{"id":493,"date":"2026-10-10T01:45:47","date_gmt":"2026-10-09T20:15:47","guid":{"rendered":"https:\/\/jnkplugins.com\/blog\/license-and-sell-wordpress-plugin\/"},"modified":"2026-10-10T01:45:47","modified_gmt":"2026-10-09T20:15:47","slug":"license-and-sell-wordpress-plugin","status":"publish","type":"post","link":"https:\/\/jnkplugins.com\/blog\/license-and-sell-wordpress-plugin\/","title":{"rendered":"Best Ways to License and Sell a WordPress Plugin (2026)"},"content":{"rendered":"<p>There are four realistic ways to license and sell a Pro version of a WordPress plugin. You can use an all-in-one platform such as Freemius, which takes a share of revenue and acts as your merchant of record. You can run a store inside WordPress with Easy Digital Downloads and its Software Licensing extension. You can put a payments service that handles tax (Lemon Squeezy, Paddle, Polar) in front of a separate licensing server. Or, for the simplest products, you can sell a zip through Gumroad or a marketplace and accept that updates are on you.<\/p>\n<p>Short version of who each suits: Freemius if you are starting out and want tax and payments off your plate. EDD if you already run a WordPress site you trust and want no revenue share. A payments service plus a licensing server once the percentage starts to hurt and you want to own the customer list. Gumroad if a download link is honestly all you need. The rest of this post is the reasoning, the numbers, and the decisions every route still leaves you to make.<\/p>\n<p>Prices are as of October 2026, taken from each vendor&#8217;s own pricing page (last checked 27 August 2026). We make one of the products in this space, and it gets a single, clearly marked section near the end. Everything above it would read the same if we did not.<\/p>\n<h2>First, split the job in two<\/h2>\n<p>Most comparisons put seven logos in a table and let you guess. The useful move is to notice that &#8220;selling a plugin&#8221; is two jobs that happen to sit next to each other:<\/p>\n<ul>\n<li><strong>Taking the money.<\/strong> Card payments, subscriptions, invoices, refunds and, the big one, sales tax and VAT. A <em>merchant of record<\/em> (MoR) is a company that legally sells your product on your behalf, so the tax registration, filing and remitting is theirs, not yours.<\/li>\n<li><strong>Enforcing the licence.<\/strong> Issuing keys, counting how many sites a key is active on, deciding what happens at expiry, and delivering Pro updates into the customer&#8217;s wp-admin.<\/li>\n<\/ul>\n<p>Some products do both. Most do one. A merchant of record and a licensing server are not alternatives to each other, and plenty of working setups use one of each, joined by a webhook. The genuine either\/or is between a platform that does both for a percentage and assembling the two halves yourself. We laid this out at more length on our <a href=\"https:\/\/jnkplugins.com\/licensorpro\/compare.php\">licensing options compared<\/a> page, with sources for each row.<\/p>\n<h2>The routes, one by one<\/h2>\n<h3>1. All-in-one platform: Freemius<\/h3>\n<p>Freemius is the default answer for WordPress plugin authors, and for good reasons. It is your merchant of record, so it collects and remits sales tax and VAT. It handles checkout, subscriptions and licence keys, and its SDK delivers Pro updates into WordPress. You never run a server. It also gives you install analytics and in-plugin upgrade tooling, which you would otherwise build yourself.<\/p>\n<p>The cost is a revenue share, and the number most articles quote is wrong for plugin sellers. Freemius lists a base share of <strong>4.7%<\/strong> on monthly gross up to $50,000, stepping down as volume grows (4.5% above $50,000 a month, down to 0.5% above $100,000). But its pricing page also lists &#8220;WordPress &amp; Templates <strong>+2.3%<\/strong>&#8220;, and its FAQ confirms the surcharge. So a WordPress plugin seller pays about <strong>7.0% plus gateway fees<\/strong>, not 4.7%.<\/p>\n<p>A few other details from their page that matter: no fee on the tax component of a sale, no extra percentage for cart recovery or failed-renewal recovery, a $100 minimum payout, and monthly payouts via PayPal, Payoneer, Wise or wire.<\/p>\n<p><strong>Who it suits:<\/strong> anyone early, anyone selling modest amounts, anyone who never wants to think about VAT. The percentage costs you almost nothing when sales are small. The catch is that it never stops. At $10,000 a month, 7% is $700, every month. Our <a href=\"https:\/\/jnkplugins.com\/licensorpro\/vs-freemius.php\">Freemius comparison<\/a> runs that arithmetic at several revenue levels, including the rows where Freemius is the better deal.