“Should I sell digital products or offer services?” It’s a question every business owner faces at some point—whether you’re just starting out or you’ve already reached the ceiling with services and are looking for the next step. The answer? It depends on your goals, strengths, and the kind of business you want to build.
Digital products promise freedom: scalability, passive income, and a business that runs even when you’re not. They let you reach more people without adding hours to your calendar. Services, on the other hand, offer immediate cash flow, deeper client connections, and the opportunity to make an impact one conversation at a time.
Both paths have their appeal. And that’s precisely what makes the decision so tough.
As someone who’s built a business selling digital products, I’ve seen what they can do. But I also know the benefits of services are hard to ignore, especially if you thrive on one-on-one work.
This post breaks down both options—what they bring to the table, where they fall short, and how to choose or combine them in a way that fits your vision. Whether you’re leaning toward digital products or client work, this guide will help you find the right path to grow your business.
Explore the sections:
What Are Digital Products and Services?
Alright, let’s break down these two main paths: digital products vs. services. Like most things in business (and life), both come with their own set of pros and cons. Understanding the difference is key to choosing what works best for you.
What exactly are digital products?
Digital products are resources you create once and sell repeatedly. Think templates, toolkits, online courses, e-books—all the things people can download, use online, and access at their convenience. The appeal? Once your product is out there, it can keep generating income without you having to put in more hours. It’s a way to build a revenue stream that works for you 24/7.
Why offer digital products: If you want to grow your business without adding to your day-to-day workload, digital products are a smart option. They let you reach a broader audience and provide tools that people can use over and over. (For the record, they’re not a quick fix to any business. But when done right, they’re an incredible way to scale sustainably.)
And what are services?
Services are the other side of the coin. They’re all about working directly with people and applying your skills and expertise in real time. It’s hands-on and often tailored to the client, whether it’s consulting, coaching, or freelance work. You’re actively engaged, offering personalized one-on-one or sometimes one-to-many support.
Why offer services: Services are a quick way to start earning, giving you immediate feedback and the chance to build solid relationships with clients. If you thrive on connection and love the energy of real-time collaboration, services are a natural fit.
There’s a lot more to uncover. Let’s dive deeper, starting with a closer look at products.
Pros and Cons of Selling Digital Products
Digital products offer serious potential to grow your business in new ways. But it’s not a stroll in the park—it takes strategy and effort. Here’s a breakdown of their pros and cons.
Pros of Selling Digital Products
1. Passive (Detached) Income
Digital products bring the much-wanted "passive" income—the kind of sales that happen while you sleep, travel, or do anything but work.
For example, I got my first digital product sale while boarding a plane to Azerbaijan. My favorite? It came through while I was pushing a moving box into a van with a truck driver. And then there are the steady notifications that pop up while I’m fast asleep.
But to clear something up: the term "passive" often sets the wrong expectations. Some people make it sound like you can just put a product out there and watch the money pour in. And I hate to burst that bubble, but that’s not quite how it works. You’ll still need to promote your products, just like you promote your services.
The key difference? The income is detached from your time, location, and physical presence.
That’s why I prefer calling it detached income. It’s not 100% passive, but it offers freedom and scalability that traditional income streams can’t match. (Now we just need the rest of the internet to catch on to the new term.)
2. Scalability
Let's talk about scalability, one of the biggest advantages of digital products. Unlike services, where your income is tied directly to your time, digital products can grow without adding more to your workload.
For example, in June 2023, I created a new $10 resume template that brought in $20k in a year and literally paid for my yearly rent in Sweden (thanks to 2,000+ amazing people who bought it). That’s the power of scalability: the work you do once can keep working for you.
Yes, promoting it is still part of the equation (just like with a service), but here’s the key difference: a $1,000 service will always be a $1,000 service. To make another $1,000, you’d need to deliver the same service again. With digital products, even low-ticket items can sell over and over, multiplying your revenue without multiplying your effort.
As I see it, scalability means your work can keep earning for you while you’re diving into your next big idea, taking some time off to breathe, or simply living your life.
3. Reach a Larger Audience
Digital products let you help far more people than you ever could with services.
