$3000 in less than two days - AppSumo Marketplace launch debrief
After refusing several times to launch on AppSumo, we finally released a lifetime deal on their marketplace for Mailmeteor.
If you are new to AppSumo, it's a place where you can offer deals to a large audience. AppSumo is famous for Lifetime deals (LTD), where products offer a super discount deal, for life.
AppSumo's original model is quite tough for makers IMO, as they leave you just 30% of the revenue generated on a deal. Also, not everyone might be keen to offer a lifetime deal.
Recently, AppSumo launched a Marketplace as a by-product. The selection process is less restrictive and the commission taken is fairer. That's why we decided to not die stupid and try the marketplace as a marketing bet. It's still an interesting move for us, given our CAC and LTV.
The marketplace model is fairer for us makers, even though their commission is still high (up to 30%). It works like this:
- 70% for you as a maker when customers are existing AppSumo buyers
- 95% for you as a revenue share for new buyers
So far, most customers bought the solution after finding us organically on AppSumo.
I'll debrief results on my Twitter account as they come 💌.
Since I own a small business, Appsumo's LTDs are better structured for us. For the maker, it's a sale they would have not gotten if they tried MRR. For customers with more budgets, they can upgrade to your MRR if you structure the add-ons just right.
Makes totally sense!
Do you mean 95% as a revenue share for new buyers?
Yes. In other words, 95% of revenue goes to your pocket if the buyers are new to AppSumo. But this is a minority of users, so you should expect a 30% commission taken by AppSumo most of the time.
Congratulations!
Do you mind in tell us why you choose to offer LTD? I'm still reluctant in offer LTDs
Sure, we refused many LTD promotion offers from platforms like AppSumo or Mashable. But in the end, we did it for these reasons:
I do agree you need to be super careful with LTDs, and they're not fitted for every businesses! Hope my answer was insightful ;-)
Thank, it was trully insightful. You are right, if you take your CAC and LTV it makes sense. Plus put some brand awareness LTD are not the end of the world as I thought