Cal AI · B2C · photo calorie tracking app
Launch a rough app, prove people pay, then build the real tech
Host says it's now a genuinely great app; no numbers
What they did
What happened
In their words
Buying vs. Building: Scaling Beyond a Single App — Josh Peleg, BlueThrone
Josh PelegTrue, but how many apps can you think of that needed millions just to get going?
David Barnard… grown, while I think for a lot of people in this space, the respect for them has diminished as they've released the course and they've been doing all these shirtless videos and stuff like that. Clearly, they're young and everything. But if you look at what they did, they did start super scrappy. And this is why early on, I really was very dismissive of them, because I opened the app and it was a really crappy app. But they took that crappy app that didn't actually work, that didn't do what they said it was doing. I mean, honestly, and this is, again, why I was dismissive of them early on, is like, it doesn't do what they say it does, and yet they're marketing it as this amazing solution. But to their credit, they have since actually built out that tech.
David BarnardSo, to your point, maybe you build a painted door app where you prove out that people are willing to pay for this and then you go build it. And that can work, but I think there aren't a ton of categories that you can do that in where the app that doesn't work will actually sell. I mean, they were selling a lot of hopes and dreams and promises early on-
Josh PelegYeah, but they double down on something we said 10 minutes ago, which is, distribution owns the game right now. And these guys, Alex, Blake, Zach, they're killer distributors. I've got a kind of bone to pick here because what they've done is insane. But every time they jump on a podcast or an interview, they talk to someone who's from the kind of success sphere or a kind of growth marketer. I would love to get Alex and Zach onto an app podcast …
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More from this episode
- Buy about 100 small utility apps valued mostly on profitMany had been pumped before sale and died; shallow products didn't last
- Buy only a few apps with strong organic traffic and invest in their teamsPortfolio cut to 5 apps, each a category leader or on its way; guest says it works
- After buying a music app, hire a GM from Spotify and triple the teamMAU grew from 200K to almost 6M; still near the top of its category
- Build an in-house team making cheap UGC TikTok videos for the appsFirst viral video took 6 months and several people; gets faster with practice
- Sell mugs, t-shirts and hoodies to a game's biggest spenders
- Sell power-ups on top of the subscription, like 2x more songs nearbyGuest says it captures what each user is willing to spend; no numbers
- Build solo without VC money, then sell the app within 18 monthsSold for over $4M; deal closed in 3 months with no investors involved
- Charge $120 a year and pitch it as paying for itself in work timeGuest says it unlocked very high LTV; no figures beyond price
- Push the lifetime plan on the paywall right before selling the appKnocks down negotiations; the buyer can't monetize those users again
- Cut ad spend from $50K to $10K a month to look profitable before sellingDownloads eventually follow the drop; guest calls it riskier than pushing revenue
- Add in-app coins that people earn from ads or buy in packsApps that crack consumables reach deeper LTVs, per talks with hundreds of founders
- Before buying an app, compare its return per dollar with more ad spend
- Stack category downloads over time to see if new apps grow the marketScreen time market grew with each new entrant; buying a non-leader looked OK
- Keep a bought app separate and sell one subscription for both apps
Tags: painted-door, distribution-first