Shame it had to come to this…
I was a bonafide Gumroad simp.
Out of all the eCommerce tools on the market it was the best value for money.
- Easy to use so you can launch products fast
- Native integrations with the tools I use like ConvertKit and Circle
- Reasonable fees that reduced as you grew
All that’s gone now.
You may have heard some of your favourite internet marketers…
Lament Gumroad’s new fees.
They take 10% off every transaction.
And that doesn’t include credit card processing or PayPal fees.
All-in, you’re taking a haircut of close to 15%.
In my case, my payment processing fees tripled after the rate hike.
But I’m a small-timer on the platform.
There are vendors doing 6 figures a month on Gumroad.
That means, for every $100,000 they make…
They pay $10,000 to Gumroad…
Plus another $3000-$5000 in card processing/PayPal fees.
To put that in perspective…
Here are the highest-tier subscriptions for a few of Gumroad’s competitors
- ClickFunnels is $297/month
- SamCart is $299/month
- Thrivecart is $690 lifetime
And the Gumroad power-users aren’t taking it lying down.
AJAC has already switched to ThriveCart.
I’m guessing he does $30k-$50k per month in revenue on the low end.
Old Gumroad’s cut was 3%.
AJAC leaving lost them $900-$1500 per month.
And that’s just one example.
All of Money Twitter is, or was, on Gumroad.
Sure, a few will stay, but most will leave.
What I’m Using Instead of Gumroad
Internet marketers, particularly the advanced ones, used to clown Gumroad but I always defended them.
I felt its lack of features were balanced out by its easy of use and cost.
But I can never again, in good conscience, recommend them.
- For the CopySkills™ membership I’m using Circle’s native payment processing
- For my other products and consulting I’ll be using a combination of Samcart & Stripe
- When I launch the subscription for MuslimMan™ it’ll be on BeeHiiv’s native payment processing
While in the process of migrating for the time being you can still find my digital products on Gumroad.