5 Appsumo Alternatives That You Need To Know, But Are They Worth It?
Thinking of launching a lifetime deal campaign for your software? Appsumo is usually the first platform that comes to mind. But is it the only one?
As a SaaS founder, it’s best that you know alternative platforms other Appsumo where you can launch your SaaS lifetime deal campaign.
Of course, each platform has its advantages and disadvantages. So we looked them up and in this article, we want to discuss if these other lifetime deal platforms are worth going for when you launch your own SaaS LTD campaign.
Before we go through Appsumo’s alternatives, we need to talk about AppSumo itself.
AppSumo is a software deal marketplace founded by Noah Kagan. Customers go there to get special deals for different types of software, including lifetime deals. It’s a popular site among LTD enthusiasts, buyers, and SaaS founders and startups. Appsumo is the go-to marketplace for people looking to get rare deals or sell their amazing software products.
On paper, this marketing tool is very beneficial for both parties. Whether they are individuals or companies, customers gain access to the software they need at excellent prices while the companies gain the sales and the promotion they are after.
How AppSumo Works
Founded in 2011, AppSumo’s creator used $50 to get it going. In just a few years, the platform has managed to become a multi-million dollar business.
So, how does AppSumo work?
As mentioned before, AppSumo is a SaaS marketplace. Multiple deals are available at the same time on the platform. The platform releases three different offers each week.
The platform will provide adequate information so users will have enough idea on whether to get the lifetime access offer they’re eyeing or not. The people from Appsumo will also create a video reviewing the software and display users’ reviews. An AppSumo lifetime deal runs until the allotted codes run out or sometimes after two weeks.
Pros and Cons of AppSumo
Like any other platform, AppSumo has its pros and cons. It’s time to go through those so you can decide whether it’s worth it to post your software offer there or not.
The Pros of AppSumo
First, let’s go through the benefits that AppSumo offers.
Offering an LTD for a SaaS digital product usually means that a company needs cash fast. It could be that a company is struggling, so they are willing to offer massive discount deals in exchange for an injection of cash. That’s a valid strategy for a startup’s survival, and AppSumo gives the perfect platform for that.
There are plenty of AppSumo success stories out there on how a SaaS small business could survive because of the money it got through its LTD offer. One of the best Appsumo deal examples is HeySummit which netted $140,000.
Promotion to a Wide Audience
AppSumo has over 800,000 users, and that number is growing. What’s even better is that those users are passionate about getting software deals. Posting your lifetime tech deals there gives you an audience right away.
Create a Loyal Following
Because you will have a bigger audience through the platform, you will get new users who can turn into loyal followers. Because you are offering an LTD, these early users will become supporters of the software as you make progress. Building a loyal base of users is an excellent means of promoting your software.
The Cons of AppSumo
Like other platforms out there, AppSumo has two sides to it. While you cannot deny that it has its benefits, AppSumo has its downsides as well. Here are some of those.
High Revenue Share
One of the main reasons developers use AppSumo is to get cash quickly. The flow of new subscribers from the platform can be a lifesaver for some startups. But this raises another problem. One of the things that people find concerning about AppSumo is the share it takes from the sales revenue.
It has been reported and widely believed that AppSumo takes 70% of the sales revenue of the deals offered on its platform. That isn’t true, and that was explained clearly by AppSumo through a blog post.
However, just because the 70% revenue share isn’t a fact, it doesn’t mean you will be getting a bigger slice of the pie. AppSumo explains their revenue-sharing model in the same blog post, and it’s easy to see where the idea of a 70% revenue share originated.
AppSumo explained that marketing costs eat up 40% of the revenue. That includes affiliate payments, ads, and processing fees, while the 60% remaining revenue will be divided between the partners and AppSumo. That means if you use AppSumo, you will get 30% of the revenue. That’s where the idea in which AppSumo takes 70% of the revenue.
So, even if the platform does not eat up 70% of the revenue, you will still have little money left. To put this into perspective, you will only get $30 if you have an LTD that costs $100.
Strict and Lengthy Approval Process
Because AppSumo is a popular platform now, many companies want to partner with it. That means the competition to become a partner is very fierce. The application and approval process to get your software deal up on the platform can take time. It’s also not easy, so you have to be ready to give it some time.
Not a Guarantee
Sure, AppSumo may be the most popular SaaS LTD marketplace out there, and it has a large audience, but getting your deal featured there isn’t a guarantee that you will get subscriptions or get a bigger audience.
Some of the supposed downsides of AppSumo are untrue. The most famous one, of course, is about the revenue share. We have shown that it’s not true, and there are others. Another common myth about AppSumo is that it launches straight from beta. In other words, it only features deals for software that are still in the beta stage.
