Lecture Notes: BTOC Viral Apps and TikTok Strategies

Overview

• Focus on BTOC (Business to Consumer) viral apps charging monthly subscriptions ($4, $10, $20).
• Discussion of how these apps are generating millions of dollars.
• Key emphasis on TikTok's role in marketing these apps.

Introduction of Guest: Gus

• Gus is a researcher at Starter Story.
• He compiled a list of BTOC apps utilizing successful marketing strategies.

Key Takeaways from Research

TikTok Multi-Account Hypergrowth

• A tweet by user "Gam" noted an era of rapid growth for apps through TikTok.
• Mentioned popular apps like TurboLearn and Calai.
• TikTok is seen as a powerful marketing tool for app growth.

Importance of Attention

• Attention is crucial for business growth; features become secondary.
• Apps need effective marketing strategies to gain visibility.

Case Studies of Successful Apps

1. Lockit App

• Description: Friendship app with live updates and photos.
• Revenue: $300,000 MRR (Monthly Recurring Revenue).
• Downloads: 1 million last month.
• Pricing: $3.99/month or $36/year.
• Marketing Strategy: Multiple TikTok accounts promoting the app; high engagement with emotional content.

2. Couple Joy

• Description: Relationship app for long-distance communication.
• Downloads: 500,000 last month.
• Revenue: $12.99/month with different pricing tiers.
• Marketing Strategy: Similar to Lockit; uses humor and relatable content on TikTok.

3. Einstein Homework Helper

• Description: Study app for students.
• Downloads: 70,000 last month.
• Revenue: $13/month subscription.
• Marketing Strategy: Engagement through TikTok interviews and relatable student experiences.

Insights on TikTok Marketing

• All apps adopted similar marketing formats for TikTok.
• Videos highlight the problem and introduce the app as a solution.
• Shows the importance of intent in content creation.

Financial Projections

• Calculator for Estimating Revenue:
  • Inputs like downloads, conversion rates, and churn rates.
  • For instance, Lockit is projected to reach ~$500,000 MRR in a year with consistent metrics.

Changing Consumer Behavior

• Increased willingness to pay for apps after the pandemic.
• The trend towards monetizing digital solutions.

Conclusion and Takeaways

• Growth of apps through viral marketing strategies is significant.
• The formula appears repeatable across various apps.
• Importance of adapting quickly to trends and marketing channels.
• Reminder to focus on genuine user engagement and attention rather than just virality.

Final Thoughts

• The lecture ended by inviting comments on future topics and marketing strategies to explore.