How Gumroad got its first users?

Sahil Lavingia was a teenager from Palo Alto who had already built a few applications earlier. Unfortunately, they weren't much of a success. He began experimenting with Photoshop. He created a pencil icon for yet another app.

But, he didn't finish it. Still, he believed that the icon was profitable itself. He just needed a few hours to polish the job. He got the idea to follow certain designers on Twitter and try selling the emblem on a marketplace. Sadly, he couldn't find a good place anywhere. He thought then that he could create one.

It came to him one weekend. The entire thing was just one Python file on Google App Engine. You submitted your work, gave it a price, and then shared a link. 7.5% + 25¢ from each Gumroad transaction was the starting payout rate. It made for one of the first elements of the Gumroad business growth strategies. Later, a few models appeared to choose from, and folks began to show up, which boosted Gumroad user acquisition. They wanted Gumroad just like Sahil did.

Sahil sent out a slew of emails, and that was the core factor of the Gumroad user acquisition strategy. Those emails gave him his first users. Together with the team, Sahil cold-emailed people that could be interested in what Gumroad offered.

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