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How To Sell Digital Products on Gumroad – New Guide

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Do Market Research

Before selling digital products on Gumroad, you need to make sure there’s a market for your product. Creating a market that doesn’t want to exist is tough, so ensure you’ve done proper market research before creating your digital product.

You need to know who your competitors are, what they sell, and what is your target audience.

Competition research

You can study your competitors by visiting websites that sell the kind of digital products you are selling. Good sites to start with are Etsy, Creative Market, Gumroad Discover, Skillshare, Udemy, and any other marketplace you can think of that fits what you are selling.

Things to note when doing competitor research:

  • Product pricing.
  • Product design and layout, incl. color choices, font choice, vibe, and tone of voice.
  • File delivery, incl. format, sizes, and features.
  • Customer service.
  • Customer feedback.
  • How many sales the competitor has made.
  • When was the business or store established.
  • Product images and overall branding.
  • Product title and product description.

Audience research

Can your target audience buy your product (financially), and are they willing to buy your product (mentally)? You must ensure the customer and your target audience have the will and the ability to buy your product.

Things to note when doing audience research:

  • What your target audience is looking for.
  • What jobs do they have.
  • What is their income level.
  • Where do they live (country).
  • What problems do they have, and can your product solve that problem.
  • What is their age bracket.

Publish The Product On Gumroad

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From Gumroad’s product tab, you can create a new product for your store.

You can create, publish, and sell multiple different digital products on Gumroad, and setting up a storefront is extremely easy and free. The product page builder is easy to use, and you can add videos, text, images, buttons, etc., to your product description.

Products you can create, publish and sell on Gumroad:

  • Digital downloads of any kind
  • Courses and tutorials
  • E-books, comics, manga, etc.
  • Newsletters
  • Memberships and subscription services
  • Podcasts
  • Audiobooks
  • Physical goods (print-on-demand, for example)

Branding

To make your digital products stand out in Gumroad, you need to make sure your digital products look professional, have a branding and believable design aesthetics.

Branding is already relevant and will become more relevant in the future, so make sure you’ve designed your product images with professional assets.

You can get professional design assets from the following marketplaces:

Gumroad SEO and tags

Gumroad has a Discover feature for customers looking to buy digital products from Gumroad. Writing a clear product description and optimizing keywords in it will help your product surface on Discover.

SEO: Search Engine Optimization

By going into your products share tab, you can set the correct category for your product as well as include 5 tags for your product.

Tags, category, and clear product description will help your product get organic traffic.

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Gumroad recommends your product if you’ve done the SEO, tagging, and product description correctly.

Price Your Product

Depending on the digital product you are selling, you can have very different pricing strategies. The usual route is to price roughly the same way your competitors have priced their products, but that can quickly lead to a race to the bottom strategy.

Different pricing methods offered on Gumroad:

  • One time payment
  • Memberships
    • once per month
    • every three months
    • every six months
    • once a year
    • discount for a limited time or for a certain duration
  • Offer rental
  • Pay what you want

Different pricing strategies you can use to price your digital product:

  • Value-based pricing strategy
  • Competition-based pricing strategy
  • Cost-based pricing strategy
  • Brand-based pricing strategy
  • Pay what you want pricing strategy
  • Offer-based pricing strategy
  • Option-based pricing strategy

Check out: How to price digital downloads

Promote Your Gumroad Store And Products

If no one knows about your product, it’s hard to make sales. Promoting your Gumroad store and the products is luckily made quite simple. Gumroad offers product embedding, email marketing tools, Google Analytics tracking, Facebook pixel tracking, and other tools like Gumroad Boost to promote your products.

Gumroad Discover

Gumroad Discover is a built-in marketplace on Gumroad. In previous steps, it was mentioned that Gumroad SEO, tags, and clear product description are a must to make your product appear correctly on Gumroad searches.

According to Semrush, Gumroad has roughly 65M+ monthly visits, which means a lot of customers and sellers. That is the organic traffic you can tap into by getting your product visible to Discover.

Gumroad Boost

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To increase your chances of being at the top of the search results on Gumroad, you can activate a Boost option for your product.

The higher the Gumroad fee, the better the boost. Remember that Gumroad fees are currently 10% Gumroad fee + 2.9% + 30¢ credit card fee. The boost fee is on top of the general fee Gumroad charges.

However, getting those initial sales and reviews can be worth the boost.

Social Proof

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Example of a customer review.

The most potent product marketing methods are social proof, customer testimonials, and customer reviews. Nothing beats customer reviews (when they are positive), so try your best to include social proof in your product description.

