Coconote · B2C · AI lecture note-taker
Launch a basic version fast and charge from day one
$100K ARR in 45 days, $1M in 4 months
What they did
What happened
- Stage
- launch
In their words
Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote
Zack Hargett… as a first year civil engineering major. She still is a civil engineer. So we were thinking about this. We were thinking a lot about how can we summarize things, help people learn. It's kind of a mishmash of things. And then we arrived at Coconote. There were some apps, not iOS apps, but actually web apps that were out there on the market doing a similar thing, but they weren't taking it seriously. And so we just decided to execute on it.
Zack HargettI would say one of the things that we did really, really well in hindsight is get momentum as soon as possible. So we had a free trial from day one, but we were in effect charging from day one. And this is where this will play out over the course of two years, David, Jacob. My fascination with checking the RevenueCat chart led to my wife to have basically an intervention. Like, "Zack, I think you have a problem. You check this thing way too often." And it started from basically day one, because we were trying to get momentum as quickly as possible. One way to look at momentum would be something on mix panels, so like usage and retention and very important metrics, but there's nothing quite like the dopamine high of realizing you're creating something valuable to the world and people are returning it.
Jacob EitingI think you captured some of it, right?
David BarnardHow long were y'all working on it before the April 2024 launch?
Brett BaumanNot super long. We really wanted to scope it down and launch something quickly and basic. And I would say we achieved that and it sort of worked when we launched, but that was fine. There's a lot about it, honestly, that looks the same today as it did back then, which is cool, but there was plenty of audio recordings getting lost and things like that.
Jacob EitingI guess it kind of feels like this is one of those cases where new fundamental technology breakthrough. This wouldn't have been an app you could have built two years prior, right?
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More from this episode
- Hire creators with 5-10K followers, found via the Gmail in their bio3 of ~30 made a huge difference; main engine to $1M ARR
- Have one hired creator run the brand's main video accountHundreds of millions of views
- Tell creators to show the app as a fix or identity, not a noveltyConverted best, per the founders; no numbers
- Launch a viral 'PDF to brain rot video' side site to funnel users~41M views on one video, but no paying users; shut down
- Aim videos at the parent who pays, not just the studentMany viral Instagram videos used this angle; later scaled back
- Ask customers to describe the app; put their words in the first screenshotFounders call it one of their best moves; no numbers
- Charge students $99/year and push the annual plan~80% chose annual
- Raise the annual price from $99 to $129More users and more revenue at the same time
- Give one free note, then require a free trialCredited with early cash flow; no numbers
- Run paid ads cut by an agency from creators' raw footageBeat boosting viral posts, but never profitable; stopped
- Double onboarding to ~15 screens with more questions and social proof+16% trial starts
- Ask people to log in after the paywall, not on the first screenBiggest onboarding win; removed ~10% drop-off
- When people cancel, offer 7 more free days instead of a discountSaved 25% of cancellers; beat a 30% discount and a 3-month pause
- Put in ~$10K each and reinvest revenue into creatorsCash-flow positive throughout; no outside funding
- Hire a banker to run a buyout so the founders keep buildingSold to Quizlet; revenue roughly doubled during the process
Tags: launch-speed, momentum, free-trial