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A business in digital downloads provides downloadable media to a computer or network media player. In order to get specific content downloaded, the consumer will go to your website and save it to their computer for later reference or use. After downloading a file, it stays on the customer’s computer for an indefinite amount of time. This can be useful for items that customers need to reference frequently.
Industries that sell downloadable documents can be anything from ebooks to accounting. Whole businesses have been created through this venture. Content downloads is one of the business types where a ‘plant it and let it grow’ stance is best. Provide the value and the customers will come.
If you are pursuing the idea or already own a digital download service, now is the perfect time. The market is growing rapidly and there is certainly a profit to be made. Below are a few facts if you are thinking of offering digital downloads to customers.
Digital Downloads Popularity
Digital downloads have become popular very quickly. There are several reasons why consumers choose downloading digital products rather than physical copies:
- Takes up less room. When consumers choose to download content there are no boxes, storage sleeves or containers, books that take up space in the home or office. In the case of e-books, it is so much easier to carry 20 books downloaded to a tablet than to physically carry the same 20 books.
- Better for the planet. With digital downloads there is no plastic or paper being used. A no-waste frame of mind is popular nowadays. Doing your part to reduce consumption of consumables will pay off over time.
- Less expensive to purchase. Books and video games cost much less with the use of digital downloads. Avid readers and gamers have come to appreciate digital downloads and the money it saves them.
- More options for plug-ins and integrations. Nearly every platform out there sells downloadable content in one shape or another. Publishers sell online versions of best selling books, Accounting softwares sell plug-ins to streamline services, and research firms sell access to their statistics and findings.
Disadvantages of a Content Download Business
Most people have taken a liking to the birth of digital downloads. But, there are still those out there who do not feel the same way. A few of the reasons why some of the public does not like content downloads is what is being written about them in media.
The Legal Aspect
There are consumers who do not understand the legalities involved with digital downloading and are nervous about downloading anything that may not be legal.
Viruses and Security
Consumers are afraid of their media device or computer picking up a virus or the security not being good. With the security issues still on everyone’s minds there is the chance that a consumer may pick up a virus or have security issues if they visit a dishonest website to download something.
As technology advances the quality of files is improving but there is still a hold on nostalgic pieces. Some people say that the music from a record is better than from an MP3 player while others prefer physical books rather than a digital screen. In some cases this is an insurmountable hurdle.
Loss of materials and upgrades
As great as digital downloading is there is always the fact that something a consumer has purchased and stored could disappear. In the gaming niche, many users are fearful that the business offering digital download games will shut down and everything they have paid for will disappear. Unfortunately, this has happened to many consumers and made them leery of trusting content downloads.
There will always be a few who do not trust digital download services offered but many consumers welcome the convenience and cost.
Millions of digital downloads are being sold on a daily basis in the United States. According to Digital Sales Data, in the last 24 hours alone artist Lizzo had over 4389 downloads of the song Truth Hurts. This is just one example and not even counting those millions who are downloading books and video games.
Beginning in the Content Download Business
In the next 10 years about 70% of human-centric jobs will be outsourced to the tech industry, according to Truic Startup Savant. So, knowing that information this is a great time to begin this type of business. Here are a few more reasons to start a content download business.
Setup for a business such as this is easy. They require some effort to get up, but little effort to continue going. Also, the startup costs for an endeavor like this is very low. The only cost to consider is the website and possibly the content. Work flexible hours and focus mainly on marketing and advertising the company.
Online Content Downloads are High Risk
One of the only consistent problems with owning a digital download service is obtaining a merchant account for it. All too many times a business owner will have everything in place and then try to open a content downloads merchant account with a traditional bank. The surprise comes when they are told that their business is too high risk. Traditional banks frown upon businesses that are run solely online. A high fraud rate and increased chargebacks hinder the industry from obtaining a traditional online credit card processing account.
There are more than a few honest companies out there that have been turned down for merchant accounts because they do business solely on the internet. Then add in the amount of fraud and chargebacks that takes place and the dishonest digital download businesses. Traditional banks are just not interested in the risk, even though there are ways to mitigate them proactively.
The only way that your business can get a merchant account is through a high risk merchant account provider. These experts work with the best-known financial industry leaders to get your business a valid and secured merchant account. Being able to process and accept customer payments is what will keep your business thriving.
When searching for the right high risk merchant account provider for your company be sure that they have handled your industry type before. You want the confidence that your merchant account is in good hands while you concentrate on day to day of your business.