Playbook / Lessons / Money: pitch, investor email

Check your margin after variable costs

Kagan shares that AppSumo's revenue is down 50% over two years and lists the headwinds, including AI usage costs that shrink what software creators can earn. His response includes testing new deal types, promoting products without AI costs, and cutting costs by letting some people go or moving them to contractors.

“Software margins have gone from 90% to 10%.”— Noah Kagan, AppSumo revenue is down 50% over the past 2 years., Feb 2026

Do this

Recalculate the gross margin on your main product after variable costs such as AI usage, and reprice if it has shrunk.

More in this pack

• Seven questions your pitch should answer
• Venture money made stalled growth a crisis
• Lead the pitch with a story, not numbers
• Set your rate from sellable hours

Get your plan

All steps · Trust · Pricing