How I Made $2,600 with Free Products on Gumroad

Learn the strategies that helped me earn $2,600, even with a $0 price tag!

Aug 23, 2024

Can you make money by offering free products?

Absolutely! In fact, over the past year, I’ve earned $2,600 from various free products on Gumroad. What’s even better? These freebies don’t just bring in donations—they’re also powerful lead magnets that have significantly expanded my audience.

In this post, I’ll walk you through how I did it, the strategies you can use to create appealing free products, and actionable tips on promoting them effectively.

The Secret Behind Earning $$ with Free Products on Gumroad

The concept of making money with free products might seem contradictory, but here’s the trick: Gumroad’s “pay what you want” feature. When you set the price of a product to $0, you give people the option to download it for free while also allowing them to pay whatever they feel is fair.

Now with Gumroad’s new update, Tipping, you can set up a dedicated block just to collect tips.

How to enable tipping:

Tipping is turned on by default. To turn it off:

Go to your Gumroad dashboard
Navigate to the Tipping section on the Checkout form page
Toggle ON "Allow customers to add tips for their orders"

Tip visibility:

When enabled, the tipping option appears during checkout
Customers can choose to add a tip before completing their purchase

Financial details:

You receive 100% of tips, minus standard Gumroad and Stripe/PayPal fees
Tips are included in your regular Gumroad payouts

Tracking tips:

View tip amounts in your sales reports
Tips are listed separately from product prices

Best practices:

Consider mentioning the tipping option in your product descriptions
Thank customers who leave tips in your post-purchase communications
Regularly review your tipping data to understand customer behavior

Things to note:

Tipping is entirely optional for customers
Enabling tips doesn't affect your product pricing
Tips can't be refunded separately from the main purchase

Troubleshooting:

If tips aren't appearing at checkout:

Double-check that you've enabled tipping in your settings
Ensure your checkout page is up to date
Contact Gumroad support if the issue persists

By enabling tipping, you're giving your most supportive customers an easy way to provide additional compensation for your work. Monitor your tipping data to gauge its impact on your overall earnings.

It’s a win-win.

Offering something valuable at no cost builds trust and goodwill with your audience. If they find real value in your free products, they often choose to pay a little something in return. This approach helped me generate $2,600 from products that cost absolutely nothing upfront.

How I Earned $2,600 with 28 Free Products

To give you some context, I’ve been selling on Gumroad for a year and experimenting with different products and pricing strategies. What surprised me most was the effectiveness of free products, not just as revenue generators through donations, but also as lead magnets that drive long-term growth.

With 28 free products currently available, ranging from AI resources to digital tools, I’ve attracted tens of thousands of downloads, resulting in $2,600 in donations. These products have also helped grow my email list and social media following, creating opportunities for future sales.

How to Create Free Products That Attract Broad Audiences

To maximise the potential of free products, it’s crucial to create items that appeal to a wide audience. Here’s how to do it:

1. Solve a Common Problem

Start by identifying common pain points or needs within your niche. What challenges do your audience face regularly? What tools or resources could simplify their lives? Create a free product that addresses these issues. For example, my top free product is Learn Notion Complete Collection (Beginner to Expert) with coming 2,000 downloads, and it’s popular because it helps address one of the most fundamental issue the Notion template market has, and that’s how to use Notion!

2. Keep It Simple and Valuable

The best free products are those that are simple yet packed with value. Overcomplicating things can overwhelm potential users. Instead, focus on delivering a straightforward solution that users can easily implement. Whether it’s a template, a checklist, or a guide, make sure it’s something that offers immediate benefits.

The more simple and straightforward it is, the easier for someone to want to download it.

3. Test and Iterate

Don’t be afraid to experiment with different ideas. If one product doesn’t gain traction, learn from it and try something new. Gather feedback from users and tweak your offerings based on their needs. Over time, you’ll discover what resonates most with your audience.

Ran out of ideas? You can download 101 Lead Magnet Ideas. Yes this is FREE as well.

Promoting Your Free Products: Actionable Tips

Creating an appealing free product is just the beginning. To generate income and leads, you need to actively promote your offerings. Here’s how:

1. Leverage Social Media

Social media is a powerful tool for spreading the word about your free products. Share your freebies regularly on platforms where your audience hangs out—be it Twitter/X, Instagram, or LinkedIn. Use eye-catching visuals and engaging captions that highlight the benefits of your product. Encourage your followers to share the product with their networks to increase its reach.

2. Utilise Email Marketing

Your email list is one of your most valuable assets. Send out a dedicated email announcing your free product, explaining how it can help your subscribers, and including a direct link to download it. Consider creating an automated email sequence that offers additional tips or related products, nurturing the relationship with your subscribers over time.

3. Collaborate with Influencers

Partnering with influencers or other creators in your niche can significantly boost your product’s visibility. Reach out to influencers who share your target audience and offer them your free product in exchange for a shout-out. Their endorsement can introduce your product to new potential customers who may be more likely to donate or explore your other offerings.

4. Optimise for Search Engines

Don’t overlook the power of SEO (Search Engine Optimisation). Optimise your Gumroad product page with relevant keywords that people might search for. This increases the chances of your product appearing in search results, attracting organic traffic without much effort. Make sure your product title, description, and tags are clear and packed with keywords that align with what your audience is searching for.

Why Free Products Are Worth the Effort

You might wonder if offering free products is worth the time and effort.

The answer is a resounding yes! Here’s why:

Lead Generation: Free products are excellent lead magnets. They attract new and targeted subscribers, followers, and potential customers who might eventually purchase your paid offerings.
Brand Awareness: By offering valuable products for free, you’re getting your name out there. More people downloading your freebies means more exposure for your brand.
Building Trust: Giving away high-quality products for free helps build trust with your audience. When people see you’re willing to provide value without asking for anything in return, they’re more likely to support you in the future.

So…

Making money with free products on Gumroad is not only possible but also highly effective when done right.

Your freebies aren’t just a one-time transaction—they’re an investment in building long-term relationships with your audience.

Ready to start turning your free products into a revenue stream? Follow the tips, and you’ll be on your way to success!

‘It does not matter how slowly you go as long as you do not stop.’ – Confucius

Some of my most popular FREE products with thousands of downloads:

Cracking the growth equation in a one person business,

Anfernee

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