How To Grow a Million Dollar Business w/ AppSumo CEO @noahkagan
AppSumo CEO Noah Kagan tells Chris Do that building a million-dollar business is a skill anyone can learn, starting with just $12 and a weekend.
Chris Do
Founder, The Futur™ · February 14, 2024
The Artist and The Operator
There is a persistent myth that you can be a creative or you can be in business. The two are presented as oil and water, fundamentally incompatible paths. One is for the purist, the other for the pragmatist.
This is a lie.
AppSumo founder Noah Kagan views this as a dangerous misnomer holding countless talented people back. “I always think about painters and artists,” Kagan says. “The most famous painters are definitely not the best.”
He points to figures like Damien Hirst and Andy Warhol. While their artistic merit is debated, their business acumen is not. “These guys are the best business operators,” Kagan explains. “And I think that's a great lesson for every creative business person out there is that you can do both.”
You do not have to be a starving artist. That is a choice, not a prerequisite for creativity. The modern creative can build a thriving enterprise without sacrificing their craft, but it requires a new mindset. It requires seeing the business itself as a creative act.
For Kagan, who built an $80 million a year business from a $12 investment, the journey from operator to visionary involved a painful but necessary realization: he had to get out of his own way. It’s a story not of a singular creative genius, but of strategic retreat, intentional delegation, and the compounding power of letting go.
The Walkabout
Four years into running AppSumo, Kagan hit a wall. The business, a deal site for software, was successful by most metrics. But for its founder, something was deeply wrong.
“I wasn't proud of the work we were doing,” he admits. “I didn't like the products we were promoting.”
This is a common trap for entrepreneurs. You trade a 9-to-5 you dislike for a 5-to-9 that slowly morphs into the very thing you fled. “You do art or you do something creative because you like it, and then eventually you're not doing the thing you actually really liked,” Kagan says.
His solution was radical. Following in the footsteps of his idols like The Beatles and Steve Jobs, who sought clarity at their own inflection points, he bought a one-way ticket to India. He spent a month traveling alone, growing a beard, and doing yoga. It looked like an escape, but in retrospect, Kagan sees it as an act of avoidance.
“I think I was afraid of who I could become and I was afraid of ruining AppSumo,” he confesses. “I thought the best way to to solve that was to get away from it and avoid the hard part.”
The hard part wasn't in a far-off land. It was in his office, his relationships, and his own leadership. He could have fixed the work he disliked. He could have ended the relationship that wasn't working. Instead, he ran. Many entrepreneurs mistake motion for progress, and a change of scenery for a change in strategy. As he notes, this is a lesson he explores in his book, Million Dollar Weekend, which pushes founders to confront the hard things they are avoiding.
But the trip yielded a startling revelation. The month he was gone, with only four people running the company, was AppSumo’s best month in years.
The lesson was immediate and humbling.
“Sometimes we're holding on so tight to our relationship or we're holding on so tight to our egos and our identities or to how things should be,” Kagan reflects. “Maybe letting go a little bit and seeing what happens when you let go.”
His absence proved that the business could not only survive without his daily intervention, but it could thrive. He was the bottleneck. To grow, AppSumo needed someone else. And to grow, Kagan needed to become someone else: a leader who could find and empower his replacement.
You Can't Pay for Caring
The search for a new leader brought Kagan to one of the most important hires of his life, Ayman Al-Abdullah. But it almost didn’t happen. Ayman first applied for a marketing position at AppSumo. He was rejected.
For most, that’s the end of the story. But rejection is often just a filter for persistence. Not long after, Kagan asked a friend for a CEO referral. The name that came up was Ayman. Checking his inbox, Kagan found something that separated Ayman from every other applicant: a video.
“It was like an AppSumo-esque, like our brand is very silly, and it was like ‘yo dog it's Ayman, you got deals, I got deals,’” Kagan recalls. The over-the-top infomercial showed a willingness to do the work and an innate understanding of the company’s culture. It showed effort.
This is a critical insight for anyone hiring or looking to be hired. Talking about your skills is one thing. Demonstrating them is another entirely. This is a recurring theme in business, as discussed in Kagan's conversation with Ayman on The Futur, where they deconstruct how founders can become the primary obstacle to their own company's growth.