Take the 13,000+ people who've bought my resume and job search toolkits. If I were helping each of them one-on-one, it would take me years (decades even) to support that many job seekers.
With a digital product, my insights, strategies, and expertise are available instantly, anytime, anywhere—whether someone needs them at 2 am in New York or during lunch break in Singapore. (Or any of the 3,700+ cities my products have gone to.) It’s the kind of reach that’s impossible to achieve with services alone.
So, when you get into it, remember that you’re not just creating a product. You’re giving people access to your expertise, no matter where they are or when they need it. That’s what makes digital products a game-changer—they let you help more people in less time without sacrificing the quality of support you provide.
Cons of Selling Digital Products
1. Initial Time Investment
Let's start with the obvious: Creating a digital product takes upfront work. And it isn’t quick. While services let you start earning immediately, digital products require upfront effort—planning, designing, testing, and refining before you even make your first sale or have any guarantee that you'll actually sell one.
For example, most of my digital products take weeks to create and months to perfect. It’s not passive upfront—it’s an investment of time, energy, and creativity.
The upside? Once the work is done, you’re free to focus on promoting and scaling rather than starting over every time. But be prepared: creating something valuable takes time and effort.
2. Lack of Immediate Feedback
When you sell services, you’re working directly with clients, which means instant feedback. You know what’s working, what’s not, and how to adjust in real time.
With digital products, you don’t have that luxury. Sales might trickle in without much insight into what buyers love or what they’re struggling with. You’re left guessing, relying on reviews or surveys to gather feedback, which can feel slow and disconnected.
It’s a different kind of challenge: figuring out how to improve your product without the direct client interactions you’re used to.
3. Price Limit
Digital products can sell at higher price points, but they’re usually more affordable than services. You’ll find plenty of 3- and 4-figure digital products out there, but 5-figure options? Those are almost always tied to services. Services can command premium prices because they offer the hands-on, personalized experience clients are willing to pay for.
If you want to price a digital product at the top tier, you’ll need to deliver clear, high-value results or exclusive content that justifies the cost. Digital products are great for scaling, but when it comes to premium pricing, services still have the upper hand.
Okay, now that you know where digital products stand, let's see how the pros and cons of services.
Pros and Cons of Offering Services
Services are often the go-to for professionals who want to connect directly with clients and make an immediate impact. Whether it’s consulting, coaching, or freelance work, services offer unique benefits—but they come with their own set of challenges, too.
Pros of Offering Services
1. High-value pricing
When it comes to premium pricing, services have a clear advantage. Clients are willing to pay more for the personal touch, customization, and expertise that services provide. Whether it’s a $5,000 consulting package or a $1,000 coaching session, services offer the opportunity to charge top-tier prices in a way digital products can’t easily match.
This high-value pricing makes services an attractive option if you’re looking to hit revenue goals quickly without needing a massive audience. And because services often involve direct collaboration, clients feel they’re getting unique value that’s worth the higher price.
It’s about delivering an experience, not just a result, which is something clients are willing to pay a premium for.
2. Instant Client Feedback
One of the biggest advantages of offering services is the direct, real-time feedback you get from working with clients. This interaction doesn’t just help your clients—it also helps you improve your processes and refine your expertise.
For example, as a resume writer, you might hear back from a client immediately after they land an interview, giving you insight into which resume formats and phrasing resonate with hiring managers. Or, as a career coach, you might notice patterns during coaching sessions—like specific strategies that consistently help clients nail tough interview questions.
These real-time insights let you see what works (and what doesn’t) directly from your clients, helping you refine your services and stay ahead of trends.
3. Fast Path to Revenue
Services offer a quick way to start earning. There’s no need to spend weeks designing or testing like you would with a digital product. You can book a client, start working, and get paid—all within days or weeks.
This makes services a practical choice if you’re building a business from scratch or need immediate cash flow. Unlike digital products, where you might wait weeks or months to see significant returns (unless you have a large following or significant ad budget), services can provide a steady income right away. They also allow you to build credibility quickly, as each successful project adds to your reputation and network.
Cons of Offering Services
1. Time-Intensive
The biggest downside of services? Your time becomes the product. (That said, in a way, you become the product.) Every client project, coaching session, or consultation requires your direct involvement. And while high-value pricing can make up for it, there’s no escaping the fact that your income is tied to the hours you work.
