AppSumo Marketplace & Lifetime Deals: A Smart Play or Risky Move for Your WordPress Products?

AppSumo is known for offering great deals, helping digital creators reach an audience eager for discounts. For new WordPress product makers, it’s a great way to gain visibility and grow quickly. Experienced makers can also use it to try out new products.

With over 1.5 million visitors, AppSumo is an appealing launchpad for B2B digital products, offering both lifetime and annual deals to quickly build momentum. However, there are some challenges to consider that raise questions about whether it’s worth it in 2024.

To investigate, we consulted four experts.

• Head of Marketing and Finance Mary Zhang, who oversaw the sale of a WordPress plugin on AppSumo for her company Dgtl Infra.
• Jeremy Bogdanowicz, founder and CEO of JTB Studios, shares valuable insights on listing a product on AppSumo, informed by his experience leading a top digital design agency.
• Brooke Webber, Head of Marketing at Ninja Patches, and Jon Morgan, CEO and Editor-in-Chief of Venture Smarter, offer valuable observations about the pros and cons of selling on the marketplace.

First order of business: the story behind the platform.

The Origins of AppSumo and Its Unique Value for Makers

AppSumo started in 2010. Believe it or not, entrepreneur Noah Kagan built it over a single weekend for just $60. Since then, the platform has experienced significant growth, generating $80 million in sales by 2024. Kagan shares his journey in Million Dollar Weekend.

Originally, AppSumo offered weekly deals on digital products like social media tools, creative assets, and WordPress software. It became a valuable platform for product creators to gain exposure and drive sales.

With the introduction of lifetime deals, AppSumo’s popularity exploded, attracting millions to its marketplace. [Learn more about the company’s history here].

Now, let’s look at what sets AppSumo apart from other marketplaces.

Lifetime Deals and Annual Deals

As mentioned above, lifetime deals (LTDs) are the cornerstone of AppSumo’s value proposition, offering buyers a compelling opportunity to acquire digital products with a single discounted payment and enjoy lifetime access without ongoing costs.

This model is particularly appealing for WordPress newcomers, as it helps them quickly attract new customers to build an initial user base that lifts morale and generates early revenue.

AppSumo also offers annual deals, giving customers access to products for a year, after which they need to renew directly with the vendor. Annual deals give software makers the benefit of recurring revenue. However, they’re less popular with AppSumo’s audience, who are primarily drawn to LTDs for lifetime access and long-term savings.

As AppSumo themselves put it:

“Generally, we’d highly recommend listing an LTD. It’s what Sumo-lings expect to find on AppSumo and it builds the thrill around buying & reviewing your product — and gaining lifetime ambassadors!”

AppSumo Plus

In addition to LTDs and annual deals, AppSumo offers AppSumo Plus, a membership program that gives users exclusive discounts, early access deals, and other perks.

For software creators, this means even more exposure, as AppSumo Plus members are often early adopters eager to invest in promising new products.

AppSumo Originals and AppSumo Select

In addition to offering deals on third-party products, AppSumo also has its own initiatives:

• AppSumo Originals: A line of products created and sold directly by AppSumo, designed to meet common business needs like marketing, productivity, and customer engagement.
• AppSumo Select: This program is tailored for SaaS companies looking to scale globally. AppSumo Select showcases established SaaS products and provides extra support and promotion to help them reach a wider audience through AppSumo’s network.

With the high-level ground covered, let’s dig into the specifics:

A Breakdown of Selling WordPress Products on AppSumo

The finer details of selling on the platform.

Now that we’ve covered the specifics, let’s explore how they convert into pros and cons for software makers:

The Pros of Selling WordPress Products on AppSumo

Selling on AppSumo offers several advantages, including high exposure, traffic to your website, and valuable, persuasive reviews.

Tapping into New Audiences

Listing products as lifetime deals (LTDs) on AppSumo allows WordPress makers — newcomers and established businesses — to reach audiences they may have struggled to connect with previously.

“The biggest benefit we saw was AppSumo’s ability to put us in front of an audience we hadn’t previously tapped into — people who love unique, quirky add-ons for their WordPress sites,” Brooke says. “Their focus on bringing in an engaged audience made a noticeable impact on our sales.”

Mary agrees. “The extensive audience reach introduced our product to a demographic we previously struggled to connect with. Within the first week, we experienced a 500% increase 🤯 in product visibility compared to our traditional marketing channels. AppSumo featured our plugin in their email newsletters and social media posts, which significantly boosted our listing’s traffic.”

Hands-On Marketing Support for Sellers

AppSumo provides dedicated marketing support to help sellers set their products up for success. Jeremy shares that the team offered invaluable assistance throughout his experience: “They worked with me to write clear and interesting product descriptions that showed off my product’s best features. Their help in creating eye-catching visuals made it stand out even more.”

In addition to visuals and descriptions, AppSumo also sets up targeted email campaigns to reach the right customers, boosting visibility and connecting products with potential buyers. “I couldn’t have asked for better help, and I’m thankful for their hard work and skills,” Jeremy adds.

