Partner Payments Policy

Welcome to our Partner Payments Policy! Since you’re reading this, you’re probably an AppSumo Partner, or interested in becoming one, (a “Partner”, for short) so you can sell your digital products on the AppSumo marketplace.

Keep in mind that you are legally bound by the terms of this policy, and it is also not the only document you agree to follow when you participate in the AppSumo marketplace. For example, by participating in the AppSumo marketplace, you agree to adhere to all agreements you enter into with us, such as our Terms of Use and Partner Terms (both of which incorporate additional agreements) as well as our Community Policy and Listing & Updates Policy. Violations of our policies or these agreements have legal consequences such as those specifically set forth in our Terms of Use.

But read on to learn about making money with AppSumo!

Product Pricing

AppSumo encourages Partners to set the prices for the Products they list on the AppSumo (the “Listing Price”). Please take a look at Listing & Updates Policy for more about listing and pricing. No doubt about it, Product pricing is a key factor driving what AppSumo pays our Partners. AppSumo always pays our Partners based on what we call the “Effective Price” which differs from the Listing Price but only in regards to Products sold by participating Partners during exciting circumstances. What’s the excitement about? Well, it surrounds AppSumo Promotions!

AppSumo Promotions. Periodically we have events to celebrate our incredible community of Sumo-lings! During these events, such as Sumo Day and Black Friday, all customers get a discount on all Products listed by our participating Partners, as stated in our promotional launch messaging. But you don’t have to participate. You can opt out of these promotional events when we notify you of upcoming events, and we will tell you how to opt out when we notify you. It’s worth mentioning that if you opt out, your Listing Price = the Effective Price. Read on about payments!

Revenue Share

Partners will be compensated by AppSumo dependent upon the revenue generated from the sales of their Products. AppSumo will pay you on a monthly-basis a share of that revenue (what we call your “Revenue Share”).  Your Revenue Share is a percentage (what we call your “Revenue Percentage”) multiplied by the amount of revenue actually collected by AppSumo in connection with the sales of your Product (what we call “Net Revenue”).

What is Net Revenue? What does “actually collected by AppSumo” actually mean?  Well, understand that, while the gross revenue generated from the sales of your Product in a calendar month would be an amount equal to its listing price multiplied by the number of sales made to customers in that month, Net Revenue is less than that because it is that gross amount less the 10% discount AppSumo gives to the members of its AppSumo Plus program (if those folks bought your Product) and less the revenue lost due to returns of your Product.

And, what about that Revenue Percentage? Your Revenue Percentage for existing customers will be negotiated with our Business Development team and may be up to 70%.

Also, keep in mind that your Revenue Share shall never exceed the price of the Products sold.  One things this means is that, if you are earning affiliate revenue through an AppSumo affiliate program, AppSumo may reduce your Revenue Share payments to offset payments made from the affiliate program. So, basically, no double dipping!

Refund Policy

Our great refund policy is a big reason why our customers trust you so much! Our refund policy gives customers a full refund of the purchase price of any Product for any reason (or no reason) if they ask for it during the period of time established in your Product listing.

Unless stated otherwise, the refund window for all Products is 60 days. For example, our famous Lifetime Deals have a 60-day refund period that begins the date of purchase. But keep in mind that different Product categories have different refund periods. Digital books can’t be returned for example.

To be clear, Revenue Shares will not include any amounts refunded by AppSumo to customers in connection with your Product and any refunds of your Product may reduce current or future payments that would be otherwise due.

Payment Schedule

Partner shall be paid its appropriate Revenue Share on a Net 60 end-of-month basis to account for customer returns made in accordance with our Refund Policy, which for most Product is 60 days. Note, however, that these Net 60 terms apply even if your Product has a shorter refund period.

More specifically, our policy is to initiate payment to you during the first week of each month that occurs two full months following sales of your Product. As an example, if your first Revenue Share payment of $200 was on account of sales of your Product in April, we would initiate payment of $200 to you during the first week of July.

Payments

Revenue share payments will be processed through Tipalti, a global payment processor. Available payment options include ACH, eCheck, Paypal, and wire transfer, although payment options may vary depending on your bank and location.  We do not send paper checks.

ACH and Paypal are free for US-based partners, and eCheck is free for our international partners, but you will incur fees in connection with other payment methods. For example, a fee of $0.50 + 2% up to $5 will be assessed on all international payouts processed via Paypal. You may also be charged foreign exchange fees if you elect to receive payment in any currency other than USD. (In most cases, you can choose your preferred payment currency.)

Processing times vary by payment type, your location, and your bank. Typically, Paypal and wire transfers process in 1-2 business days, while ACH and eCheck may take 2-5 business days.

Taxes

Never forget taxes! 

  • Each Partner is required to submit to us the appropriate IRS tax forms before any payment will be made to the Partner.

  • We never withhold taxes from payments to Partners

  • We cannot and do not give tax advice, so please contact a tax consultant or the IRS for more information about the potential tax implications of partnering with us. 

Payment Clawback

If AppSumo suspects, in its sole discretion, that you or third parties have engaged in fraud, deceit, or violated the terms or AppSumo’s Terms of Use (“Shady Activity”) to generate sales of Products, we may delay payment of Revenue Share to the Partner involved. We may also recoup or clawback any payment determined by AppSumo to have been made on account of any Shady Activity. Within five (5) business days’ of AppSumo providing written notice to a Partner which identifies the Shady Activity, Partner shall repay AppSumo the amount determined to have been made pursuant to the Shady Activity.

Note that buying and refunding the majority of Product purchases (by a Partner or third-parties) is against AppSumo guidelines, our Terms of Use, and definitely constitutes Shady Activity.

Customer Disputes

As a Partner, you agree to resolve any customer disputes directly with the customer or with the assistance of the tools and resources available to all AppSumo Partners in accordance with our Partner Community Guidelines and AppSumo’s Terms of Use. In the event that a dispute is escalated to the AppSumo support team, AppSumo reserves the right to issue a refund to a customer and recoup such funds from the Partner if a transaction is found by AppSumo to be in violation of AppSumo’s Terms of Use, policies, or guidelines.

AppSumo can also take other actions deemed necessary to achieve proper resolution for all interested parties, such as extending credits to the customer, de-listing the Partner’s Product from AppSumo temporarily or indefinitely, or banning the Partner or customer from further use of AppSumo’s platform.

Partner Requirements

If you want to become an AppSumo Partner, you will be required to provide the following when you setup your account.  

  • Your name or your company’s name

  • Email address

  • Physical Address

  • Payment information - bank details or paypal email address

  • Completed IRS tax form (W-9 for US based partners or the W-8 series form for international Partners.)

Contact Us

Questions? Feel free to reachout to us at payments@appsumo.com