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The Biggest Mistake I See Entrepreneurs Make When Creating Their First Digital Product

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Karen Davies, Online Business Coach

Written by Karen Davies

29 June, 2026

Over the last few weeks, I’ve been having lots of conversations with entrepreneurs as I’ve been preparing for the Online Business Growth Summit.

Although everyone comes from different industries, has different experiences and serves different audiences, one thing keeps coming up again and again. Almost everyone tells me they would love to create passive income as they’re tired of relying solely on client work and they are ready for something more scalable.

They know they have knowledge that could help more people but then comes the sentence I hear almost every time… “I just don’t know where to start.”

Last week I had a conversation with someone in my community who has been sitting on a brilliant business idea for years. She’d filled notebooks with ideas, researched online courses, watched countless YouTube videos and even mapped out what she wanted to teach but after years of thinking about it… nothing had been created!

As we chatted, it became obvious what was happening. She wasn’t struggling because she lacked expertise, she was struggling because she believed the very first thing she created had to be enormous. She thought she needed a complete online course with dozens of lessons, worksheets, videos, downloads, automations, sales funnels and launch strategies before she could ever make her first sale.

And honestly?

I think this is one of the biggest reasons so many talented entrepreneurs never create digital products.

We accidentally start at step twenty

I think social media has conditioned us to believe that success begins with a flagship programme. We see people launching memberships, group programmes and £2,000 online courses. What we don’t often see are the small products that came first… the experiments, the first sale, the lessons learned and the confidence that grew along the way.

It’s a little like deciding you want to run a marathon and assuming your first training session should be 26 miles. Of course you’d feel overwhelmed, you’d probably never leave the house!!!

Yet that’s exactly what so many entrepreneurs do with digital products.

Instead of asking, “What’s the smallest problem I could solve?” they ask, “How do I build the biggest thing possible?”. They’re trying to build the finished business before they’ve built the foundations.

The smallest product can create the biggest momentum

This is why I talk so much about micro offers as I genuinely believe they’re one of the easiest ways to start creating scalable income. Not because they’re a magic shortcut or because they’ll make you six figures overnight but because they help you move from thinking…

…to creating.

From creating…

…to selling.

And from selling…

…to believing that this really is possible.

A micro offer is simply a small digital product that solves ONE specific problem for ONE specific person.

It could be a planner.

  • A checklist.
  • A template.
  • A swipe file.
  • A workbook.
  • A short workshop.
  • A framework.

Nothing complicated, just something useful.

My own journey started much smaller than people realise

When people look at my business today, they see memberships, programmes, online courses and the Online Business Growth Summit but what they don’t always see is where it all started.

Long before I had a membership, I was creating resources for my coaching clients… worksheets, planners, workbooks and templates. Instead of leaving them hidden away inside my coaching business, I started packaging them into standalone products and people bought them.

Those same resources later became part of my group programmes and eventually they became part of my membership. The work I’d already done continued creating value in different ways. I wasn’t creating everything from scratch every time, I was building one piece at a time.

Looking back, I can see those small resources weren’t just products, they were building blocks.

Your first digital product isn’t about making millions

This is something I feel quite strongly about because there are so many unrealistic promises online.

You’ll see adverts claiming that selling a £27 digital product will automatically lead to a six-figure business. That’s rarely how successful businesses are built.

Creating scalable income still takes work… you need to create something people genuinely want and then learn how to sell it. You need to improve it over time and you also need systems that consistently bring people to your offers but here’s the exciting part… once those systems exist, they continue working for you over and over again!

That’s where true freedom starts… not because the work disappears but because the work becomes repeatable.

What problem are you already solving?

If you’re a coach, consultant, freelancer or service provider, chances are you’re already helping people every single day. In fact, you are sitting on a pot of gold… you have VALUABLE knowledge that you can monetise!

You’re answering the same questions, solving the same challenges and sharing the same advice. Your first digital product doesn’t need to teach everything you know, it simply needs to solve just ONE problem.

Ask yourself:

  • What question do people ask me over and over again?
  • What do my clients struggle with before they work with me?
  • What could I help someone achieve in under an hour?
  • What would save my audience time, stress or frustration?

The answers to those questions often become your first micro offer.

Sometimes the hardest part is simply giving yourself permission to start small

As I’ve been preparing for the Online Business Growth Summit this year, I’ve realised this… most entrepreneurs don’t need another hundred ideas, they don’t need another complicated strategy… they just need permission to stop overcomplicating the process.

Creating scalable income doesn’t begin with a huge online course, it begins with one small solution… one first product… one first customer and one first sale because every successful digital product business starts in exactly the same place with someone deciding that today is better than “someday.”

Perhaps that’s the real lesson… you don’t have to build the entire business today, you just have to build the first step.

Digital Products for Service-Based Entrepreneurs
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