Checklist · Build and earn
Selling Digital Products Checklist for Developers
Opens with creditsA step-by-step checklist for developers who want to sell digital products such as code templates, starter kits, e-books, courses or plugins. It covers choosing and validating a product, writing a licence, picking a platform (Gumroad, Lemon Squeezy, Paddle or Stripe), how a merchant of record changes your tax work, pricing, delivery, refunds and support, marketing and keeping the product updated. It is practical guidance, not legal or tax advice.
Written by Tauseef Fayyaz9 chapters, 38 checksAbout 21 minReviewed 13 October 2026What you will learn
9 chapters · about 21 min
1Choose and validate the productThe best first product solves a problem you know well for people you can reach. Validate demand before you spend months building.5 checks · 3 min
- 1Pick a product that solves a problem you have solved yourself
- 2Validate demand with a waitlist, pre-sale or small version first
- 3Ship a small, complete first version
- 4Choose a format that fits the problem and your strengths
- 5Confirm you own or may resell everything in the product
5 in this chapterOpen this chapter2LicensingBuyers of code need to know exactly what they may do with it. Write the licence before your first sale.4 checks · 3 min
- 1Write a short licence that says what buyers may and may not do
- 2Offer clear licence tiers if different buyers need different rights
- 3Decide deliberately between an open source and a commercial licence
- 4Use licence keys for software that should be limited to a number of activations
4 in this chapterOpen this chapter- Choose a platformThe platform decides your fees, who handles sales tax and VAT, and whether you can get paid where you live. Compare them on their own terms.6 checks · 4 minOpens with credits
- PricingPrice on the value to the buyer, account for fees and tax, and keep discounts honest.4 checks · 2 minOpens with credits
- Delivery and accessBuyers should get exactly what they paid for, immediately, and be able to get it again later.4 checks · 2 minOpens with credits
- Refunds and supportA clear refund policy and responsive support protect your reputation and reduce chargebacks.4 checks · 2 minOpens with credits
- TaxesIndirect taxes such as VAT and sales tax, and your own income tax, are separate questions. Know which ones your platform handles.4 checks · 2 minOpens with credits
- MarketingProducts sell to people who already trust you. Build an audience, write a clear product page and keep claims honest.4 checks · 2 minOpens with credits
- Updates and long-term careDeveloper products age as their dependencies change. Plan updates, communicate them and decide how the product will end.3 checks · 1 minOpens with credits
About this checklist
A selling digital products checklist helps developers avoid the mistakes that sink most first products: building something nobody asked for, choosing a payment platform that does not pay out in your country, forgetting about sales tax and VAT, and having no plan for refunds, support or updates. Templates, starter kits, e-books, courses and plugins can earn real money for developers, but only if the business side is handled as carefully as the code.
This checklist follows a product from idea to its first year of sales. It starts with choosing and validating the product, then licensing, because buyers of code need to know exactly what they may do with it. The middle chapters compare platforms as their own documentation describes them: Gumroad, Lemon Squeezy and Paddle act as a merchant of record that handles sales tax and VAT for you, while Stripe is a payment processor where, outside its Managed Payments product, your business stays responsible for tax. Later chapters cover pricing, delivery, refunds and support, taxes, marketing and updates.
Fees, country lists and rules were checked against each platform's own pages and EU guidance in October 2026. They change, so open the linked page before you decide. This matters especially if you live in Pakistan or another country where some processors are not available directly: Stripe's own list of supported countries does not include Pakistan, while Lemon Squeezy lists Pakistan for bank payouts.
Treat this as a practical checklist, not legal or tax advice. Income tax rules depend on where you live, so check anything important with a qualified local professional.
Common questions
What is a merchant of record when selling digital products?
It is the business that legally sells to the customer. When a platform such as Paddle, Lemon Squeezy or Gumroad is the merchant of record, it collects and remits sales tax and VAT and handles refunds and chargebacks. With a payment processor such as standard Stripe, your business is the merchant and those responsibilities stay with you.
Gumroad or Lemon Squeezy for selling developer products?
Both handle tax for you. Gumroad lists 10% plus $0.50 per direct sale and is quick to set up for downloads. Lemon Squeezy lists 5% plus 50 cents per transaction, with some extra fees, and adds licence keys suited to software. Check payouts for your country on each platform before choosing.
Can I use Stripe to sell digital products from Pakistan?
Stripe's global availability page does not list Pakistan as a supported business location as of October 2026. Developers in Pakistan often use a merchant of record platform that pays out locally; Lemon Squeezy, for example, lists Pakistan for bank payouts. Never register under someone else's identity to access a processor.
Do I have to pay VAT on digital products sold to EU customers?
VAT is generally due on digital sales to EU consumers. If your platform is the merchant of record, it handles that VAT. If you sell directly, you may need to register, for example through the EU VAT One Stop Shop. Your own income tax at home is a separate obligation either way.
Do I have to offer refunds on digital products?
It depends on where your buyers are. EU consumers generally have a 14-day right of withdrawal, which does not apply to digital content they started downloading or streaming after expressly agreeing to lose that right. Whatever your policy, publish it clearly; a no-refunds policy does not stop chargebacks.
What licence should I use for a paid code template?
Write a short licence that says whether buyers may use it in personal, client or commercial projects, how many projects or seats it covers, that they may modify it, and that they may not resell or redistribute the template itself. Show it on the product page and include it as a LICENSE file.
Sources (8)
Checked against these, last on 13 October 2026.
- Gumroad pricing, Gumroadgumroad.com/pricing
- Lemon Squeezy pricing, Lemon Squeezywww.lemonsqueezy.com/pricing
- Supported countries, Lemon Squeezy docsdocs.lemonsqueezy.com/help/getting-started/supported-countries
- Paddle pricing, Paddlewww.paddle.com/pricing
- Managed Payments eligibility, Stripe docsdocs.stripe.com/payments/managed-payments/eligibility
- Stripe global availability, Stripestripe.com/global
- Cancelling a purchase and the right of withdrawal, Your Europe, European Unioneuropa.eu/youreurope/citizens/consumers/shopping/returns/index_en.htm
- VAT One Stop Shop, European Commissionvat-one-stop-shop.ec.europa.eu/index_en
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