Every digital product seller has done some version of this calculation:

"10% fee isn't bad. That's just the cost of doing business."

Then you actually do the math for a year. And you realize 10% of $20,000 is $2,000 — and you could have kept most of that.

Here's the breakdown nobody on Gumroad's marketing page wants to show you.

The actual cut

Gumroad advertises 10%. But you also pay:

Stripe fees (~2.9% + $0.30)

Paypal fees on PayPal sales

VAT handling fees (in some regions)

Effective cut on a $20 product: ~12.5%.

Peddlum charges 10% flat, and absorbs payment processing into that. Effective cut: 10%.

That 2.5% difference sounds tiny. Let me show you what it actually is.

A year of sales

My 2024 numbers, month by month:

January — Revenue: $1,200. Gumroad would take $150 (12.5%). Peddlum takes $120 (10%). Difference: $30.

February — Revenue: $980. Gumroad cut: $123. Peddlum cut: $98. Difference: $25.

March — Revenue: $1,450. Gumroad cut: $181. Peddlum cut: $145.…