We spent over 12 months building EazySites from the ground up, not a weekend project, not a template reskin. A real publishing platform built for creators who want to ship fast, stay consistent, and monetise without complexity.
When it came time to launch, AppSumo looked like the perfect fit: massive reach, early adopters, a proven playbook. But what did we find in the legal fine print?
It wasn’t just a revenue split. It was:
A lien on our IP
A 3× exit clawback clause
A pricing straitjacket
A 120-day lock-in with no escape clause
Arbitration in Texas if anything went wrong
A note on “bad apples.”
Over the years AppSumo has had its share of fly-by-night launches: vapor-ware, reskinned templates, founders who vanish at the first support ticket. Those deals eroded trust for both buyers and legitimate builders.But the deeper problem isn’t just a handful of shady products, it’s a set of terms that make good products hard to sustain. AppSumo keeps the spotlight, but creators shoulder the unlimited obligations, clawbacks, and pricing straitjackets. The result? Solid SaaS founders opt out, and the marketplace tilts toward low-effort or short-lived offers.
In other words, the clauses that are supposed to “protect customers” often push away the very products customers want. Accountability has to run both ways: if AppSumo demands lifetime support, rock-bottom pricing, and even a lien on our code, then they also need to share the operational risk, and the responsibility for user outcomes. Anything less invites corner-cutting and sets honest builders up to fail.
We weren't casual about this decision, we studied their case studies, analysed successful launches, and prepared meticulously.
We wrote landing page copy to their specifications.
We integrated license key logic into our API.
We planned LTD tiers with their community in mind. We even modelled our campaign after their most successful partners.
This wasn't a "maybe", it was our plan.
Until we read the fine print.
What we discovered wasn't a partnership. It was a control transfer disguised as collaboration, wrapped in terms so aggressive they'd make a loan shark blush.
Here's the clause-by-clause breakdown that made us walk away.
The Revenue Split That Isn't What You Think
Headline: 40% for partners, 60% for AppSumo.
Reality: the pie is shrunk before those percentages are applied, so every platform-run discount comes out of your pocket just as much as theirs.
How the math really works
Start with gross sales.
Example: $100,000 in codes sold.Auto-subtract the 10% Plus-member discount.
(AppSumo charges customers $99/yr for Plus, pockets that fee, and hands buyers a standing 10% off every product, including yours.)
Gross now = $90,000.Subtract any refunds.
Standard 60-day window for LTDs. Say $5,000.
Net Revenue = $85,000.Apply the 40/60 split to Net Revenue.
Your take: 40% × $85,000 = $34,000
AppSumo's take: 60% × $85,000 = $51,000
Bottom line: a straight 10% Plus discount pushes your effective share down to 36% of gross but your obligations (support, updates, clawbacks) stay pegged to 100% of the customers.
Site-wide promo days make it even smaller
Black Friday, Sumo Day, etc. slash the "Effective Price" again (typically another 10–20%). You're opted-in by default; you can opt out when they email the notice, but if you stay in, the extra discount comes off the top before the 40/60 split.
What about affiliate commissions?
A third-party affiliate refers the sale: their 5% (or up-to-100% for a brand-new customer) is paid from AppSumo's side. Your 40% isn't touched.
You refer the sale and you're the partner: AppSumo will "offset" the two payouts so you don't double-dip, meaning the affiliate cut comes out of your 40%.
One small perk
If a brand-new AppSumo customer buys through your own referral link, you keep 95% of that first purchase. Nice, but it only applies to customers you drive yourself, which undercuts the reason for listing on a marketplace in the first place.
Translation:
AppSumo keeps 60% of whatever's left after they hand out paid-membership discounts and any site-wide promo cuts. You shoulder the exact same haircut, plus all the ongoing obligations, while they still pocket the Plus subscription revenue. If that sounds like a "creator-friendly" split, read it again.
And this isn't just for their premium "Select" deals with full marketing support. This applies to self-listed partners, where you do all the work: write the copy, create the assets, handle integration, manage customer support, and absorb all post-sale risk.
Their contribution? A basic approval process and maybe a newsletter mention.
From our actual Promotion Agreement: "Your Revenue Percentage is 40%. Note that this percentage represents your share of the Net Revenue generated from sales of your Product."
The value exchange doesn't hold.
