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'''AppSumo''' is a [[Deal of the day|daily deals]] website for digitally distributed goods and online services.<ref name=tc>{{cite web|last=Kincaid|first=Jason|title=AppSumo Offers Web Software On The Cheap, Targets Latest Deal At Entrepreneurs|url=https://techcrunch.com/2010/07/21/appsumo-offers-web-software-on-the-cheap-targets-latest-deal-at-entrepreneurs/|publisher=TechCrunch|date= July 21, 2010}}</ref> AppSumo was founded in March 2010 by [[Noah Kagan]].<ref name=tc/><ref name=pcm>{{cite web|last=Duffy|first=Jill|title=AppSumo|url=http://www.pcmag.com/article2/0,2817,2400298,00.asp|publisher=PCMagazine|date= February 16, 2012}}</ref><ref name=epic/><ref name=4hww/> Today the company has over 700,000 active subscribers.<ref>{{cite web|title=NOAH KAGAN|url=http://businessofsoftware.org/speaker/noah-kagan/|publisher=Business of Software}}</ref>
'''AppSumo''' is a [[Deal of the day|daily deals]] website for digitally distributed goods and online services.<ref name=tc>{{cite web|last=Kincaid|first=Jason|title=AppSumo Offers Web Software On The Cheap, Targets Latest Deal At Entrepreneurs|url=https://techcrunch.com/2010/07/21/appsumo-offers-web-software-on-the-cheap-targets-latest-deal-at-entrepreneurs/|publisher=TechCrunch|date= July 21, 2010}}</ref> AppSumo was founded in March 2010 by [[Noah Kagan]].<ref name=tc/><ref name=pcm>{{cite web|last=Duffy|first=Jill|title=AppSumo|url=http://www.pcmag.com/article2/0,2817,2400298,00.asp|publisher=PCMagazine|date= February 16, 2012}}</ref><ref name=epic/><ref name=4hww/> Today the company has over 700,000 active subscribers.<ref>{{cite web|title=NOAH KAGAN |url=http://businessofsoftware.org/speaker/noah-kagan/ |publisher=Business of Software |deadurl=yes |archiveurl=https://web.archive.org/web/20120922051807/http://businessofsoftware.org/speaker/noah-kagan/ |archivedate=2012-09-22 }}</ref>


==History==
==History==
Line 32: Line 32:
After conversations with [[Mark Zuckerberg]] of [[Facebook]], Kagan was convinced to focus solely on growth, specifically of AppSumo’s email list.<ref name=fdly/><ref name=mix>{{cite web|title=Gambit Co-Founder Reveals His Biggest Entrepreneurial Mistakes And What He Learned – with Noah Kagan|url=http://mixergy.com/gambit-noah-kagan/|publisher=Mixergy}}</ref> To accomplish this, Kagan increased advertising budgets which led to more long term customers.<ref name=mkt/> In addition, he increased the frequency of both AppSumo’s advertisements and customer emails.<ref name=mkt/><ref name=tu>{{cite web|title=James Schramko and Noah Kagan Impart Solid Business Philosophies|url=http://www.timesunion.com/business/press-releases/article/James-Schramko-and-Noah-Kagan-Impart-Solid-3501766.php|publisher=Times Union|date= April 23, 2012}}</ref> This allowed AppSumo to grow their email list to over 200,000 in the first year.<ref name=rob/><ref name=rtt>{{cite web|last=Garland|first=David|title=Getting Naked with Noah Kagan: How He Started AppSumo for $50 and Got Over 500,000 Subscribers |url=http://www.therisetothetop.com/interesting-entrepreneur/noah-kagan-appsumo-interview/|publisher=The Rise to the Top}}</ref>
After conversations with [[Mark Zuckerberg]] of [[Facebook]], Kagan was convinced to focus solely on growth, specifically of AppSumo’s email list.<ref name=fdly/><ref name=mix>{{cite web|title=Gambit Co-Founder Reveals His Biggest Entrepreneurial Mistakes And What He Learned – with Noah Kagan|url=http://mixergy.com/gambit-noah-kagan/|publisher=Mixergy}}</ref> To accomplish this, Kagan increased advertising budgets which led to more long term customers.<ref name=mkt/> In addition, he increased the frequency of both AppSumo’s advertisements and customer emails.<ref name=mkt/><ref name=tu>{{cite web|title=James Schramko and Noah Kagan Impart Solid Business Philosophies|url=http://www.timesunion.com/business/press-releases/article/James-Schramko-and-Noah-Kagan-Impart-Solid-3501766.php|publisher=Times Union|date= April 23, 2012}}</ref> This allowed AppSumo to grow their email list to over 200,000 in the first year.<ref name=rob/><ref name=rtt>{{cite web|last=Garland|first=David|title=Getting Naked with Noah Kagan: How He Started AppSumo for $50 and Got Over 500,000 Subscribers |url=http://www.therisetothetop.com/interesting-entrepreneur/noah-kagan-appsumo-interview/|publisher=The Rise to the Top}}</ref>