Different ways to get customer testimonials and social proof for your product:

  • Have a beta group and ensure your customers get results, which you can add as part of your product description.
  • Send a follow-up email after a customer has bought your products and ask for feedback.
  • Have a feedback form or a link to a form to collect customer feedback, don’t forget to ask permission to use their replies as social proof.
  • Offer bonus content in exchange for a review.

Social Media

Social media tends to be the place to market your Gumroad store and products. Instagram, TikTok, and YouTube are some of the best platforms for promotion.

If you don’t already have an account on those platforms, consider creating one, and remember that content consistency is the key to building an audience on any platform.

Email Marketing

Email marketing is one of the best ways to promote your Gumroad store, as you have a direct channel to your customers. There is a reason people have given you their email addresses, and if you’ve done things right, your digital product is aligned with the people on your list.

One of the best email service providers that fully integrates with Gumroad: ConvertKit

Email list-building strategies to use:

  • Squeeze pages
  • Content upgrades and gated content
  • Embedded signup forms
  • Loyalty and referral programs
  • Pop-ups and overlays

Paid Advertising

Google, YouTube, Instagram, Facebook, TikTok, etc., all offer a business platform for creating advertising campaigns. Paid traffic is an awesome way to get your product in front of your target audience. When you’ve done targeting well and your product is well received, you can make more money than you spend on ads.

Track your ROAS (return on ad spend) daily and ensure your advertising campaign is profitable.

Increase Product Sales And Conversions

To get the most out of Gumroad and make as much money as possible in Gumroad, you should focus on conversions and sales strategies. Gumroad offers tools and features to increase your sales to their full potential.

Below are ways you can increase sales and conversions on Gumroad.

Upsells

Gumroad offers upsells, which you can use to increase overall sales. To do upsells, you need multiple digital products in your store, or you need to have different versions of the same product. Upsells work by introducing a new offer to the customer or adding an extra product with an enticing discount for the customer.

There are three different kinds of upsells you can do in Gumroad:

  • Add another product to the cart.
  • Replace the selected products with another product.
  • Replace the version selected with another version of the same product.

Follow-up emails with Workflows

Gumroad’s Workflows feature empowers you to create seamless, automated sequences of actions triggered by customer interactions. Imagine creating a well-structured flow of updates that your customers will receive at specified intervals following their purchase.

Workflows has the flexibility to cater to an array of scenarios, including:

  • For Online Course Students/Drip Content: With Workflows, you can deliver learning materials every three days for a span of three months, ensuring a consistent and engaging educational experience.
  • Timely magazine subscriptions: Visualize delivering a digital monthly magazine straight to your customers’ virtual doorstep. The Workflows feature ensures they gain immediate access to the freshest issue right after purchase.
  • Artistic Synergy: If you’re a versatile creator, Workflows can enhance your connection with your audience. Automatically reward e-book buyers with a complimentary track from your latest music album upon their purchase. Likewise, album purchasers can relish a free chapter from your most recent e-book release, bridging the gap between your creative endeavors.
  • Personalized Gratitude: Show your heartfelt appreciation by sending a personalized thank-you note to each customer after their purchase. The Workflows feature ensures that this gesture of gratitude is seamlessly integrated into your customer interaction strategy.

Gumroad also offers abandoned cart emails that you can send and offer a discount to sway the customer to buy from you.

Discounts

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Gumroad’s product discount page is where you can create discount coupons.

By creating discounts, you can entice customers, maximize sales volume, and foster long-term loyalty. Discounts aim to create a win-win situation where customers feel valued and you can optimize revenue generation.

Don’t forget that discounts can devalue your brand if you use them too frequently or if the discount percentage is too high (60-90%).

Bundles and versions

In Gumroad, you can sell bundles and different versions of your products. Versions can include extra content with a slightly increased price. You can also bundle multiple products together (without uploading the same content again to the platform) and sell them at a discounted price.

Gumroad also offers a bundle discounts feature, so you can make even more money with the same products you have in your store.

Guarantees and refund policy

You have the option to communicate your product’s refund policy and guarantees to customers prior to their purchase. Simply include your policy in the product’s settings. Clearly outline the circumstances in which customers can initiate a refund request for your product, whether it’s a 30-day money-back guarantee or a strict no-refund policy.

This level of transparency offers clarity to your customers and helps Gumroad’s support team to handle refund requests on your behalf, adhering to your specified conditions. Furthermore, these details are shared in credit card or PayPal disputes, enhancing an additional safeguard for your business.

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Okuha

Digital Artist

I’m a digital artist who is passionate about anime and manga art. My true artist journey pretty much started with CTRL+Z. When I experienced that and the limitless color choices and the number of tools I could use with art software, I was sold. Drawing digital anime art is the thing that makes me happy among eating cheeseburgers in between veggie meals.

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