The 3x Clawback That Could Bankrupt You
Here's where things get truly scary.
Buried in Section 10 of our Promotion Agreement is a reference to their Partner Terms that creates "successor liability." Translation: if you ever sell your company or get acquired, and the buyer doesn't want to assume AppSumo's terms, you could owe them 3x whatever they paid you.
Let's do the math:
Gross LTD sales: $100,000
Fees you were paid (40% of Net): $34,000
3x penalty you could owe: $102,000
There's no nuance here. No consideration for how long you supported customers, whether you honored commitments, or if the product was sunset responsibly. Just a hard 3x penalty for the crime of business success.
And to secure this clawback — and any other liability — you’re granting AppSumo a security interest in your IP. That includes future features or acquisitions. As your business grows, the lien grows with it.
The only escape? Getting your acquirer to sign AppSumo's assumption letter, good luck with that in a competitive acquisition process.
What Would Be More Fair? A Tiered, Time-Based Clause
We’re not opposed to honoring LTD obligations during an acquisition. That’s basic ethics. But the idea that you owe 3× what AppSumo paid you, even years after the deal runs, creates massive, open-ended risk.
A more balanced structure might look like:
3× repayment if you exit within 12 months
2× if within 24 months
1.5× within 36 months
1× after 3 years
And the penalty should be waived entirely if LTD licenses are still supported post-exit, regardless of ownership.
That’s the actual spirit of protecting customers, not a weaponised clause that scares off acquirers or penalises responsible founders for building something valuable.
The $5,000 "Investigation Fee" for Doing Nothing Wrong
If AppSumo even suspects you lack IP rights, or if any third party merely claims you don't, they can invoice you $5,000 within seven days to cover their "investigation costs."
From our Promotion Agreement: "the Partner shall pay to AppSumo a fee of Five Thousand U.S. Dollars (USD $5,000) within seven (7) calendar days of receiving written notice from AppSumo in connection with its investigation of such breach."
This isn't for an actual violation. This isn't after due process. This is just for them to investigate a potential issue. And it's "in addition to, and not in lieu of, any other rights or remedies available to AppSumo."
$5,000 for the privilege of being investigated.
Hand Over Your Source Code? Yes, Really.
AppSumo's Partner Terms require you to hand over your complete source code and grant them an "irrevocable license to sell, modify, or create derivative works" if certain "Release Conditions" occur.
Grant full license to AppSumo to sell/modify your code if you “may become unable to meet obligations.”
What triggers these conditions? Vague scenarios like:
Suspected financial difficulties
Unresponsiveness to their communications
Bankruptcy filing
Any scenario they deem problematic
But it gets worse. They also claim a "UCC security interest" in all copyrightable works in your product, essentially a lien on your intellectual property.
You must hand over your entire codebase. If AppSumo decides you’ve “become unable to meet obligations” — even temporarily — they can publish, sell, and modify your product without you. No trial. No default. Just suspicion.
This isn't standard marketplace language. This is the kind of aggressive IP grab you'd see in a major acquisition, not a basic reseller agreement.
We're open to protecting customers through escrow arrangements or license fallbacks. But a blanket lien on our core IP? That's not customer protection, that's IP appropriation with legal cover.
Irrevocable Global License
You give AppSumo a global, perpetual license to do whatever they want with your product, your brand assets, your copy. Irrevocably. This isn’t partnership — it’s platform dominance.
Use, sell, promote, publish, publicly perform, alienate…
Locked In, Priced Out, Shut Out
The 120-Day Lock-In (and No Emergency Brake)
Once your listing goes live, you’re committed for at least 120 days. No pulling the plug. No pause button. No emergency brake, even if everything goes sideways.
From their Listing Policy: "Partners are required to maintain their listing for 120 days."
We proposed a reasonable 30-day pilot window, a soft launch to stress test pricing, support load, and backend operations before going fully public.
It was declined. Or more accurately: ignored. We raised it. No response.
And here's the trap: AppSumo positions itself as a place for early-stage creators to test demand and gain feedback. But if something breaks, if your costs spike, if bugs emerge, if your deal unexpectedly takes off and starts drowning your team, you’re still locked in for four months.
You can’t pause. You can’t delist. You can’t limit further exposure. You just keep selling codes, often at a loss, while absorbing full refund, support, and update obligations.
