AppSumo's Bootstrapped Success

Noah Kagan shares the financial details of AppSumo, his bootstrapped company after 14 years of operation.

"In terms of net revenue, we ended at 76.7 million in gross sales. Net revenue was 56 million, and profit was 7.5 million.

What we do with the profit is copy Amazon's approach. If you look at our net profit over the past 14 years, it's like 0.5% net income margin. In Q4, we try to spend all the profit we have so that every year gets bigger and bigger. We take everyone on the team to Mexico, spend on ads, servers, sponsorships, hiring, investors, prepaying for things - whatever we can within tax rules. We pay the team distribution, and then whatever's left after that, me and my partner get some distribution."