For many service providers, this leads to long hours and limited bandwidth for other priorities. It also means your ability to scale is capped—there are only so many hours in a day, and taking on more clients often means sacrificing personal time or other opportunities.
2. Risk of Burnout
Services are inherently limited by how many clients you can take on. Even with a packed schedule, there’s a ceiling on your capacity. For example, if you offer one-on-one coaching sessions that take one hour each, working 40 hours a week would cap you at 40 clients per week—assuming you’re not doing any admin, marketing, or prep work (which we know isn’t realistic).
In reality, most service providers can only handle 10–20 clients per week, depending on session length, prep time, and other responsibilities. Reaching a global audience becomes even more challenging because you’re constrained by time zones, availability, and the hands-on nature of your work.
If your goal is to help thousands of people or build a business that runs without you, services alone might not be enough. While group coaching or workshops can help expand your reach, they still require significant effort, planning, and coordination. And even then, your reach will still depend on your availability and energy levels.
3. Risk of Burnout
With services, the combination of time demands, client expectations, and back-to-back projects can lead to burnout. When you’re always “on,” there’s little room to step back and recharge.
This can be especially true for service providers like career coaches or resume writers who work with job seekers. Supporting clients through high-stakes transitions, like landing a new job or navigating a tough job market, can feel emotionally heavy. When every project carries significant pressure to deliver results, the weight of that responsibility can add up quickly.
Burnout doesn’t always happen overnight, but without clear boundaries and downtime, it’s easy to find yourself drained—both mentally and emotionally. If your business relies solely on one-on-one services, it’s important to build in time to rest and avoid running on empty.
Digital Products vs Services: Differences and Comparison
Okay, coming down to the big question: How do digital products vs services compare? Here's the breakdown of their key differences:
ASPECT | DIGITAL PRODUCTS | SERVICES |
Income Model | Passive income that’s detached from your time—sales can happen anytime, anywhere | Active income tied directly to your time and presence with clients |
Scalability | Highly scalable—create once and sell repeatedly without extra work | Limited scalability—each new client or session requires your time and effort |
Pricing | Typically more affordable; 3-4 figure products are common, but 5-figure pricing is extremely rare | Higher price potential; services often command premium rates for the one-on-one, customized support |
Reach | Broad reach—available globally 24/7 for anyone who needs it | Limited reach, usually bound by your availability and sometimes location or time zone |
Time Commitment | Upfront investment to create and set up; minimal ongoing work afterward | Ongoing time commitment for every client and session |
Burnout Potential | Low risk of burnout once it’s all set up; can operate with minimal input | Higher burnout risk due to the continuous time and energy demands of client work |
Revenue Potential | High cumulative potential—sales add up over time, not limited by your time or availability | High per-client revenue, but limited by your available hours to take on and support new clients |
Next, we’ll dive into how to decide between digital products and services and explore which option best aligns with your goals, strengths, and lifestyle. By understanding both, you can choose the path (or mix) to set you up for sustainable growth and success.
Examples of Digital Products vs. Services
Sometimes, seeing examples makes it easier to decide which path might fit your business best. Here’s how career professionals like you can use both digital products and services to reach clients, each offering value in unique ways.
Example #1: Resume Writer for Career Changers
Service: A custom resume writing service for clients seeking a career change. This one-on-one approach allows for personalized feedback and tailored advice to align with each client’s unique goals and experience.
Digital product: A resume writing workbook designed specifically for career changers. Clients get DIY guidance tailored to their needs, helping them take action immediately without waiting for one-on-one help. For resume writers, it’s a scalable way to serve more people while reducing the hands-on time commitment.
Need inspiration for your resume writing business? See more digital product ideas for resume writers.
Example #2: Career Coach for Parents
Service: A 12-week 1:1 career coaching program designed to help parents gain career clarity and redefine their goals after growing their family. This personal approach offers in-depth guidance, ongoing support, and a customized plan to fit each client’s priorities and lifestyle.