Kagan’s hiring process is built on this principle. He tests people.
Everyone starts as a contractor with a clear, measurable goal. For Ayman, the task was to secure two software deals in two weeks. He did it. His next goal was equally clear: “You need to make $120,000 a month and don't mess it up.”
For two years, Ayman executed a simple, repeatable playbook. Find a product. Negotiate a price. Send an email. He did customer support, marketing, and sales himself, learning every facet of the business before delegating it. He embodied a powerful truth Kagan has learned over decades: you can't buy caring.
“It's very hard to buy someone that cares about what you do,” Kagan states. “But if someone cares what you do, that is something really special.” Ayman cared. He was a customer of AppSumo. He understood its mission and its audience. That intrinsic motivation is something no salary can replicate.
Design the Compensation, Design the Outcome
When it came time to formalize Ayman’s role as CEO, Kagan used a radical compensation strategy. He asked Ayman how much money he wanted to make. The number was audacious: 10 times what he was earning at his previous job at Microsoft.
Kagan didn't flinch. “Okay, let's get you there,” he said. “Let's figure out how you can create so much money for the business that you have to have that much.”
This is the essence of a value-based mindset, applied not just to clients but to team members. Most companies anchor salaries to market rates, essentially competing to pay the average. Kagan’s approach is different. Stop competing with the market. Be the market.
His framework is simple:
- Ask them their number. Find out what financial goal would make staying a no-brainer. This removes salary negotiation from the table and aligns everyone on a shared target.
- Connect their goal to business growth. The conversation shifts from “How much do you cost?” to “How much value can we create together?” If Ayman could grow the business from $5 million to $10 million in revenue, a portion of that new profit was his to claim.
- Give them one clear objective. Kagan learned from Mark Zuckerberg to give people one single metric to focus on. For Ayman, it was the $120,000 monthly revenue target. No confusing KPIs. Just one North Star.
- Define the boundaries. Give them a playbook to operate within. For Ayman, it was the “4-1-1” model: four deals, one freebie, and one AppSumo-created product per month. This provides structure without micromanagement.
This philosophy extends to everyone in the company. Kagan argues that employees in any role, from customer support to engineering, have the power to justify higher pay. The key is to stop thinking like an employee and start thinking like an owner. Building a business is about creating sustainable value, a topic further explored in Do's masterclass on value-based pricing.
He recounts a recent story of a female employee who wanted a raise. She didn’t just ask for more money. She presented a two-page document detailing her accomplishments, market data, and a clear accounting of the revenue she had personally been responsible for creating for the business, even from a non-sales role. “It made it very easy… to justify the amount of value she's creating,” Kagan says.
The message is the same for an aspiring CEO or a junior support specialist: if you want to make more money, create more money. The path to unlimited upside is paved with value creation.
The Slow-Growth Secret to an $80M Business
While Kagan was off building a different company, Sumo.com, Ayman was compounding AppSumo's success. But his approach was the antithesis of the Silicon Valley playbook Kagan came from.
“I came from Silicon Valley where Facebook, it's like if you're not a thousand-Xing, you're a failure,” Kagan explains. Ayman, in contrast, was slow and steady. His philosophy wasn’t about moonshots; it was about incremental improvement.
“Easy come, easy go,” Kagan says, reflecting on Ayman’s influence. “If you can slow and steady keep adding and adding… it really compounds over time.”
Ayman’s strategy was to identify what was already working and do more of it. He didn’t chase new, shiny objects. He optimized the engine that was already running. This is a discipline many founders lack, especially those who thrive on new ideas. Starting a business is often easier than sticking with one, a challenge that requires an entrepreneurial mindset as detailed in Simon Squibb's talk on The Futur.
The process was methodical:
- Test everything small. When exploring affiliate marketing, the team didn’t buy expensive software. They started with a manual spreadsheet and Bitly links.
- Validate before investing. Once the manual test proved successful, they upgraded to a cheap plugin. They proved the model at each stage before committing more resources.
- Scale what works. Only after the cheap plugin was maxed out did they invest in a platform like Impact, which costs over $100,000 a year.
This is the core of Ayman’s genius, according to Kagan. “What are the things that are already working and how do we just keep making it work better until there's no more left of it?” This isn’t a secret guru strategy. It’s basic business discipline that 99% of people hear and 1% of people do.
