In the world of online entrepreneurship, only a few platforms reign supreme, and Gumroad is one of them. Designed with an intuitive, effortless interface and unbeatable sales process, the online marketplace platform is quickly becoming a go-to choice for content creators of all types.
Think of this article as your all-inclusive guide to making money on Gumroad. Here, we’ll teach you how to set up your Gumroad account and use it to sell your digital products, as well as give you the low-down on just how much money you can make through Gumroad. Whether you’re a musician, artist, writer, or entrepreneur, you can use Gumroad to sell your creations and services to the world. So let’s get started!
What is Gumroad?
Gumroad is an online marketplace and e-commerce platform that allows you to sell digital products online. It was created in 2011 by Sahil Lavingia, and it’s quickly become one of the most popular avenues for creators to monetize online content.
This platform provides users an easy-to-use checkout system that integrates with their PayPal account, Apple Pay, Stripe, and many other payment processors. You can even choose to accept tips or donations from your customers.
Gumroad also offers a suite of marketing tools that helps you track sales, build customer loyalty programs, and more. Finally, the platform also has an open API that allows you to integrate its checkout system into your own website. Neat!
Setting up your Gumroad account
Setting up a Gumroad account is easy. Just head over to its website and click the “Sign Up” button at the top right corner. From there, you’ll be asked for some basic information, including your full name, email address, and preferred payment processor.
Once you’ve filled out all the necessary information, Gumroad will send you an activation link via email. Once you’ve activated your account, you’re all set to start selling your products on Gumroad!
How Gumroad works
Essentially, Gumroad acts as an online storefront, allowing creators to showcase and sell all their digital products in one place.
Once a creator has signed up for an account and set up their web store, they can begin listing digital products on Gumroad. Each digital product is assigned its own URL and webpage, so that creators can link their item to their followers and potential customers can find the product online.
Gumroad makes selling easy by automating things like payment processing and product delivery. Let’s take a quick walkthrough of how these processes work:
- When a customer purchases one of your products, they’ll be directed to a Gumroad checkout page where they can enter their payment information.
- Once the transaction is made, the customer receives an email with a download link to the purchased product.
- After each purchase, you’ll also receive an email notification, and Gumroad will deposit the money directly into your bank account.
Gumroad provides creators with a plethora of customization features, so they can tweak the look and feel of their storefront until it’s just right. It also offers users the option to set up automated email sequences that help build customer loyalty and drive future Gumroad sales.
Here’s a step-by-step guide on how to get your Gumroad store up and running:
Step 1: Sign up for a Gumroad account
It only takes a few minutes and requires three pieces of information: your user photo, your profile bio, and your username.
Step 2: List your products and create product pages
With Gumroad, you can offer digital downloads, streaming videos, software licenses, and more.
Step 3: Set up pricing
Decide how much to charge for each of your products. You can also enable discounts or promotions with coupon codes.
Step 4: Configure payment settings
Choose a payment processor (such as PayPal or Stripe) and decide how you want to handle taxes, shipping charges, and other fees.
Step 5: Promote your products
Gumroad makes it easy to share your product pages on social media, send out newsletters, and create your own email marketing program.
What can you sell on Gumroad?
You can sell tons of different products on Gumroad, from digital products like templates and ebooks, to memberships and subscriptions, to even physical merch like T-shirts and posters.
Selling digital products on Gumroad
Gumroad supports hundreds of different digital products, from ebooks and music to software and stock photos. Here are some popular items you can sell on Gumroad:
- Ebooks: Self-published authors or content creators looking to monetize their work can start selling ebooks with Gumroad in minutes.
- Music: Musicians can use Gumroad to sell albums, songs, and even sheet music.
- Courses and workshops: Gumroad is great for creator educators looking to sell video courses or live workshops online.
- Software: Developers can sell software applications using the platform’s automated delivery system.
- Stock photos: Are you a photographer? You can upload your digital photos to Gumroad and start selling them in no time, too!
- Community memberships: If you’re looking to build a community, Gumroad allows you to set up memberships with different access levels and pricing tiers.
