WordPress powers over 40% of the web, and the demand for quality plugins and themes has never been higher. If you have built a WordPress product worth selling, Easy Digital Downloads (EDD) gives you the most reliable, purpose-built platform to sell it directly from your own website. No marketplace commissions, no middleman rules, and complete control over your customer relationships.
This guide walks you through the entire process of setting up an EDD-powered store to sell WordPress plugins and themes. We cover software licensing, automatic updates, changelogs, the freemium model, and the business decisions that separate successful product sellers from those who struggle.
Why Easy Digital Downloads Is the Right Choice for WordPress Products
You have options when it comes to selling WordPress products. Marketplaces like CodeCanyon and the WordPress.org plugin directory are popular, but they come with significant tradeoffs. CodeCanyon takes a substantial revenue cut, controls your pricing, and owns the customer relationship. WordPress.org is free but offers no commercial licensing infrastructure.
Easy Digital Downloads was built specifically for selling digital products. Unlike WooCommerce, which was designed for physical goods and later adapted for digital sales, EDD handles digital product delivery as its core function. Here is what makes EDD the strongest choice for WordPress product sellers:
- Zero marketplace commissions — You keep 100% of your revenue minus payment processing fees
- Native software licensing — The Software Licensing extension handles license keys, activation limits, and expiration dates
- Automatic update delivery — Push updates to customers directly from your EDD store, just like WordPress.org does
- Customer relationship ownership — You control communication, upsells, and support directly
- Recurring revenue support — Built-in subscription billing through the Recurring Payments extension
- Developer-friendly architecture — Clean hooks, filters, and a well-documented API
According to the EDD team, thousands of WordPress developers and businesses use EDD to power their digital product stores. Companies like Pippin Williamson (the creator of EDD himself), AffiliateWP, and many others have built multi-million dollar businesses on EDD.
Setting Up Your EDD Store: The Foundation
Before you list your first plugin or theme for sale, you need a solid technical foundation. Here is the step-by-step process for getting your EDD store ready.
Step 1: Install and Configure Easy Digital Downloads
Start by installing the free EDD plugin from WordPress.org. The free version handles basic digital product sales, payment processing, and customer management. For WordPress product sales, you will need additional extensions, but the core plugin is your starting point.
After activation, navigate to Downloads > Settings and configure these essential options:
- General settings — Set your store location, currency, and base country for tax calculations
- Payment gateways — Enable Stripe (recommended for global sales) and PayPal as a secondary option
- Emails — Customize purchase receipt emails with your branding and download links
- Styles — Disable default CSS if your theme handles styling, or customize button colors
Step 2: Essential Pages
EDD automatically creates checkout and purchase confirmation pages. You should also create these pages manually for a complete store experience:
- Products page — A grid layout showcasing all your WordPress plugins and themes
- Pricing page — Clear comparison of plans (especially important for freemium products)
- Account page — Where customers manage licenses, downloads, and billing
- Documentation — Installation guides, FAQs, and changelogs for each product
Software Licensing: The Backbone of WordPress Product Sales
Software licensing is not optional when selling WordPress plugins and themes commercially. It is the mechanism that controls who can use your product, how many sites they can activate it on, and when their access expires. EDD’s Software Licensing extension is the industry standard for WordPress product licensing. For a deeper dive into the technical setup, see our complete guide to creating a software licensing system with EDD.
How EDD Software Licensing Works
When a customer purchases your plugin or theme, EDD Software Licensing automatically generates a unique license key. This key is tied to the customer’s purchase and includes metadata about their plan: how many sites they can activate on, when the license expires, and what product version they purchased.
The licensing flow works like this:
- Customer purchases your product and receives a license key in their purchase receipt
- Customer installs your plugin or theme and enters the license key in the settings panel
- Your product sends an activation request to your EDD store’s API
- EDD validates the key, checks the activation limit, and returns an activation response
- The plugin or theme stores the activation status and unlocks premium features
Configuring License Options
When creating a download product in EDD, the Software Licensing extension adds several configuration fields:
| Setting | Recommended Value | Notes |
|---|---|---|
| Activation Limit | 1, 5, or Unlimited | Map to pricing tiers (Personal, Business, Agency) |
| License Length | 1 Year | Industry standard; enables recurring revenue |
| Version | Current release | Used for update checks |
| Beta Version | Optional | Lets customers opt into beta testing |
A common tiering strategy for WordPress products looks like this:
- Personal ($49/year) — 1 site license, 1 year of updates and support
- Business ($99/year) — 5 site license, 1 year of updates and support, priority support
- Agency ($199/year) — Unlimited sites, 1 year of updates and support, white-label rights
EDD handles variable pricing natively. You create a single download product with multiple price options, and each option can have its own activation limit. This keeps your product catalog clean while offering flexibility to different customer segments.
