Gumroad lets creators sell straight to their Twitter and Facebook followers
Sahil Lavingia built Gumroad's first version in a weekend as a side project, with payments running through his personal PayPal. It let people sell directly to their Twitter and Facebook followers. A dozen people with the same problem were quickly found who were willing to pay for it. Weeks after launch, some artists with modest followings had earned thousands of dollars, and two weeks in, traffic matched Pinterest's January 2011 level.
- Company
- Gumroad
- Year
- 2011-2012
- Outcome
- Mixed result
What they ran
Sahil Lavingia got the idea on a Friday night in April 2011 while drawing a pencil icon. He tweeted about the idea early on a Monday morning. In Noah Kagan's interview with Lavingia, he built the first version in one weekend. It was bare. Buyers paid into his personal PayPal, and he sent creators their money by hand each month. Creators used it to sell to their Twitter and Facebook followers directly.
What happened
He soon found a dozen people with the same problem who would pay to use it. Business Insider's profile of Lavingia reported that a few weeks after launch, some artists with small Twitter audiences had earned thousands of dollars. Lavingia's own $1 pencil icon had brought in hundreds. Two weeks in, traffic sat where Pinterest's had been in January 2011.
What the account does not show
The traffic comparison came from Lavingia and gives no absolute number. The earnings describe some artists, not a typical seller. Neither source gives a baseline. Neither source separates the effect of social sharing from press coverage or the founder's own network.
Questions
How did Gumroad get its first paying users?
Lavingia built a basic version over a weekend and quickly found a dozen people with the same problem who were willing to pay.
Did Gumroad automate payments at launch?
No. Payments went through Lavingia's personal PayPal, and he paid creators manually at the end of each month.
How fast did Gumroad's traffic grow after launch?
Business Insider reported, from Lavingia, that two weeks in, traffic matched Pinterest's January 2011 level, though no absolute figure was given.
Sources
- How to Sell Digital Products (Gumroad Founder, Sahil Lavingia), Noah Kagan, 2020-05-07.
- A Pencil Inspired This 19-Year-Old To Quit Pinterest And Start His Own Company, Business Insider, 2012-03-01.