Lecture Notes: Shopify App Success Story

Introduction

• Speaker: Ericas
• Host: Pat Walls, Starter Story
• Main Topic: Building a successful Shopify app business
• Annual Revenue: $4.5 million
• Profitability: 90%
• Marketing Spend: Almost zero

Background of Ericas

• Originally from Lithuania, now living in Paris
• Transitioned from a designer earning $2/hour to an entrepreneur
• Initial work in a local web design agency
• Transitioned to freelancing and building products on the side
• Found opportunity in Shopify app development through client projects

Business Overview

• Apps Developed: Five apps in the discount category
  • Kaching Bundles
  • Kaching Post Purchase Upsell
  • Kaching Pop-up Upsell
  • Kaching Card Drawer Upsell
• Market Impact: Generated over $400 million in additional revenue for merchants

Identifying Market Opportunities

• Observation: Apps had either poor UX (indie developers) or slow progress (VC-backed companies)
• Strategy: Fill the gap with better UX and faster development

Finding and Validating App Ideas

• Criteria for Ideas:
  • Easy to build (couple of months)
  • Broad market appeal
  • Low competition
• Validation Process:
  • Engage with communities (Discord, Facebook groups)
  • Validate with potential customers (feedback on designs)
  • Consider pre-orders or landing pages for further validation

Building the App

• Process:
  • Research competitors
  • Develop a better UX
  • Find a technical co-founder through local developer groups
  • Utilize existing Shopify client base

Marketing Strategy

• Initial Steps:
  • Manual onboarding through personal networks
  • Offer apps for free initially to gain reviews and traction
• Focus on Reviews:
  • Automated processes to ask for reviews
  • Monthly emails showing app revenue contribution
  • Gamified customer support to increase review rates

Monetization Strategy

• Introduction of Monetization:
  • Freemium model with subscription tiers
  • Grandfather existing free users when introducing charges
• Pricing Strategies:
  • Free trials
  • Full refunds to avoid negative reviews

Technical and Management Tools

• Communication: Slack
• Customer Support: Intercom
• Feature Management: Features.vote
• Task Management: Linear
• Shopify Metrics and Management: Mantle

Personal Insights

• Daily Routine:
  • Flexible waking hours
  • To-do list with quick wins and harder tasks
  • Enjoyment of work and lifestyle

Advice for Aspiring Entrepreneurs

• Team Composition: Start with a designer and a tech partner
• Customer Engagement: Handle customer support directly initially
• Community Involvement: Engage with building communities for support and potential partners

Conclusion

• Ericas’ journey highlights the potential of marketplace-based businesses
• Importance of solving specific problems and leveraging existing platforms
• Encouragement to explore opportunities like monday.com marketplace
• Resource for Aspiring Entrepreneurs: Starter Story library and community for business ideas and strategies