Automatic Updates: Delivering New Versions to Customers
One of the strongest reasons to use EDD for WordPress product sales is the automatic update system. When you release a new version of your plugin or theme, customers with valid licenses see the update notification directly in their WordPress dashboard, just like they would for any plugin from WordPress.org.
How the Update System Works
EDD Software Licensing includes an update API endpoint that WordPress checks periodically. Here is what happens behind the scenes:
- WordPress runs its standard update check (usually every 12 hours)
- Your plugin’s updater class sends a request to your EDD store with the current version and license key
- EDD compares the installed version against the latest version in your store
- If a new version is available and the license is valid, EDD returns the update package URL
- WordPress downloads and installs the update through the standard update mechanism
Implementing the Updater in Your Plugin
EDD provides a well-tested updater class that you include in your plugin or theme. The implementation requires just a few lines of code in your main plugin file:
// Initialize the EDD updater
function my_plugin_updater() {
if ( ! class_exists( 'EDD_SL_Plugin_Updater' ) ) {
require_once plugin_dir_path( __FILE__ ) . 'includes/EDD_SL_Plugin_Updater.php';
}
$license_key = trim( get_option( 'my_plugin_license_key' ) );
$edd_updater = new EDD_SL_Plugin_Updater(
'https://your-edd-store.com', // Your EDD store URL
__FILE__,
array(
'version' => MY_PLUGIN_VERSION,
'license' => $license_key,
'item_name' => 'My Plugin Name',
'author' => 'Your Name',
'beta' => false,
)
);
}
add_action( 'admin_init', 'my_plugin_updater' );The updater class handles all the complexity: version comparison, license validation, secure download URLs, and WordPress transient caching. You include it once in your plugin, and updates work automatically from that point forward.
Managing Changelogs
Every version update should include a detailed changelog. EDD Software Licensing lets you store changelogs directly in the download product settings. When customers click “View version details” in their WordPress dashboard, they see your changelog displayed in the standard WordPress update modal.
Best practices for changelogs include:
- Categorize entries as Added, Changed, Fixed, or Removed
- Write in plain language that non-developers understand
- Include the date and version number for each release
- Highlight security fixes prominently
- Link to documentation for major new features
The Freemium Model: Free Core, Premium Extensions
The freemium model has become the dominant strategy for WordPress product businesses. You distribute a free version on WordPress.org to build a user base, then sell premium features or add-ons through your EDD store. This approach works because it removes the trust barrier. Users can try your product risk-free before committing to a purchase.
Two Approaches to Freemium with EDD
There are two common ways to structure a freemium WordPress product:
Approach 1: Feature-Limited Free Version
Your free plugin on WordPress.org includes core functionality. The paid version (sold through EDD) unlocks additional features. This is the simpler approach. You maintain a single codebase with conditional feature loading based on license status.
// Check license status before loading premium features
function load_premium_features() {
$license_status = get_option( 'my_plugin_license_status' );
if ( 'valid' === $license_status ) {
require_once plugin_dir_path( __FILE__ ) . 'premium/advanced-reports.php';
require_once plugin_dir_path( __FILE__ ) . 'premium/priority-support.php';
require_once plugin_dir_path( __FILE__ ) . 'premium/white-label.php';
}
}
add_action( 'plugins_loaded', 'load_premium_features' );Approach 2: Free Core with Paid Add-ons
Your free plugin on WordPress.org serves as a platform. Premium features ship as separate paid add-on plugins, each sold individually through your EDD store. This approach works well when you have multiple distinct features that different customers value differently.
EDD itself follows this model. The core EDD plugin is free on WordPress.org. Premium extensions like Software Licensing, Recurring Payments, and Frontend Submissions are sold separately through the EDD store. This lets customers buy only what they need while creating a larger potential revenue per customer.
Converting Free Users to Paid Customers
The free version is a marketing channel, not just a product. Use these strategies to drive conversions:
- In-dashboard upsells — Show locked premium features with a “Get Pro” button that links to your EDD pricing page
- Feature comparison table — A clear side-by-side of Free vs. Pro features on your website
- Email capture on activation — Offer to send setup guides in exchange for an email address (always optional, never required)
- Limited-time launch pricing — Create urgency with introductory discounts when you first release the pro version
- Stellar free support — Users who get great free support are significantly more likely to buy the paid version
Essential EDD Extensions for WordPress Product Sellers
While the core EDD plugin handles basic digital sales, WordPress product sellers need specific extensions to run a professional operation. Here are the extensions that matter most:
Must-Have Extensions
| Extension | Purpose | Why It Matters |
|---|---|---|
| Software Licensing | License key management, activation limits, expiration | The foundation of commercial WordPress product sales |
| Recurring Payments | Subscription billing and auto-renewals | Predictable monthly/yearly revenue instead of one-time sales |
| Stripe Pro | Advanced Stripe integration | Pre-built checkout forms, Apple Pay, Google Pay support |
| Reviews | Customer reviews on product pages | Social proof drives conversions; reviews increase trust |
Growth Extensions
| Extension | Purpose | When to Add It |
|---|---|---|
| Affiliate WP Integration | Affiliate program management | When you are ready to scale through partner referrals |
| Mailchimp or ConvertKit | Email list integration | From day one — email is your most valuable marketing channel |
| Per Product Emails | Custom emails per product | When selling multiple plugins with different onboarding flows |
| Frontend Submissions | Third-party product submissions | When building a marketplace for other developers |
Setting Up Recurring Revenue with Subscriptions
One-time sales create a feast-or-famine revenue cycle. Subscriptions transform your WordPress product business into a predictable, sustainable operation. EDD’s Recurring Payments extension integrates directly with Software Licensing to create a seamless renewal experience. We cover the full subscription configuration process in our EDD recurring payments and subscription setup guide.
