1,000 Hours of Studying The Most Profitable Apps in 17 Minutes — Transcript
Full transcript
- 0:00You've watched these videos of teenagers
- 0:02who've made hundreds of thousands of
- 0:03dollars through apps you've probably
- 0:05never even heard of and you're wondering
- 0:06is this even real and if so how are they
- 0:09even doing this? To me when I watch
- 0:11stuff like this I feel like oh they
- 0:12figured something out that I haven't and
- 0:14I've watched a lot of these videos too
- 0:16and I keep feeling this. So I spent the
- 0:18last two years studying exactly how they
- 0:21do it and I do this by going straight to
- 0:23the source like the kids that have made
- 0:2550k a month on pure commission on TikTok
- 0:27shop, the scrappy Discord anons running
- 0:30up e-com brands with the most degenerate
- 0:32but effective mass UGC tactics. I've sat
- 0:35down with founders of apps like Halo
- 0:37which went from zero to 300k a month in
- 0:3945 days, Study Fetch hitting 10 million
- 0:42ARR and Coco Note which does 6.7 million
- 0:45dollars a year. But I also run growth
- 0:46for apps you've probably never heard of
- 0:48like apps doing 1 to 5 million ARR from
- 0:50a single marketing channel. So in this
- 0:52video I'm going to break down every
- 0:54single thing I've learned from being
- 0:55behind the scenes of some of the biggest
- 0:57app operations and the decisions I help
- 1:00founders make that actually help their
- 1:01app become a success. And all of this
- 1:03starts with why most people have the
- 1:05basic economics of app growth completely
- 1:07backwards. So here's a conversation I
- 1:09have all the time. A founder will
- 1:10message me typically someone in the 1 to
- 1:125 million dollar ARR range and they grew
- 1:14their app mostly through Facebook ads
- 1:16and clearly the ads worked for them but
- 1:19when the same founders look at these
- 1:20teenagers blowing up on TikTok that vibe
- 1:23coded a random app and they're hitting
- 1:24these insane revenue numbers there's
- 1:26this FOMO like how are they doing that?
- 1:28And they get a little bit insecure you
- 1:29know like am I falling behind? My ads
- 1:31keep fatiguing. I'm on this treadmill of
- 1:34continually making new creatives and
- 1:36trying to scale and these kids are just
- 1:37like posting videos. So let me just lay
- 1:39out the math. Paid ads typically run at
- 1:4110 to 30% margin. That's the standard
- 1:44that I've seen which basically means
- 1:45that if you spend $10 you're going to
- 1:47make back 11, 12, maybe $13. Everyone
- 1:50says ads are the most scalable channel
- 1:52and yes they kind of are but the problem
- 1:54is it never stops. Your ads will get old
- 1:57once you've saturated the audience it
- 1:59gets shown to. So, you constantly need
- 2:01new angles. But, on the other hand,
- 2:03organic content runs at 50% margins.
- 2:07This is what I've seen from mass UGC
- 2:08campaigns with apps. I'm going to
- 2:10explain how in a bit, but let me just
- 2:12tell you the downside first. So, when
- 2:14you're running ads, you're basically
- 2:15buying people's attention. The
- 2:17distribution problem is handled
- 2:19automatically and you just focus on the
- 2:22conversion. On the other hand, organic
- 2:23content flips that completely. So,
- 2:25nobody's going to watch your video just
- 2:27because you posted it. You have to earn
- 2:29every view while also making sure that
- 2:31the content sells the app without making
- 2:33it feel like an ad. This sounds
- 2:35impossible, but this is exactly what the
- 2:38Vibe Creators are doing right now. It
- 2:39just takes one video to go viral and
- 2:42just like that you've got like 50,000
- 2:44downloads. I'm not making any of this
- 2:45up, by the way. I interviewed the
- 2:47founder of Halo on this channel a while
- 2:48[music] ago. You can check it out here.
- 2:50He literally took a personal loan, hired
- 2:52a bunch of creators, and went from zero
- 2:54to 300 K a month in 45 days. He got 600
- 2:57million views in the first 2 months and
- 2:59this was without any ad budget. His
- 3:01entire philosophy revolved around the
- 3:03formula that revenue equals total views
- 3:06multiplied by conversion rate. So, this
- 3:08method does work, but let me share a
- 3:10number that nobody really talks about.