The final problem Kagan attributes to the growth on AppSumo was hiring practices.<ref name=mkt/><ref name=ims>{{cite web|last=Schramko|first=James|title=Noah Kagan And James Schramko Discuss Appsumo.com And Related Internet Business Ventures During Breakfast|url=http://www.internetmarketingspeed.com/news/appsumo-noah-kagan-james-schramko/|publisher=Internet Marketing Speed}}</ref> The first issue was removing himself from many of the roles he served when bootstrapping the company.<ref name=tu/> Next, he hired more sales people to source more deals for the website.<ref name=rtt/><ref name=sales>{{cite web|title=What is the difference between a $100,000 sales person and you?|url=http://blog.appsumo.com/what-is-the-difference-between-a-100000-sales-person-and-you/|publisher=AppSumo Blog}}</ref><ref name=ims/> These two changes Kagan cites as a major reason for AppSumo’s long term success.<ref name=mkt/><ref name=ims/>
The final problem Kagan attributes to the growth on AppSumo was hiring practices.<ref name=mkt/><ref name=ims>{{cite web|last=Schramko |first=James |title=Noah Kagan And James Schramko Discuss Appsumo.com And Related Internet Business Ventures During Breakfast |url=http://www.internetmarketingspeed.com/news/appsumo-noah-kagan-james-schramko/ |publisher=Internet Marketing Speed }}{{dead link|date=July 2017 |bot=InternetArchiveBot |fix-attempted=yes }}</ref> The first issue was removing himself from many of the roles he served when bootstrapping the company.<ref name=tu/> Next, he hired more sales people to source more deals for the website.<ref name=rtt/><ref name=sales>{{cite web|title=What is the difference between a $100,000 sales person and you?|url=http://blog.appsumo.com/what-is-the-difference-between-a-100000-sales-person-and-you/|publisher=AppSumo Blog}}</ref><ref name=ims/> These two changes Kagan cites as a major reason for AppSumo’s long term success.<ref name=mkt/><ref name=ims/>