- Newsletters: If you’re looking to monetize your email list, Gumroad allows you to create newsletters with different subscription plans.
- Printables: Graphic designers, illustrators, and more can upload their designs as printable PDFs, which customers can download and use in their own projects.
- Other digital products: You can also sell video games, digital subscriptions, plugins and extensions, digital prints, consultation services, webinars, and more. The possibilities are virtually endless.
How to sell digital products on Gumroad
Once you’ve set up your Gumroad account, you can start adding digital products to your store. To do this, simply toggle to the “Products” tab in your dashboard, and then click on the “New Product” button.
From here, select the type of product you’re looking to sell, upload your file(s), and enter a title and description for your product. You can also customize the checkout process by adding discount codes or set up recurrent payment options for memberships, subscriptions, and product series. And there you have it: your product is live and ready to sell.
Listing your product, however, is only the beginning. Once your digital product is live, you’ll need to let your audience know it exists. This means promoting your Gumroad products to your audience through your social media channels – or wherever else you communicate with your audience. You can also embed the link to your product on your website, in a newsletter, or in a blog post, if you’d like to maximize visibility and conversions.
Selling physical products on Gumroad
In addition to digital products, Gumroad also allows you to sell physical products, such as T-shirts or art prints. However, these items are not eligible for Gumroad’s automated delivery feature. This means selling a physical product on Gumroad will take a little bit more effort on your part, including keeping a physical inventory and shipping the products manually yourself.
How much money can you make on Gumroad?
The amount of money you can make on Gumroad depends on the type of product you’re selling, your marketing strategies, and how much effort you put into promoting your store. Some creators have been able to earn over $100,000 selling digital products through Gumroad.
While the platform is used by many creators, here are some examples of creators who have made money selling on Gumroad:
- Nathan Barry – Creator of ConvertKit, a popular email marketing platform, has made over $1 million selling his books and courses on Gumroad.
- Adam Wathan – Creator of the popular book “Refactoring to Collections” and courses on Laravel, has made over $2.2 million selling his digital products on Gumroad.
- Justin Jackson – Creator of the “Build and Launch” podcast and courses on marketing and entrepreneurship, has made over $130,000 selling his digital products on Gumroad.
- David Perell – Creator of the “Write of Passage” writing course, has made over $500,000 selling his courses and digital products on Gumroad.
- Jack Butcher – Creator of Visualize Value, a popular account on Twitter and Instagram that shares business and design principles, has made over $2.6 million selling his digital products on Gumroad.
- Paul Jarvis – Creator of the “Creative Class” course on freelancing and entrepreneurship, has made over $200,000 selling his digital products on Gumroad.
- Ali Abdaal – Creator of the popular YouTube channel on productivity and study skills, has made over $2 million selling his courses and digital products on the Gumroad platform.
Note: The earnings listed are approximate and based on public reports and statements from the creators themselves. It’s important to keep in mind that not all creators will make the same amount of money on Gumroad, and success depends on factors such as the quality of the product, marketing strategies, and audience engagement.
These are just a few examples of creators who have found success selling their digital products in the Gumroad marketplace. With effort and dedication, you too can find much success with this platform.
6 Steps to making money on Gumroad
To make money on Gumroad, there are a few key steps that creators can follow to increase their chances of success.
1. Do your research
Just like any other business, the success of your sales depends on how well you know your audience. Make sure to do your research in order to determine your target market, what types of products they want, and who your competitors are.
Target audience
Your target audience is the group of people you want to sell your products to. Try to identify who they are, and what kind of digital products they’re looking for.
To learn what your target audience is interested in buying, you first need to determine:
- Their age bracket
- Their location
- Their interests
- Their income level
- Their pain points
- The solution they’re looking for
- The challenges or barriers to sale
Once you have this information, you’ll have a better understanding of who you are selling to, what you’ll need to create, and how to connect with your target audience.
Product
The type of product you create will depend on the needs and wants of your target audience. Think about what kind of digital products they would be interested in buying, such as ebooks, courses, software tools, or templates. How much money and time do they have to invest into one of your products? In addition to pricing, it’s important to keep a product’s digestibility in mind. The last thing you want is for your audience to be overwhelmed and find no value in your products.
