Test 02 — Digital Products

Questions Answered.
The Honest Version.

Selling digital products on Payhip and Gumroad sounds passive. The reality is more nuanced. Here is what we actually found — including why we have 48 views and zero sales so far.

Based on our live experiment. Numbers updated as the test develops.

The Platforms
What is the difference between Payhip and Gumroad?+

Payhip is a UK-based platform. It handles EU VAT on digital products automatically, which matters if you are selling to European customers. The free plan takes 5% per transaction. It has a clean storefront and good affiliate tools.

Gumroad is US-based and more established with a larger built-in discovery audience. It charges a flat 10% fee. Discovery through their marketplace is a genuine traffic source for products that gain traction.

We use both simultaneously to test which platform drives more organic discovery. Neither has produced a sale yet — but the experiment is ongoing.
Does it cost anything to list products?+

Listing is free on both platforms. They take a percentage only when you make a sale. Payhip free plan: 5% per transaction. Gumroad: 10% per transaction. No monthly fee required on either.

What types of files can you sell?+

Both platforms support PDF, ePub, ZIP, video, audio and software. For our products — a prompt workbook, an AI tools directory and a gaming guide — PDF is the natural format. It is universally accessible and easy to produce from any design software.

The Reality of Sales
Why haven't you made any sales yet?+

48 views at a standard 1-3% conversion rate was never going to produce a sale. The honest diagnosis is that traffic is the constraint, not the product.

This is the key insight from this experiment so far: digital products are not passive income until you have an audience. Without traffic, a well-made product earns nothing. Building the audience comes first.

The next phase of this test focuses entirely on driving traffic — through SEO blog content, Reddit community participation, and Pinterest as a long-tail source.

Do the platforms bring their own traffic?+

In theory yes, in practice — not meaningfully for new sellers. Gumroad has a discovery feed and Payhip has a marketplace, but new products from unknown sellers get very little organic platform traffic. You need to bring people to your product before the platform's algorithm will surface it to others.

Think of the platform as a checkout and delivery system, not a traffic source. You build the audience; the platform handles the transaction.

What price should you set for a digital product?+

Price anchors to perceived value. A £1.99 product feels throwaway; a £14.99 product needs to feel worth it. For reference guides and workbooks in the £7–£15 range, you are competing on depth and specificity rather than impulse purchase.

  • 150+ ChatGPT Prompt Workbook — £9.99
  • 800+ AI Tools Directory — £12.99
  • Whiteout Survival Strategy Guide — £9.99

We would test lower price points if conversion data suggested price was the barrier. Until we have meaningful traffic we cannot draw that conclusion.

Creating the Products
How do you actually make a digital product worth buying?+

The products that sell well solve a specific problem that people are already searching for. Generic content does not convert. Specific, well-organised, immediately usable content does.

Our AI prompts workbook is organised by use case — not just a dump of 150 prompts. Our tools directory is categorised by function with brief descriptions. The effort is in the curation and organisation, not just the collection.
What tools did you use to create the products?+

Microsoft Word and PowerPoint for layout and design, exported to PDF. No specialist design software required. The Whiteout Survival guide was written in Google Docs then formatted in Word. Total production cost: £0.

Do you need to handle VAT on digital products?+

EU VAT on digital products sold to EU customers is a requirement — but Payhip handles this automatically on your behalf. If you are below the UK VAT threshold (£90,000 turnover) you do not need to register for UK VAT. For US sales, Gumroad handles applicable sales tax.

For a new seller this is not something you need to worry about day one — but it is worth knowing the platforms handle it for you.

← Back to Experiments See Our Digital Products