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Side hustles and online ventures are booming.
From TikTok influencers to Etsy crafters to everyday freelancers, more people than ever are looking for ways to build a business without draining their savings first.
And let’s be real—starting a traditional business often comes with stress, loans, and a mysterious cousin asking, “So when’s the grand opening?” before you’ve even designed a logo. Not ideal.
That’s why selling digital products has become the holy grail for online entrepreneurs.
You don’t need a warehouse, you don’t need to package things at 2 AM, and you don’t even need to worry about shipping delays (looking at you, international customs).
Once you create your product, you can sell it over and over again with almost zero extra work.
In short : digital products = passive-ish income.
But here comes the tricky part : with so many platforms claiming to be “the best” for selling, how do you know which one to trust?
This is where today’s guide saves you time, headaches, and maybe even some money on stress-snacks.
Two platforms stand out when it comes to selling digital products without upfront costs : Gumroad and Payhip.
Why Selling Digital Products Is a Genius Move
Why Selling Digital Products Is a Genius Move
Before we dive into Gumroad and Payhip, let’s quickly talk about why digital products are so powerful.
☑ No inventory headaches.
☑ Instant delivery.
☑ High profit margins.
☑ Scalability – You can sell one copy or one million, and your cost stays the same.
☑ Location freedom.
Types of digital products you can sell include :
☑ E-books
☑ Online courses
☑ Printables & planners
☑ Templates (for Canva, Notion, websites...)
☑ Music, beats, or sound effects
☑ Digital art or photography
☑ Software & plugins
☑ Memberships or subscriptions
If you’re thinking, “Okay, but which ones actually sell?” — short answer : niches that solve problems or save people time are always winners.
But no matter what you sell, you’ll need a platform to host, deliver, and get paid.
That’s where Gumroad and Payhip enter the chat.
Gumroad has been around since 2011 and is especially popular among indie creators, writers, and artists.
It’s like the “no-frills” option in the digital product world : simple, clean, and doesn’t try to overwhelm you with too many knobs and levers.
If you’re the kind of person who says, “I don’t need a hundred features, I just want to sell my e-book today,” Gumroad might be your new best friend.
Gumroad Pros
Effortless Interface
Gumroad is like that friend who always makes things simple.
The dashboard is clean, intuitive, and even your tech-challenged uncle could probably set up a product page without calling you five times.
Customizable Branding
While it doesn’t offer deep customization like Shopify, Gumroad does let you add your branding, colors, and logo to keep things consistent. Customers get a smooth, trustworthy buying experience.Flexible Product Options
E-books? Check. Music? Check. Memberships and subscriptions? Double check.
Gumroad supports almost every type of digital product you can think of, so you’re not boxed in.
Global Reach with Tax Automation
Selling worldwide is effortless because Gumroad automatically handles tax calculations (VAT, GST, etc.).
If the thought of figuring out international taxes makes your eye twitch, Gumroad saves you the pain.
❌ Gumroad Cons
Limited Features on Free Plan
Some of the cool tools (like more advanced analytics) are locked behind paid upgrades.
If you’re scaling fast, you may hit limitations.
Customization Constraints
Your sales pages look professional, but don’t expect to build a fully customized storefront. Gumroad keeps things pretty minimalist.Higher Transaction Fees
On the free plan, Gumroad takes 10% per sale. For small beginnings, that might not sting, but if you’re aiming for $10k/month, it adds up quickly.
Gumroad Is Best For :
☑ Beginners who want to start today with minimal setup.
☑ Creators who value simplicity over advanced features.
☑ People selling single products (like an e-book, template, or digital art).
Now let’s talk about Payhip.
If Gumroad is the minimalist’s dream, Payhip is the “Swiss army knife” of digital product platforms.
It’s built for creators who not only want to sell but also want to market, promote, and grow their business—all from one dashboard.
Payhip Pros
No Upfront Costs & Lower Transaction Fees
Payhip charges only 5% per sale on the free plan (half of Gumroad’s fee).
This already makes it appealing if you plan to sell at higher volumes.
Built-In Marketing Tools
Discount codes? Check. Affiliate marketing? Check. Email campaigns? Triple check.
Payhip bakes in tools that most platforms force you to connect via expensive third-party apps.
Subscription & Membership Support
Want to launch a paid newsletter, monthly resource pack, or coaching membership? Payhip makes it easy.Compliant with EU VAT Regulations
If your audience includes Europeans, Payhip automates EU VAT.
That’s hours of admin time saved and fewer tax nightmares.
Instant Payouts via PayPal or Stripe
No waiting weeks for your money. As soon as you sell, you get paid.
❌ Payhip Cons
Moderate Customization
Payhip gives you a storefront you can personalize, but it’s still not as flexible as something like WooCommerce or Shopify.Limited Payment Options
Currently, Payhip only integrates with PayPal and Stripe.
If your customers prefer Apple Pay, Google Pay, or other local options, that could be a limitation.
Who Payhip Is Best For
↪ Sellers who want built-in marketing tools to grow faster.
↪ Entrepreneurs planning to sell subscriptions, memberships, or bundles.
↪ Creators who care about lower fees eating into profits.
Which Platform Should You Choose?
Which Platform Should You Choose?
Here’s the honest truth : both are excellent choices. The “best” depends on your goals.
⁃ Choose Gumroad if you want to start simple, launch today, and don’t care about advanced features.
It’s like the quick-and-easy ramen of digital selling platforms—no frills, just gets the job done.
⁃ Choose Payhip if you want more control, built-in marketing tools, and lower fees in the long run.
Think of it as a more complete meal with sides, sauces, and maybe dessert.
💡 Pro Tip : Don’t overthink it. You can try both!
Both platforms are free, so you can list your first product on Gumroad, then mirror it on Payhip, and see which performs better.
Tips to Maximize Sales on Either Platform
Tips to Maximize Sales on Either Platform
No matter which platform you choose, the platform itself won’t magically make sales rain down like confetti. You’ll need a strategy.
Here are proven ways to boost your results :
Nail Your Product Idea
Create something that solves a pain point. Example : Instead of a generic planner, create a “Productivity Planner for Side Hustlers.” Niche down!Optimize Your Sales Page
Use compelling headlines, short descriptions, testimonials, and clear benefits.
Your sales page should answer: “Why should I buy this now?”
Leverage Free Traffic
Pinterest, TikTok, Instagram Reels, and blogging are gold mines for promoting digital products for free.Build an Email List
Offer a freebie (like a mini e-book or template) in exchange for emails. Then upsell your main product later.Use Social Proof
Share testimonials, reviews, or even screenshots of happy customer messages. Humans trust other humans.Experiment with Pricing
Start lower to build traction, then raise your prices once you get testimonials and demand.
Final Thoughts : Gumroad vs Payhip
Selling digital products is one of the smartest ways to build a side hustle (or even a full-time business) with zero upfront costs.
Both Gumroad and Payhip give you the tools to start right now—no excuses.
⁃ Go with Gumroad if you crave simplicity.
⁃ Go with Payhip if you want lower fees and marketing power.
Either way, the only wrong move is not starting at all.
So take that e-book draft, that template idea, or that digital art piece sitting on your hard drive, upload it, and let the internet do its magic.
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