You find your first customer. Then you find a second. If you have something that works even a little, your job is not to find a new thing. It is to maximize the current thing. Kagan now calls this The law of 100.
“Just do 100 videos, get, make 100 calls, do 100 days, and don't quit too soon,” he advises. AppSumo’s first sale was for $12. A recent single day of sales brought in $280,000. That growth wasn't from one viral moment. It was from a decade of compounding small, consistent efforts.
Your Million-Dollar Weekend Is Waiting
Could everyone in America make a million dollars if they follow a blueprint? Chris Do poses the question directly to Kagan.
“Absolutely,” Kagan responds without hesitation. “Because I've seen it. I've done it.”
He clarifies that it probably won’t happen in a literal weekend. The timeline might be a year, or two, or three. The weekend is not the deadline for the million; it is the deadline for starting. The 48-hour container forces you to focus on what truly matters: solving a problem people want to pay for.
Kagan believes most aspiring entrepreneurs get stuck on two hurdles: ideas and qualifications. They don’t have an idea, or they don’t feel ready, or they don’t feel they have the right credentials. This is all noise. The founder of a successful creative agency, as profiled in this interview on The Futur, often starts with a single client and a simple service, not a grand business plan.
Business is a skill, not an identity. “It doesn't discriminate,” Kagan insists. “You don't have to be short, you don't have to be tall, you don't have to be Asian… entrepreneurship is worldwide and anyone can succeed in it.”
His playbook, outlined in Million Dollar Weekend, boils down to a few core principles that dismantle the excuses.
The first and most important is Now not how. This, Kagan says, is the biggest breakthrough from his work. Stop obsessing over the perfect plan and take one small action right now. Can you post on social media asking if anyone wants to buy your art? Can you call a friend and ask for feedback on a business idea? You don't need a domain, a course, or an LLC. You need to act.
The second principle is asking. People fear asking. They fear rejection. They fear bothering someone. Kagan gamifies this with The coffee challenge. Go to a coffee shop and ask for 10% off. The goal is to get rejected, to feel the sting of a “no,” and realize you survived. It decouples your ego from the outcome and turns asking into a repeatable, low-stakes practice. Selling is not a dark art; it is finding something people want and making it easy for them to get it.
Finally, he urges founders to make sure they are operating in a million-dollar market. You can work incredibly hard building a business with a low ceiling. Kagan uses the example of a massage therapist. At $140 per session, the number of backs they must knead to make a million dollars is astronomical. But if that same person created a coaching program for other therapists or built an agency of massage therapists, the potential scales dramatically.
You don't need a revolutionary idea. You just need to solve a problem people are willing to pay for. And you need to start.
The Unearned Million
There is a strange and unsatisfying postscript to the story of Kagan handing over the reins of AppSumo. While Ayman was methodically growing the company, Kagan was, for a time, retired. He was making between one and three million dollars a year, passively.
It sounds like the dream. It was not.
“It was probably some of the most unsatisfying years of my life,” he says. “Isn't that crazy?”
The money made life easier. He is clear on this point: “It's much better being rich and have problems than being poor and have problems.” But the money did not provide fulfillment. The fulfillment came from the work, from the struggle, from building something he cared about. The challenge is what gives the reward its meaning, a point also made in an interview with entrepreneur Tom Bilyeu.
When Ayman eventually decided to leave AppSumo to start his own coaching business, Kagan was terrified. He begged him not to quit. He was afraid of having to do it himself again, afraid of the responsibility. He had to face the very thing he ran to India to avoid.
But that fear was a signal. It was a sign that there was still work to do, both on the business and on himself. He stepped back in as CEO, not as the same person who left, but as someone who had learned from watching his replacement succeed.
Business is the ultimate tool for self-discovery. It holds a mirror up to your fears, your ego, and your limitations. It forces you to confront them or fail.
The path to a million-dollar business is not a secret. It begins with a single dollar, a single customer, a single ask. It is built not on a flash of genius, but on the quiet, unglamorous work of showing up, day after day, and doing more of what works.
Ordinary people get rich. The only prerequisite is to start.
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“The best business is the one that's working.”
— Chris Do
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