

Ask HN: Can someone explain the economics of AppSumo from founder's perspective? - marcamillion

I keep getting these awesome deal emails - that if I were interested I would get them, about various webapps.<p>Buy 1 month, and get 6 months free, or pay $49 and get 10 apps in 1.<p>I would love to hear some real data from people that have listed their app with AppSumo and what the results have been like. What does your Acquistion Cost per Customer look like, in comparison to other channels (say Facebook, Google Adsense, etc.)?<p>Also, what is the rationale behind it ? Do you only do the buy 1 month, get 6 month deals when you know your Lifetime Value/customer is much longer than 6 months ?<p>What metrics would I want to look at, from the founder's perspective, before deciding what type of deal to run, and whether or not it makes sense ?<p>I understand how this could work for downloaded software, because the marginal costs per license is effectively 0. But for hosted web apps, kinda trying to get some real data about that.<p>Thanks.
======
petervandijck
The marginal cost per license for hosted apps is also almost 0, for many Saas
apps.

~~~
revorad
The cost of hosting a new customer might be almost 0, but the cost of customer
acquisition is anything but. That's what AppSumo is presumably helping with.
It's an advertising platform, much like Groupon.

~~~
marcamillion
That's what I am trying to figure out...how good are they at doing this.