==Description==
==Description==
AppSumo, in contrast to other popular deal sites ([[Groupon]], [[LivingSocial]]) deals exclusively with digitally distributed goods. The deals include application software (apps), ebooks, learning courses, and other packages.<ref name="pcm"/><ref name=vn/> Many of the site's deals are aimed towards productivity products and website tools,<ref name=pcm/> such as copywriting courses, email marketing, or project management apps. This has made the website particularly popular within the startup community.<ref name=ys/><ref name="vn"/><ref>{{cite web|last=Sethi|first=Ramit|title=How Mint.com's Noah Kagan Turned A Single Cab Ride Into A $250,000+ Payday|url=http://articles.businessinsider.com/2011-01-12/strategy/30053737_1_master-class-tonight-webcast|publisher=Business Insider|date= January 12, 2011}}</ref><ref name=pcworld>{{cite web|last=DesMarais|first=Christina|title=10 Fantastic Websites You Need Now|url=http://www.pcworld.com/article/254683/10_fantastic_websites_you_need_now.html|publisher=PCWorld|date= April 29, 2012}}</ref>
AppSumo, in contrast to other popular deal sites ([[Groupon]], [[LivingSocial]]) deals exclusively with digitally distributed goods. The deals include application software (apps), ebooks, learning courses, and other packages.<ref name="pcm"/><ref name=vn/> Many of the site's deals are aimed towards productivity products and website tools,<ref name=pcm/> such as copywriting courses, email marketing, or project management apps. This has made the website particularly popular within the startup community.<ref name=ys/><ref name="vn"/><ref>{{cite web|last=Sethi |first=Ramit |title=How Mint.com's Noah Kagan Turned A Single Cab Ride Into A $250,000+ Payday |url=http://articles.businessinsider.com/2011-01-12/strategy/30053737_1_master-class-tonight-webcast |publisher=Business Insider |date=January 12, 2011 |deadurl=yes |archiveurl=https://web.archive.org/web/20121205012828/http://articles.businessinsider.com/2011-01-12/strategy/30053737_1_master-class-tonight-webcast |archivedate=December 5, 2012 }}</ref><ref name=pcworld>{{cite web|last=DesMarais|first=Christina|title=10 Fantastic Websites You Need Now|url=http://www.pcworld.com/article/254683/10_fantastic_websites_you_need_now.html|publisher=PCWorld|date= April 29, 2012}}</ref>


Due to the digital nature of the products, there is more flexibility than in traditional models. There is no cost for shipping or reproduction, so the profit margin can be much greater than traditional deal websites.<ref>{{cite web|last=Lee|first=S|title=How AppSumo Defeats the Daily Deal Debacle|url=http://www.sleeandtopher.com/appsumo-defeats-daily-deal-debacle/#axzz1vns0CLdi|publisher=SLee and Topher|date= January 7, 2012}}</ref> The benefit also extends to customers, as greater deals can be offered. Typically deals of 50 to 75% off retail price are offered.<ref name=pcm/>
Due to the digital nature of the products, there is more flexibility than in traditional models. There is no cost for shipping or reproduction, so the profit margin can be much greater than traditional deal websites.<ref>{{cite web|last=Lee|first=S|title=How AppSumo Defeats the Daily Deal Debacle|url=http://www.sleeandtopher.com/appsumo-defeats-daily-deal-debacle/#axzz1vns0CLdi|publisher=SLee and Topher|date= January 7, 2012}}</ref> The benefit also extends to customers, as greater deals can be offered. Typically deals of 50 to 75% off retail price are offered.<ref name=pcm/>


AppSumo takes a percentage of sales from every deal, typically 50% of sales.<ref>{{cite web|last=Roeder|first=Laura|title=How To Decide If Group Coupon Sites Are Right For Your Small Business: My Experience With AppSumo|url=http://www.lauraroeder.com/2011/08/how-to-decide-if-group-coupon-sites-are-right-for-your-small-business-my-experience-with-appsumo/|publisher=lkr|date=August 4, 2011}}</ref><ref name=sos>{{cite web|last=Tame|first=Jared|title=Startups Open Sourced, 1 Week Later: $10,000+ in Revenue|url=http://www.startupsopensourced.com/2011/05/01/startups-open-sourced-1-week-later-10000-in-revenue/|publisher=Startups Open Sourced}}</ref>
AppSumo takes a percentage of sales from every deal, typically 50% of sales.<ref>{{cite web|last=Roeder |first=Laura |title=How To Decide If Group Coupon Sites Are Right For Your Small Business: My Experience With AppSumo |url=http://www.lauraroeder.com/2011/08/how-to-decide-if-group-coupon-sites-are-right-for-your-small-business-my-experience-with-appsumo/ |publisher=lkr |date=August 4, 2011 |deadurl=yes |archiveurl=https://web.archive.org/web/20120228145135/http://www.lauraroeder.com/2011/08/how-to-decide-if-group-coupon-sites-are-right-for-your-small-business-my-experience-with-appsumo |archivedate=February 28, 2012 }}</ref><ref name=sos>{{cite web|last=Tame|first=Jared|title=Startups Open Sourced, 1 Week Later: $10,000+ in Revenue|url=http://www.startupsopensourced.com/2011/05/01/startups-open-sourced-1-week-later-10000-in-revenue/|publisher=Startups Open Sourced}}</ref>


