Deutsch: Tumult sells Hype for a $50 fee plus $50 pro upgrade
Jonathan Deutsch · 968 How Tumult Hit $5m in Sales, Handled Co-Founder Leaving for Apple · Mar 19, 2018 · at 2:05
Tumult founder Jonathan Deutsch explains the perpetual license pricing structure for his Mac animation application, Tumult Hype.
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“We pretty much sell the software for a one-time license with the one exception being that we have a standard version and professional version, so we do a bit of Price differentiation that way. So you can buy the standard version for 50 dollars, and if you want to, an in-app upgrade to get more features for an additional 50 dollars.”
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More from Jonathan Deutsch
Departed Tumult co-founder retained equity because the company is cash-flowing
“Due to the mechanics of how this is a little bit more of kind of a cash business we actually didn't go through with the deal, so he still owns a percentage of the company.”
Deutsch: Profit sharing reduces equity's importance in cash-flow businesses
“We're more of a cash generating business and we'll do things like profit sharing. And so what is considered equity actually has a little bit less kind of importance and value in the company nowadays.”
Jonathan Deutsch would consider selling Tumult for 3x lifetime sales
“Two times? Probably not. Maybe three times.”
Tumult co-founder left after four years to return to Apple
“After four years it was a good run, and he decided that he really enjoyed being at Apple again, so he went back.”
Deutsch: Tumult operates with only two full-time employees
“So right now there's pretty much myself and one other full-time employee.”
Deutsch: Tumult pays between $1 and $10 to acquire a new customer
“So typically I would say it can range on where I go, which is kind of the fascinating thing where sometimes it can be around a dollar or two dollars to gain a customer. And other things that have been perhaps less successful, it can be around 10 dollars.”