- 3:12Organic content has a natural TAM of
- 3:14about 1 to 3 million dollars a year from
- 3:17just organic views on TikTok and IG
- 3:19Reels. So, there is sort of like a
- 3:21saturation point, but if you're only
- 3:23running ads, you're leaving a lot of
- 3:24money on the table. So, one of the most
- 3:26asked questions I get is what happens
- 3:28once I max out that organic ceiling and
- 3:30it starts to become slightly less
- 3:32profitable. Well, then you can use your
- 3:34organic viewers as fuel for your paid
- 3:37campaigns. So, let me explain. You can
- 3:38just run the viral organic videos as
- 3:42paid ads. They're already proven to
- 3:43work, so you don't need to think about
- 3:45more ad creative. You're going to make
- 3:47the creative anyway and with organic you
- 3:49get to double dip. You do the organic,
- 3:51it converts, you do ads, and it converts
- 3:54again. One way to do that is you just
- 3:55take the hooks that performs well
- 3:57organically, and you attach it to your
- 3:59normal ad creative. Another method is
- 4:00you just pick the creators who performs
- 4:02well organically, and have them record
- 4:04ad UGC for paid campaigns. Organic
- 4:07creators are better than 90% of
- 4:09traditional UGC ad talent because
- 4:11they've been trained by the algorithm.
- 4:12They're forced to get views, so their
- 4:14hooks are better. Their content doesn't
- 4:15feel like an ad, so it'll naturally just
- 4:17perform better on paid ads. So, I just
- 4:19told you three ways you can reuse your
- 4:21viral content for paid ads, and that's
- 4:23just off the top of my head. But,
- 4:25reusing content only works if your
- 4:27strategy is rock solid, which brings me
- 4:29to my next point. Which strategies work,
- 4:32and which fail? I've been doing this for
- 4:34the past 3 years, and after seeing
- 4:36inside hundreds of these operations,
- 4:38there are very specific tells I can just
- 4:40tell you within a week whether a
- 4:42strategy will blow up or just flop. I'm
- 4:44going to start by sharing what makes
- 4:46strategies flop because that's the
- 4:47biggest concern for most founders. If
- 4:49someone comes to me and and they tell me
- 4:50they went out and found influencers with
- 4:52huge followings, paid them thousands of
- 4:54dollars, this is the biggest telltale
- 4:56sign that the content will probably just
- 4:59not get traction. Influencer marketing
- 5:00does work still, but there needs to be a
- 5:03very strong audience fit and a lot of
- 5:05negotiation to make this actually
- 5:07profitable. Most influencers don't
- 5:09really have experience marketing apps,
- 5:11and they just have too many inbound
- 5:12brand deals to make their pricing work
- 5:14for most apps. So, it ends up being too
- 5:16overpriced and just not worth it. And
- 5:17the same thing applies to copying trends
- 5:20too. I've seen people hire Gen Z kids
- 5:22because they think they'll know recent
- 5:24trends, and most of these kids do know
- 5:25the trends, and they know how to make
- 5:26Tik Toks. But, that knowledge alone is
- 5:28not enough to create a video that
- 5:30actually converts. A trending Tik Tok
- 5:32format might get you views, but that's
- 5:34not your main goal. You need downloads
- 5:36and revenue. But, the biggest mistake I
- 5:37see founders make is creating videos
- 5:39that hard sell the product. No one on
- 5:41social media enjoys ads, and that's just
- 5:44the brutal truth. If your videos scream,
- 5:46"This is my product, buy it. The first
- 5:48thing people will do is just scroll past
- 5:50it and your content is basically telling
- 5:52the algorithm that it's not worth
- 5:53watching and the videos will just die.
- 5:55But the strategies that do work come
- 5:57down to three things. First is virality.
- 6:00Your video needs to hit the algorithm
- 6:02and actually get views to get
- 6:04recommended on the For You page on
- 6:06TikTok or Instagram or whatever platform
- 6:08you're uploading on. Second is
- 6:09conversion, which basically means your
- 6:11video needs to show the app in a way
- 6:13that makes the viewer download it. If
- 6:15you have a super viral video, but it's
- 6:17just getting views and not converting,
- 6:19it's pretty much useless content. The
- 6:20end goal is to get as many downloads as
- 6:23possible. So make sure to have a smooth
- 6:25CTA in the video. Either showing the
- 6:27actual app UI or mentioning the app as a
- 6:30core part of the storyline of the video.
- 6:33The third thing is repeatability. You
- 6:35need formats that keep working with
- 6:37small variations.
- 6:38>> Here's a question. What do you think
- 6:39might happen if there isn't enough
- 6:41vitamin B12 for red blood cell
- 6:42production?