<\/p>\n<h3>2. WordPress store plus licensing add-on: Easy Digital Downloads<\/h3>\n<p>Easy Digital Downloads (EDD) is a store that runs as a plugin on your own WordPress site. Its Software Licensing extension issues keys, tracks activations and serves updates to your customers&#8217; sites. It takes no platform fee, so there is no revenue share to grow with your sales.<\/p>\n<p>The catch is the tier. Software Licensing needs the <strong>Professional pass<\/strong>. EDD currently shows &#8220;special introductory pricing, all renewals are at full price&#8221;, so quote both numbers: <strong>$299.50 for the first year, $599 a year on renewal<\/strong>. The Personal and Extended passes are cheaper but do not include licensing, so comparing against them is misleading.<\/p>\n<p>You do get a lot for that: a real storefront with product pages, a cart, discounts and a large ecosystem of extensions and tutorials built up over many years. If your team knows WordPress and nothing else, it is one less system to learn.<\/p>\n<p>The architectural trade-off is that your licence API now lives inside a WordPress site, next to your theme and every other plugin on it. A bad update or a clash on the store site is now an incident where customers cannot activate. If you have ever spent an afternoon on <a href=\"https:\/\/jnkplugins.com\/blog\/wordpress-plugin-conflicts-debugging\/\">WordPress plugin conflicts<\/a>, you know that is not hypothetical. You can shrink that risk by running the store on its own lean install. Tax is also yours to file: EDD calculates it, but EDD is not a merchant of record.<\/p>\n<p><strong>Who it suits:<\/strong> sellers who already run a stable WordPress site, want a proper storefront, and would rather pay a flat yearly fee than a percentage. Our <a href=\"https:\/\/jnkplugins.com\/licensorpro\/vs-edd.php\">EDD comparison<\/a> calls this the closest contest in the whole field, and we stand by that.<\/p>\n<h3>3. A merchant of record plus a separate licensing server<\/h3>\n<p>This is the &#8220;assemble it yourself&#8221; route. A merchant of record takes the payment and handles tax. A licensing server, which you host or rent, issues keys and delivers updates. A webhook from the MoR tells the licensing server &#8220;this person paid&#8221;, and the server issues the key and sends the email.<\/p>\n<p>The merchants of record most plugin authors look at:<\/p>\n<ul>\n<li><strong>Lemon Squeezy:<\/strong> 5% + 50\u00a2 per transaction, no monthly charge for ecommerce. Its own blog says Stripe acquired it, so it is now a Stripe company. That is worth knowing if you are picking a billing partner for the next five years. It is not a reason to panic.<\/li>\n<li><strong>Paddle:<\/strong> 5% + 50\u00a2 per checkout transaction, no monthly fees. Read the footnote: products under $10, or sellers who need invoicing, get custom pricing. If you sell a $7 add-on, the headline rate is not your rate. Our <a href=\"https:\/\/jnkplugins.com\/licensorpro\/vs-paddle.php\">Paddle comparison<\/a> works through what that 50\u00a2 does to a cheap sale.<\/li>\n<li><strong>Polar:<\/strong> Starter is free at 5.00% + 50\u00a2. Paid tiers lower the rate: Pro at $20 a month is 3.80% + 40\u00a2, Growth at $100 a month is 3.60% + 35\u00a2, Scale at $400 a month is 3.40% + 30\u00a2. We use Polar ourselves.<\/li>\n<\/ul>\n<p>For the licensing half you can rent a hosted API or run your own server. LicenseSpring is the best-known hosted option: a free plan with 1,000 requests a month and 1 product, Business Starter at $199 a month (10,000 requests, 3 products) and Business Plus at $750 a month. It is a general software licensing service, not WordPress-specific, so plan to write the WordPress update side yourself. Self-hosted servers, ours included, cost a flat yearly fee and you run them.<\/p>\n<p>Some sellers skip the MoR and use a plain gateway such as Stripe, doing their own VAT. That is cheaper and a perfectly normal choice, but it is not the same deal as Freemius, so do not compare it as if it were.<\/p>\n<p><strong>Who it suits:<\/strong> sellers past the point where 7% is small change, anyone who wants the customer list in their own database, and anyone selling more than WordPress plugins (a desktop app, a PHP script) who wants one licensing system for all of it. The honest cost is that you are now wiring two vendors together and keeping one of them running.