Ep 70: How to Sell Digital Products on Gumroad-And Why?
Play • 20 min

Show Notes

When it comes to having an online business, you have to put together a solid plan of attack when it comes to becoming and staying profitable. And in episode 44 I talked about having digital products and how to have both active and passive income and even how to create an E-book.

And as you probably know by now, I’m a huge fan of having digital products. I have several different types myself:

·      How-To Guides

·      E-books

·      E-book summaries (for those that want a quicker read)

·      Free, downloadable resources, like

o  Checklists

o  Worksheets

And having variety is great…it gives people a lot of choices. ‘Do I want the free stuff, or do I want to dive deeper into the fee based content?’

But then what are you supposed to do with the fee-based content? How are you supposed to offer it to people in the format that works for them? How are you supposed to offer it in a format that works for you?

These are some of the questions I had to work through when figuring this out for my business and I’d like to share some tips in this episode that will hopefully help you to not only save time and money, but also avoid the frustration of working through a mountain of potential issues when it comes to selling digital products.  

This Gumroad review will go over almost everything you’ll need to know. The pros and cons. The good, bad, and ugly of what Gumroad has to offer, and whether it’s right for you and your online business efforts!

Here’s a little background on Gumroad to help you get a better understanding of how and when they started.

Starting in 2011, Gumroad attempted to carve out a specific niche for itself where it could better serve artists and the very creative type people that wanted to sell products.

They imagined doing this with an easy payment acceptance/shopping cart solution without the need to be tech-savvy.

In some ways, this works really well. This e-commerce and shopping cart platform has several features that make it a great fit for artists, creatives, or marketers who are looking for a very specific style of platform.

But, there are some drawbacks to Gumroad, as well. You don’t have to dig too deep to find out that there isn’t a lot of “middle ground” territory.

Some will find Gumroad to be the absolute answer to what they’ve been looking for. Others will find that the cons of Gumroad will make it a complete non-starter.

There’s plenty of tools out there but in the end the main question comes down to this: is Gumroad the right tool for you to increase your bottom line?

What Gumroad Isn’t

Gumroad is not an online marketplace. It is a platform where you can build your own website or landing page and then display your craft. When you register for an account, you will be able to create a link for what you are selling, and then use this link on social media or send it directly to your clients.

The client will click on this link, and he will be able to purchase what you are selling, such as digital goods, written materials, music, and the list can go on and on.

 It’s through Gumroad that you will deliver the orders, and where the clients can pay.

With Gumroad, you are not operating like you would in an online marketplace. In online marketplaces, there are hundreds of freelancers offering the same services as you do, and then customers have to make a choice who among all of you is the best fit for his needs and budget.

How does it work?

To start using Gumroad, you need to first create an account. Next, you need to set-up your payment information, which includes how you will pay your fees and how Gumroad will transfer your earnings to you in cash.

The next step is to create your portfolio. Here, you can upload samples of your work, write a little bio about yourself, add your photo, or add products. This is the profile that your customers will see if they click the link you sent them.

Once this is done, you will receive a link from Gumroad that you can share to the whole world. You can share it in your social media channels, your website, or even create paper flyers for distribution.

People have the option to like your link or become a follower. If they decide to order from that link, they need to enter their credit card details to get the job or order started.

After they pay, they’ll receive a link where they can download the order. Gumroad will now transfer the funds to your account, and this happens every Friday.

Be aware that there are fees before you receive your payment, so you need to consider that when you’re coming up with your pricing.

 Gumroad Features

Although it works like a social media channel, Gumroad is actually more than that. It is packed with marketing and analytics tools that you can use to improve your sales.

Payment Checkout

With Gumroad, you automatically have a shopping cart where customers can place their purchase. Along with this shopping cart is a payment gateway where customers can enter their credit card information, or pay you via PayPal.

The way you get paid is through direct deposit or PayPal. If you are from the United States, the United Kingdom, Canada, or Australia, the direct deposit will be paid in your country’s currency. If you are not from these countries, the only way you can get paid is through PayPal.

Customer Library

This is a feature where your customers will be able to create an account and store their purchases online in Gumroad’s database.

This is great if you are selling digital products. For example, you may be a musician who creates song snippets for advertisements. After a customer buys a product, he can leave this product in Gumroad for access later on.

You can also be a course provider. In this case, your customers can download your video courses, or leave them in Gumroad so they can access the courses anywhere, anytime.

Since Gumroad is focused on digital goods and products, a feature such as this is a great way to attract customers. The files can be accessed anytime, to be used at the customer’s convenience. This is great for online courses since a lot of people typically only study during their break time or when they have a little time to spare.

These customers don’t have to use their personal storage space on their mobile devices since they can access your files any time they want for as long as they are online.

On-Demand Streaming

This feature works best for digital products that are instantly accessible. If you are a writer, this is a great feature that you can use so your customers can read your materials right away.