- 6:43>> Honestly, I have no idea.
- 6:45>> Can you explain this to me in simpler
- 6:46terms?
- 6:47>> Finally, during pregnancy, the
- 6:49metabolism of vitamin D changes.
- 6:51>> Yeah, can you tell me more about how
- 6:53vitamin D metabolism is altered during
- 6:56pregnancy?
- 6:56>> Especially the amino acids from protein.
- 6:59Does that give you a clearer starting
- 7:00point?
- 7:00>> Yes, I understand this, but can we talk
- 7:02about why our protein needs increase
- 7:05with age?
- 7:06>> This is really important because if
- 7:07you're forced to come up with new ideas
- 7:09every single day, you're now back to the
- 7:11same problem as ad creative fatigue and
- 7:13you'll just burn out really fast and the
- 7:15results will be very inconsistent. Now
- 7:17this all sounds really simple, but most
- 7:19people make the mistake of hiring just
- 7:21one person to handle all of this stuff.
- 7:23The truth is you can't find an all
- 7:25around person who's good at creative
- 7:26strategy, has the talent to replicate
- 7:28existing formats, and can make
- 7:30unforgettable content. So if you're
- 7:31looking for someone to help you with
- 7:33this, there's two skill sets that you
- 7:35need to target and you're going to need
- 7:36two separate people for this unless you
- 7:38just find that like unicorn person.
- 7:40Skill number one is talent and this is
- 7:42the person who's actually going to be on
- 7:44camera. So, this person needs to know
- 7:45how to execute the perfect video with
- 7:48the right angle, lighting, pacing, tone
- 7:50of voice, where to put the captions, and
- 7:52pretty much every single thing that
- 7:54makes the video feel like it belongs on
- 7:56the For You page. Basically, a channel
- 7:58expert. And then secondly, you have the
- 7:59creative strategist. This is typically a
- 8:02different person because this person
- 8:04handles how to understand how short-form
- 8:06content works at a higher level and what
- 8:09kind of high-converting content the
- 8:11algorithm will push. But, there's a very
- 8:13important thing to note here. The
- 8:15creator is bringing the talent, but in
- 8:17the example of StudyFetch, which hit 2
- 8:19billion views and eight figures ARR, the
- 8:21CMO Kieran and his team are the
- 8:23strategist and the strategy is the most
- 8:26crucial thing in content. The three
- 8:28layers of creative strategy. I see
- 8:30creative strategy as having three
- 8:32layers. Layer one is copying. This means
- 8:35exactly what you think it means. If a
- 8:36video format worked for another app,
- 8:38it'll probably just work for yours, too.
- 8:40So, you find a viral video space, you
- 8:43recreate it for your product. This is
- 8:44the fastest path to results, but it
- 8:46saturates most quickly because
- 8:48eventually everyone starts copying the
- 8:50same formats. Okay, I think you want to
- 8:51hear this. For the past 2 years of my
- 8:52life, I've talked to 743 app founders.
- 8:56This is literally my calendar a lot of
- 8:57weeks because I want to figure out who's
- 8:59actually making money. And for the ones
- 9:01making 1 to 10 million dollars a year, I
- 9:03dug into their playbooks from ideation
- 9:05to build to marketing to figure out what
- 9:07actually made them successful. And like
- 9:09how much of that is even profit. But,
- 9:11what I found is the difference between
- 9:13apps that kind of work out versus the
- 9:14one that seemed to like hyper-scale
- 9:16effortlessly is actually more of a
- 9:17science than people think. And running
- 9:19this pod, I get a lot of similar
- 9:20questions around app businesses. So,
- 9:21after 2 years of doing this, I finally
- 9:23sat down, drank my energy drinks, and I
- 9:26just spent the last 4 days straight
- 9:28combining all of my private notes plus
- 9:30the growth systems I've personally run
- 9:31to add like 6 million ARR now for the
- 9:33founders of some of these apps. And I
- 9:35created a presentation. I'm going to
- 9:36give this presentation one time on a
- 9:38live Zoom call on Sunday night, October
- 9:4011th. It will not be recorded. I'm just
- 9:42giving this to people who are really
- 9:43serious about maximizing this run we
- 9:45have with consumer apps right now. It'll
- 9:47be fun, interactive. The past 2 years of
- 9:49consumer apps, and to be honest, like
- 9:50the past 8 years of me being internet
- 9:52businesses are just packed into this for
- 9:54you. Also, it's free, of course. Use the
- 9:56link in the description to register.