<\/p>\n<h3>4. Sell a file: Gumroad<\/h3>\n<p>Gumroad is the fastest way to start selling. <strong>10% + $0.50<\/strong> per transaction through your own profile or direct links, <strong>30%<\/strong> when a customer finds you through Gumroad Discover, no monthly charge.<\/p>\n<p>It does have licence keys, and its API can verify, disable and rotate them. What it does not do is enforce anything for you. Gumroad&#8217;s own help docs say enforcement is &#8220;completely up to the creator&#8221;, and a key stays enabled after a refund until you disable it. There is no list of which sites a key is active on, and nothing reaches the customer&#8217;s wp-admin update screen: buyers download a new zip by hand. For an ebook that is fine. For a plugin, the update channel and the per-site list are the code you would be writing. Our <a href=\"https:\/\/jnkplugins.com\/licensorpro\/vs-gumroad.php\">Gumroad comparison<\/a> starts by saying &#8220;if a download link is enough, use Gumroad&#8221;, and we meant it.<\/p>\n<p><strong>Who it suits:<\/strong> a first paid add-on, a one-off tool, a test of whether anyone will pay at all.<\/p>\n<h3>5. Marketplaces such as CodeCanyon<\/h3>\n<p>Marketplaces like CodeCanyon sell your plugin to their existing buyers, which is the whole attraction: someone else brings the traffic. We have not verified their current author fees or terms, so we will not quote any. If you go this way, read the author agreement closely for three things: the commission at your price point, whether you can also sell the same plugin elsewhere, and how updates reach buyers. Those three decide whether the audience is worth what you give up.<\/p>\n<h2>The routes at a glance<\/h2>\n<table>\n<thead>\n<tr>\n<th>Route<\/th>\n<th>What you pay<\/th>\n<th>Handles tax for you?<\/th>\n<th>Pro updates into wp-admin?<\/th>\n<th>Who owns the customer data<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Freemius<\/td>\n<td>About 7.0% + gateway for WordPress (4.7% base + 2.3%)<\/td>\n<td>Yes, it is the merchant of record<\/td>\n<td>Yes, via its SDK<\/td>\n<td>Held on their platform<\/td>\n<\/tr>\n<tr>\n<td>EDD + Software Licensing<\/td>\n<td>$299.50 first year, then $599\/yr (Professional pass), no platform fee<\/td>\n<td>No, it calculates tax but you file<\/td>\n<td>Yes<\/td>\n<td>Your WordPress database<\/td>\n<\/tr>\n<tr>\n<td>MoR + licensing server<\/td>\n<td>MoR from 5% + 50\u00a2 (Lemon Squeezy, Paddle, Polar Starter), plus the server&#8217;s fee<\/td>\n<td>Yes, via the MoR<\/td>\n<td>Depends on the licensing server<\/td>\n<td>Split: payments at the MoR, licences with you<\/td>\n<\/tr>\n<tr>\n<td>Gateway + licensing server<\/td>\n<td>Gateway fees plus the server&#8217;s fee<\/td>\n<td>No, VAT is yours<\/td>\n<td>Depends on the licensing server<\/td>\n<td>You<\/td>\n<\/tr>\n<tr>\n<td>Gumroad<\/td>\n<td>10% + $0.50, or 30% via Discover<\/td>\n<td>Yes<\/td>\n<td>No, manual zip downloads<\/td>\n<td>Gumroad<\/td>\n<\/tr>\n<tr>\n<td>Marketplace<\/td>\n<td>Not verified, check the author terms<\/td>\n<td>Check the terms<\/td>\n<td>Check the terms<\/td>\n<td>Mostly the marketplace<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>The column that decides the money is the first one, and the shape matters more than the number. A percentage costs nothing at the start and grows with every good month. A flat fee hurts a little at the start and then stays put. We wrote about the same trade-off from the buyer&#8217;s side in <a href=\"https:\/\/jnkplugins.com\/blog\/flat-pricing-vs-subscriptions\/\">flat pricing vs subscriptions<\/a>, and the logic runs the same way for sellers.<\/p>\n<h2>The decisions every route still leaves to you<\/h2>\n<p>Picking a platform is the visible decision. These five are the ones that generate support tickets, and no route makes them for you. Some just pick a default you may not like.<\/p>\n<table>\n<thead>\n<tr>\n<th>Decision<\/th>\n<th>The question to answer<\/th>\n<th>Common choice<\/th>\n<th>What goes wrong if you skip it<\/th>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td>Licence keys per site<\/td>\n<td>How many sites does one key cover, and can a customer move it?<\/td>\n<td>Tiers by site count (1, 5, unlimited), with self-service deactivation<\/td>\n<td>Customers email you every time they rebuild a site or move hosts<\/td>\n<\/tr>\n<tr>\n<td>Update delivery<\/td>\n<td>How does a Pro update reach the customer&#8217;s Updates screen?