Noah Kagan Presents

Answering Your Questions #10

Sep 2, 2022
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ANECDOTE

First Hire Paid on Commission

  • Noah Kagan's first hire at AppSumo was paid 25% commission on closed sales.
  • He paid himself zero dollars the first year and reinvested profits to grow the business.
ADVICE

Use Equity Carefully with Vesting

  • Use equity sparingly and only with trusted, long-term partners.
  • Implement vesting schedules with cliffs to protect the company's interests.
ADVICE

Marketing Budget Funnel Allocation

  • Allocate marketing budget with about 25% top funnel, 25% middle funnel, and 50% bottom funnel.
  • Prioritize spend based on return on investment for each funnel stage.
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