How Recurring Payments Work with Licensing
When you enable recurring payments on a download product that also has Software Licensing enabled, the two extensions work together:
- Customer purchases a subscription (e.g., $99/year for a Business license)
- EDD creates a license key with a 1-year expiration
- Payment processor charges the card annually
- On successful renewal, EDD automatically extends the license expiration by another year
- If payment fails, the license expires, and the customer loses access to updates (but keeps the last installed version)
This creates a natural incentive for customers to maintain their subscriptions. They can keep using the version they have, but they will not get new features, bug fixes, or security patches without an active license.
Reducing Churn
The average SaaS churn rate is 5-7% monthly. WordPress product subscriptions tend to have lower churn because the product remains installed and functional even after cancellation. Still, you should actively work to reduce churn:
- Ship valuable updates regularly — Customers who see frequent improvements are less likely to cancel
- Send pre-renewal reminders — Let customers know their renewal is coming 14 days and 3 days before
- Offer renewal discounts — A 20% renewal discount is cheaper than acquiring a new customer
- Failed payment recovery — Use Stripe’s Smart Retries and dunning emails to recover failed payments
- Annual plans over monthly — Annual subscribers have significantly lower churn than monthly subscribers
Payment Processing and Tax Compliance
Selling digital products internationally means dealing with payment processing and tax obligations. EDD simplifies this significantly compared to building your own solution.
Payment Gateway Setup
Stripe should be your primary payment gateway. It supports 135+ currencies, offers the smoothest checkout experience, and handles PCI compliance automatically. Our complete Stripe and PayPal configuration guide walks through every setting in detail. PayPal serves as a useful secondary option for customers who prefer it.
For international sales, consider these gateway configurations:
- Enable Stripe for credit/debit card payments globally
- Enable PayPal as an alternative for regions where Stripe coverage is limited
- Consider enabling Apple Pay and Google Pay through Stripe for mobile conversions
- Set up webhook endpoints properly to handle subscription events and payment confirmations
Tax Handling
If you sell to customers in the European Union, you need to handle VAT. EDD’s tax settings let you configure tax rates per country, and the checkout process automatically calculates and displays the correct tax amount. For full EU VAT compliance, consider using the EDD EU VAT extension or integrating with a tax service like Quaderno.
Store Optimization: Turning Visitors into Customers
Having a functional EDD store is the starting point. Optimizing it for conversions is what separates profitable WordPress product businesses from those that struggle to gain traction.
Product Page Best Practices
Your EDD product pages are your primary sales tool. Every element should work toward the conversion:
- Lead with the problem, not the product — “Struggling with slow WooCommerce stores?” is more compelling than “WooCommerce Performance Plugin”
- Show a live demo — Let visitors experience the plugin before buying. This is the single most effective conversion tool for WordPress products
- Include screenshots and videos — Visual proof of your product in action builds confidence
- Display pricing clearly — No hidden fees, no confusing tier names. Show exactly what each plan includes
- Feature real customer reviews — The EDD Reviews extension enables this natively
- Add a FAQ section — Address common objections: refund policy, support response time, compatibility
Checkout Optimization
Cart abandonment is a real problem for digital product stores. EDD’s checkout can be optimized to reduce friction:
- Use the Stripe Pro gateway for an embedded checkout form (no page redirect)
- Minimize required fields. For digital products, you rarely need shipping information
- Display trust badges and security indicators near the payment form
- Show the total price including any taxes before the customer enters payment details
- Enable guest checkout. Forcing account creation increases abandonment rates
Customer Support Infrastructure
Support is not a cost center for WordPress product businesses. It is a competitive advantage. Products with responsive, knowledgeable support earn better reviews, higher renewal rates, and stronger word-of-mouth referrals.