<\/td>\n<td>An update server answering WordPress&#8217;s update check, with expiring download links<\/td>\n<td>Customers run old versions with known bugs, and blame you<\/td>\n<\/tr>\n<tr>\n<td>Renewals and expiry<\/td>\n<td>What stops working when a licence lapses?<\/td>\n<td>Updates and support stop; existing features keep running<\/td>\n<td>A missed card payment breaks a live site, and you lose the customer for good<\/td>\n<\/tr>\n<tr>\n<td>Refunds<\/td>\n<td>What happens to the key after a refund?<\/td>\n<td>Refund window, then the key is cancelled automatically<\/td>\n<td>Refunded keys keep working forever<\/td>\n<\/tr>\n<tr>\n<td>Tax<\/td>\n<td>Who registers, collects and files sales tax and VAT?<\/td>\n<td>A merchant of record, or you plus an accountant<\/td>\n<td>A tax bill from a country you did not know you owed<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3>Licence keys per site<\/h3>\n<p>Per-site pricing is the norm for plugins, and it works, but only if moving a licence is painless. Give customers a way to deactivate a site themselves. People rebuild, migrate and spin up staging copies constantly. Decide early whether local and staging domains count against the limit. If they do, you will spend a surprising amount of your week explaining why <code>staging.example.com<\/code> used up a seat.<\/p>\n<h3>Update delivery<\/h3>\n<p>WordPress.org only hosts free plugins, so Pro updates need your own channel. In practice that means code in your plugin that answers WordPress&#8217;s own update check and points it at your server, which then hands back a short-lived download link for licensed sites. Freemius and EDD both ship this. Gumroad does not. A self-built or self-hosted server has to.<\/p>\n<p>If you also publish a free version on WordPress.org, keep the two builds apart. The directory does not allow locked Pro code inside the free zip, which we learned the slow way when <a href=\"https:\/\/jnkplugins.com\/blog\/wordpress-plugin-review-rejected-twice\/\">our plugin was rejected twice<\/a>. The free plugin also has to earn its own installs. Our notes on <a href=\"https:\/\/jnkplugins.com\/blog\/how-wordpress-plugin-search-ranks\/\">how plugin directory search ranks<\/a> cover the readme side of that.<\/p>\n<h3>Renewals and expiry<\/h3>\n<p>This is where plugin businesses quietly lose goodwill. The question is not whether renewals stop updates (they usually do), but whether a lapsed licence <em>breaks anything the site&#8217;s visitors see<\/em>. Turning off a form, a payment field or a layout the day a card declines is the fastest way to lose a customer permanently. The gentler pattern is: updates and support stop, a grace period lets admin tools keep working while the customer sorts out payment, and front-end output never breaks.<\/p>\n<p>Pricing shape is part of the same decision. Annual licences fund ongoing work. Lifetime licences sell well and remove the renewal argument entirely, but they are a bet that support costs stay manageable. We explained why we put <a href=\"https:\/\/jnkplugins.com\/blog\/lifetime-licenses-on-every-plan\/\">lifetime licences on every plan<\/a> anyway, and where we think annual is still the honest default.<\/p>\n<h3>Refunds<\/h3>\n<p>Pick a refund window, publish it, and make sure a refund actually cancels the key. That last part is the one people miss when they wire things together by hand. If the payment side and the licence side are separate, the refund webhook has to reach the licensing server, or refunded keys keep getting updates for years. A clear free tier also cuts refunds, because people know what they are buying before they pay. Our post on <a href=\"https:\/\/jnkplugins.com\/blog\/free-wordpress-plugins-replace-paid-tools\/\">free plugins that do a real job<\/a> is about the buyer side of that same line.<\/p>\n<h3>Tax<\/h3>\n<p>The least fun item and the one with the sharpest teeth. Selling software to consumers in the EU, UK and other places can make you liable for their VAT from the first sale, and US states have their own rules. A merchant of record takes all of it off you; that is most of what the percentage buys. Without one, you register, collect and file yourself, usually with tooling such as Stripe Tax and an accountant. Neither is wrong. Just decide on purpose, before the first sale.<\/p>\n<h2>Which route fits you<\/h2>\n<ul>\n<li><strong>Your first paid plugin, small sales, no appetite for tax admin:<\/strong> Freemius. The percentage is small in absolute terms, and you get to think about the product instead of infrastructure.