When conducting your product research, you can use a tool like Google Trends to search for keywords linked to your niche or product. This will give you an idea of the kind of products and solutions your target market is looking for, and will help you find a gap in the market that your product might be able to fill. Google Trends and similar tools will also give you an idea of a keyword’s popularity and how many people are searching it.
For example, if you looked up “Notion templates for productivity,” you could see things like the interest over time, interest by region, and most importantly, related topics and queries.
Competitors
It’s important to know who your competitors are, and how their products differ from yours. You can learn a lot by analyzing what your competitors are doing wrong and what they’re doing right. This will allow you to refine your product and create something that stands out from the rest.
Best of all, finding this information is free! All it takes is a little effort. So look around and see what products are flying off the digital shelves, and what the reviews for those products look like. This will help you understand what works (and doesn’t) for your audience.
Using our same example from above, a quick Google search for “Notion templates for productivity” will give you a good understanding of what types of products people are selling and will even allow you to read reviews of those products.
2. Create your digital product
Once you have researched your target market, you can begin to create your digital product. If it’s an ebook you’re looking to sell, it’s time to get writing! Looking to put out an online course? Now’s the time to get to lesson-planning.
If you already have an existing digital product, it’s time to give it a facelift, based on your previous research, so it hits all the marks with your target audience. Keep in mind that you’ll need to make sure your product is well-designed and is easy to use to maximize its sellability.
Remember to start small and take your time creating your digital products. You might want to make bite-sized products like a free template first, before jumping into a full-blown online course or ebook. As you’re starting out, you can also use free tools like Canva to make the creation process easier.
3. Create your product listing page
The next step is creating a product listing page for your product on Gumroad. This includes adding images, descriptions, and any other information that customers need to know before they make a purchase. Your product sales page should be visually appealing and easy to navigate.
Essentially, your sales page acts as a digital salesperson, telling potential customers about your product’s features as well as the benefits and value of your product. If you don’t have experience in copywriting, there are plenty of templates available online that will help you get started.
Here are some key elements to include on your product listing page:
- Images: High-quality visuals have a tendency to capture someone’s attention faster and more effectively than written text. Therefore, it is important to incorporate high-quality images throughout your product page, particularly for your product thumbnail, as shoppers rely on these thumbnails to understand what your product is. The picture should clearly depict what your customers will receive upon purchasing the product.
- Product description: Once people check out your pictures, they’ll jump straight into your product description to learn more about what you’re selling and how it can help them. So, ensure your product description is informative and easy-to-read.
- Customer testimonials: When new shoppers visit your store, they want reassurance that your product is worth the investment, which is why it’s important to gather testimonials from satisfied customers who have tried your product. To build trust and demonstrate your ability to deliver desired results, you’ll want to consider adding these testimonials and case studies to your landing page. This helps potential customers see that you’re a trustworthy seller and capable of helping them achieve their goals.
4. Determine your pricing and payment process
No matter how great your product might be, if the price doesn’t gel with your audience, it will never sell. This is why it’s so important to determine the right pricing for your product. Keep in mind that customers want quality and affordability. You can experiment with different price points and discounts to find out what works best for your target market.
It’s also worth mentioning that free products are a great way to attract new users! Customers always love free stuff. So consider offering a few free products to introduce potential customers to your offering and, hopefully, get them hooked.
Once your products are priced out, you’ll need to determine how you will accept payment. Gumroad offers integration with services like Stripe and PayPal so that customers can pay — and you can cash out — easily.
5. Promote your Gumroad store and digital products
Now that you’ve created your products and sales pages, it’s time to promote them! With Gumroad, creators can advertise their products and services on a variety of platforms and are given the tools to do it. But, in the end, it’s your job to make sure people know your offerings exist.
