My Formula for Finding High-Demand Digital Products on Gumroad (3D Products, Part 1)

September 06, 2024

Setting Our Goals: What Are We Looking For?

To kick off our research on Gumroad, we aim to identify products that are relatively simple to develop, recently released, highly popular (with many downloads), and have potential for paid traffic promotion through channels like Facebook and TikTok. Gumroad, with over 17 million monthly visits, primarily drives sales through organic traffic. However, our goal is to find a product that can thrive with paid promotion, accelerating profitability without waiting for SEO optimizations. From day one, we want to launch advertising campaigns.

Since Gumroad takes a commission on every sale, increasing sales through paid traffic could also boost organic sales. The idea is that Gumroad's algorithms will prioritize our products over competitors to maximize their profit. This theory has proven effective on other digital platforms, and we plan to test it soon.

Our Approach: How We Conduct Research

We will analyze products based on the following parameters:

  • Number of Sales: Unfortunately, Gumroad doesn’t provide direct data on sales numbers. We’ll need to infer these indirectly. Gumroad shares ratings, so we’ll try to find a correlation between ratings and sales.

  • Sales Trend: Gumroad doesn’t offer historical sales data, but we need to understand current sales relevance. A product might have gained high ratings initially when it was free, then switched to a paid model after gaining social proof. Such products are less interesting for our goals. I’ll show you how to address this issue.

  • Traffic Sources: We need to determine whether sales are organic (from Gumroad users) or driven by external paid traffic. It’s important to know if the product creator is an influencer with a community driving sales or if paid ads are being used.

Diving In: Our Research Process

First, visit Gumroad and explore each category individually.

We’ll start with the 3D category. Set the following filters:

Our task is to find products with open sales data to estimate the sales-to-rating ratio. For instance, we found a product with 498 ratings and 2698 sales, giving a ratio of approximately 5. We’ll use this ratio to estimate sales for other products without visible sales data.

Let’s analyze more products from this developer:

Let’s analyze more products from this developer:

We need to determine how long these products have been on the market and their sales dynamics. Using web.archive.org, we found that a product had 999 sales on June 13, 2024, and now has 1190 sales. This means it sold 191 units in about two months, generating $2483 at $13 per unit.

https://web.archive.org/web/*/https://liindy.gumroad.com/l/TwoHandedWeapon*

Let’s check the developer's traffic sources. They have a Twitter account with 7500 followers and a Discord community of similar size, indicating they are likely an influencer selling to a loyal audience.

This method isn't right for us because we don't have an audience yet, and building one takes time. However, if you're in it for the long haul, this approach can be very lucrative. If you’re interested in long-term branding and a stable monthly income, this strategy is worth considering. Even if you don’t have the skills to create 3D models yourself, you can hire talented creators on platforms like Upwork or Fiverr:

To ensure an audience isn’t mandatory, I checked for active ad campaigns for similar products on Facebook and TikTok but found nothing significant.

Continuing Our Search: Finding More Products

We continue looking for products with open sales data and found another listing:

  • 6694 sales and 625 ratings: Ratio approximately 11.

Take note of the product description:

At the moment, the Discord community consists of nearly 9,000 users, providing an audience where you can advertise and sell your other products.

Another example:

  • No sales data, only ratings: Let's do some simple math: Starting with 348 ratings on March 4 and now having 392, we see an increase of 44 ratings over six months. If we use an average rating-to-sales ratio of about 8, this suggests roughly 352 sales (44 ratings x 8). At a product price of $35, this translates to approximately $12,000 in earnings over six months, which is about $2,000 per month from just one product.

The promotion method appears to be via Discord.

Final Thoughts: What We Learned

Today, we explored the niche of digital products on Gumroad, focusing specifically on 3D models and assets. This niche, while not suitable for everyone, can offer stable and profitable opportunities without the need for constant product updates. The key lies in understanding the mechanics of this marketplace and leveraging the insights gained from our research.

Pros:

  • High Demand: The 3D model category on Gumroad shows significant popularity and strong demand among creators, evidenced by high sales and engagement metrics.

  • Recurring Revenue: Digital products like 3D models generate revenue repeatedly without additional production costs, as shown by consistent sales figures for older listings.

  • Ease of Distribution: No need for physical shipping simplifies logistics. Products can be delivered instantly to buyers, saving time and cost.

Cons:

  • High Competition: The digital product space on Gumroad is competitive, with many creators offering similar products. Standing out requires unique, high-quality offerings.

  • Initial Research Requirements: Creating high-quality products demands thorough research to understand user needs, including design, style, and other specifics. This process can be time-consuming and requires a significant initial investment in understanding the market.

  • Community Building: Many successful products rely on the creator's existing audience. Building a community takes time and effort, which might be challenging for those starting without a pre-established following.

In future posts, we’ll continue to explore other verticals and niches, providing detailed insights and strategies for success. Stay tuned for more valuable information and tips to enhance your online business endeavors!