The Skeptical Beginner’s Guide to AppSumo & LTDs

May 7, 2024

• 7 min read

Enjoy Ad-Free Viewing & More!

Join Inner Circle for uninterrupted content, plus:

Extended cuts with in-depth explanations
Exclusive videos not available elsewhere
Vote on upcoming content
Access to private discussions with Dave & other like-minded entrepreneurs

Join Inner Circle or Login to view.

Introduction [00:00]

Are you tired of constantly increasing prices for essential business software? With inflation hitting online businesses hard, particularly for monthly and annual subscriptions, it can be challenging to keep costs low while running a successful venture. Fortunately, there’s a solution: lifetime deals (LTDs). In this comprehensive guide, we’ll explore the world of LTDs, focusing on AppSumo, a leading marketplace for software deals. We’ll discuss the history of AppSumo, the sustainability of LTDs, and the various programs and features offered by the platform. By the end of this guide, you’ll have a clear understanding of how AppSumo and LTDs can help you save money and access the tools you need to grow your business.

AppSumo History [02:00]

AppSumo was founded in 2010 by Noah Kagan in Austin, Texas. The platform’s journey began with a unique deal for Imgur Pro, an image hosting tool that paired well with Reddit. Kagan offered 200 licenses at a 50% discount, giving half of the revenue back to the developer. This successful campaign validated the demand for discounted software and laid the foundation for AppSumo’s growth.

The Evolution of AppSumo

AppSumo started as a simple newsletter featuring discounted software deals
The platform grew rapidly, attracting both developers and users looking for affordable tools
AppSumo expanded its offerings to include a wider variety of software categories and deal types
The company introduced new programs and features to enhance the user experience and provide more value

AppSumo’s Impact on the Software Industry

AppSumo has helped numerous software startups gain exposure and generate revenue
The platform has made software more accessible to businesses and individuals with limited budgets
AppSumo has contributed to the growth of the software as a service (SaaS) industry by promoting innovative tools and solutions
The company has fostered a community of entrepreneurs and tech enthusiasts who share knowledge and support each other

Get AppSumo Get AppSumo Plus

Sustainability of LTDs [03:20]

One common concern about lifetime deals is their sustainability for developers. While this argument holds merit for tools with significant recurring fees, the software landscape has changed dramatically in recent years. With the number of SaaS companies skyrocketing from hundreds to over 72,000 in the past decade, software has become more of a commodity.

The Commodity Nature of Software

The rapid growth of SaaS companies has led to increased competition and more options for users
Many software tools now offer similar functionality, making it harder for companies to differentiate themselves
Users are less inclined to invest in high-ticket software when affordable alternatives are available
The commoditization of software has made LTDs a more attractive option for both developers and users

The Value Proposition of LTDs

LTDs allow users to access software at a significantly lower cost compared to monthly or annual subscriptions
Even if a tool goes out of business after a few years, users can still save money by purchasing an LTD
LTDs provide an opportunity to try new tools and upgrade to better-fitting solutions as needs change
While there are risks associated with LTDs, the potential savings and flexibility often outweigh the drawbacks

Why AppSumo [07:52]

AppSumo stands out as a leading marketplace for lifetime deals due to its user-friendly platform, curated deals, and customer-centric approach. As an AppSumo customer himself, the author shares his experience and the benefits of using the platform.

Personal Experience with AppSumo

The author has been an AppSumo customer for years, purchasing and using various software tools
One notable success story is the acquisition of Web ARX (now PatchStack) LTDs, which resulted in significant savings over time
The author’s positive experience with AppSumo led to a sponsored relationship, but his endorsement is genuine and based on personal use

AppSumo’s Refund Policy

AppSumo offers a 60-day money-back guarantee on all purchases, allowing users to try products risk-free
The refund process is simple and straightforward, with most refunds processed instantly
This generous refund policy enables users to test software thoroughly and ensures customer satisfaction
AppSumo’s commitment to customer service and satisfaction sets it apart from other LTD marketplaces

AppSumo Select [12:45]

AppSumo Select is a program that highlights software tools vetted by AppSumo’s team for their quality and value. While AppSumo Select products are generally reliable, it’s essential to evaluate each tool based on your specific needs and to take advantage of the refund policy if necessary.

Criteria for AppSumo Select

AppSumo’s team carefully reviews and tests software tools before granting them Select status
Select products must meet high standards for functionality, user experience, and customer support
The AppSumo Select badge serves as a signal of quality, but users should still conduct their own research

Navigating AppSumo Select Deals

When multiple tools offer similar functionality, the AppSumo Select badge can help narrow down choices
Users should also consider factors such as user reviews, pricing, and specific features when making a decision
It’s crucial to take advantage of the refund policy if a tool doesn’t meet expectations or fit well with your workflow
AppSumo Select is a helpful guide, but ultimately, users should prioritize their unique needs and preferences

AppSumo Originals [15:39]

AppSumo Originals are software tools developed in-house by AppSumo’s own development team. These tools are designed to address common user needs and offer a more affordable alternative to third-party software.

