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Case file 009 · Adobe

How One Angry Customer Went After Adobe

A developer who says Adobe charged him a fee to quit put out free versions of 7 Adobe apps within 3 days of his first line of code.

The numbers

≈ $280
to quit Creative Cloud Pro after 4 months: half the payments left in the year.
our arithmetic
$150M
Adobe's settlement over the fee to quit. It did not admit wrongdoing.
7 of 10
the free Photoshop copy's score on 10 real Photoshop jobs, in an outside test.

The story in 30 seconds

The bet

In 2013 Adobe made its creative software subscription-only, and its full suite now runs about $70 a month. On its "annual, paid monthly" plan, quitting after the first 14 days costs half the payments left in your year.

The catch

The government alleged Adobe hid that fee and made cancelling hard; Adobe settled for $150 million, admitting no wrongdoing. Then Brandon Thomas, a developer who says the fee bit him twice, used AI to put out free versions of 7 Adobe apps within 3 days.

Where it landed

His free Photoshop scored 7 out of 10 in an outside test and, by its own count, is about 45% ready. Adobe just had a record $6.76 billion quarter, but its stock is down more than 60% from its 2021 peak.

Follow the $100

Every $100 a customer pays Adobe when they quit Creative Cloud Pro 4 months in (annual plan, paid monthly):

The fee to quit: $50

for leaving: half of the 8 payments left in the year

4 months of the apps: $50

the part the customer actually got to use

our arithmetic

What this means for your business

  1. 1

    Their angry customers are your demand.

    Try thisRead 50 of your biggest competitor's one- and two-star reviews. Tally the top 3 complaints. That's your next ad, and the first line of your offer.

  2. 2

    Sell the opposite of their trap.

    Try thisBuild your offer as the giant's opposite, lever by lever. A small gym against a chain's 12-month contract: first pull-up in 8 weeks, a coach who knows your name, cancel by text. an example

  3. 3

    Give away what gets attention, charge for the extra.

    Try thisPick your free first step and the paid extra on top. For the gym: a free first session, then the 8-week pull-up program with the coach. an example

More plays from the video

  • Let AI do a department's chores: have it draft your review replies, 3 ads from your complaint tally and your booking page. Then check every word.
  • Don't become the next Adobe. When you win those customers, don't lock the door behind them. Win customers. Never take hostages.

How you compare

Adobe charges half the rest of the year to leave. Two membership businesses from the 40, for comparison:

Low-cost gym
Planet Fitness
$1,863,300a year, middle club

Costs $1,282,500 to $5,386,000 to open, real estate not included.

Reformer Pilates studio
Club Pilates
$978,332a year, middle studio

Costs $413,289 to $1,029,811 to open.

Get all 40, free

Run your numbers

Up against a giant? Before you write your offer, work out two numbers.

1What it costs a customer to leave the giant$
2What it costs a customer to leave you$

You're not the cheap option. You're the one with no trap.

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