When to stop, and the risks
The signs a digital product isn't working, plus the consumer-law, tax and copyright points to know before selling.
Signs to stop or change
- You missed the pre-sale point twice. Pick a different problem rather than building anyway.
- Thirty days after launch there are almost no visits and no sales, despite the weekly rhythm.
- Refund requests keep saying the product isn't what the page described. Fix the page or the product before promoting it further.
- Support questions take more time than the product earns.
Consumer law: refunds
Under the Australian Consumer Law, a business can't take away a consumer's right to a refund or replacement for a product with a major problem. Policies that say "no refunds" are illegal. You don't have to give refunds for a simple change of mind, but if you have a change-of-mind policy you must follow it. Source: ACCC, https://www.accc.gov.au/business/problem-with-a-product-or-service-you-sold/repair-replace-refund-cancel
What that means in practice:
- The product page describes exactly what's inside, so the product matches its description.
- Your refund wording never says "no refunds".
- If you offer a change-of-mind window (for example 14 days), honour it.
Tax
- Under the ATO's rules you must register for goods and services tax once your turnover reaches A$75,000 (https://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/registering-for-gst).
- Gumroad says it acts as merchant of record and handles sales tax collection and remittance where it has obligations (https://gumroad.com/pricing). How that interacts with your own tax position is a question for your accountant.
Email marketing
If you email buyers or a list about products, Australia's Spam Act requires consent, an accurate sender identity with contact details, and a working unsubscribe that's honoured within 5 working days. Source: ACMA, https://www.acma.gov.au/avoid-sending-spam
Other risks
- Copyright and licences. Fonts, icons, images and templates inside your product must be yours or licensed for resale or commercial use.
- Sharing and piracy. Digital files get shared. At small prices, it's usually better to keep updating the product than to fight it.
- Competition and price pressure. Marketplaces are crowded and prices can be driven down (one of the risks on the free blueprint). A narrow buyer and plain-words page are your best defence.
- Platform dependence. If one platform changes its fees or rules, you need another way to reach your buyers, such as an email list you own.