Have you ever wondered how some successful entrepreneurs managed to turn a simple idea into a multi-million dollar business in just one weekend? Well, Noah Kagan, the CEO of AppSumo, did exactly that. In a recent podcast episode, Kagan shared the story of how he started AppSumo, a “Groupon for software,” with a startup cost of just $60. Fast forward to today, and AppSumo earned a whopping $80 million last year.
Back in 2010, Kagan, then 28 years old, had already worked at Facebook and Mint. Despite these impressive roles, he was eventually fired from both companies, which made him realize the risk of dedicating all his time to a day job where someone else could decide his fate.
Kagan’s journey to creating AppSumo was driven by his desire to prove his worth and take control of his future. The idea for AppSumo came about when he saw an opportunity to promote software tools and get paid for it. Inspired by MacHeist’s model of offering software discounts to Apple users, Kagan wanted to make these deals available to a wider audience.
Within 60 hours, AppSumo was born. Kagan secured software deals, received free advertising from Reddit, hired a developer to build a website, and got AppSumo.com up and running for just $60. The business quickly took off, making $300,000 in the first year, $3 million in the second, and a stunning $80 million in revenue last year.
Reflecting on his success, Kagan emphasizes the importance of being passionate about the problem you’re solving and staying committed to it. In a world dominated by trends like AI and social media influence, Kagan believes that finding an area where you’re deeply engaged is key to long-term success.
For those looking to start a side hustle or create an extra source of income, Kagan offers a simple piece of advice: invest your time wisely. By allocating just 30 minutes a week to your passion project, you can gradually build a business that offers financial freedom and a sense of control over your future.
So, why wait? Take a page out of Noah Kagan’s playbook and start turning your ideas into reality today. Who knows, you might just be on your way to launching the next AppSumo.