How Noah Kagan rescued AppSumo from a years-long revenue plateau

Executive overview

AppSumo grew fast then stalled at $3M revenue for three years. Noah felt like a used car salesman and nearly sold the company for $2M.

The fix was not a new strategy — it was self-honesty about strengths. Stepping back, hiring a CEO, and letting that person run the business unlocked growth from $3M to $70M.

Hire for your weaknesses before the plateau kills your motivation.

Recognising the plateau and why it stalls founders

• Flat revenue ($3M, $3M, $2.9M) strips motivation faster than a declining business
• The warning sign: joking to yourself that you hate what you're doing
• Selling felt like the rational exit — but would have netted far less than the years invested
• Distance from the problem (a solo trip to India) created space to reflect clearly

Rediscovering purpose and defining the ideal role

• Reflect on why the business started — not what it became
• Write out your dream week: what do you actually want to be doing daily?
• Identify what drains you; that is your first hire, not your last
• Noah's clarity: he loves starting and marketing, not operating

Hiring a CEO to replace yourself

• Write a job description you'd want to apply for — most are too boring to attract top talent
• Prioritise the search: six months of near-full-time effort produced one right hire
• Ask great people "who is the best person you've ever worked with?" — specific, easy to answer
• Top candidates are obvious: they invest 1% more effort than everyone else (Eamon made a video and a full presentation)
• Set a concrete survival number on day one — Eamon's was $120K/month to break even
• Expect at least a year of active coaching before the hire operates independently

Growth after handing over the reins

• Eamon ran every role himself first: support, sales, marketing
• While Eamon kept AppSumo stable, the founding team built SumoMe, KingSumo, and Monthly1K
• Once break-even was secure, Eamon pushed for permission to grow — and got it
• He built a real team, doubled down on email and affiliate, shifted to lifetime deals with upsells
• Revenue: $5.5M (2015) → $6.8M (2016) → $14M (2017) → $70M (2021)