Benefits of AppSumo Originals

Originals are developed with AppSumo’s user base in mind, ensuring they meet common needs and preferences
These tools are often more affordable than third-party alternatives, as AppSumo doesn’t have to share revenue with external developers
Originals are likely to remain available on AppSumo for extended periods, providing users with long-term access and support
AppSumo has a vested interest in continually improving and updating Originals to maintain customer satisfaction

Examples of AppSumo Originals

TidyCal: An affordable and user-friendly scheduling tool that competes with higher-priced alternatives
Switchy: A comprehensive link management solution for marketers and businesses
KingSumo: A powerful viral giveaway platform for growing email lists and social media followings
SendFox: An intuitive email marketing tool designed for creators and small businesses

AppSumo Plus [16:44]

AppSumo Plus is a subscription service that offers exclusive benefits to members, including discounts, extended access to deals, and additional perks. This program is designed for frequent AppSumo users who want to maximize their savings and access to software tools.

Benefits of AppSumo Plus

10% off all purchases, which can result in substantial savings over time
Access to an exclusive community of like-minded entrepreneurs and tech enthusiasts
Extended access to deals, allowing Plus members to take advantage of lower prices and early access to new tools
$25 in AppSumo credits every 90 days, totaling $100 per year for annual subscribers
The opportunity to participate in AppSumo’s “Last Call” events, which bring back popular deals for a limited time

Is AppSumo Plus Worth It?

If you purchase from AppSumo regularly (at least once every three months), the Plus membership effectively pays for itself through credits and discounts
The additional perks, such as early access and exclusive deals, can provide even more value for frequent users
However, if you only make occasional purchases or have a limited budget for software, a Plus membership may not be necessary
It’s essential to evaluate your specific needs and buying habits to determine whether AppSumo Plus is a good fit for you

AppSumo Last Call [18:54]

AppSumo Last Call is a limited-time event that brings back popular deals for Plus members. This event allows users to take advantage of discounts on tools they may have missed or to purchase additional codes for products they already use and love.

How AppSumo Last Call Works

AppSumo selects popular deals that have previously been featured on the platform and makes them available again for a short period
Last Call deals are typically only accessible to AppSumo Plus members, providing an exclusive benefit to subscribers
The discounts offered during Last Call events may not be as steep as the original deal, but they still provide significant savings compared to regular pricing

Benefits of Participating in Last Call

The opportunity to purchase tools you may have missed during their initial AppSumo run
A chance to evaluate a tool’s performance and user feedback before committing to a purchase
The ability to upgrade your plan or purchase additional codes for tools you already use and find valuable
Access to a curated selection of high-quality, proven software tools at discounted prices

AppSumo’s Sales [20:02]

In addition to the ongoing discounts available through AppSumo Plus and Last Call events, AppSumo occasionally offers storewide sales that provide even greater savings on software tools.

Types of AppSumo Sales

Seasonal sales, such as the Spring Break Sale, which offer discounts on most products in the AppSumo store
Sumo Day, an annual event held in June that features significant discounts on a wide range of tools
Special promotions and flash sales that provide limited-time discounts on specific products or categories

Maximizing Savings During AppSumo Sales

Combine sale prices with AppSumo Plus discounts to save up to 20% on your purchases
Use AppSumo credits earned through your Plus membership to further reduce the cost of tools
Plan your purchases around major sales events like Sumo Day to take advantage of the deepest discounts
Stay subscribed to AppSumo’s newsletter and follow their social media channels to stay informed about upcoming sales and promotions

Other Software Options [22:13]

While AppSumo offers a wide variety of software tools at discounted prices, it’s important to consider other options when searching for the best solutions for your business needs.

Subscription-Based Software

Traditional subscription-based software often comes with more robust features and support than LTD alternatives
Monthly or annual pricing allows for more flexibility and easier budgeting for some businesses
However, subscription costs can add up over time, and prices may increase with little notice

Self-Hosted Tools

Self-hosted software gives you complete control over your data and can be more cost-effective in the long run
Many open-source tools offer powerful features and active communities for support and development
However, self-hosting requires technical expertise and resources to maintain servers and ensure security

Tip for New AppSumo Customers [23:56]

If you’re new to AppSumo, there’s a simple way to save 10% on your first purchase. By following these steps, you can take advantage of this exclusive discount and start exploring the world of LTDs.

How to Get 10% Off Your First AppSumo Purchase

Open the AppSumo website in an incognito or private browsing window
Wait for the 10% off pop-up to appear, and enter your email address to claim the discount
Check your email for the unique coupon code, and apply it to your first purchase
Enjoy your discounted software tool and start exploring the many other deals available on AppSumo