As with all great startup stories, AppSumo begins with someone addressing a need. This time, it was Noah Kagan, who was working with a Facebook games company. Through interaction with partners of that company, Kagan discovered that many businesses and users were having a hard time discovering innovative applications and web products.
Kagan realized someone could offer a product that connected those innovative products and services with the market. Using open–source code, Kagan built part of his product and hired an outsourced coder for a total of $60 to do the rest. The same month, he launched AppSumo, which was to offer deals on products Kagan found online. The first deal he offered was a pro account at Imgur for 50 percent off. Advertised on Reddit, which is a clever target audience crossover decision, the deal sold to 200 buyers.
David Cramer then joined Kagan as a cofounder. The two rebooted AppSumo with updated code and a new offer. They sold 500 of the new offer. The pair continued in a rinse and repeat pattern, learning as they went. Within a few years, the startup boasted 200,000 subscribers and a growing network of customers, startups, and advertisers.
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