Author Topic: Gumroad (Read 8279 times)

EmberMike · « **on:** July 12, 2012, 20:56 »

There has always been some discussion around stock that eventually some new system of buying and selling images might take over and put the agencies out of business. I used to think we were many years away from that happening, but now I'm starting to think that maybe it's just a few years off. We're already starting to see some signs that people are thinking about buying and selling online in different ways, outside of the traditional agency model. One of those new methods of selling digital content online is Gumroad.

The basic idea is that instead of using a merchant site, say iStockphoto for example, to upload and sell content, you use Gumroad to submit content, set a price, and use social media to distribute short links to buy the content. Instead of needing a dedicated website to sell content, you can essentially use Gumroad and a Twitter or Facebook account to sell stuff.

I think the applications for stock are limited. Selling individual photos through Gumroad won't make any sense. This service seems more geared towards selling small quantities of content, not hundreds or thousands of images. An app, a music album, things like that. The only realistic stock application I see is selling bundled content, for example a pack of 100 vector images all combined into a single package.

Regardless of my opinion, it seems Gumroad is intent on challenging the stock agency business model. Check out this screenshot from their homepage video:

Any logos look familiar there?

They're obviously also attempting to challenge the high cut that agencies take per sale. Gumroad takes just 5% + $0.25 for each sale, compared to the 85% "PicsStock" takes in the above example.

Again, I don't think this is the solution for us. But it's starting to scratch the surface of what could become a very different landscape for digital content sales transactions in the near future. We've talked about the possibility of Google Images introducing a licensing feature, where someone can quickly license an image they find on Google without going to an agency to do so. Gumroad introduces an interesting way of using social media to sell things without an agent involved and without needing your own website. People are thinking about this problem, and even in terms of how to challenge how business like the stock image business operate, as shown in the Gumroad video. And the people thinking about this stuff are very smart people. The guy behind Gumroad is Sahil Lavingia, formerly of Pinterest. The guy is only 19 years old, but he's an incredibly talented developer. Check out Kevin Rose's Foundation podcast for a great interview with Sahil.

I don't think that Gumroad will be the revolution here, but we might look back on this as one of the first steps toward whatever post-microstock incarnation of the stock image business we find ourselves in some time in the near future.

Sidenote: Yes, I guess this means I'm back. Anyone who doesn't know me, I used to go by the name helix7 here, and left the forum for a much needed break from things. It was a nice couple of months away, I took some vacation time, relaxed on the beach, and forgot all about the stock business craziness for a while. I don't think I'll ever again be as active as I once was here, but I'll pop in from time to time, especially when there's something really interesting to discuss.

luissantos84 · « **Reply #1 on:** July 12, 2012, 21:09 »

stunning review and insight! thanks for taking the time to write it, appreciate it

Sean Locke Photography · « **Reply #2 on:** July 12, 2012, 21:40 »

Just going by the review, how is this just not another agency/marketplace? If we start selling through Google, then it's just another agency.

I think a large percentage of buyers feel pretty confident that by using IS or similar, the quality is somewhat guaranteed and the legal is in place.

Additionally, I see nothing about license terms or what you can do with what you 'buy'.

EmberMike · « **Reply #3 on:** July 13, 2012, 10:16 »

Quote from: sjlocke on July 12, 2012, 21:40

Just going by the review, how is this just not another agency/marketplace? If we start selling through Google, then it's just another agency.

I think a large percentage of buyers feel pretty confident that by using IS or similar, the quality is somewhat guaranteed and the legal is in place.

Additionally, I see nothing about license terms or what you can do with what you 'buy'.

Right. There are a ton of holes in Gumroad, especially as it relates to how it could be applied to the stock business. I think it was really ambitious to pretty much name iStock in their video as someone they're targeting, and yet they are completely unequipped to really challenge iStock or any other microstock agency. Gumroad may work well for some types of content, but it's not an overall solution for all types of digital content.

What I think is interesting, however, is that they are trying. I like that there is some thought going into how to improve the online marketplace. Something like this is the future of stock, and probably of all online sales. Imagine not having to first locate a site that sells the products you're looking for, then find the specific product, and then make the transaction. Instant purchase from any search, no need to create an account at a specific site, a truly universal wallet, etc. The transaction would still be taking place through an agency or a service like Gumroad, but without the need to actually go to these sites and put in every bit of your personal info just to license an image for your blog.

Gumroad isn't the solution, but it's a start.

HerMajesty · « **Reply #4 on:** August 22, 2012, 12:22 »

for any professional/commercial use this won't work imho. Also another outlet for all the stolen content.
It's a nice try and it would be nice to have less of an obstacle between sellers and buyers (or creators and users if you will), but this project might work for an indy band or something similar. Stock buyers won't "follow" anyone on tweeter because they are just dying to see your next tomato isolated on white.
We need 'something' that will help the buyer find what he needs, be absolutely certain that the copyright issues are taken care off, quality check etc. I don't even think Google image search could do that.