The gap between finishing a plugin and running a plugin business

[dannytaurus]

@soundsync I'm on Gumroad at the moment but looking to switch to a better platform very soon.

Just for reference, here's your list noted for my current Gumroad setup:

• a product page Gumroad
• checkout Gumroad
• customer accounts Gumroad, via Library
• download access Gumroad
• refunds and revoked access Gumroad
• update delivery Gumroad
• support emails Gumroad, if the customer emails them first
• “I bought this but lost the download link” Gumroad's Resend Receipt action
• “Where do I log in?” Gumroad Library
• license delivery I don't do licences currently
• license resets I don't do licences currently
• device limits I don't do licences currently
• “I got a new computer, can you reset my activation?” I don't do licences currently
• “My license is not showing up” I don't do licences currently

I'm not saying Gumroad is perfect, but if you don't do licences for plugins, then it's a very easy place to get started. Testing the waters to find out if you can find/reach an audience is easy on Gumroad.

Gumroad's real fee runs to about 16% of my revenue, which is higher than pretty much anywhere else I've looked at. But that does include unlimited email marketing, which most other platforms don't.

I'm in the process of doing comparisons with my last 12 months real revenue data between Gumroad, Moonbase, Soundsync, Fungies, Polar and direct Stripe MoR payments.

[soundsync]

@dannytaurus Including the email marketing is a pretty smooth move. Does the % fluctuate at all based on usage, number of contacts, emails sent, etc.? Or a minimum monthly in sales?

I've seen Gumroad around but never used it. I went straight from the wacky world of Wordpress to developing and using Soundsync.

Is your reason for no licenses just less user friction?

I'd love to see the comparison in price! That's the type of thing that tickles my pickle.

[cartemtune]

@dannytaurus which platform are you considering? Asking because I also used to be on Gumroad and have now switched to Payhip since their ridiculous price increase. Payhip is only 5% per sale and I'm also able to cap it at $99/month. I also just can't stand behind a company who relies on AI support agent, I coudl never get any real humans to answer my questions at Gumroad

[soundsync]

@cartemtune Does it prevent you from using the platform once the cap is reached?

[dannytaurus]

@soundsync On the $99/mo plan there are no Payhip fees, you just pay Stripe/PayPal fees.

[soundsync]

@dannytaurus ahhh I see now, I misunderstood the statement.

[dannytaurus]

@soundsync Yeah, me too That's why I looked into it.

I've added Payhip to my comparison list (which I will post soon!). They're very competitive on price, especially at volume, but the 'reseller' terms are unclear to me (and Claude).

I've written to them so get some insight, so I know where to place them on my list.

[soundsync]

@dannytaurus What do you mean by reseller terms?

[dannytaurus]

@soundsync Payhip isn't a Merchant of Record, they are a reseller, which is similar in some ways but payouts differ quite a bit.

As far as I can gather (UK/EU buyers only, US/CA is still unclear):

Same as MoR:

1. Payhip buys a licence from the seller
2. Payhip sells the licence to the buyer, adding VAT where necessary

Different to MoR:

3. The revenue, inc. VAT, goes straight to the seller's Stripe/PayPal account
4. Payhip then takes the VAT from the seller's Stripe/PayPal account and remits it quarterly
5. For payment and contract purposes, the seller remains responsible for refunds, chargebacks, etc.
6. Payhip never holds seller funds, so it cannot 'freeze' them nor charge for them to be paid out

For US/CA buyers Payhip are a 'facilitator', not 'reseller', so the situation might be different.

Also unclear when a seller refunds a buyer, whether Payhip returns the VAT they collected, or whether the seller has to eat it.

For buyers outside UK/EU and US/CA, Payhip isn't involved in sales tax at all. The seller can set up custom tax rules, in which case Payhip charges the tax at checkout and leaves it in the seller's Stripe/PayPal account. Registering in the country and filing the tax are the seller's job, where the country requires it. That part is a bit scary.

[David Healey]

@dannytaurus said in The gap between finishing a plugin and running a plugin business:

That part is a bit scary.

That's a big no from me. Since switching to an MoR there's no way I'd go back.

[dannytaurus]

@David-Healey Same here

[dannytaurus]

@David-Healey Are you on Moonbase now?

[David Healey]

@dannytaurus Yes, have been since June, very happy with it.

[cartemtune]

@dannytaurus i'd love to see the comparison list please! :)

[cartemtune]

@dannytaurus wow thanks for this detailed breakdown. So I guess there are some pros and cons here. I've personally blocked countries outside of US, CA, UK, and EU so I won't have to deal with sales taxes there but maybe I should also consider other countries in case they can provide substantial revenue.

Just curious, can any experienced sellers let me know whether it's worth opening up my store to the rest of the world? In my experience, most of my customers seem to come from US, CA, UK, and EU so I never felt like I'm missing out. I'd love to know before I decide to switch again because...it's a lot of work!

But the part about Payhip offering instant payouts (i.e. never holding funds) is another reason why I moved away from Gumroad. I feel better knowing that a platform can't suddenly take my money away . Gumroad has a minimum payout threshold of $100 (I assume because the platform needs to safeguard itself from refunds and chargebacks), but that part kinda sucks

[David Healey]

@cartemtune said in The gap between finishing a plugin and running a plugin business:

I've personally blocked countries outside of US, CA, UK, and EU

Those are pretty much the only ones that you have to deal with sale tax in anyway.

@cartemtune said in The gap between finishing a plugin and running a plugin business:

let me know whether it's worth opening up my store to the rest of the world?

Might as well since you're already doing the hard work. I get quite a few customers from Japan, New Zealand, Australia, not so much from the rest of the world.

[dannytaurus]

@cartemtune I'd prefer direct payment too, but I rate using a Merchant Of Record over direct payouts, and MoR never pay direct.

At least Gumroad doesn't charge a fee for a payout. Moonbase does, and they're the only ones. €5 per payout. Feels a bit like nickel-and-diming. Their whole fee structure is death by a thousand cuts Takes them from looks very competitive to being the most expensive, behind only Gumroad.

[David Healey]

@dannytaurus said in The gap between finishing a plugin and running a plugin business:

€5 per payout.

I go for monthly payouts to minimize it

[dannytaurus]

@David-Healey It's not really the amount/percentage, it's the principle. They use Wise, which has no associated fee. So it's just pure markup.

[dannytaurus]

@David-Healey

Yes, have been since June, very happy with it.

Is this for Libre Wave? Your product prices are in a similar range to mine.