Gumroad is an app that makes receiving money for posting links to a user's own created content easy. Gumroad handles all of the payment details and users can post the URL's in their Facebook, Twitter or on their website. Now creative people can make money off of their content by simply posting a link. Some things that users can sell thanks to an application like Gumroad include: beta previews of a video game, unreleased music, amazing illustrations or the source code of an amazing app. Gumroad really makes it so any person can sell and profit off of their creativity without having to code a storefront or pay a provider to manage that part of it. The startup is basically a service which lets users buy and sell digital goods with little hassle and little effort.Show more screenshots »
Gumroad is a small company that is funded through investments. Gumroad launched in 2011. They are based out of San Francisco, California. The application was developed by Sahil Lavingia, who is best known for his work on iOS apps like Dayta and Color Stream. He actually coded the first version of Gumroad in 48 hours. He has explained that he thinks that weekend that he spent coding Gumroad is probably the most meaningful weekend of his whole life.
Gumroad makes selling digital content so easy. In fact, creators don't even need to setup an online store. Using Gumroad makes the transaction for posting and selling content as simple as posting a link. However, since it depends on PayPal in order to receive payment, then it may make more sense to use PayPal for this purpose all together. In fact, PayPal has in place a means to accept payment for digital goods. In this regard, aside from being a fancy URL-generator, Gumroad seems a bit redundant.
Gumroad is a very simple site. Users can login and immediately begin posting links to their digital goods, assign prices to them and provide titles and descriptions. When users click on the links they can easily purchase the goods. Gumroad takes a 5% cut, and posts the rest of the money to the owner's PayPal account.
Since Gumroad is a relatively new app supported by a small company, some may not feel comfortable trusting it with all of their transactions or revenue.
To register with Gumroad, users just need to provide a username and password. To get paid through Gumroad, users also need a PayPal account. They will need to provide their PayPal email to Gumroad in order to ensure payment goes to the right place.
Gumroad is free to register. They take 5% + $0.30 of each transaction that is completed. The founder of Gumroad did not want to charge people who were using the app just for fun, so he thought that charging a percentage of a sale was a much more fair (and possibly lucrative) way to go about monetizing this project.
Anyone who creates digital content could use Gumroad to easily sell their goods. It takes away the task of needing to setup a storefront. But as mentioned, PayPal also has mechanisms in place and is a one stop shop, whereas Gumroad is dependent on PayPal to make it work.