The biggest problems are so big that customers are willing to pay for an ugly, hacky interface because it's better than what they have.
If the selling point is that something is nicer looking than the competition, it's possible that it's the wrong problem to solve.
UX design can pay off, but usually UX kicks in around the stage where the users need a tutorial. In the very early stages, the features are often too crude and lacking to benefit from UX.
It's important that the designers really understand the user journey, and that's not really something you can buy for just $5,000.
So yea, as long as you are solving a real problem for your users and making their life easy, they don't care. A different example: Craigslist. Still the same as ever.
Hardly a company or product fails just because of bad design. That is why too much investment on design upfront is not worth it.