We spent 12+ months building Eazysites. AppSumo nearly made us give up control in 12 pages of fine print.

For full writeup: https://founderatwork.blog/blogs/the-complete-guide-to-appsumos-partner-terms

This isn’t a takedown. It’s a warning.

When we finished building EazySites, AppSumo looked like the perfect launch partner: built-in traffic, a startup-friendly audience, and a proven playbook.

But then we read the contract. And kept reading. And what we found was so aggressively one-sided, so full of legal landmines, that we walked away.

Here’s what every indie creator, SaaS founder, or builder-in-public needs to know before signing their name to that dotted line.

The Deal-Breakers

1. The Revenue Share That Shrinks Before You See a Cent

On paper, it’s 40% to you, 60% to AppSumo. In practice, that’s 36% after their Plus discount. Then another 10–20% off during site-wide promos. And refunds.

You end up doing 100% of the work for ~30% of the revenue.

2. You Take the Risk. They Take the Upside.

You're on the hook for support, maintenance, updates, refund risk, and arbitration. They're not.

They still get their 60%. You still get the liability.

3. The 3x Clawback Clause

Sell your company without their permission? You could owe them three times what they paid you. No matter how well you supported your users.

4. The Source Code Grab

Yes, seriously. Under vague conditions, they can claim a lien on your IP and demand source code access.

5. Locked In for 120 Days. No Pause Button.

No emergency brake. No early exit. If your deal goes sideways, you’re stuck for four months. That’s startup suicide.

6. Lifetime Pricing Control (Even After You Leave)

You can’t offer a better deal anywhere else while you’re listed. Not on your site, not to your list, not in bundles. And even after you leave, you’re restricted for 60-365 days.

7. You Can’t Talk About It

Their non-disparagement clause says you can’t publicly share negative experiences. Even if they’re true. This blog post? Would’ve breached the agreement.

So Why Do Creators Still Sign?

Three reasons:

They’re desperate for exposure
They don’t read the five documents (yes, it’s spread across five)
They think the audience is worth the price

Sometimes it is. Most times, it’s not.

When AppSumo Might Make Sense

If you’re shipping a non-core product, need fast cash, or want brand exposure more than margin control, maybe it’s worth it.

But if you’re building something to last?

Something you want to own, grow, and maybe even exit?

You better read every clause. Twice.

What We’re Doing Instead

We’re launching our LTD direct. Same offer. Better alignment. No clawbacks, no source code demands, no legal traps.

One-time payment
Lifetime access
Transparent terms

Because creators deserve tools that respect them.

If you’re building something real, don’t sell it on a marketplace that treats you like a disposable coupon.

Own your terms. Build your way.

Want to read the full breakdown of the AppSumo terms that made us walk?

Download the full clause-by-clause breakdown PDF here.

Or if you're a creator considering AppSumo and want to talk it through?

Reach out — happy to share what we learned.

This is not legal advice. Just one founder's experience. Always get your own legal review before signing any platform agreement.

Why We Said No to AppSumo (And What Every Creator Should Know Before They Say Yes)