How AppSumo hired a new CEO for its $85M business

Executive overview

When a company transitions from growth to scale, the CEO skills that got it there often aren't the skills needed to go further. AppSumo's outgoing CEO Eamon — who grew the business from $4M to $85M — initiated his own replacement, recognising the next stage requires a different operator.

The hiring process combined structured criteria (the MoSCoW framework), multiple sourcing channels, and a $100K referral bounty to surface the right candidate.

The right CEO is stage-specific — hire for where you're going, not where you've been.

Three stages of company growth

• Startup (0–$1M): founder-led, zero-to-one execution
• Grow up ($3M–$100M): team-building, process, long-term strategy
• Scale up ($100M–$1B+): executive hiring, IPO readiness, regulatory complexity
• Each stage needs a different CEO profile — Tim Cook vs Steve Jobs is the analogy

Defining what you want in a CEO

• Gather input from key stakeholders on what they valued in the outgoing CEO and what the next one needs
• Use MoSCoW: must haves, should haves, could haves, would haves
• Must-haves for AppSumo: culture fit, proven scaling experience, ability to hire executive talent
• Consider candidates who were "number two" and are ready to lead, not just former CEOs
• Every key leader interviews the candidate; unanimous approval required

Sourcing channels used

• PR-driven job posting on the company careers page
• Podcast tour — own show plus guest appearances
• Executive recruiting firms (~$100K each; worthwhile for their calibration experience)
• Email to customer base — AppSumo's CEO was a customer before he was hired
• Personal network outreach — text key operators asking for referrals

Compensation and onboarding

• Scale-up CEOs command high six-figure salaries plus equity
• Frame compensation by value created, not cost incurred
• Expect 6 months before a new executive generates meaningful output
• Have the candidate pitch their 90-day and 180-day plan during the interview process — then hold them to it
• New CEO must meet the customer base, align with the team, and review existing operations