Opportunity for Fair Recognition

AppSumo gives your product an initial marketing boost, but standing out is ultimately up to you. By actively promoting your deal page, you can attract more interest, earn positive reviews, and increase visibility on the platform. The more reviews you gather, the more opportunities you’ll have to be featured by AppSumo:

• 5 reviews: Shoutout in AppSumo’s Facebook group
• 10 reviews: Mention in AppSumo’s Friday email newsletter
• 20 reviews: Entry into AppSumo’s Rising Star Collection
• 25 reviews: Featured in AppSumo’s Sunday night email blast

Positive reviews not only build credibility but also bring more traffic to your deal page, amplifying your product’s reach across the AppSumo platform and beyond.

More Traffic to Your Online Store (With Opportunities for Upselling)

When customers buy products on AppSumo, they receive a redemption code for your online store. This influx of traffic to your website can be valuable for expanding your reach.

Beyond just attracting visitors, this is also an opportunity for cross-selling and upselling. Once customers are on your site, they may discover other features or related products that enhance their experience, leading to repeat purchases and increased customer lifetime value. To make the most of this, ensure your website offers a seamless experience and highlights your full product range.

Leveraging Customer Reviews for Insights and Product Improvement

One of the key benefits of selling on AppSumo is the opportunity to gather valuable customer feedback through reviews. AppSumo encourages customers to ask questions and leave reviews under product listings, which allows product makers to engage directly with their audience by responding to feedback and addressing concerns. AppSumo also gives guidance on effective strategies to generate and collect customer feedback.

As Jon mentions, “AppSumo has a massive community of entrepreneurs and digital product buyers who are always on the lookout for tools that solve specific pain points. Many of my early users became long-term customers who provided valuable feedback that I used to improve and refine my product.”

Not to ruin the party 💩 but there are — unfortunately — some notable downsides to selling on the marketplace.

The Cons of Selling WordPress Products on AppSumo

Key drawbacks include low commission rates, possible discount disputes from existing customers, and potential long-term impacts of offering steep discounts on many products.

Significantly Reduced Earnings Per Sale

While AppSumo lets sellers keep up to 70% of each sale, the final earnings can still be surprisingly low.

For example, if your product typically sells for $100 per year but is offered as a $40 LTD on AppSumo, you’re left with just $28 per sale after AppSumo’s 30% commission (which could be higher depending on your agreement). Without significant sales volume, the combination of low lifetime pricing and reduced earnings per sale could make it difficult to generate sustainable revenue on AppSumo.

Customer Tension and Impact on Organic Sales

Selling on AppSumo at a heavily discounted price can introduce friction with existing customers and impact your other sales channels. If your product is available at a regular price on your website or another marketplace, customers who paid full price elsewhere may feel frustrated or even request refunds when they discover a significantly lower price on AppSumo.

This dynamic can create dissatisfaction among loyal customers who feel they missed out on a better deal, leading them to question the value of their purchase.

Explaining the rationale behind the one-off AppSumo discount can be challenging, as customers may be unreceptive to the reasoning. Attempting to address these concerns might only add to their frustration, potentially draining support resources and pulling focus from other business priorities — adding yet another layer of complexity to managing an LTD.

Think Twice About The Long-Term Costs of Discounted Sales on AppSumo

Selling on AppSumo comes with a major downside: the pressure to offer steep discounts, often as high as 80–90%, to stay competitive and drive sales. While this can lead to quick revenue, it may have serious long-term effects.

Jon explains, “AppSumo’s discount model can bring in many buyers, but if not handled carefully, it risks devaluing your product. Some customers expect lifetime deals at a fraction of the usual price, which can make it hard to sustain ongoing revenue.”

A key issue is that many customers buy at these deep discounts, and if lifetime support is included, you may face an ever-growing support burden with no additional income to cover it.

The bottom line: Relying on low-priced sales now with the hope that future customers will pay full price could hurt your financial health.

As Jon points out, “AppSumo is great for generating buzz and early traction. It gets your product in front of an enthusiastic audience ready to try new tools, but it’s not a long-term pricing strategy. You need to know exactly what you’re offering and how it fits your overall business goals.”

Ultimately, the decision is yours. If you can afford to sell many products at a discount now and see a return later, AppSumo may be a good fit. But if you’re not ready for that trade-off, the discounting pressure might be a major drawback in the long run.

Before you decide, ask yourself: does selling your WordPress products on AppSumo align with your long-term strategy?

Weighing Your Options: Is AppSumo the Right Marketplace for You?

For newcomers or those launching a new product, AppSumo can be an effective way to reach a wide audience and generate early adoption.

However, if long-term revenue sustainability and a manageable support load are your priorities, you may need to think twice before committing.

Ultimately, the decision hinges on how well AppSumo’s model aligns with your “big picture” business needs. While AppSumo offers unique advantages, many WordPress makers are exploring alternatives to gain greater control over their sales processes. Some opt to list their products on their own online stores, and team up with a merchant of record like Freemius.

A merchant of record (MoR) takes care of transactions for your business, handling payment processing, tax collection, and compliance with financial regulations, so you can focus on your product.

If you’re curious about moving beyond traditional WordPress marketplaces and managing your sales independently, get in touch with us at [email protected].