The Four Types of Offerings Every Online Business Delivers
2.1 Offering
If you have a running business already, you likely have your first products and services figured out. That is your offering. But in that case too, we invite you to listen to this section. Certainly, if you are starting from scratch, it will be very useful for you to now understand the four types of offerings that entrepreneurs deliver in order to earn. This is the most tangible value of their business. There is more value behind the scenes of an online business, but at the end of the day, from a business perspective, the four things you can deliver as the most tangible value to your customers are illustrated in Figure 3.
The Four Types of Offerings
- Digital product: A downloadable or accessible file (e-book, template, online course recording, digital artwork, etc.)
- Digital service: A task or skill delivered remotely (graphic design, translation, consulting, writing, etc.)
- Physical product: A tangible item produced or sourced and shipped to the customer
- Physical service: A service delivered in person (photography session, guided tour, rental hand-off, etc.)
These categories are also reflected in the color coding of our mountain illustration as well. We recommend that you use this coloring as guidance but don’t rule out either color based on your current thinking of what type of products or services you will be able to deliver.
Frequently asked questions
What are the four types of offerings?
Digital product, digital service, physical product, and physical service. Every online business delivers one of these or a combination. They are the most tangible forms of value your customer receives.
What is the difference between a digital product and a digital service?
A digital product is a downloadable or accessible file that can be delivered without your ongoing involvement. A digital service is a task or skill you deliver remotely, requiring your time and attention.
Can one business deliver more than one type?
Yes. Many online businesses combine offerings. A photographer, for example, may deliver both a physical service (the shoot) and a digital product (the edited files).
Are physical offerings harder than digital ones?
Not inherently. Physical offerings carry more operational complexity, but many entrepreneurs find them more enjoyable in the long run precisely because of their tangible nature.
How do I decide which type of offering fits me?
Notice what you naturally enjoy delivering. Some people thrive on tangible objects, others on services, others on file-based products. The type that matches your temperament tends to be sustainable.
Do the four types correspond to the framework’s colours?
Yes, indirectly. Techniques that deliver mainly digital offerings are shown in red, and those with physical delivery in white. The colour helps you see at a glance where each technique sits.
Disclaimer: This article is for general informational purposes only and should not be regarded as legal, tax, or business advice. Pursuing an online business does not guarantee income; results depend on many factors including the business environment, individual effort, skills, and consistency. Some links on this site may allow Lynnaider to earn a commission at no additional cost to the reader.