- 9:57I'll see you there, October 11th. Layer
- 9:59two is iteration. You take something
- 10:01that already worked, maybe one of your
- 10:02own videos, maybe a competitor, and you
- 10:04isolate one single variable. This could
- 10:06be the hook, the caption copy, or the
- 10:09entire script. You tweak that single
- 10:11variable and see if the video still
- 10:13works. But, this brings me to the third
- 10:15layer, which is referential concepting.
- 10:17This is an idea popularized by Nick
- 10:20Kendler, who was the head of growth at
- 10:22Calm, the meditation app. They
- 10:23hyper-scaled on Facebook ads, but the
- 10:25idea of referential concepting also
- 10:27applies to organic. So, let's say you
- 10:29came across a video with 5 million views
- 10:31in the fintech niche, and you think,
- 10:33okay, this concept would really crush in
- 10:35the dating niche. Now, you're not just
- 10:37taking one variable from the video that
- 10:39worked. You're taking the entire
- 10:41creative idea, and you're applying it to
- 10:43your niche. This is actually the best
- 10:45strategy because it almost guarantees
- 10:47that you're the first one in your niche
- 10:49to make this format. I'm not going to
- 10:51lie, it is risky because it might just
- 10:53not work at all, but it is also how you
- 10:55become the market leader. Instead of
- 10:57copying or just iterating, you're
- 10:59creating the trends that everyone else
- 11:01ends up copying from you. For example,
- 11:03Pingo did this with their content. It's
- 11:05a language learning app, so we all know
- 11:07Duolingo owns this niche, but Pingo saw
- 11:09that reaction content was blowing up on
- 11:12TikTok, so they had creators try to
- 11:13speak different languages, like Spanish
- 11:15or French, on camera, mispronounce
- 11:17words, and Pingo's AI would roast them
- 11:19in real time. They basically made the
- 11:21app demo itself a funny, memorable
- 11:23thing. This strategy got them to
- 11:25$500,000 a month and over a billion
- 11:28views. But, don't get me wrong, you
- 11:29don't have to just choose one layer and
- 11:31stick to it. You can run all three
- 11:33together and see which one works best
- 11:35for your app. And you can start with the
- 11:36level one and two and work your way up
- 11:39to level three as you get more
- 11:40comfortable with content. However, don't
- 11:42just hire the first agency you hear of
- 11:44and just run all this organic stuff for
- 11:46you. I've talked to pretty much every
- 11:48agency, freelancer, and in-house
- 11:51operation in the space and I really
- 11:52believe you should know what you're
- 11:54getting yourself into first. An app
- 11:56founder told me recently they wasted
- 11:58$30,000 a month on a agency that seemed
- 12:01to have good case studies, but just
- 12:02didn't really align incentives with the
- 12:04team and ended up flopping. Honestly,
- 12:05this happens all the time because most
- 12:07people don't understand what roles they
- 12:10actually need for organic growth.
- 12:11Basically, what any agency or in-house
- 12:14operation will look like at its best.
- 12:16There are three people you need on your
- 12:18team and these are pretty much
- 12:19non-negotiable. Number one, head of
- 12:21social growth. This is your Gen Z brain
- 12:24rot expert. And what that actually means
- 12:26is someone who watches viral content all
- 12:28day and has developed an inherent sense
- 12:30for which principles from those videos
- 12:32can be applied for your app. These guys
- 12:34are crazy good at identifying what's
- 12:37blowing up. Number two, the creator
- 12:38manager/coach role. Your creator manager
- 12:41is the person who gives feedback to
- 12:43every creative you have on the team.
- 12:45Their entire role is to make micro
- 12:47adjustments to hooks, storylines, CTAs,
- 12:50and visuals to improve content. This is
- 12:52really important because if you have a
- 12:53manager who just approves content
- 12:55without going through it and
- 12:56scrutinizing it, TikTok will just feel
- 12:58like a lottery to you and you're just
- 13:00hoping something will hit without
- 13:01actually iterating on your content. The
- 13:03last person is the talent scout. This is
- 13:05someone who can do outreach to thousands
- 13:08of creators and build efficient
- 13:10recruiting pipelines. When you think
- 13:11about it, this outbound, extreme volume
- 13:14mindset, and systems mindset has almost
- 13:17zero skill overlap between that and the
- 13:19creative roles, which is why it's so
- 13:21hard to find that magical unicorn who
- 13:23will just do everything for you. The
- 13:25worst thing you can do is be lazy about
- 13:27this and just look for the all around
- 13:28person. There are none of these people
- 13:30except for founders that just do it
- 13:32themselves, right? So, hire the right
- 13:34person for the right role. Outside of my
- 13:37Superwall interviews that I do and all
- 13:38these chats with founders, most of my
- 13:40time is spent just digging through
- 13:42discords and Twitter DMs and Telegram
- 13:45chats just finding these young
- 13:47freelancer type people that have one or
- 13:50two really good case studies, but they
- 13:51haven't been snatched up in-house or
- 13:54started some like bloated agency yet.
