June 17, 2012 Category: Business Formation & Planning
When taking the time to plan a new company, there is a lot of research involved for those in Michigan and elsewhere in the United States. Research as to what consumers are looking for in today’s world, into businesses with similar services or products, into how your business will be different from others in the industry, how to market your new company and how you are going to make profit. All of these are likely things that Gumroad took into consideration when forming their online business.
Gumroad is online business that works to help independent creators and designs to get their products out there via social media and a simple, yet unique website. Many believe flashy websites are the way to go, but in reality, simple designs are much more effective, and Gumroad puts this into effect. If someone has digital products — eBooks, Word press themes, and images — then Gumroad helps the authors and designers of those products get the word out about their product.
The author chooses the price that they want to sell their product for in the Gumroad system. They then provide a relevant business image and promotional material for the product. Gumroad does the rest. They begin by developing a straight-forward, attractive webpage. They then take the web address to social media, including Twitter and Facebook, and share it with all of their followers and friends.
Rather than a designer needing an e-commerce store to sell their products, Gumroad simplifies the entire process by creating a commerce webpage. This webpage then brings in revenue for the independent designer or author almost immediately. Best of all — it’s a fraction of the cost of competitive websites at $0.25 and a 5 percent cut.
When forming their new company, Gumroad likely took a lot into consideration. They had to determine how they would make their company stand out from their competitors or else they wouldn’t make as much profit. This is imperative for any Michigan business looking to form a brand new company, in addition to understanding all current laws and rules regarding new business formation.
Source: Wired, ” Sell to Your Friends: New Startup Gumroad Makes It Easy ,” Joseph Flaherty, June 7, 2012