RecordJoy Recap: Revenue
by joeszewskiAppSumo:
Post acquisition, the revenue coming in from AppSumo fluctuated anywhere between $300-$1000 per month for about 6 months. Then it started to steadily declined from there. Currently (about 1 year post acquisition) I'm only seeing about 1 or 2 sales per month come from that platform which only brings in about $40-$80 in revenue. Not ideal.
MRR Subscriptions:
In that same period of time, the monthly recurring subscriptions revenue went to $0. There were only about 3 real customers paying monthly, and they all cancelled their plans within months after the acquisition.
However, just last month I got our first net-new paid subscriber post-acquisition. I'm pretty sure this was sourced from running Google search ads, although it's tough to say 100% because our GA/tracking is pretty basic at the moment.
All of that said, our current total revenue is about $50-$100 per month when you combine our MRR with AppSumo.
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1
How do you think about AppSumo? Was it a good decision to go with their lifetime deals?
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Well it was technically the previous founder's idea. I think there are pros and cons though. The pros are that it was a quick way to start bringing in revenue and validating the idea with real users, getting feedback, etc. The cons are that it's just very unreliable income, and there's a lot of platform risk (i.e. AppSumo algo changing and your product not getting views, sales dropping, etc.). I also found the customers that would come from AppSumo were very hard to deal with (had unreasonable expectations of the product, demanded to see a roadmap, progress, etc.)
All in all if were to do it over again, I'd still go with AppSumo. The early revenue and real customer feedback was definitely worth it. However, I wish I would have started focusing on MRR growth sooner as well.
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1
Thanks for the response! This was my experience too, AppSumo customers are often more demanding and want to pay less.
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