How I Boosted My Startup’s Revenue by $1000+ on AppSumo

Introduction

In 2018, an unexpected event led me down an exciting path. My trusty Mac, which I relied on for both work and leisure, broke down. Given the circumstances, I decided to purchase a Windows laptop as its replacement. This change was more significant than I had anticipated. As a consistent user of the “Be Focused” app on Mac, I utilized its Pomodoro timer extensively to stay focused and boost my productivity. But to my disappointment, there was no “Be Focused” app available on Windows, and I couldn’t find any other app that offered a similar experience.

To solve this issue, I took matters into my own hands. I developed my own app FocusCommit with an always-on-top timer, which mimicked the menu bar experience I was accustomed to on Mac. Once I released it on the Microsoft Store, I was thrilled to discover that other users loved it too. This small project quickly gained momentum, and to date, we’ve amassed over 100,000 users.

As the app continued to evolve, I started incorporating the features I needed to manage my tasks more effectively. I listened to user feedback and added requested features to enhance their productivity experience. Today, FocusCommit is not just a Pomodoro timer. It’s a comprehensive productivity tool that also includes a personal Kanban board and GTD methods.

Preparation for AppSumo Launch

As FocusCommit’s user base grew, I introduced several premium features to the app. I initially sold these as monthly and yearly subscriptions. However, I realized that selling a lifetime deal on AppSumo could be a viable strategy to raise capital for further development and growth of the platform.

The first step was to approach AppSumo. The process was straightforward: I filled out a form that asked for basic information about the app, such as its name, category, product description, redemption codes, redemption URL, and instructions.

Shortly after submitting the form, I was contacted by a representative from AppSumo. He quickly verified the redemption process and provided some valuable guidance. He even went above and beyond to create more visually appealing product images for FocusCommit. His assistance was incredibly helpful in enhancing the presentation of the app.

After a few emails back and forth to finalize the details, FocusCommit went live on AppSumo. The journey had its share of challenges, but seeing the app listed on AppSumo marked a significant milestone in our journey.

Marketing and Promotion

When I listed FocusCommit on AppSumo, I knew I was tapping into a goldmine of potential users. AppSumo’s expansive user base was a treasure trove for any budding software like ours. And the best part? Their purchase and refund process was as smooth as butter, which made it a breeze for users to buy — and yes, refund if needed.

But the cherry on the cake was the retargeting campaign AppSumo had in place. Imagine this: a user stumbles upon FocusCommit’s page on AppSumo, checks out the deal, but for some reason, leaves without making a purchase. Now, in a typical scenario, that’s a lost customer. But not with AppSumo. They’d follow them, reminding them about us with Facebook and Google ads. It was like having a dedicated marketing team working day and night.

Seeing the impact of AppSumo’s promotional efforts, I decided to ride the wave. I put up a sticky banner on our website, letting all our visitors know about our exciting deal on AppSumo. This move was simple, but it helped increase visibility and drove more traffic to our AppSumo page.

Revenue and Refund Rate

The first month of sales brought a mixed bag of emotions. I was thrilled to see that I’d sold 62 codes, totaling just shy of $1000. The revenue model was fairly clear-cut:

• New buyers, trying out FocusCommit for the first time, accounted for 95% of the sale.
• Existing buyers, coming back for more, contributed 70% of the sale.
  

However, I was taken aback by the refund rate. The policy at AppSumo differs based on the nature of the product — no refunds for items like PDFs, ebooks, and templates, but a generous 60-day refund policy for software and online courses. With this policy in place, I was met with an unexpected challenge — a significant portion of the initial sales were refunded. Out of the 62 codes sold, 30 were refunded within the month, reducing my net sales to $469.

At first, I couldn’t quite put my finger on the cause. Was the Mac version of FocusCommit not up to the mark? Or was this a trend across other products as well? The refund rate was significantly higher than what I had seen on my other channels, and I’d never encountered a rate close to 50% before.

The surprising refund rate prompted me to adjust my marketing strategy. I halted the sticky banner campaign directing users to the AppSumo deal.

Over the next few months, despite the initial hiccup, the sales on AppSumo brought in an additional $800, bringing the total revenue to over $1300.

It was an achievement, no doubt, but it also coincided with a slight dip in my yearly subscription sales. In light of these developments, I decided to conclude the deal on AppSumo.

Payout Process

The payout process with AppSumo is designed around their 60-day refund policy. As a result, there’s a significant delay between the time of the sale and when the funds are received. Let’s take the month of June as an example: any sales that took place within this month would be processed on the first business day of September. This means that there’s typically a three-month lag between the point of sale and the payout. In practice, I found that sometimes the payments were sent a little later, around the 5th of the month, although this wasn’t a major delay.

However, it’s worth noting that this delayed payout process might not suit everyone. If you’re looking for a quick influx of capital for your product, AppSumo might not be the ideal channel for you due to this delay.

The payout process is a key part of understanding the overall journey of selling on AppSumo, and it’s crucial to factor this into your financial planning if you decide to take this route.

Reflections, Future Plans

Looking back at my journey with AppSumo, it was full of valuable insights and unexpected turns. Launching FocusCommit, a productivity tool born out of personal need, onto a platform like AppSumo brought a larger audience and an alternate revenue model through lifetime deals.

While the primary goal to launch on AppSumo was to raise capital, the resulting benefits extended beyond monetary gains. The exposure that FocusCommit received led to expanding our user base and recognition among a broader audience.

The marketing strategies that were employed, such as leveraging AppSumo’s advertising infrastructure and implementing a sticky banner on the website, played a significant role in driving sales. However, adapting to AppSumo’s selling environment, with its straightforward purchasing process and 60-day refund policy, presented a unique set of challenges and learnings.

The high refund rate was an unexpected outcome that I found myself grappling with. Almost half of the sales were refunded, which starkly contrasted the refund rates on other channels. This was a hard pill to swallow but offered a valuable lesson — the importance of continuously improving the product to align with user expectations to minimize refunds.

The 60-day delay in the payout process was another characteristic of working with AppSumo. For those looking to quickly raise capital, this delay is something to be prepared for.

Moving forward, I have a two-pronged approach. On one hand, I plan to test the waters with AppSumo again, but this time with a web-based app. My hypothesis is that the high refund rate was perhaps due to the native nature of FocusCommit, which required users to download the app to use the code. This, I believe, might have been a deterrent for some. If the refund rate with a web-based app is more reasonable, AppSumo will undoubtedly be a great channel for future projects.

As for FocusCommit, I’m currently selling a limited lifetime deal on my website using Paddle, and this approach is showing promising results.

Conclusion

In conclusion, selling FocusCommit on AppSumo was an enlightening experience. It highlighted the importance of adaptability, responsiveness to user feedback, strategic marketing, and financial planning. Every platform has its unique dynamics, and aligning these with your product strategy is vital for success. My journey with AppSumo has reinforced this understanding and has paved the way for future endeavors.