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Gumroad Blog
blog.gumroad.com · Company blog · on HN since 2012
Gumroad's company blog explains how the platform handles selling digital products, covering VAT, pricing experiments, and creator case studies.
What HN saysHN commenters use it for pricing data, pay-what-you-want questions, and EU VAT handling, though one wants clearer sales figures behind the numbers.
25HN people shared it
9linked it in comments
39stories submitted
284story points
8 years agolast shared
2012people per year2026
Most-shared posts
- 1How We’re Handling VAT at Gumroad5 people · 6 points · first shared 2015 · 1 comments on HN
- 2Is Pay What You Want Pricing For You?3 people · 4 points · first shared 2014 · discussion on HN
- 3A Penny Saved: Psychological Pricing2 people · 83 points · first shared 2013 · 44 comments on HN
- 4Discover Meteor Case Study: Making $300,000 from a Single Programming Book2 people · 9 points · first shared 2014 · discussion on HN
- 5Gumroad: Introducing PDF Stamping2 people · 2 points · first shared 2013 · discussion on HN
- 6Nathan Barry’s Lessons Learned Earning $355,759 through Gumroad1 people · 41 points · first shared 2014 · 16 comments on HN
- 7Gumroad Stories: Sacha Greif1 people · 31 points · first shared 2012 · 1 comments on HN
- 8Gumroad introduces Offers (allows discount codes for products)1 people · 14 points · first shared 2013 · discussion on HN
- 9The Data Behind Pay-What-You-Want Pricing1 people · 12 points · first shared 2013 · 1 comments on HN
- 10Gumroad Stories: CSSHat1 people · 10 points · first shared 2012 · 2 comments on HN
- 11Instantly Stream Video on Gumroad1 people · 8 points · first shared 2013 · discussion on HN
- 12Gumroad Stories: Nathan Barry1 people · 7 points · first shared 2012 · 1 comments on HN
- 13Get Notified in Real Time with Gumroad Ping1 people · 7 points · first shared 2013 · discussion on HN
- 14Gumroad meets Twitter Flight1 people · 5 points · first shared 2013 · discussion on HN
- 15Gumroad adds Subscriptions1 people · 4 points · first shared 2013 · 1 comments on HN
What HN people wrote when they linked it
olivier1664 · 2015-05-08
That's impressive. Unfortunately the source* of theses number is not very clear on how many items has been sold and if people buy by unit or by pack. I would love to see more tests result like that.
http://blog.gumroad.com/post/64417917582/a-penny-saved-psychological-p…
lovelearning · 2016-06-11
It probably depends on what the product or service is, and how it's sold. Coursera already provides some courses for free, and even those attract some high maintenance types from what I've seen in the forums. Does providing a pay-what-you-want option increase the number of nasties or the degree of nastiness, for example, inviting legal risks? I don't really know. But I feel Coursera should atleast experiment and gather the data before deciding, instead of missing out on all that data.
Leanpub and Gumroad are two services that follow this strategy. I don't know if they are successful ventures, but I notice they have maintained this pricing strategy since their inception and never changed or stopped it.
Leanpub says "...the pattern we have seen with multiple books, about a third of people will pay the suggested price, a third will pay the minimum price and a third will pay somewhere in between. Finally, the odd person will pay more than the suggested price" [1]. Some anecdotal experiences of individual authors [2],[3],[4] support it.
[1]: https://leanpub.com/help/author_faq
[2]: http://blather.michaelwlucas.com/archives/1626
[3]: http://blog.ppenev.com/2013/07/16/what-i-have-learned-from-leanpub.htm…
[4]: http://blog.gumroad.com/post/75707736685/is-pay-what-you-want-pricing-…
pawodpzz · 2018-12-30
Gumroad handles VAT-EU for you[0] but I didn't tried it. If anyone worked with them, here are some questions I have:
- do they send one monthly payment? If so, from which country?
- is VAT-EU number needed?
- if I don't register for VAT (don't reach yearly selling threshold), do I get full payout? Are clients charged for VAT in such scenario?
- what documents do I get from them, in case of tax office review?
- is 3.5% + $0.30 fee applicable to EU customers or is there some additional cost (I assume not, but I ask just to be sure)?
- if I sell digital product, what should I do about e.g. Canadian/Indian/Japanese/whatever sell taxes?
[0] http://blog.gumroad.com/post/110080508463/vat
mcbetz · 2016-08-18
Both Gumroad (http://blog.gumroad.com/post/110080508463/vat) and Paddle (https://www.paddle.com/support/how-does-paddle-handle-vat-on-my-behalf… are payment providers who will handle EU VAT for you. Paddle is probably more suited for a SAAS.
KevinEldon · 2016-07-12
Gumroad has a feature called PDF stamping [1] that puts the buyer's email address on the PDF. It's not perfect security, anyone who wants to ignore your copy rights probably will, but it might deter unthoughtful sharing.
Also consider a team/company license priced at some multiple (15x?) that will allow a manager or lead to buy your book for their company/team without having to worry about violating copyrights or managing buying the book for every employee.
[1] - http://blog.gumroad.com/post/40614820182/introducing-pdf-stamping
vram22 · 2016-06-17
This is how Gumroad handles it :)
http://blog.gumroad.com/post/110080508463/vat
sgdesign · 2014-10-27
Thanks for the mention :) Speaking of sales graphs, here's a pretty detailed case study for our book's sales made by the Gumroad folks: http://blog.gumroad.com/post/97148570338/discover-meteor-case-study-ma…
lukeholder · 2015-09-01
Gumroad is: http://blog.gumroad.com/post/110080508463/vat
Arjuna · 2017-05-09
Hello... this is a topic I'm interested in, because I'd like to write one day. Anyway, I thought you might find these resources useful:
1. Nathan Barry has written extensively about his success with self-publishing. Essentially, his method (I'm simplifying here) is to 1. position yourself as an expert in your field via blogging, then 2. directly market to your audience via email using a 3. tiered pricing model (i.e., multiple packages at increasing price-points). He wrote a book about his methodology entitled "Authority."
Authority:
http://nathanbarry.com/authority
Nathan Barry’s Lessons Learned Selling $355,759 on Gumroad:
http://blog.gumroad.com/post/73421524134/nathan-barrys-lessons-learned…
2. Bob Nystrom has written about his experience writing and marketing "Game Programming Patterns."
http://journal.stuffwithstuff.com/2014/04/22/zero-to-95688-how-i-wrote…
http://journal.stuffwithstuff.com/2014/11/20/how-my-book-launch-went
A comment he wrote regarding publishing:
https://news.ycombinator.com/item?id=13878280
3. Advice and insight on the topic of traditional publishing from Patrick McKenzie:
https://news.ycombinator.com/item?id=12118914
4. Thread entitled "Ask HN: Has anyone here self-published a book? Any advice?"
https://news.ycombinator.com/item?id=6052075
5. Self-publishing success comment involving multiple pricing tiers:
https://news.ycombinator.com/item?id=13878266
6. Self-publishing success story…