Coconote · B2C · AI lecture note-taker
Hire creators with 5-10K followers, found via the Gmail in their bio
3 of ~30 made a huge difference; main engine to $1M ARR
What they did
What happened
- Stage
- launch to scale
In their words
Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote
Zack Hargett… really interesting time where it does not matter, generally speaking, how many followers you have. On short form video, it just matters if you make great content. And so we were trying everything in the beginning. I have some interesting stories. I don't know if I should share them, but maybe we can circle back to those early days. I mean, it is like a true grind and it feels good to be part of that game, but we were trying everything we could.
Zack HargettAnd then I would say we worked with easily 30 content creators of various types in the early days, I would say in the first two months. And really, three of them ended up making a huge difference. One of them in particular ran the main Coconote.app account and generated hundreds of millions of views. And I think I can speak for Brett on this. We're very lucky to have worked with him and started working with him very early on because he was a key part of our growth.
Jacob EitingI know you guys don't want to say it, but that was Mr. Beast.
Zack HargettIt was an absolute grind in the beginning, because you're just trying to find the channel that works and then you just want to ... Exploit may not be the right word, but you want to double down and you really want to spam more or less that channel until you reach the limit.
Zack HargettWe were reaching out all the above, David. So we were reaching out to creators through if they had an email in their bio. Funny observation here. If you reach out to a content creator, I have my opinions on influencers that we can circle back to, but if you reach out to a content creator and their email is, it's @sunsetagency.com or something, any agency sounding, you're too late. Those agencies exist to eliminate the alpha that you are trying to create. So they are almost always going to take more than they give in terms of the value that they provide to the company. There are always exceptions, 100%. But generally speaking, that's been my observation.
Jacob EitingThere's probably a lot of mid-tier creators too who were like, "Here, oh, I have an agency," and they get it and it's actually value destructive for them.
Zack HargettTotally. Yeah, absolutely. If they have a Gmail in their bio and they have 5k, 10k followers, good engagement, that's great. That's a really nice sweet spot. And these numbers are very flexible. But we know whenever social media switched over from a follower graph to an interest graph and with a for you page and algorithmic distribution, the number of followers you have matters less and less. The quality of the content you create matters a ton.
Zack HargettSo at Scout, my last startup, the Product Studio, our first TikTok got eight million views. We'd never posted to the account before, but we got eight million views. It drove 150,000 signups over a two-day period. I think at that time, this was 2021, if we were an app, not a website, I think we would've been number one in the App Store. And so I learned the value of great content posted on TikTok at that time. And so we knew that, that would be …
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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
- 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: tiktok, instagram, creator-sourcing, small-creators, avoid-agencies, cold-outreach