Test with a beta group: Before launching, offer your product to a small group of people at a discount (or even for free) in exchange for feedback. This allows you to fix any issues and improve the product before releasing it to the wider public.

#7 Doing Everything Yourself

As a new business owner, it’s tempting to try and handle everything on your own—product creation, marketing, website design, and customer support. But one of the biggest mistakes you can make is trying to wear all the hats, especially as your business grows.

Why it’s a mistake:

  • Burnout is real. Plus, you can’t be an expert at everything. Trying to do it all often leads to lower-quality work, missed opportunities, and wasted time.

How to avoid it:

  • Outsource or automate: Focus on what you’re best at and find ways to outsource the rest. You can hire freelancers for things like design or copywriting, or use tools like Zapier to automate repetitive tasks. This frees up your time to focus on growing your business.

#8 Giving Up Too Soon

This is a big one. Building a digital product business takes time, and it’s easy to get discouraged if you don’t see immediate results. But giving up too soon is one of the biggest mistakes you can make.

Why it’s a mistake:

  • Success doesn’t happen overnight. It’s easy to look at other entrepreneurs who are killing it and feel like you’re not doing enough. But the truth is, most of them struggled in the beginning too.

What to do instead:

  • Be patient and persistent: Focus on the long game. Keep refining your product, marketing strategies, and audience-building efforts. Every small win is progress, and with time and consistency, those wins add up.

Learn from Mistakes, but Keep Moving Forward

Starting a digital product business is an incredible journey, but it’s not without its challenges. The key is to learn from your mistakes, adjust your strategy, and keep moving forward. Don’t be afraid to try new things, fail, and pivot when needed.

Mistakes are part of the process, but they don’t have to stop you from achieving success. With the right mindset and a willingness to learn, you’ll be well on your way to building a thriving digital product business. Remember, every entrepreneur makes mistakes—it’s how you respond to them that counts!

Join the community

Gain access to my library of free eBooks, Guides, Templates, and more!