Many of us have invested time, energy, and money into projects that didn’t pan out, leaving us frustrated and disheartened. Noah Kagan, the founder of AppSumo, nearly fell into this same trap when he started his business in 2010. However, a pivotal moment changed everything—his friend urged him to validate his idea before diving in too deep.
This simple but powerful advice led to his first 200 paying customers and laid the foundation for what would become a thriving business. Today, AppSumo boasts around a million email subscribers and is a widely recognized success story.
The Beginning of AppSumo:
Noah’s journey started with an observation. As a frequent Reddit user, he noticed how popular the platform was and observed that many people used Imgur, a popular image hosting app. Imgur offered a Pro account for advanced features, and Noah wondered if he could tap into this demand by offering Redditors a discounted price on Imgur Pro.
The Steps to Success:
- Securing a Product: To turn his idea into reality, Noah reached out to the founder of Imgur via email. He proposed running a campaign to offer Imgur Pro at a steeply discounted price. The Imgur founder agreed, giving Noah a product to sell.The challenge? Noah had no website, no customers, and no infrastructure—yet.
- Building a Customer Base: To get his first customers, Noah took bold steps. He cold-emailed one of Reddit’s founders and invited him to breakfast. During their meeting, Noah explained his idea and asked if Reddit would provide some free ad space to promote his campaign. The Reddit founder liked the concept and graciously agreed.
- Creating a Simple Sales Funnel: With a product and ad space secured, Noah quickly set up the infrastructure:
- He built a basic landing page where users could purchase the discounted Imgur Pro subscription.
- He linked the landing page to PayPal to process payments.
- Launching the Campaign: Noah used the free ad space on Reddit to promote the campaign, targeting Redditors who were already familiar with and using Imgur. The ad resonated with the audience, driving significant interest.
- Delivering the Product: After receiving his first 200 purchases, Noah manually emailed each customer a coupon code to redeem their Imgur Pro account. This hands-on approach ensured a personal touch, even as he validated his business idea.
The Outcome:
Noah’s campaign was a success:
- He secured 200 paying customers right off the bat, validating his business idea.
- He proved that there was a market for discounted software and tools, leading to the birth of AppSumo.
- Over time, AppSumo grew into a powerhouse platform, offering deals on software products and amassing a loyal subscriber base of nearly 1 million users.
Lessons Learned:
Noah Kagan’s story demonstrates the importance of validating your business idea before investing significant time and resources. By:
- Observing market demand,
- Using existing networks and resources,
- Starting small, and
- Taking bold actions,
he turned a simple idea into a thriving business. This journey also highlights the value of building partnerships, leveraging creative marketing strategies, and starting with the minimum infrastructure needed to test a concept.
If you have an idea, don’t let perfection hold you back—test it, validate it, and grow from there.
Source: AppSumo.com