- 13:56This is literally the playbook a lot of
- 13:58founders I know have followed. This AI
- 14:00writing tool scaled to 750k a month, a
- 14:03fitness app grew to $600,000 a year, and
- 14:06dozens of others all by following the
- 14:08same stuff I explained and creating mass
- 14:10UGC content. So, the stuff works
- 14:12clearly, but the biggest problem every
- 14:14founder runs into is where do I start?
- 14:17Cuz if you're at $0 a month, you
- 14:19shouldn't be hiring an agency. You
- 14:20should probably be starting scrappier
- 14:21first, so you're the one driving the
- 14:23strategy in the long term. But, if
- 14:25you're already at 50-100k a month and
- 14:27you're still trying to do everything
- 14:28yourself, maybe you do want an agency or
- 14:30maybe at least get help setting it up
- 14:32in-house. And the strategy that works
- 14:34for a looks maxing app might have
- 14:36nothing in common for what works for a
- 14:38study tool. It depends on the niche, how
- 14:40much trust is required for a user to
- 14:41download, and how it monetizes. These
- 14:43all require different content and
- 14:45different strategies. So, what I've
- 14:46learned from talking to hundreds of app
- 14:48founders is if there's one overarching
- 14:51thing that separates the people who grow
- 14:52slowly and stagnate versus the ones who
- 14:55see the we have with consumer apps that
- 14:58AI and these growth strategies are
- 14:59giving us right now and go parabolic
- 15:02with their app and honestly their entire
- 15:04entrepreneurship career, that one thing
- 15:06is maximizing their alpha seeking. What
- 15:09I mean by this is founders who actually
- 15:11talk to other founders who made all the
- 15:13mistakes, cracked the strategy for their
- 15:15own app, and then not just hearing them
- 15:17tell their story, but actually getting
- 15:20the experts take on their app. How they
- 15:22would apply the same strategies,
- 15:24identify blind spots, and high-leverage
- 15:27personalized insights that can change
- 15:29the trajectory of their growth. So,
- 15:31that's why I've been building Consumer
- 15:32Club for the past 2 years. I've met over
- 15:34a thousand app founders, and I just
- 15:36collect the ones who are not only
- 15:38successful, like doing 1 to 10 million
- 15:40ARR, but who are also super willing to
- 15:43share what they've learned and coach
- 15:45other founders along the entire journey,
- 15:47as long as it's in a trusting
- 15:48environment with a good amount of
- 15:49buy-in. I've met dozens of founders now
- 15:51who have grown from complete zero to
- 15:53100K month and 100K month to 3 to 10
- 15:56million dollars a year after finding
- 15:59high-signal and high-trust conversations
- 16:02with other founders and experts inside
- 16:04Consumer Club who have complementary
- 16:06alpha and skills, like organic growth,
- 16:08ads growth, monetization, paywalls,
- 16:10product and engineering, company
- 16:12building. The Consumer Club membership
- 16:13is very expensive, but honestly, I'm
- 16:15just one person. I spend most of my time
- 16:18continuously hunting for the best app
- 16:20and growth people, which I introduce to
- 16:22Consumer Club members to learn from, to
- 16:24hire, to meet as co-founders. So, even
- 16:26though I love to, I can't just have
- 16:28everyone join. But, if you want to lock
- 16:29in and maximize this run we have with
- 16:31consumer apps, there is a link below. As
- 16:33soon as you join, we'll just do an
- 16:34onboarding call, where I will personally
- 16:36get to know you and your app and [music]
- 16:37introduce you to the playbooks you can
- 16:39apply to grow your app, plus
- 16:41introductions to founders, hires,
- 16:43everything you need that will be a lever
- 16:45for your app. Even if you decide not to
- 16:47join, we do have a huge backlog of
- 16:49interviews with founders who share their
- 16:50whole playbooks on this channel. So, if
- 16:52you follow any one of those three
- 16:55strategy layers I mentioned, start
- 16:56creating organic content, let me know
- 16:58how it works out. Thanks for watching.
- 16:59I'll see you in the next video.
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