A more friendly price structure and an end to the Pro tier is definitely sure as there is now Cheaper Pricing for Creators on Gumroad. Today’s (August 30, 2021) news on The Verge says that Gumroad is announcing a new pricing structure today that streamlines the fees and features of its platform. This is to make it easier for creators to get started selling products or memberships online.
Gumroad is known as one of the early “help people sell things online” businesses. This change is a sort of reset for the company as the space grows even more crowded. Take note that the first major change is an end to Gumroad’s free and paid Pro tiers. Before now, they have locked features like using a custom domain name or offering HD video streams behind a ten dollar-per-month subscription.
This however did cause some confusion from users just starting out. According to them, it did not make sense to commit to paying upfront. Currently, everyone receives the same features without having to pay extra or worry about overcommitting.
Cheaper Pricing for Creators on Gumroad
On Gumroad, in exchange fees start at a higher place. Note that there is the potential for sellers to wind up with lower fees overall. The platform’s new cut of transactions whether you’re selling handmade comic books or a membership to an online cooking class is nine percent plus thirty cents.
Now, this is higher than the free tier’s earlier fee of eight-point five percent plus thirty cents and the paid tier’s fee of 3.5 percent plus 30 cents. Gumroad however plans to shrink its cut over time as creators hit larger sales milestones going even as low as two-point nine percent plus thirty cents.
The Various Fee Percentage at Gumroad
Below are the various fee percentage at Gumroad
- Seven percent fee for earnings between one thousand dollars to ten thousand dollars
- Nine percent fee for earnings between zero dollar and one thousand dollars
- Five percent fee for earnings between ten thousand dollars to hundred thousand dollars
- Three percent fee for earnings between hundred thousand dollars to one million dollars
- And a lifetime two-point nine percent fee for earnings beyond one million dollars.
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