==Reception==
==Reception==
AppSumo has been well received by many individuals, startups, and established businesses that cite AppSumo for helping them acquire both new customers and valuable resources.<ref name="pcworld"/><ref name=sos/><ref name=huff/> It has been featured in major news publications like ''[[Inc. (magazine)|Inc. Magazine]]'', ''[[Fast Company (magazine)|Fast Company]]'', ''[[Huffington Post]]'', ''[[Business Insider]]'', ''[[PC Magazine]]'', ''[[PCWorld]]'', [[LifeHacker]], and [[TechCrunch]].<ref name="tc"/><ref name=pcm/><ref name=pcworld/><ref name=huff>{{cite web|last=Kirr|first=Adam|title=Get a Job!|url=http://www.huffingtonpost.com/adam-kirr/getting-a-job_b_1514689.html?ref=college&ir=College|publisher=Huffington Post|date= May 14, 2012}}</ref><ref name=fc>{{cite web|last=Graham|first=Shawn|title=The Entrepreneurial Renaissance And The Rise Of The Independent Workforce|url=http://www.fastcompany.com/1766679/the-entrepreneurial-renaissance-and-the-rise-of-the-independent-workforce|publisher=Fast Company|date= July 12, 2011}}</ref><ref name=life>{{cite web|last=Gordon|first=Whitson|title=Grab Premium Versions of Your Favorite Productivity Webapps for Cheap with AppSumo|url=http://lifehacker.com/5566130/grab-premium-versions-of-your-favorite-productivity-webapps-for-cheap-with-appsumo|publisher=LifeHacker|date= June 17, 2010}}</ref><ref>{{cite web|last=Heintz|first=Nadine|title=Appsumo's Dropbox Pro Giveaway|url=http://www.inc.com/nadine-heintz/appsumos-dropbox-pro-giveway.html|publisher=Inc. Magazine|date= October 6, 2011}}</ref><ref>{{cite web|last=Cohen|first=David|title=The AppSumo Lean Startup bundle|url=http://www.techstars.com/the-appsumo-lean-startup-bundle/|publisher=TechStars|date= October 5, 2010}}</ref>
AppSumo has been well received by many individuals, startups, and established businesses that cite AppSumo for helping them acquire both new customers and valuable resources.<ref name="pcworld"/><ref name=sos/><ref name=huff/> It has been featured in major news publications like ''[[Inc. (magazine)|Inc. Magazine]]'', ''[[Fast Company (magazine)|Fast Company]]'', ''[[Huffington Post]]'', ''[[Business Insider]]'', ''[[PC Magazine]]'', ''[[PCWorld]]'', [[LifeHacker]], and [[TechCrunch]].<ref name="tc"/><ref name=pcm/><ref name=pcworld/><ref name=huff>{{cite web|last=Kirr|first=Adam|title=Get a Job!|url=http://www.huffingtonpost.com/adam-kirr/getting-a-job_b_1514689.html?ref=college&ir=College|publisher=Huffington Post|date= May 14, 2012}}</ref><ref name=fc>{{cite web|last=Graham|first=Shawn|title=The Entrepreneurial Renaissance And The Rise Of The Independent Workforce|url=http://www.fastcompany.com/1766679/the-entrepreneurial-renaissance-and-the-rise-of-the-independent-workforce|publisher=Fast Company|date= July 12, 2011}}</ref><ref name=life>{{cite web|last=Gordon|first=Whitson|title=Grab Premium Versions of Your Favorite Productivity Webapps for Cheap with AppSumo|url=http://lifehacker.com/5566130/grab-premium-versions-of-your-favorite-productivity-webapps-for-cheap-with-appsumo|publisher=LifeHacker|date= June 17, 2010}}</ref><ref>{{cite web|last=Heintz|first=Nadine|title=Appsumo's Dropbox Pro Giveaway|url=http://www.inc.com/nadine-heintz/appsumos-dropbox-pro-giveway.html|publisher=Inc. Magazine|date= October 6, 2011}}</ref><ref>{{cite web|last=Cohen |first=David |title=The AppSumo Lean Startup bundle |url=http://www.techstars.com/the-appsumo-lean-startup-bundle/ |publisher=TechStars |date=October 5, 2010 |deadurl=yes |archiveurl=https://web.archive.org/web/20150606023309/http://www.techstars.com/the-appsumo-lean-startup-bundle/ |archivedate=June 6, 2015 }}</ref>


