Magento's feature richness and flexibility make webshop management maximally convenient and approachable. When speaking about product catalog handling, the possibility to create different types of Magento products comes into notice. Of course, it expands webshop catalog administrating possibilities and allows you to represent merchandise smartly on the Magento website.
You can create a virtual product in Store Manager for Magento by clicking the [Add Product] button or using a right-click and selecting "Add Product".
In the "Product Settings" window, select an attribute set for the current product. It will be used while creating a virtual product and a product type. You can select one of the existing attribute sets or you can create a new attribute set.
Virtual Products are those that do not have a physical or digital counterpart. They cannot be shipped and do not have a download link. This product type might be used for services like house cleaning; one-year newsletter subscription, etc.
Note: It is important to note that there is no built-in way to manage auto-renewing subscriptions when using virtual products for "subscriptions". Purchasing a virtual item, a client makes the one-time purchase.
Please, also check this video tutorial: