How Noah Kagan Grew AppSumo from $50 to $80M/Year
How Noah Kagan Grew AppSumo from $50 to $80M/Year
Oct 5, 2024
Noah Kagan
Noah Kagan
● 8 min
● 8 min
Revenue/yr
Revenue/yr
$80-100 Million
$80-100 Million
$80-100 Million
No. of founders
No. of founders
1
1
1
Starting costs
Starting costs
$50
$50
$50
Contents
Brief Overview
Brief Overview
If you’ve never heard of Noah Kagan, think of him as the guy who took $50 and turned it into a business that’s now raking in $80-100 million a year. Yep, $80 million. And he did it with some cold emails, a lot of hustle, and a simple landing page. (from the start)
If you’ve never heard of Noah Kagan, think of him as the guy who took $50 and turned it into a business that’s now raking in $80-100 million a year. Yep, $80 million. And he did it with some cold emails, a lot of hustle, and a simple landing page. (from the start)
The backstory: Who is Noah Kagan?
The backstory: Who is Noah Kagan?
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How Noah Came Up with the Idea of Appsumo
How Noah Came Up with the Idea of Appsumo
Here’s where things get interesting. Noah didn’t come up with AppSumo while lounging around sipping coffee. He was hustling to get customers for his last business, and it was tough. He’d learned a ton working in marketing at Mint.com, and it clicked—what if he helped web apps get more users by offering their products at a discount?
He tested the idea by creating a super basic landing page. Then, he cold-emailed the founder of Imgur , offering to sell discounted pro accounts. When Imgur agreed, he hustled some free Reddit ad space and started A/B testing landing pages. A few emails, some tweaking, and bam—he got his first 200 sales. AppSumo was born.
Here’s where things get interesting. Noah didn’t come up with AppSumo while lounging around sipping coffee. He was hustling to get customers for his last business, and it was tough. He’d learned a ton working in marketing at Mint.com, and it clicked—what if he helped web apps get more users by offering their products at a discount?
He tested the idea by creating a super basic landing page. Then, he cold-emailed the founder of Imgur , offering to sell discounted pro accounts. When Imgur agreed, he hustled some free Reddit ad space and started A/B testing landing pages. A few emails, some tweaking, and bam—he got his first 200 sales. AppSumo was born.
The Problem AppSumo Solves
The Problem AppSumo Solves
Buying expensive software isn’t exactly a walk in the park, especially if you’re a startup on a tight budget. Noah knew that startups needed better tools, but they didn’t have the money for the hefty price tags. So he thought, “What if I could get those tools on the cheap and sell them as deals?” Enter AppSumo—a platform that offers crazy good discounts on essential software to help businesses grow without breaking the bank.
Buying expensive software isn’t exactly a walk in the park, especially if you’re a startup on a tight budget. Noah knew that startups needed better tools, but they didn’t have the money for the hefty price tags. So he thought, “What if I could get those tools on the cheap and sell them as deals?” Enter AppSumo—a platform that offers crazy good discounts on essential software to help businesses grow without breaking the bank.
The First Version of AppSumo
The First Version of AppSumo
Noah didn’t wait around for some big developer budget. He spent $50 hiring a developer at $12/hour to build a basic site using PHP code and PayPal for payments. It wasn’t flashy, but it worked.
(A screenshot of Appsumo's landing page in the early days)
He manually sent redemption codes . After 48 hours of hard work, he launched. Sure, he hit some bumps along the way (who doesn’t?), but his scrappy approach worked, and it was just the beginning.
Noah didn’t wait around for some big developer budget. He spent $50 hiring a developer at $12/hour to build a basic site using PHP code and PayPal for payments. It wasn’t flashy, but it worked.
(A screenshot of Appsumo's landing page in the early days)
He manually sent redemption codes . After 48 hours of hard work, he launched. Sure, he hit some bumps along the way (who doesn’t?), but his scrappy approach worked, and it was just the beginning.
How Noah got users for Appsumo
How Noah got users for Appsumo
Here’s where Noah’s marketing skills really came in handy.
Reddit Ads: Noah knew Imgur’s users hung out on Reddit, so he gambled big by emailing Reddit’s founder and offering to buy him breakfast in exchange for free ad space. It worked! He scored the ad space without paying a cent.
Cold Outreach: Noah cold emailed Imgur’s founder, Alan Schaaf, to cut a deal. He’d pay Schaaf $7 for every $14 pro account sold (normally $29). It was a win-win. Noah got credibility, Imgur got customers, and people got discounts.
Manual Touches: No automation, no fancy tech. Noah personally sent each customer their redemption codes. That’s how hands-on he was. And customers loved it.
Tapping His Network: Noah wasn’t shy about asking for help. He reached out to everyone he knew, tested ideas, and got feedback. Those personal connections helped him get his first 200 paying customers. Once he had them, he knew he was onto something big.
Here’s where Noah’s marketing skills really came in handy.
Reddit Ads: Noah knew Imgur’s users hung out on Reddit, so he gambled big by emailing Reddit’s founder and offering to buy him breakfast in exchange for free ad space. It worked! He scored the ad space without paying a cent.
Cold Outreach: Noah cold emailed Imgur’s founder, Alan Schaaf, to cut a deal. He’d pay Schaaf $7 for every $14 pro account sold (normally $29). It was a win-win. Noah got credibility, Imgur got customers, and people got discounts.
Manual Touches: No automation, no fancy tech. Noah personally sent each customer their redemption codes. That’s how hands-on he was. And customers loved it.
Tapping His Network: Noah wasn’t shy about asking for help. He reached out to everyone he knew, tested ideas, and got feedback. Those personal connections helped him get his first 200 paying customers. Once he had them, he knew he was onto something big.
Scaling AppSumo: What Worked
Scaling AppSumo: What Worked
Once AppSumo had some traction, it was all about growth.
Cold Emailing: Noah kept reaching out to companies offering to sell their software at discounted rates. Those partnerships helped AppSumo grow fast.
Reddit Ads: Targeted ads on Reddit drove thousands of people to AppSumo. And because his offers were good, people actually converted into paying customers.
Email Marketing: Noah had a list of potential customers from day one. He sent out personal emails to keep them updated and excited about new deals. It worked like magic, driving more sales with almost no extra cost.
Partnerships: AppSumo became the go-to place for software deals because Noah built strong relationships with app creators. He brought them customers, and they brought him killer deals.
Once AppSumo had some traction, it was all about growth.
Cold Emailing: Noah kept reaching out to companies offering to sell their software at discounted rates. Those partnerships helped AppSumo grow fast.
Reddit Ads: Targeted ads on Reddit drove thousands of people to AppSumo. And because his offers were good, people actually converted into paying customers.
Email Marketing: Noah had a list of potential customers from day one. He sent out personal emails to keep them updated and excited about new deals. It worked like magic, driving more sales with almost no extra cost.
Partnerships: AppSumo became the go-to place for software deals because Noah built strong relationships with app creators. He brought them customers, and they brought him killer deals.
Appsumo's unique selling point
Appsumo's unique selling point
AppSumo’s genius was in offering lifetime software deals at a one-time price. No monthly fees.
(Appsumo's website now)
AppSumo’s genius was in offering lifetime software deals at a one-time price. No monthly fees.
(Appsumo's website now)
Lessons From Noah’s Journey
Lessons From Noah’s Journey
Validate Before You Build: Before AppSumo was a full-fledged platform, Noah validated the idea by getting people to actually buy. Don’t build first, sell first.
Just Ask: Noah’s breakfast meeting with Reddit’s founder got him free ads. Moral of the story? Ask for what you want, because you just might get it.
Keep It Simple: Noah didn’t waste money on flashy features. He used a basic setup with PayPal and PHP. What mattered was getting the product out there.
Stick with It: AppSumo wasn’t an overnight success. Noah hustled, learned from failures, and kept going. Persistence is everything.
Validate Before You Build: Before AppSumo was a full-fledged platform, Noah validated the idea by getting people to actually buy. Don’t build first, sell first.
Just Ask: Noah’s breakfast meeting with Reddit’s founder got him free ads. Moral of the story? Ask for what you want, because you just might get it.
Keep It Simple: Noah didn’t waste money on flashy features. He used a basic setup with PayPal and PHP. What mattered was getting the product out there.
Stick with It: AppSumo wasn’t an overnight success. Noah hustled, learned from failures, and kept going. Persistence is everything.
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If you're interested in more stories like this, here's more for you 🙂
I share more of these case studies in my newsletter and I'd love for you to join here 😊
Do me a favor and pass this on to a friend or share on X/reddit? It'll take just 20 seconds—this one took me about 9 hours to research and write 🫠
Shoot me a DM if you want to share your story or visit this page to submit your information 💌
h/t ( starter story )
