While [my book](https://www.amazon.com/Dark-Side-Lifetime-Deals-Survival-ebook/dp/B0DMT6GCRT/) offers an in-depth analysis of various contributing factors, these 10 below highlight the main causes, including some previously unknown consequences of AI.
1. Marketplaces manipulated and ripped them off, taking most of the money and leaving them with almost nothing for lifetime development, operations and support. This is a major issue.
2. Many of those founders were serial entrepreneurs, using marketplaces to quickly find buyers and then moving on to their next project.
3. Some were just white-label marketers using others' tools.
4. Some founders were completely dependent on AI, and the disruptions left them directionless and outmatched by companies with updated technology.
5. A surprising number of founders are completely unfamiliar with marketing, leaving them with no option but to rely heavily on marketplaces that ultimately profited from their inexperience.
6. AppSumo’s aggressive profit-first marketing strategies affected SEO and SERP ranking of the tool founder’s own tools and their websites, heavily impacting their MRR/ARR revenue strategies
7. The tool creators suffered from AppSumo's aggressive, profit-focused marketing tactics, which negatively impacted their SEO, search engine rankings, and ultimately, their MRR/ARR.
8. AI is a highly disruptive technology. Tool shutdowns will be far more frequent than in any previous year before 2023.
9. A lot of founders had ulterior motives. They aimed solely to profit from LTD, then disappear or rebrand, leaving LTD's buyers high and dry. Many serial entrepreneurs understand how platforms like AppSumo operate, often participating in their revenue-generating strategies.
10. A lot of tool companies started with just one or two people and minimal outside investment. Their dwindling MRR/ARR, combined with soaring cloud infrastructure costs due to increased usage, shifting pricing plans, and evolving AI API cost models, has depleted their funds.