== References ==
== References ==

Revision as of 02:11, 8 July 2017

AppSumo
Type of site
Daily Deal
Available inEnglish
OwnerNoah Kagan
URLappsumo.com

AppSumo is a daily deals website for digitally distributed goods and online services.[1] AppSumo was founded in March 2010 by Noah Kagan.[1][2][3][4] Today the company has over 700,000 active subscribers.[5]

History

Beginnings

Kagan, a former Intel, Facebook, and Mint worker, began the company after seeing an opportunity to sell web applications for startups.[3][4][6]

AppSumo was originally created in one weekend using an outsourced team in Pakistan for $60.[7][8][unreliable source?] Kagan bootstrapped the company, eventually accepting limited outside funding, including a "staggering" $20.47 from his mother, Debra.[9][10][11]

AppSumo's first deals were with Imgur and Lifehacker.[8][unreliable source?]

Growth

Initially, AppSumo focused only on digital tools, such as apps. The company found that their largest response came from their learning offerings.[12][13] Today, the majority of deals offered are learning based products attempting to teach customers skills such as programming languages, project management, and hiring practices.[14][15][16] This helped AppSumo achieve over $1 million in revenue in the first year, the majority (60-80%) stemmed from learning offerings.[12][17]

After conversations with Mark Zuckerberg of Facebook, Kagan was convinced to focus solely on growth, specifically of AppSumo’s email list.[7][18] To accomplish this, Kagan increased advertising budgets which led to more long term customers.[12] In addition, he increased the frequency of both AppSumo’s advertisements and customer emails.[12][19] This allowed AppSumo to grow their email list to over 200,000 in the first year.[8][13]

The final problem Kagan attributes to the growth on AppSumo was hiring practices.[12][20] The first issue was removing himself from many of the roles he served when bootstrapping the company.[19] Next, he hired more sales people to source more deals for the website.[13][17][20] These two changes Kagan cites as a major reason for AppSumo’s long term success.[12][20]

Description

AppSumo, in contrast to other popular deal sites (Groupon, LivingSocial) deals exclusively with digitally distributed goods. The deals include application software (apps), ebooks, learning courses, and other packages.[2][10] Many of the site's deals are aimed towards productivity products and website tools,[2] such as copywriting courses, email marketing, or project management apps. This has made the website particularly popular within the startup community.[6][10][21][22]

Due to the digital nature of the products, there is more flexibility than in traditional models. There is no cost for shipping or reproduction, so the profit margin can be much greater than traditional deal websites.[23] The benefit also extends to customers, as greater deals can be offered. Typically deals of 50 to 75% off retail price are offered.[2]

AppSumo takes a percentage of sales from every deal, typically 50% of sales.[24][25]

Reception

AppSumo has been well received by many individuals, startups, and established businesses that cite AppSumo for helping them acquire both new customers and valuable resources.[22][25][26] It has been featured in major news publications like Inc. Magazine, Fast Company, Huffington Post, Business Insider, PC Magazine, PCWorld, LifeHacker, and TechCrunch.[1][2][22][26][27][28][29][30]