Only after 120 days can you request a pause, and even then:
You’ll wait days for approval
AppSumo can delay the pause to drive more sales
You can only pause for 6 weeks max
You might lose all your customer reviews if you resubmit
If you're doing lifetime deals at $49, one bad cost assumption can sink your margins fast. A launch is supposed to validate product-market fit, not risk bankrupting you before you can fix what you’ve learned.
If you leave early, they may void your payout and ban you. Also: evergreen = forever.
You’re locked in for 120 days minimum. Pull out early? You lose your money. And after that? Your deal doesn’t expire — even if you want it to. Evergreen = forever.
Pausing Isn’t Real
You can pause for 6 weeks max — but AppSumo can delay the pause. And you may lose reviews.
You can “pause” — but AppSumo can delay that too. And if you stay paused more than 6 weeks, you’ll likely lose your reviews. It’s not a pause. It’s a penalty loop.
Forced Support Burden
Respond in 4 days. Resolve in 14. Failure = full rights enforced.
Fail to answer one support ticket within 4 days? Fail to fix a bug in 14? That’s considered breach. And breach activates the rest of the machine — clawbacks, withheld payouts, and even rights to your IP.
Failure to Communicate = Suspension + Clawbacks
Company may… suspend product, withhold fees, clawback, or take any other action.
Miss an email or fail to give approval in 14 days? They can:
Suspend your product
Withhold your money
Trigger clawbacks
Or do “anything else they deem reasonable”
The platform calls it “evergreen.” But if your math is off, or your deal explodes too fast, that evergreen commitment becomes a growth trap. And in some cases, it could be the thing that breaks your business.
Effectively, there is no way to turn it off; you're under the control of Appsumo.
The “Lowest Anywhere” Trap
AppSumo requires your deal to be the lowest publicly available price, anywhere.
Not just during launch. Not just while you're listed. But ongoing, with no built-in expiration.
From their Listing Policy: “Product listings on AppSumo must be priced at a uniquely low (‘lower-than-anywhere’) price… We regularly monitor your prices elsewhere.”
This means:
You can't offer a better deal on your own website
You can't run flash sales for your email list
You can't bundle a better offer through affiliates, communities, or partners
Trying to test pricing across channels? Segment your audience? Create upsells or alternative plans?
All of that is limited by the AppSumo price floor.
And since this applies while your product is listed, and there's a mandatory 120-day listing lock, you’re effectively surrendering pricing control for at least four months, with no way to adjust if your economics change.
The 12-Month Exclusivity Lock
Even after your deal ends, you can’t run lifetime deals on any other marketplace for twelve months.
That includes StackCommerce, MightyDeals, PitchGround, and others.
You’re also restricted from offering lifetime deals on your own channels for 60 days after the listing ends.
From our Promotion Agreement: “Partner shall not engage in any promotions relating to lifetime deals on third-party deal sites… while its Product is for sale on the Marketplace and for twelve (12) months thereafter.”
No Legal Recourse When Things Go Wrong
You Can’t Go to Court
AppSumo’s Partner Terms require all disputes to be resolved through binding individual arbitration, exclusively in Austin, Texas, under Texas law.
In signing, you waive your right to:
Sue them in a public court
Request a jury trial
Join other affected creators in a class action
Imagine this: Something goes wrong. Now you’re forced into a closed-door legal battle against an $80M company, on their turf, under their terms, with no public oversight and no right to appeal.
That’s not justice. It’s a muzzle.
There’s no judge. No jury. No transparency. And if the arbitrator gets it wrong, you live with the outcome, no matter how costly or unfair.
All of this happens after you’ve already granted AppSumo:
A lien on your intellectual property
Conditional rights to your source code
And responsibility for customer outcomes you no longer control
In short: if the deal turns toxic, your legal options are already boxed in.
They Can Change Terms Anytime
AppSumo can modify the agreement at any time. If you don’t object within 10 days, you’re automatically bound to the new terms, whether you saw the email or not.
From the Partner Terms: “Partner will be deemed to have accepted if they don’t opt-out within 10 days.”
You Can’t Speak Honestly About the Experience
Their non-disparagement clause bars you from publicly criticising AppSumo in any form, even if what you say is true.
Ironic note: This very blog post would violate their terms if we had signed.
