Digital Asset Bundle Business Model Breakdown
In the spring of 2020, I helped a few creator friends of mine launch a digital product website called Creator FX. The premise was simple, yet fascinating. They got a few dozen creators to submit a digital asset. In this case, it was assets for video editing, like project templates, LUTS, and overlays. Each digital asset ranged in price from $10-$100 on their own. Creator FX put all those digital assets in a huge .zip file and sold them all as a bundle for $100 total. There were over 50 assets in the bundle, worth over $1400 on their own.
But for 10 days, Creator FX sold the bundle at an unprecedented price. And made a killing.
I wanted to break down this business model because it’s a model that had previously been impossible before the digital age.
To start, each creator who contributed to the bundle was given a unique sales link. For every sale generated through their link, the creator kept 70%. The remaining 30% went to Creator FX to pay for hosting, and cover profit. Now, every creator is incentivized to drive traffic to the site.
With physical products, this business model has multiple caps. There’s only so much they could have made doing this with physical products. First, physical products take up physical space. So Creator FX Bundle, or the creators who contributed to it, would have needed storage for their products. At some point, storage space runs out, limiting inventory and the amount that could be sold. Second, physical products have hard costs. They can never be completely free, because they’re made from physical resources. So the ability to give a bundle of physical products a 93% discount is incredibly unlikely. Third, physical products cost time and money to ship, especially when you package dozens together at once.
None of these restrictions apply to digital products.
It’s not that digital products don’t have value. It’s that the value is subjective to whatever the creator spent on making the digital asset. It could be time, it could be research, it could be a team. But once the digital product is created, and everyone has been paid out, the digital product essentially becomes free. It can be sold at whatever price is most profitable.
Of course things like copywriting, customer support, web hosting, credit card fees, come into play when selling things online. But many of those are fixed costs, or are costs that scale directly with the number of sales.
To sum it all up, the digital asset bundle gives customers an insane deal, it gives creators an incredibly valuable proposition, and it gives whoever hosts the whole thing a ridiculous opportunity.
P.S. Did I mention that I wrote copy for the landing page, the sales page, and the product descriptions that turned Creator FX’s clicks into $375k of sales in 10 days? Now I did. Did I mention I can write copy for you? Now I did. Contact me.
