Gumroad announces cheaper pricing for creators

By CreatorStack · 2 months ago

Gumroad is announcing a new pricing structure today that streamlines the fees and features of its platform, making it easier for creators to get started selling products or memberships online. Gumroad was one of the early “help people sell things online” businesses, but this change is a sort of reset for the company as the space grows even more crowded.

The first major change is an end to Gumroad’s free and paid “Pro” tiers. Previously, Gumroad locked features like using a custom domain name or offering HD video streams behind a $10 per month subscription. That caused some confusion from users just starting out — did it make sense to commit to paying upfront? Now everyone receives the same features without having to pay extra or worry about overcommitting.

Gumroad’s new cut of transactions, whether you’re selling handmade comic books or a membership to an online cooking class, is 9 percent plus 30 cents. That’s higher than the free tier’s earlier fee of 8.5 percent plus 30 cents and the paid tier’s 3.5 percent plus 30 cents. But Gumroad plans to shrink its cut over time as creators hit larger sales milestones, going as low as 2.9 percent plus 30 cents.

The various fee percentages breakdown as follows:

9 percent fee for earnings between $0 and $1,000

7 percent fee for earnings between $1,00 to $10,000

5 percent fee for earnings between $10,000 to $100,000

3 percent fee for earnings between $100,00 to $1 million

A lifetime 2.9 percent fee for earnings beyond $1 million