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Part of How to think about digital product funnels

Funnel platforms for digital products: what actually converts buyers

Named funnel platforms for digital products differ on checkout, delivery and fees, and the right pick depends on what you sell and how buyers pay.

What to take away

Funnel platforms for digital products differ on checkout, delivery and fees. The right pick depends on what you sell and how buyers pay.

  • Kajabi, Teachable, Podia, Gumroad and Lemon Squeezy cover course hosting, downloads and merchant-of-record checkout. ThriveCart, SamCart and Shopify add checkout layers or full storefronts. None owns all of the funnel.
  • Merchant of record and payment processor are different roles. The first takes on sales tax and chargebacks. The second does not.
  • Gumroad and Lemon Squeezy charge per transaction. Kajabi and Teachable charge a monthly subscription. The cost curves cross at different volumes.
  • Test refund, failed payment and access recovery before launch, not after.
  • Keep an export path. A platform that will not give you customer records is a platform you cannot leave.

Named funnel platforms for digital products

Kajabi bundles course hosting, membership, email and checkout in one subscription. It suits a creator selling one flagship course who does not want to stitch tools together.

Funnel platform comparison

Kajabi

Best for
Flagship course
Entry price
~$149/mo
Fees
Flat tier
Delivery
Account-gated

Teachable

Best for
Cohort teaching
Entry price
~$39/mo
Fees
Tier + fee
Delivery
Account-gated

Podia

Best for
Small catalog
Entry price
Free or low
Fees
No transaction fee
Delivery
Account-gated

Gumroad

Best for
First ebook
Entry price
No monthly
Fees
~10% per sale
Delivery
Instant link

Published entry plans typically start around $149 a month, with higher tiers for more contacts and products. Cost is flat until you hit the tier's contact or product limits. Kajabi's gated course area ties access to a buyer account, so delivery survives a spam-filtered receipt.

Teachable is course-first, with quizzes, drip schedules and a student dashboard. It suits teachers and cohort instructors. Subscription tiers commonly run from about $39 to $159 a month, and lower plans add a transaction fee. Drip schedules and quizzes can pace buyers, but checkout still depends on your payment processor.

Podia covers courses, downloads, memberships and email at one subscription price with no transaction fee. It suits a small catalog where simplicity beats depth. Entry plans are often free or low monthly, with paid tiers commonly under $100 a month. No transaction fee helps low-ticket downloads.

Gumroad is the fastest path from file to checkout link, and it acts as merchant of record. It suits a first ebook or template pack. It charges a percentage per sale, commonly around 10%, so it is cheap at low volume and expensive at high volume. Its hosted checkout and instant delivery reduce setup friction.

Lemon Squeezy also acts as merchant of record, handling sales tax and VAT for digital goods across jurisdictions. It suits sellers shipping internationally who do not want to register in each country. Its fee is percentage per transaction, commonly around 5% plus a small fixed charge. That covers tax collection and payment processing.

ThriveCart and SamCart are checkout and upsell layers that sit on top of your existing payment processor. They suit sellers whose traffic already converts and who want order bumps and one-click upsells. ThriveCart sells a one-time license, often around $495. SamCart uses monthly plans, often starting near $59. You still pay your processor.

Shopify sells physical and digital goods with a full storefront, tax engine and app market. It suits a seller who wants one catalog and expects to add physical products later.

Basic plans start near $39 a month plus payment processing fees. Shopify's checkout is optimized for address and shipping fields, which can hurt a pure digital download if you leave physical-product fields on.

For a deeper comparison of how these fit together, see digital product funnels.

Checkout, delivery and order bumps: what converts

Checkout speed, not page design, is usually the lever. Every extra field costs completions. Asking for a phone number on a $19 ebook is a tax you did not need to charge. Stripe Checkout and Shopify checkout both let you remove fields, but only if you turn the option on.

Three checkout conversion levers

  1. Remove extra checkout fields
  2. Gate delivery to buyer account
  3. Test one order bump

Delivery is the second lever. A download link in a receipt email is a support ticket waiting to happen when the email lands in spam. Gated access tied to the buyer's account survives that. Kajabi, Teachable and Podia all use account-gated course areas.

The third is the order bump. ThriveCart and SamCart exist because a well-placed second offer at checkout converts better than the same offer sent by email a day later. Test one bump, not three. A confused buyer often takes no offer at all.

Worked example: subscription versus percentage

Let P be your price, N your monthly sales, and F the platform's percentage fee.

Subscription vs percentage cost

  • $200Percentage fee at 40 sales
  • $149Flat tier at 40 sales
  • $50Percentage fee at 10 sales

Subscription versus percentage

Gumroad or Lemon Squeezy cost
P x N x F.
Kajabi or Teachable cost
the monthly tier, flat, regardless of N.

At P = $50, N = 40 and F = 10%, the percentage platform takes $200 a month. A $149 tier is cheaper.

At N = 10, the percentage platform takes $50 and the tier is not. Run your own P and N before you commit. Check the current published fee on each platform's pricing page, because these change.

Before you launch

Pre-launch checks

  • Buy your own product with a real card
  • Force a failed payment and check recovery email
  • Request a refund and confirm access revoked
  • Export customers, orders and content
  • Confirm merchant of record and sales tax

Compliance and evidence

The FTC advertising substantiation policy requires a reasonable basis for objective claims before you publish them. That applies to a conversion rate you put on a sales page.

The FTC guidance for marketers using reviews covers fake reviews, conditioned incentives and undisclosed relationships. If you run an affiliate program, those rules reach your affiliates too. For benchmark context on what affiliates typically earn, see affiliate benchmarks.

Sales tax on digital goods varies by state. Some states tax digital downloads, some do not, and the rules change. Confirm your position with your state revenue department or a CPA before you set prices.

Common questions

Which platform is best for a first digital product?

Gumroad or Podia, because both get you to a working checkout in an afternoon and neither locks you into a large subscription. Move once your volume makes the percentage fee hurt more than a monthly tier would.

Do I need a merchant of record?

Only if you sell across borders and do not want to register for VAT or sales tax in each country. Gumroad and Lemon Squeezy take that role and charge for it. If you sell in one country, a normal processor is cheaper.

Why do ThriveCart and SamCart exist if I already have Stripe?

They add order bumps, upsells and cart recovery on top of a processor that does not do those things well. They earn their fee only when you already have traffic that converts.

How often do these fees change?

Frequently, and without much notice. Check each platform's own pricing page on the day you decide, and revisit the comparison whenever your monthly volume changes tier. For more on this, see common funnel questions.

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