Digital Products on the Web: Pricing Issues and Revenue Models

Abstract

Products that exist in digital form can be bought, sold, and, in some cases, delivered, online. The pricing issues that arise in the sale of these products are different from those that sellers face when pricing physical goods and can lead to interesting opportunities for devising revenue models. The success of revenue models for companies that sell digital products depend on the nature of the product, the characteristics of the buyers, and the traditional practices in the industry. This chapter examines the nature of digital products, their pricing issues, and the efficacy of various revenue models that have been implemented by companies that deal in digital products.