Here are some platforms you can use to help market your products:
- Social media: If you want to promote your Gumroad store, social media is the best place to start. Social media platforms such as TikTok, Instagram, and YouTube have massive user bases and can help drive traffic to your product pages. If you already have a social media following, then half of the work is done for you! Start posting about your products and link your Gumroad store in your bio to watch the sales start rolling in.
- Search engines: Google and other search engines can drive a lot of potential customers to your Gumroad store, but only if your pages are optimized. It’s important to use the right keywords in your headings, subheadings, and content. By following SEO best practices, you’ll increase your chances of being seen by potential customers who are searching for your product.
- Paid advertising: Running ads on Facebook, Instagram, and Google is a fantastic way to bring in traffic and get leads for your Gumroad store. It does require some financial investment, but if you do your targeting right and have a great product , you can end up making more money than you spend on the ads.
- Email marketing: Sending email newsletters is a great way to promote your Gumroad store as you’re communicating directly with people who are already interested in your products or content. Through newsletters, you can easily keep your audience updated on discounts, special offers, and new product launches. Use tools like Mailchimp to help you quickly and easily create and send newsletters.
6. Leverage the Gumroad Discover page
Gumroad isn’t just an e-commerce platform, it’s also a marketplace that can unite potential customers with the products they want. Like TikTok, Instagram, and more social platforms, Gumroad possesses a pretty powerful search engine and discovery tools. Through the Gumroad Discover page, users can either search for the products they’re looking for or browse for products by category.
Leveraging Gumroad Discover is a great and low-effort way to get more sales through the platform. To fully take advantage of Gumroad’s discovery feature, you’ll want to make sure you’re listing your products under the right categories, and tagging your sales pages with the relevant tags and keywords your target audience will be searching for.
Start making money on Gumroad today
Gumroad is an incredible platform for creators to start selling their digital products, and with the right strategy in place, you can quickly start making money. Just remember to always experiment with different strategies to find out what works best for your business. After that, the sky’s the limit!
Want to learn more about selling digital products online? Download The Leap’s 6-step checklist for selling your first digital product.
FAQ
Is Gumroad safe?
Yes, Gumroad is a secure and safe platform to use for selling digital products. It uses bank-level security encryption to protect customers’ data, making sure all transactions are secure. Plus, it offers fraud protection to help safeguard against any fraudulent activity occurring through their site.
Do I need my own website to sell on Gumroad?
No, you do not need your own website to sell on Gumroad. Gumroad is an all-in-one e-commerce platform that can host a creator’s online store as well as all their digital products.
Gumroad allows you to create a digital storefront that customers can visit, and product landing pages where customers can make their purchase. All you need to do is link your store page or individual products with social media accounts, emails, and other platforms to start selling.
How much does Gumroad charge?
Gumroad doesn’t charge its users a monthly fee. Instead, Gumroad takes a small percentage of every sale made on the platform. The percentage is currently 10%.
How do I get paid?
Gumroad offers a variety of payment methods to its users, so you can choose the one that works best for you and your customers. You can receive payments through PayPal, Stripe, Apple Pay, Google Pay, bank transfer, or direct deposit. Direct bank payments are available for specific countries. For more information, visit Gumroad’s help center.
I want to create, sell, and market my products all from one place.
Looking for a platform that does it all? The Leap is an all-in-one creator store that allows you to create digital products and sell them all from one spot.
With The Leap, you have a lot of options. If you’re just getting started, you might choose to offer your digital products for free and use them as lead magnets to grow your audience. If you’re looking to sell digital products, you can choose the price point or allow your customers to pay what they want.
Whatever you decide, you can do it all through your own mobile-optimized link-in-bio storefront. And by “all,” we mean process payments, schedule 1:1 consultation calls, coaching sessions, or private lessons, promote your products, and gather valuable customer information that helps inform successful sales.
It’s easy to set up payment processing with The Leap’s plug-and-play Stripe integration. The only thing you’ll pay is the standard 2.9% Stripe transaction fee. That’s it! No subscription, no revenue sharing, and 100% of your customer and lead data is owned solely by you.
Follow The Leap on TikTok, Instagram, and YouTube for more monetization tips for creators. We also make a newsletter.
