[Crazy insights] How much revenue you can generate from AppSumo
So, this story starts with an email from AppSumo regarding their 2021 revenue 👇
The revenue part got my attention and I immediately wanted to find out how much money an AppSumo listing can generate for your business.
I remembered there were over 5 startups, in The Bootstrapped Way database, that used AppSumo to get some early growth, and they are making on average $14k in MRR (from all growth strategies) 👇
For those, very few, that don't know, AppSumo is a lifetime software deal marketplace. It works like this: … For each deal, AppSumo clearly spells out potential use cases, shares deal terms, shoots a review video, and displays customer reviews. Each AppSumo deal runs until codes sell out or after (roughly) a two-week period.
I've analyzed over 770 AppSumo deals to find out how much they generate on average, which are the best-sold deals, and what can we learn from them. And here is what I've found out … 👇
Take a sneak peek inside the AppSumo Breakdown here
The 771 deals generated over $4,562,519
- They split 50–50, but it's actually 70–30
- The Avg. Revenue per Deal is $5,917
- The Avg. AppSumo Revenue per Deal is $4,142
- The Avg. Revenue for Founders per Deal is $1,775
- There are 87 Avg. Sales per Deal
- The Avg. Discount for AppSumo is 84%
The best-sold deal generated a MINIMUM of $114,656 in total revenue, $80,259 went to AppSumo, the other $34,397 went to the founders.
You can get access to the entire database here https://thebootstrappedway.com/#appsumo-breakdown
//////////////////// UPDATE ////////////////////
I've made a HUGE update to the database and here are the new numbers:
- the Median revenue an AppSumo Select deal makes is $108K
- the Median revenue an AppSumo Marketplace deal makes is $41K
- the average discount is around 83% from the initial price
- the lowest tier is around $59
I just listed my product on AppSumo (https://appsumo.com/products/timetagger/) and the number they tell me is that I get 70% of each sale, and even 95% if it's the Sumo-ling's first buy (also see https://appsumo.com/sell/marketplace/gettingpaid/). Did they change it recently?
I think I know the answer: AppSumo Marketplace (where you self-list) is 70-30, and AppSumo Select (where they select you and then do extrta marketing) is 30-70.
yes, @almarklein, your 2nd comment is the answer
though, they could make exceptions if you are a big company and don't need their marketing (for Select) ... but for Marketplace I don't think they'll negociate
How is that possible that AppSumo keeps 70% of the revenue? Would you ever publish your web product on AppSumo?
I understand it can bring you initial users to give feedback, get testimonials, and some community... but the support and resource over-whelm can really destroy the company in my opinion.
yes, so there is AppSumo Select (they pick you) and AppSumo Marketplace (self-listing)
for Select, in the end, AppSumo takes 70% and founder take 30% ... BUT ... AppSumo takes care of (almost) all the marketing
basically, at least for Select, they pay you, you don't pay them anything :-)
most of the deals listed in the Marketplace that are generating sales are being upgraded to Select
I've made a HUGE update to the database and here are the new numbers: