Buy, but be careful
Purchased right away and I like the ability to create a marketing plan. I've tried the other GPT-3 tools, and I've also been following discussions. There were worries that LTD was not sustainable. From the calculations that reviewers posted on copysmith's page, you were already getting a great deal in terms of GPT-3 API costs, given those calculations not sure how uncapped credits can work out. Seems too good to be true.
I would purchase and use but be careful and watch the appsumo refund policy, could be a money grab and run. I'll likely keep the code, but what if unit economics means that it runs into the red 90 days after? 120?
Malcom_Nichesss
May 9, 2024Hey i get all your concerns! I get this question like 200 times a day, so I'm going to go into detail and push everybody to this comment.
The economics works like this.
As a percentage of our daily revenue, our daily operating costs for the ENTIRE business (including gpt-3 costs, servers, etc) are low.. like insanely low! How? Its just me on my laptop in Brazil. No team of engineers, no marketing, no VA's, no offices. Which means a days worth of AppSumo sales could keep the business alive for months even if we:
1. never made another sale again, ever, ever and the number of users stayed the same
2. we removed the ability for people to sign-up organically
3. we only sold this unlimited deal.
4. took down all of our plans on our site
Sure if we only sold unlimited deals for the rest of our existence, and stripped all our plans on our site maybe we'd be in trouble? Running this deal forever is not what we intend to do, however, going forward we believe our users will help us grow after this deal is wrapped up, through word of mouth.
Also keep in mind we're not even touching the app sumo money to pay our current gpt-3 costs. AppSumo only starts paying us 60 days out. Their refund policy is amazing and protects sumo-lings like yourself! 💖
So technically we'd be in the "red" right now. But... the site is up and people are getting stuff done!
We also mitigate costs by using rate limiting, or slowing down people who abuse the system.
The CopySmith lifetime deal does this by saying you can only run x generations per month. Mathematically, that's just controlling the date that your use will equal your gpt-3 costs.
Stacking their deal just 'extends' that date further.
I put my faith in statistics, 80-20 rule, cohort behavior and stopping the bad guys with rate limiting. 😅
* Everybody has lives, and will take time to hit $59 worth of gpt-3 credits
* The ones that do.. Im watching them cause I want to find more people like them 👀
Here's an example to illustrate it.
Think of it like a cell phone company selling a lifetime unlimited plan on AppSumo. Sounds wacky, right? There are real costs to making phone calls; but the company would bank on the fact that you are not going to spend literally 24 hours a day talking on the phone, and that the service is so good you are willing to tell a friend. Its essentially marketing.
So once the cell phone company works out the bugs, and develops a persona for their ideal customer, they kill the lifetime unlimited plan on AppSumo and go back to charging the whole world $99/month for that same plan. That $99 supports wayyyyyyy more users than just the customer who is paying. When you pay any bill you are paying to keep the whole machine running, not just for your use. The way your bill is structured makes you feel that way but that's not whats really happening.
I hope this helps! TLDR: we can pull it off because margins are big, we had customers before the deal, and the deal wont last forever