Coconote · B2C · AI lecture note-taker
Aim videos at the parent who pays, not just the student
Many viral Instagram videos used this angle; later scaled back
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 BarnardAnd for college students, I mean, paying $40, $50, $100,000 a year to go to school, and then this is $130 a year. I did see one of your ads was like, "My friend's mom got her this app, Coconote." Did you kind of position it of bug your parents to help pay for this, or was there any of that, that you did find successful?
Zack HargettYeah, especially in the early days, a good portion of our videos that are going viral on our Instagram were around, "My mom just changed my life." And so we did spend a good portion of the early dates.
Jacob EitingThat's for other moms. So that's not for the student, right? You have a student video that's like, "My mom changed my life." And then you see other mom being like, "Oh, I want to change my Pookam's life, right?"
Zack HargettThat was very much the thinking. I mean, I used to say this to our creators all the time, I said, "Imagine you're on campus at student orientation and you see a daughter and her mom, and the daughter's just starting college and her mom's there with her." And I said, "Hey, I would like you to go offer a note-taker, something that's going to help improve your grades and make sure you never miss a detail in lecture, et cetera, help you study, be a personalized study coach, et cetera." And it's $130 to do it. Who are you going to ask? I think the obvious answer is you're going to ask the mom. And so early on, we were very keen on marketing to moms. I think we've since taken a step back. And by the way, these are not mutually exclusive. There's a big overlap.
Jacob EitingIt's finding who the buyer and the most intent is, right? And you can have good marketing to whoever might be in need, right? I wonder how many app developers get stuck down the route of like, "Oh, I have to advertise to the primary user of the product." And that may or may not be the decision maker in a purchase.
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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
- 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: instagram, tiktok, buyer-vs-user, parents, hooks