October 31, 2020

Hit $15000 on AppSumo!!

Olivier @oliv23

Less than a month after I hit $7,500 in revenue on Appsumo, I've now doubled that figure to $15,000. The previous mark feels like forever ago now, and I've added many more features, squashed more bugs, and dealt with more customers than I ever had before. It's a bit of a treadmill but this experience been really good at accelerating the product's growth!

I'm supposed to do an interview soon which should further increase exposure to the deal. So far so good.

$30k here I come!

(PS: If you want to take advantage of a sweet deal and get yourself a no-code job board, head over here: https://appsumo.com/niceboard/)

  1. 7

    Great! We are thinking about it but not sure about the huge fee they take.
    Is that 15k for you or you have to take off the 70% fee?

    1. 1

      That's the total revenue. I don't know if I can share exactly how much but my cut is >50% of that

      1. 1

        Marketplace deal is 90/10 isn't it?

        1. 1

          Marketplace deals at 70:30

          70 for founders, 30 for AppSumo
          But for a limited time, they might consider doing it for 90:10

          1. 2

            Its 90/10(appsumo) till the end of Dec :)

  2. 2

    Congrats, amazing success.

  3. 2

    PodSourcer is powered by Niceboard - love it :)

  4. 2

    May I ask you something?

    Do any of your regular users paying $99 per month not get pissed that they could get lifetime for the same amount?

    I'm currently being harassed by AppSumo to put SongBox on there, but this element bothers me a lot.

    Many of my customers pat $20 or $30 per month. What's to stop them cancelling, paying $99 and having an account for life?

    1. 1

      To be honest, some of them don't know about it and I still sign up new regular customers.
      There's nothing really substantial to stop them cancelling and starting over. Maybe a little friction in getting everything set back up. But my customer base doesn't necessarily hang out on IH all the time, which I feel can be a bit of a bubble when looking from the inside out

      1. 1

        The internet is really big.. it feels like everyone would find out - but like oliv23 says, it really is a bubble.

  5. 1

    Would you mind to share how you created that nice looking job board? which technology, services etc you used?

  6. 1

    Lovely offering! Does the Stripe integration support multiple currencies or only USD?

    1. 1

      Niceboard support all the currencies that Stripe supports, so everything here: https://stripe.com/global

  7. 1

    Congrats on the growth :) Are these sales organic from AppSumo marketplace or you are actively promoting your deal? I have an offer from them and still deciding.

    1. 3

      AppSumo does the promotion. That's why they take a whopping 70% cut! We did a deal with them, made over $51K (30%) and got around 2k customers. They're good in the short term as in you'll make some money (by the way they pay on a net-60 basis which means you get paid after 60 days of the deal) but in the long term you might end up supporting a lot of customers who don't pay anymore.

      1. 3

        We toyed around with AppSumo when contemplating to offer lifetime deals for ConveyThis.com. However, due to some internal conflicts, the deal didn't go through. I am glad it didn't happen as if you read their terms and agreements, they are really not in your favor. Example, non-compete clause. You can't advertise anywhere else for a term of two years. You must offer unconditional full refund policy (usually 10% of AppSumo users do that), pay terms 60 NET after the deal is over, and the sweetest term: they pocket 70% of the profits.
        You said that right. You will end up with tons of users that you will be liable to help for lifetime.

        1. 2

          The non-compete clause is for running a lifetime deal on another deal site. We put in a lot of work into deal structure and promotion and prefer partners don't bounce from site to site - bottom line, it protects both brand's value.

          AppSumo definitely does not pocket 70% of the profit... about 40-50% goes towards fees, 10% off coupons, credits, contractor marketing, affiliate commissions and huge ad spend... which is why products that list directly in the marketplace (without the Select white glove marketing assistance) keep a fixed 70% of the gross revenue (note - even on MP listings, 10% off coupons used by customers comes out of the AS share, not the product's).

          https://blog.appsumo.com/appsumo-myths/

          1. 1

            Owners still end up with 30%. Imagine that. You still have to pay for infrastructure, 3rd party API costs and provide user support with all that money. Where is the profit?

            1. 2

              I've seen owners spend on ads and end up with -30%.

              It's not about the actual percentage but more so the overall revenue received + economies of scale. Half the purchasers are buying "just in case" they find use for it in the future. The other half have churn that mimics annual subscribers and for the most part fall off after 12-16 months.

              The main benefits happen with the immediate growth as a result of word of mouth, upsells, product feedback and overall brand awareness - 10+ companies this year alone received $1M+ investments as many VC's fish in the AppSumo pond. Also consider many founders get funds well into the 6 figures without giving up equity.

              Again, you could list directly in the marketplace without any marketing budget and keep 70%.

              If you're in it just for the profit, probably not a good fit - try FB ads or hiring a marketer - this is more of a go to market strategy to accelerate growth, stress test product and gain exponential brand awareness.

        2. 2

          It's true that it's worth looking into before jumping in blindly but I will say this: my terms are way more favorable than 30-70, and if you read the contract correctly it says you can't advertise your software on a deal site at the same price for a year, which I understand to mean you just can't offer the same exact deal anywhere else.

      2. 1

        Nice results @hammadh. AppSumo marketplace is a new section they have introduced recently. According to their term, they do not promote deal listed in marketplace till it gets certain level of traction and reviews.

      3. 1

        So after your initial traction with them you removed your app from there? @hammadh

        1. 1

          Nope, we went through the full 2 month period.

    2. 2

      I've done a little promoting myself but these sales are mostly organic (90%).