References

  1. ^ a b c Kincaid, Jason (July 21, 2010). "AppSumo Offers Web Software On The Cheap, Targets Latest Deal At Entrepreneurs". TechCrunch.
  2. ^ a b c d e Duffy, Jill (February 16, 2012). "AppSumo". PCMagazine.
  3. ^ a b Lang, Ben (November 30, 2011). "An Interview with Noah Kagan: Founder of Appsumo". EpicLaunch.
  4. ^ a b Ferriss, Tim (September 24, 2011). "How to Create a Million-Dollar Business This Weekend".
  5. ^ "NOAH KAGAN". Business of Software. Archived from the original on 2012-09-22. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  6. ^ a b Goh, Daniel (April 27, 2011). "AppSumo – Big Deal On Web Tools For Entrepreneurs". Young Startups.
  7. ^ a b "Noah Kagan Interview". FounderLY. August 2, 2011.
  8. ^ a b c Walling, Rob (September 1, 2011). "Ten Highly Successful Bootstrapped Startups". Software by Rob.
  9. ^ "AppSumo.com Raises Round with a Top Angel". AppSumo Blog.
  10. ^ a b c Howard, Ane (April 18, 2012). "Four start-ups that may actually help small businesses". Vator News.
  11. ^ "Startups That Are Still Bootstrapped". Silicon India. April 13, 2012.
  12. ^ a b c d e f "How Noah Kagan Built A List Of Over 600,000 Followers (After Getting "Fired" From Facebook)". Marketing Show.
  13. ^ a b c Garland, David. "Getting Naked with Noah Kagan: How He Started AppSumo for $50 and Got Over 500,000 Subscribers". The Rise to the Top.
  14. ^ "Level up your jQuery and JavaScript through interactive games with Code School". AppSumo.
  15. ^ "Make project management more manageable". AppSumo.
  16. ^ "Learn Chief Sumo's Proven Automated Hiring Formula". AppSumo.
  17. ^ a b "What is the difference between a $100,000 sales person and you?". AppSumo Blog.
  18. ^ "Gambit Co-Founder Reveals His Biggest Entrepreneurial Mistakes And What He Learned – with Noah Kagan". Mixergy.
  19. ^ a b "James Schramko and Noah Kagan Impart Solid Business Philosophies". Times Union. April 23, 2012.
  20. ^ a b c Schramko, James. "Noah Kagan And James Schramko Discuss Appsumo.com And Related Internet Business Ventures During Breakfast". Internet Marketing Speed.[permanent dead link]
  21. ^ Sethi, Ramit (January 12, 2011). "How Mint.com's Noah Kagan Turned A Single Cab Ride Into A $250,000+ Payday". Business Insider. Archived from the original on December 5, 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  22. ^ a b c DesMarais, Christina (April 29, 2012). "10 Fantastic Websites You Need Now". PCWorld.
  23. ^ Lee, S (January 7, 2012). "How AppSumo Defeats the Daily Deal Debacle". SLee and Topher.
  24. ^ Roeder, Laura (August 4, 2011). "How To Decide If Group Coupon Sites Are Right For Your Small Business: My Experience With AppSumo". lkr. Archived from the original on February 28, 2012. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
  25. ^ a b Tame, Jared. "Startups Open Sourced, 1 Week Later: $10,000+ in Revenue". Startups Open Sourced.
  26. ^ a b Kirr, Adam (May 14, 2012). "Get a Job!". Huffington Post.
  27. ^ Graham, Shawn (July 12, 2011). "The Entrepreneurial Renaissance And The Rise Of The Independent Workforce". Fast Company.
  28. ^ Gordon, Whitson (June 17, 2010). "Grab Premium Versions of Your Favorite Productivity Webapps for Cheap with AppSumo". LifeHacker.
  29. ^ Heintz, Nadine (October 6, 2011). "Appsumo's Dropbox Pro Giveaway". Inc. Magazine.
  30. ^ Cohen, David (October 5, 2010). "The AppSumo Lean Startup bundle". TechStars. Archived from the original on June 6, 2015. {{cite web}}: Unknown parameter |deadurl= ignored (|url-status= suggested) (help)
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