Gumroad Card Image - Sacra Teardown

Gumroad - Sacra Teardown

Gumroad Hero Image - Sacra Teardown

Gumroad: The online check-out platform for creators

Giving creators the power of content monetization and audience engagement.

Creator Economy

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    A deep dive into Gumroad's financials, product, competitive environment, and market opportunities...
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        Sacra estimates that Gumroad reached USD 19 million in revenue in 2023, up 88% from USD 10 million in 2022. In early 2023, Gumroad's pricing change from a 3.5%&ndash;8.5% variable take rate to a flat 10% take rate on GMV doubled monthly revenue from USD 1.7 million to USD 9 million and flipped them from burning cash (negative USD 1 million in 2022) to generating USD 9 million in net profit for 2023.
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        The company generates revenue with a 10% transaction fee per sale, with no monthly subscription, aligning with creators' variable sales. It also charges payment processing fees. Additional revenue streams include the Gumroad Discover feature, which boosts product visibility for a 30% fee, and in-app sales, which incur a 40% fee due to app store charges.
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        Gumroad focuses on serving a broader audience. While platforms like Kajabi cater to bigger creators, Gumroad is built for the masses, serving as a simple product page and checkout tool, regardless of the creator's discovery methods (TikTok, YouTube, Instagram) or marketing tools (ConvertKit, Mailchimp).
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        Gumroad&rsquo;s strategy is to grow GMV and boost the creator economy by improving the checkout process. Gumroad's role in monetization gives it three key growth levers: More interoperability, more conversions and more product.
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