<\/li>\n<li><strong>You want to test whether anyone pays at all:<\/strong> Gumroad, accepting manual updates for now. Move before the customer list gets long.<\/li>\n<li><strong>You already run a solid WordPress site and want a real store with no revenue share:<\/strong> EDD Professional, ideally on its own install.<\/li>\n<li><strong>The percentage has become one of your biggest costs:<\/strong> a merchant of record (or a plain gateway, if you will do your own tax) plus a licensing server you control.<\/li>\n<li><strong>You sell cheap add-ons under $10:<\/strong> work out the fixed per-transaction fee before you pick anyone. 50\u00a2 is a big slice of a $7 sale.<\/li>\n<\/ul>\n<h2>Full disclosure: we make LicensorPro<\/h2>\n<p><a href=\"https:\/\/jnkplugins.com\/licensorpro\/\">LicensorPro<\/a> is our self-hosted licensing and updates server. It sits in route 3 above, and it is important to be plain about what it is not. <strong>LicensorPro does not take payments and is not a merchant of record.<\/strong> You connect a payment provider yourself, either a gateway such as Stripe or a merchant of record such as Polar. If you want someone else to handle sales tax and VAT, you need a merchant of record in front of it, and that adds a percentage back.<\/p>\n<p>What it does: it issues licence keys and enforces a per-site activation limit on each one. It delivers updates through a drop-in WordPress client that hooks into WordPress&#8217;s own update check, and downloads go out through signed links that expire after 10 minutes. When a refund comes in through the Stripe webhook, the licence is cancelled. In the WordPress client, an expired licence keeps Pro admin tools working for a 30-day grace period by default, and a refund or revoke ends Pro access straight away.<\/p>\n<p>Plans are a flat yearly fee with no share of your sales: Solo $199 a year (up to 5 products, 1 payment gateway, stable release channel only), Studio $399 a year (up to 15 products, all gateways, beta and RC channels, bundles and affiliates) and Agency $799 a year (unlimited products, white-label).<\/p>\n<p>Where it is the wrong choice, and this is most people starting out: <strong>below roughly $10,000 a year in sales, if you want tax handled for you, Freemius is the simpler answer.<\/strong> With Polar&#8217;s entry rate in front of LicensorPro, the cost at $5,000 a year comes out at about $492 against Freemius&#8217;s $500. That is a wash, and Freemius is one vendor and one invoice where we are two vendors you wire together. LicensorPro also has no install analytics or in-plugin marketing tools, you have to run a server, and it is not a storefront like EDD. It starts to make sense past that $10,000 line, or when you want the customer list in your own database, or you already have a merchant of record you like and only need the licensing half.<\/p>\n<h2>Frequently asked questions<\/h2>\n<h3>What does Freemius actually charge for a WordPress plugin?<\/h3>\n<p>About 7.0% of revenue plus gateway fees. Freemius lists a 4.7% base revenue share on monthly gross up to $50,000, and its pricing page adds a 2.3% surcharge for WordPress products, which its FAQ confirms. The base share steps down at higher monthly volume. In exchange, Freemius is your merchant of record and handles sales tax and VAT.<\/p>\n<h3>Can I sell a Pro version of a plugin that is on WordPress.org?<\/h3>\n<p>Yes, and many authors do. The free version on WordPress.org has to be complete on its own, without locked Pro code inside the zip. The Pro version is sold and updated from your own site or platform, because WordPress.org only hosts free plugins. Keep the free and Pro builds as separate code trees so the free zip has no locked code in it.<\/p>\n<h3>Do I need a merchant of record to sell WordPress plugins?<\/h3>\n<p>No, but without one you handle sales tax and VAT yourself. A merchant of record such as Freemius, Lemon Squeezy, Paddle or Polar is the legal seller, so it registers, collects and files tax for you, and charges a percentage for it. With a plain payment gateway the fees are lower, but the registration and filing are your job.<\/p>\n<p><script type=\"application\/ld+json\">\n{\n  \"@context\": \"https:\/\/schema.org\",\n  \"@type\": \"FAQPage\",\n  \"mainEntity\": [\n    {\n      \"@type\": \"Question\",\n      \"name\": \"What does Freemius actually charge for a WordPress plugin?\",\n      \"acceptedAnswer\": {\n        \"@type\": \"Answer\",\n        \"text\": \"About 7.0% of revenue plus gateway fees. 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