The Step-by-Step Plan to Go From $3M to $10M+

In this episode, Ayman Al-Abdullah, former CEO of AppSumo, shares his framework for scaling businesses from seven to nine figures. The conversation focuses on the importance of customer retention, strategic hiring, and proper incentive structures. Ayman shares insights from his experience scaling AppSumo from $3M to $84M in revenue, emphasizing the transition from founder to CEO mindset. Timestamps: 00:00 - Introduction and background 02:47 - Discussion of the Nine Steps framework 08:13 - Team building and executive compensation 10:35 - The Reality of Startup Valuations 14:36 - The importance of setting a strong foundation 15:59 - Focus on Retention Before Growth 22:26 - Evaluating Opportunities and Thinking Big 29:47 - Examples of Successful Founders that Ayman admires 31:35 - The Importance of Focus in Business 33:26 - Build Skyscrapers, Not Strip-malls  36:01 - The importance of being the best in the market 37:54 - Where to double down in your business 40:22 - Testing and Investing in Business Strategies 42:05 - Identifying Bottlenecks in Your Business 44:39 - Finding Your Zone of Genius Key Points: • The "Nine Steps to Nine Figures" framework divides business growth into three phases: startup, scale-up, and grow-up • Focus on retention and customer loyalty before aggressive growth • Use the "Test Then Invest" framework with 80% resources on core business and 20% on experiments • Structure executive compensation with a 50-50 split between top-line and bottom-line metrics 1) The "Nine Steps to Nine Figures" Framework: Breaks down into 3 phases: • Startup (Product Market Fit) • Scale-up (Company Creation) • Grow-up (Legacy Protection) Most founders get this wrong from day 1... 2) RETENTION over GROWTH  "Building a business without focusing on retention is like building a skyscraper on sand" Every 3% increase in net revenue retention = DOUBLES company valuation Stop chasing growth before you nail retention! 3) The 80/20 Marketing Rule: • 80% of resources on proven channels • 20% on experimental channels Real example: AppSumo tested switching from credits to cash payments for referrals → Became 8-figure revenue channel 4) The Shield vs Sword Framework for Decision Making: Rate every opportunity 1-5 on: • Impact (Sword) • Effort (Shield) Only pursue 8+/10 total score opportunities Ignore the rest - they're distractions 5) On Building Your Executive Team: Two core functions: • Sales (CRO) • Delivery (COO) Pro tip: Hire first in YOUR zone of genius Why? You'll know what excellence looks like 6) The Triple, Triple, Double, Double Path to $100M: Year 1: $3M → $9M Year 2: $9M → $27M Year 3: $27M → $54M Year 4: $54M → $108M This is how you hit 9-figures in 5 years  7) REVOLUTIONARY Compensation Framework: Forget traditional equity! Instead: • Set total comp package • Let employees choose cash vs equity split • Makes equity REAL by forcing skin in the game 8) CEO Evolution: "The founder is the hardest working person The CEO should be the laziest" Your job: Think 3-5 quarters ahead while your team executes  Key Takeaway: Focus on retention first Build processes before hiring Think in 5-year blocks Execute with intention Notable Quotes: "Product market fit is when it feels like you're wearing a meat suit in a dog park - you just have more leads than you know what to do with." - Ayman "Every 3% increase in net revenue retention doubles a company's valuation." - Ayman LCA helps Fortune 500s and fast-growing startups build their future - from Warner Music to Fortnite to Dropbox. We turn 'what if' into reality with AI, apps, and next-gen products https://latecheckout.agency/ BoringAds — ads agency that will build you profitable ad campaigns http://boringads.com/ BoringMarketing — SEO agency and tools to get your organic customers http://boringmarketing.com/ Startup Empire - a membership for builders who want to build cash-flowing businesses https://www.startupempire.co FIND ME ON SOCIAL X/Twitter: https://twitter.com/gregisenberg Instagram: https://instagram.com/gregisenberg/ LinkedIn: https://www.linkedin.com/in/gisenberg/ FIND AYMAN ON SOCIAL Ayman’s Website: https://aymanalabdullah.com X/Twitter: https://x.com/aymanalabdul LinkedIn: https://www.linkedin.com/in/aalab003/