Support Channel Setup
For WordPress product businesses, a ticketing system integrated with EDD works best. Options include:
- Help Scout — Popular among EDD store owners, has a dedicated EDD integration
- Zendesk — Enterprise-grade option for larger operations
- Awesome Support — WordPress-native ticketing plugin that integrates with EDD
Whichever tool you choose, make sure it can verify a customer’s license status. Support should be able to see whether a customer has a valid license, what plan they are on, and what version they are running. This context makes support interactions faster and more effective.
Documentation as a Support Strategy
Every support ticket represents a documentation gap. Track the most common questions and build comprehensive documentation that answers them proactively. Good documentation reduces support volume by 30-50% and improves customer satisfaction because users can solve problems on their own schedule.
Real-World Revenue Numbers: What to Expect
Let us be realistic about revenue expectations. WordPress product businesses follow a slow-build pattern. Here is a rough timeline based on typical trajectories seen across the WordPress product ecosystem:
| Timeline | Typical Monthly Revenue | Key Milestone |
|---|---|---|
| Months 1-3 | $0-500 | Launch, first sales, initial customer feedback |
| Months 4-6 | $500-2,000 | Product-market fit validation, first renewals |
| Months 7-12 | $2,000-5,000 | Organic traffic growth, review momentum |
| Year 2 | $5,000-15,000 | Renewal revenue compounds, affiliate program scales |
| Year 3+ | $15,000+ | Mature business with predictable recurring revenue |
These numbers vary dramatically based on your niche, product quality, marketing effort, and competition. The key insight is that recurring revenue compounds. A customer who pays $99/year and renews for 3 years is worth $297, not $99. Focus on retention as much as acquisition.
Security Considerations for Your EDD Store
When you sell software, security is not optional. Your EDD store needs to protect both your code and your customers’ data.
- Secure file delivery — EDD generates temporary, expiring download links. Configure the file download method to “Forced” in settings to prevent direct URL access to your product files
- License key security — Never transmit license keys in plain text over HTTP. Ensure your store uses HTTPS throughout
- Code protection — While PHP cannot be truly obfuscated, you can use license checks strategically to make piracy less convenient
- Regular updates — Keep EDD, extensions, WordPress, and PHP updated. Security vulnerabilities in outdated software are the most common attack vector
- Backup strategy — Automate daily backups of your WordPress database and files. Your EDD store IS your business infrastructure
Launching Your First WordPress Product on EDD: A Checklist
Before you flip the switch, make sure you have covered every base. Here is a launch checklist refined from years of WordPress product launches:
- Product tested on WordPress latest + PHP 8.x — Compatibility is non-negotiable
- EDD Software Licensing configured — License keys generate correctly on purchase
- Updater class integrated in your plugin/theme — Automatic updates work end-to-end
- Changelog written for v1.0 — Even a first release needs a changelog
- Pricing tiers set with correct activation limits — Test each tier’s license behavior
- Payment gateway tested with real transactions — Process a real $1 payment and refund it
- Purchase receipt email customized — Includes download link, license key, and getting started guide
- Documentation published — Installation guide, feature overview, FAQ
- Support system connected to EDD — Support agents can verify license status
- Free version submitted to WordPress.org — If using freemium model
- Refund policy published — 14-30 day refund policy is standard
- Terms of Service and Privacy Policy pages created — Legal requirements for selling online
Common Mistakes to Avoid
After working with dozens of WordPress product sellers, these are the mistakes we see most often:
- Launching without a free version — The freemium model is not optional in most WordPress niches. Without a free version on WordPress.org, you are competing without your strongest marketing channel
- Pricing too low — $19/year does not sustain a business. Price your product based on the value it delivers, not what competitors charge. A $99/year plugin that solves a real problem will outsell a $19/year plugin that does the same thing but looks cheap
- Ignoring renewals — New customer acquisition costs 5-7x more than retaining an existing customer. Build renewal incentives into your business from day one
- Skipping documentation — Every undocumented feature generates support tickets. Every support ticket costs you time and money
- No email marketing — Your customer list is your most valuable asset. Integrate EDD with an email platform and nurture your audience
- Treating support as an expense — Support is where you learn what customers actually need. It drives product development, reduces churn, and generates referrals
Next Steps: Get Your EDD Store Set Up Right
Building a successful WordPress product business on EDD requires getting the technical foundation right. The licensing system, update delivery, payment processing, and store optimization all need to work together seamlessly. One misconfigured setting in your licensing setup can cost you sales and frustrate customers.
If you are serious about selling WordPress plugins and themes, we can help. Our team has set up and optimized dozens of EDD stores for WordPress product sellers. From initial configuration to custom extensions, licensing setup to checkout optimization, we handle the technical complexity so you can focus on building great products.
Ready to launch your WordPress product store? Get in touch with our EDD experts for a free consultation. We will review your product, recommend the right EDD configuration, and help you set up a store that converts visitors into customers and customers into long-term subscribers.