Coconote · B2C · AI lecture note-taker
Give one free note, then require a free trial
Credited with early cash flow; no numbers
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
David BarnardTargeting students, I imagine, made that especially hard. I'm honestly surprised at the whole story of Coconote in that college students and high school students are famously hard to monetize. So let's dig into how did you get kids to pay for your app and what was the price and did you experiment with pricing?
Brett BaumanYeah, great question. Definitely did a lot of experimentation. I think we've tried to always have something running. Even at launch, we were testing should there be a free trial or not? The college student archetype, I would say, didn't really get to us. We didn't want that to limit us from charging a lot of money. We wanted to be a premium product and be seen as a premium product.
Brett BaumanI think that Zack and I kind of just are product builders who feel like we want to put something out that has a lot of craft and charge for it is part of it. Probably also not knowing what our costs would be was also part of it. So we put the app out charging $99 per year and $19.99 per month.
Jacob EitingIt's also nice that in terms of not having ... It's being so levered on ad spend. It usually allows you to go cheaper, but I don't know. I mean, you're a bootstrap company, it's better to have fewer, higher paying customers. It really is. Maybe this was mentioned, but there was no freemium, right? So after a week, can I keep using it in any way, or am I done?
Brett BaumanYeah, you hit on a few good things there. You can make one note for free without starting a trial and that's it.
Jacob EitingBasically a hard paywall, not quite, but essentially a hard paywall.
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More from this episode
- Launch a basic version fast and charge from day one$100K ARR in 45 days, $1M in 4 months
- 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
- 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: hard-paywall, free-trial, trial-test