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March 14, 2012

Gumroad – Make Money From Digital Content

Gumroad is an application that aims to simplify the process of buying and selling digital content online. People who have songs, stories, photos, essays, videos, study guides, or source codes can sell their work without setting up complicated websites or dealing with payment collection. All you need to do to sell your digital content through Gumroad is share a simple link.

Getting started selling digital goods with Gumroad is deceptively easy. Sign up for the service by logging in through Facebook or Twitter, or by typing in your email address and selecting a password, and you can get started selling right away. Click “Add link” to put your first item up for sale. Give your item a name, upload the file from your desktop to the site, and choose the price that you want customers to pay. Immediately, you’ll get a shortened Gumroad URL that you can share with friends, fans, and customers online. When people click on the link you’ve shared, they’ll see the name of your product, the price, and a button that says, “I want this!” Customers that enter their credit card information and click “Buy” are good to go. The product you’ve put up for sale will be available for immediate download, and the money you’ve just earned will be deposited into your linked bank account at the end of the month.

The links you’ve shared with Gumroad can be edited or disabled at any time, allowing you to re-price goods that are selling too quickly or add persuasive descriptions and photos to goods that aren’t selling as well as you’d hoped. You can also require buyers to input their email addresses for purchases, which is helpful for future marketing efforts and email lists.

Practical Uses:

  • Sell your photos online
  • Give paying fans access to your previously unreleased songs
  • Make money from the study guide you created for school
  • Start an online business without worrying about how to accept payments

Insider Tips:

  • Goods can be priced between $1 and $1,000
  • Gumroad accepts Visa, MasterCard, American Express, Discover, JCB, and Diners Club
  • People can use Gumroad to sell digital goods or real-world goods
  • Gumroad deposits money in sellers’ accounts at the end of each month

What we liked:

  • Artists can sell their work on Gumroad without creating their own websites
  • Sellers can email or tweet links to all the goods they’re selling
  • Gumroad gives people an easy way to manage digital transactions
  • People can purchase goods through Gumroad in just a few simple steps

What we didn’t like:

  • Gumroad takes a cut of each transaction on its site

Alternatives:

Company Info:

  • Launched: April 2011
  • Privately Held
  • Headquarters: San Francisco, California
  • Founded by: Sahil Lavingia
  • Web site: https://gumroad.com

Costs:

  • Gumroad takes 5% + $0.30 of each transaction

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