The "We Got Your Back" Guarantee (That You Pay For)
AppSumo's customer protection guarantee sounds creator-friendly until you realise you're funding it.
From our Deal Schedule: "Partner acknowledges and agrees that its responsibilities and obligations... remain in effect regardless of any compensation AppSumo may issue to customers due to Partner's failure to provide its Product."
The guarantee doesn't reduce your obligations, it creates another layer of potential clawback exposure.
Why Do Creators Still Sign?
Given these terms, why does anyone agree? Three reasons:
1. Desperation for exposure. Many creators are so hungry for distribution they'll accept any terms.
2. They don't read all five documents. The terms are scattered across the Promotion Agreement plus four separate online policies. Most creators focus on the revenue split and miss the liability exposure.
3. The appeal of a ready-made audience. AppSumo's email list and brand recognition are genuinely valuable. The question is whether that value justifies the cost and risk.
When It Might Make Sense (Rarely)
There are narrow scenarios where AppSumo could work:
You're a brand-new creator who needs exposure more than revenue
You're offering a limited product that doesn't represent your core IP
You're using a separate brand to protect your main business
You need short-term cash more than long-term control
But even then, you'd want to strip back features, use a disposable brand, and plan your exit from day one.
Red Flags for Other Creators
If you're considering AppSumo or similar platforms, ask yourself:
Financial Questions:
What's your real share after all deductions and fees?
What clawback scenarios exist, and what do they cost?
Who pays for refunds beyond the standard window?
Legal Questions:
Do they claim security interest in your IP?
Can they demand your source code?
Are you waiving your right to court proceedings?
Control Questions:
How long are you locked into the listing?
Who controls pricing and product updates?
What happens if you want to pivot or shut down?
The ultimate test: Would you sign these terms if the roles were reversed?
The Bottom Line
AppSumo presents itself as creator-first, but their legal terms tell a different story. These agreements are structured to protect AppSumo's interests almost entirely, at the direct expense of creator autonomy, IP rights, and long-term revenue potential.
They call you a "Partner" but give themselves all the power. They make creators shoulder refund risk, support obligations, and pricing restrictions while taking the largest revenue share and facing minimal responsibility.
This isn't partnership. It's extraction with a friendly face.
We're not anti-AppSumo personally. We understand they've built a valuable platform and helped many creators find audiences. But the current terms are so one-sided that they function more as a creator tax than a creator service.
If you're building something real, something with staying power and growth potential, these terms should set off alarm bells. You're not dumb for considering AppSumo. You're smart for questioning whether the exposure is worth the cost.
The Ironic Disclaimer
And just when you think it couldn’t get any more lopsided, AppSumo closes out their partner policy with this gem:
As the #1 digital marketplace for entrepreneurs, we take all the preceding policy measures extremely seriously, so please carefully consider your choices while moving through the self-submission flow.
Let that sink in.
After:
Granting them global rights to your IP,
Demanding your source code under vaguely defined “distress” conditions,
Locking you into four-month minimums with no exit clause,
Claiming the right to withhold payouts, force upgrades, or trigger clawbacks if you don’t reply to an email…
They remind you, with a straight face, that they’re “the #1 digital marketplace for entrepreneurs.”
Honestly? Maybe that’s true. Because no other platform has engineered a setup where the entrepreneur is the one taking all the risk while the platform prints cash on your back.
This isn’t partnership. It’s brand positioning weaponised to mask legal overreach.
So yes, we did consider our choices carefully.
And we chose to walk.
What's Next
We're launching our lifetime deal directly. Same offer, better alignment, full transparency.
Our EazySites LTD launches next week with lifetime access to all core and future features, direct support from our team, and no hidden fees, clawbacks, or IP liens.
Because creators deserve fair terms, and users deserve tools built to last.
We’re building in the open, for the long haul. Join us.
If you’re building something real, don’t let it die in a four-month flash sale. Own your terms. Build your way.
Building something and considering AppSumo? We're happy to share our research and help you evaluate the real costs. Just reach out.
This analysis is based on AppSumo's actual Promotion Agreement sent to EazySites on May 28, 2025, plus their Partner Terms, Listing Policy, Terms of Use, Partner Community Policy and Payment Policy. Terms may change. This is not legal advice; consult with an attorney before signing any agreement.