The truth is that they can feature established SaaS products on AppSumo. They would just have to go through the same process, which takes time, as we have mentioned.
5 AppSumo Alternatives
Overall, AppSumo is a positive platform that offers benefits to users. Of course, not everyone will benefit from it. Some would prefer getting a more significant share of the revenue, so some prefer alternatives to AppSumo.
Some platforms claim to be just like AppSumo. Some argue that they are even better than the number one platform. These platforms are supposed to have all the benefits of AppSumo without its disadvantages.
We have listed here some of the alternatives to AppSumo available today.
The people behind StackSocial launched it around the same time as AppSumo. It has grown steadily over the years though it has not gained the same level of popularity as AppSumo when it comes to Saas deals. That level of growth might be deceiving because StackSocial is not exactly a copy of AppSumo.
Aside from SaaS products, StackSocial also has recommendations for other deals like appliances, courses, and gadgets. In other words, StackSocial is broader than most of the other platforms mentioned in this article. People go there not just for SaaS products but also for other deals.
The main downside to StackSocial is also its broadness. The people visiting the site are also looking for other deals. On the other hand, it’s a great alternative to AppSumo because it is pretty popular.
SaasPirate is another popular alternative to AppSumo. They have lifetime deals for software and discounts too. They have a lot of categories for their SaaS offers, and the more popular ones are CRM, eCommerce, and Analytics. Some of the lifetime deal offers there are up to t 90% discounts.
The site has over 5,000 companies and developers. That’s relatively low, especially when you compare it to AppSumo, but the audience is not that big too.
SaasMantra is a relative newcomer in the marketplace field, but it has good features. The great thing about SaasMantra is that they work with the tool’s developer. For example, once they have identified a good product they can offer on the platform, they will work closely with the creator to develop the best presentation for it.
Of course, the best presentation usually means that they will have to reduce the price. The catch is that the products they offer are mainly in Beta, and many users are aware of that.
Are you developing a business to business (B2B) software? Then DealMirror is a good platform for you to try. It was founded in 2016 specifically to help companies find the best b2B software. They’re also striving to bring down the software prices to an affordable rate.
The platform is quite popular for software deals as they have gained over one million users. The biggest drawback is the fact that it’s not for all developers. If you are developing software mainly for consumers, this isn’t the platform for you.
PitchGround is not just a SaaS marketplace. They also offer other business solutions. They do provide the usual things found on other SaaS marketplaces. The problem with PitchGround is that they are not entirely focused on selling the deals of others because they have their own products.
These are just some of the best alternatives to AppSumo available now. It’s essential to look at each option to see what it has to offer, whether it’s beneficial for your business or not.
Getting Featured on a Marketplace
Whether you are using AppSumo or some other SaaS marketplace, you can do some steps to ensure the success of your offer.
Make Sure Your Product Is Working
Your product should be up and running before you offer it on a marketplace. Unfortunately, some vendors don’t ensure this, providing unpolished products. When people subscribe to unsophisticated software, they end up getting frustrated.
Instead of building up a loyal following, you create detractors who leave bad reviews.
What are the characteristics of a working product? Here are some:
All its features and functions should be working.
- There should be paying customers already.
- Integration with other apps.
- If your product does not have these characteristics yet, you cannot consider it finished or even polished.
Not Too Niche
Is your product targeted towards a particular niche? If that’s the case, then maybe launching on AppSumo or the other marketplaces mentioned here might not be a good idea.
These marketplaces are very effective because they have enormous audiences. That means they are ideal for SaaS products with a more general appeal.
Have a Team
AppSumo requires that you have a team of at least three people. That’s not too hard to comply with, and it makes sense. It ensures that you can handle it when people start sending you questions and subscriptions start coming.
Make Sure You Have a Plan
You need to have a plan and a roadmap ahead when you want to launch in a marketplace. You need to show that you have some level of stability. It’s also worth noting that being on too many marketplace sites may lower the chances of getting accepted on some sites. So what you should do is pick the one marketplace where you will be offering your software deals and stick to that.
Be Thorough with the Application
The application process for some of these sites can be very rigorous. So, when you are completing all the application requirements for an exclusive deal, make sure that you are very thorough. See to it that you don’t miss out on any details.
When your application gets accepted, they will review the product first before it gets launched. The reviewers will be providing feedback that you can improve. Be sure to work on the recommendations that they give you. Those recommendations are high-quality insights that you usually need to pay to get, but you’re getting them for free, so take advantage.
So, which is better? AppSumo or its alternatives?
For many SaaS entrepreneurs, the answer is quite clear. It’s easier to go with the more popular option than to risk using one that is not so common. But it’s not always the case. Sometimes, it is better to use a more obscure platform that targets your audience than a comprehensive one.
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