Steelman'ing the Gumroad price increase

Gumroad is smart. The price increases are realistic. Naysayers are "drunk."

The argument:

Macro-economically, the "free money" era (2009-2022) is over. Thank the Fed for the good times, but it's back to reality now.

As such, sustainability is the only way.

By raising prices, Gumroad proactively chooses maturity over remaining in Neverland.

Some power users will leave. All will complain. But none of them will find the "promised land" they seek. Because ALL platforms are built on shaky ground.

Price raises are coming, industry-wide. Gumroad just had the audacity to lead the pack. Competitors that do not respect a mean-reverting market will slowly fade to black. Even Stripe, the backbone of them all, can, will, and does, increase prices.

Nobody likes a hangover, but it's the only way to sober up.

Also, let's not forget a simple truth.

The vast majority of users on the platform aren't affected.

An extra 1% on sales that rarely happen anyway?

"Ya, whatever. You do you, boss."

Power users drive volume, but there aren't enough of them to constitute "community." With this move, Gumroad differentiates themselves as a community-driven ecosystem, sustained by 10% of the success of ALL it's users. No special treatment. No hierarchy. No misaligned incentives.

As a company, Gumroad's own incentives are now calibrated to true-North.

Gumroad is paid when you are paid. They succeed when you succeed. They no longer succeed less when you succeed more. Is that a partner you want to have anyway? One who is actually disincentivized to see you succeed "too much?"

Ultimately, the criticism (and cynicism) will fade and power users will still choose Gumroad. Because community is worth it.

Paradoxically, non-competitive price increases self-select a community of true-believers.

Price increases may hurt margins for the most successful users, but if they also contribute to a stronger core community, then at least some of that value should trickle back up to power users.

Strong community is worth at least few percentage points of margin.

Related: how much crap do people buy on Amazon just because it's convenient? Lots. The Amazon ecosystem (read: community) is so powerful that sellers tolerate fees as high as 45%. Still mad about 10%?

A rock-solid company, with rock-solid community, principles, and alignments is undeniable, even by it's most powerful power users.

You can't build a new foundation without shaking the penthouse.

Gumroad is betting that they are sufficiently un-deniable to warrant top-down price increases.

True or not, by taking a stand-- by weeding out the fence-sitters and nay-sayers, they make themselves eligible for an undeniable future.

Discipline is a virtue. And Gumroad has it.