Digital product: A 7-Day Job Application Revamp Toolkit for parents looking for family-friendly jobs. This toolkit provides step-by-step instructions to update resumes, cover letters, and LinkedIn profiles with flexibility in mind—perfect for parents who need quick, actionable solutions. For career coaches, it’s a way to extend their expertise to more clients who might not have the time or budget for one-on-one coaching.
Want more digital product ideas? Check out this list of 23 digital product ideas for HR and career professionals.
These examples show how digital products offer accessible, scalable solutions while services provide a deeper, more personalized experience. Together, they create a balanced approach—giving your clients flexible options to choose from and freeing up your time in the process.
How to Decide: Are Digital Products or Services Better for You and Your Business?
Figuring out whether to go with digital products or services isn’t just about picking one over the other—it’s about choosing what makes the most sense for you, your clients, and the business you want to build. Both paths have their perks, but the best choice depends on your strengths, how much time you want to commit, and where you want your income to go.
Key Factors to Consider
Your strengths: Start by asking yourself: what do you actually enjoy doing? If you love writing, designing, and creating resources people can use anytime, anywhere, digital products could be your thing. But if you get energy from guiding people directly and thrive on one-on-one connection, services might just be the perfect match.
Desired time commitment: Digital products take upfront effort—you’ll need to invest time to create and set them up. But after that, you have a lot more flexibility. Services, though, mean you’ll be hands-on with clients, so your time commitment is ongoing. If you want a flexible income that doesn’t depend on your schedule, digital products might be ideal. But if you’re okay with regular client work, services could be a great fit.
Income goals and scalability: Think about how much you want to earn and whether you’re looking for growth that isn’t tied to your hours. Digital products are perfect if you’re aiming for scalable, recurring income that can grow without adding more hours. Services can bring in high fees, but they’re naturally limited by the time you can personally commit. (If you've already maxed out your client capacity, you know which option will help you grow.)
5 Questions to Help You Choose
Alright, it's time for the ultimate test on digital products vs services. Answer these five questions to decide what's the right fit for you:
Question #1: When you picture your ideal workday, is it more flexible and independent, or do you thrive with a structured schedule and direct client time?
Question #2: Does the idea of setting things up to run on their own excite you, or do you feel more fulfilled by working hands-on with people?
Question #3: Are you motivated by the idea of generating income even when you're not directly involved, or does the satisfaction of direct client relationships mean more to you?
Question #4: Do you get excited by the thought of reaching a large audience, potentially thousands, or do you find more value in one-on-one connections?
Question #5: When you think about your future business, do you see something that works for you 24/7 in the background, or do you picture a client-based model where you’re involved every step of the way?
At the end of the day, both options let you build a sustainable, fulfilling business. Weigh these factors, ask yourself these questions, and you’ll have a clearer sense of which path (or combination) will suit you best.
How to Build a Business Using Both Digital Products and Services (Hybrid Business Model)
Finally, what if the choice isn’t digital products vs. services? What if the answer is using digital products AND services together?
Combining both lets you build a balanced and sustainable offer suite. With digital products, you have passive, scalable options that can reach a wide audience without constant time investment. Services, on the other hand, bring a hands-on element, letting you connect directly and offer personalized support.
By stacking digital products and services, you can create an offer ladder that serves clients at different levels, from affordable self-paced options to high-touch, premium experiences. This hybrid approach gives you the flexibility to grow your business with stable income streams and meaningful client impact.
Curious about how this could look? Explore this guide on the hybrid digital-products-and-services business model for career service providers.
Final Thoughts on Digital Products vs Services
Whether you choose digital products, services, or a mix of both, the best option depends on your strengths, goals, and the business you want to build. Digital products offer scalability, freedom, and the chance to reach more people, while services provide high-value pricing, deep client connections, and immediate results.
There’s no one-size-fits-all answer, but by understanding the pros and cons of each, you can create a path that works for you and your clients. The real win? Designing a business that aligns with your vision and gives you room to grow.
Ana Colak-Fustin
Hi there! Thanks for reading. I'm Ana—founder of ByRecruiters.com. My business and career advice has been featured in Business Insider, Fast Company, Yahoo News, The Muse, and other global media. Plus, I've helped over 10,000 job seekers through digital job search tools. Ready to add done-for-you digital products to your HR or career services? Check them out here.