Create a Downloadable Product
Make sure that you have upgraded to the latest Magento 1.2.x version.
We assume that you know how to add a simple product in Magento.
Login as Admin and select Catalog → Manage Products. Click on Add Products.
On the left side, we can see links for the product information.
Click on the Meta Information, and give the Meta title, Meta Keywords and Meta Description.
Click on description and give Short Description and Description.
Click on the price and give the price details of your product.
Click on the general and give the Name, SKU, Status, Visibility,Tax Class etc of your product.
Click on Inventory and enter Quantity and Stock availability should be ’In Stock’.
Click on website and select the website you want this product to show.
Click on the categories, and select the category in which you need your product to be.
Click on Downloadable Information to upload the file or provide the downloadable product URL.
Click on Links and then click on ’Add New Row’ button.
Here you can choose file( select file to upload) or url (product URL). Upload directory (media) should have 777 permission.
Then Click on the save button and now your downloadable product is added.
Users can order this product and download by clicking the download link in their email.
(Provided: order status is not pending)
If the order status is pending, via admin you confirm the receipt of payment and generate an invoice and the status should change to confirmed.
Via the Admin/Configuration/Catalog/Downloadable Products menu we can set the default behavior.