For example, you may have written a series of articles or instructional materials. If your customer bought an article, he could read it right away, with no need to download or wait for you to send them their copy. They also don’t have to create an account if they do not want to.

But if they want to get their files stored in their device, they need to download it.

This feature is great for on-demand products like instructional videos, how-to articles, or even musical pieces that can be owned by many people.

Send Files

Since most of your products are digital goods, it sort of goes without saying that you need to be able to send these files to your customers. With Gumroad, you have the flexibility to send files to a customer’s personal device, or even their Dropbox or Kindle account. They can choose.

This is an automated process, and the customers only have to click on a link to start the file transfer process.

This is important because each customer has a different preference about how to access their files. And a simple file transfer service like this can make a customer want to buy your product now.

From a customer’s perspective, they don’t have to buy or download another app just to store your files and read, listen to, or watch them.

Sell Anything

Although Gumroad was made primarily for artists and those who sell digital products, you can also sell physical goods here.

The thing is that on this platform, you can sell anything that you created. So if you are a woodworker, a craftsman, or a painter, you can post your items for sale on Gumroad. After the purchase, you can configure Gumroad to redirect to a specific web page if you want that will handle the rest of the purchase experience.

For digital goods, you can also create your own custom offer codes. These are coupons that provide discounted prices to customers. You can create coupons and discounts based on percentages or fixed amounts.

You can also choose to sell in different currencies, if you’d like. This is a valuable tool to be able to sell internationally. Most customers feel better if they buy in their own currency because it’s easier to understand how much the cost would be without having to do any conversions on their end.

When you sell here, you can create different customized cover pages for your material. You can use images, videos, and audio.

Another tool in your digital product tool belt is that you can also rent out videos. If you’ve created a short film, customers can rent it, and they would have 72 hours to watch it. It is like renting a film from big companies like YouTube, Amazon, iTunes, or Google Play.

For physical products thought, it’s still your responsibility to package, label, and ship the items. Gumroad will handle the purchase experience but you’re still responsible for everything else. You can also create codes to give discounts and be in full control of your coverage. What this means is that you can choose to sell in specific countries only, or sell to the whole world.

Gumroad also allows you to offer subscriptions, or automatic payments. I like this feature because, as a small business startup coach, I can have a client that wants to purchase a 3 month, 6 month or yearly coaching plan and I can configure those options in Gumroad, send them the link for that option and keep these private so that the general public doesn’t see it so I can use them as needed. Gumroad will charge the customer’s credit card or PayPal account on a regular basis, but you have to ensure that you deliver your products or services in a timely manner.


Gumroad has a powerful analytics feature that can tell you how your business is performing. With this feature, you can build your audience and learn more about your customers.

From your dashboard, you can see how many lifetime followers you have, how many of these followers bought your product, and whether your follower count is increasing or decreasing.

You can also see if people are more likely to buy your products from mobile devices or from laptops. The analytics feature can show you how many people downloaded your product, or how many chose to simply watch, listen, or read it.

If you know all these things, you will be able to make the best decisions possible about your marketing strategy and if it’s working.

Gumroad has an app in iOS that can also show your real-time updates about your sales performance. The Android app is still in development and somewhat limited, so keep an eye out on the Andoid app in the near future.

Social Media

You can post your Gumroad products in your social media accounts. In these posts, you can add a snippet of information to tell potential customers why they should visit your Gumroad profile page and make a purchase.

You can tell them who you are, what you are selling, and what the customers can get if they buy your product.

In the social media posts, you can add a link, which, when customers click, will take them to your Gumroad page and take a closer look at your products and services.

Affiliate Marketing

This is the cherry on top of Gumroad. With this, you can create a program where sellers can re-sell your products and earn a commission.

Usually, you need another service provider to allow you to create this program. But with Gumroad, it is already included into your account.

Affiliate marketing is a process where sellers will market your products. In return, they get a commission for every sale. The trouble with affiliate marketing is that you need software to run it, manage it, and monitor the results.

Gumroad allows you to do all this, and you can track the sales per affiliate marketer, and then pay them accordingly.

Fees and Pricing

So, how much do you have to pay for all these features?

Gumroad, in and of itself, is free. There is only a charge for each transaction and that percentage gets lower the more volume of products and services you sell.


Gumroad is made for artists and creators who do not want a limited kind of service from their selling platform. Usually, you can display your services in online market places, but you have too much competition, and the typical transaction fee is 20%.

In Gumroad, the highest you pay is 9%. Also, many online selling platforms only allow you to create subscription-based courses, but they do not allow you to sell books, artwork, or physical products.

Gumroad is special because it is a program that lets you sell everything you can create from music, videos, tutorials, online coaching and courses, subscriptions, physical arts and crafts, and so much more.

I’ve been using it for awhile now and I see others I know switching to it as well.

Well, I hope that this episode has been helpful to you. Again, I don’t have any affiliation with Gumroad, I’m just a huge fan and thought I’d share this information with you today.

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