Waking Up · B2C · meditation app
Build the app around a trusted podcaster, and put his voice in the first session
Tiny download numbers earn $200K-$1M+ a month; creator-dependence makes the app harder to sell
What they did
What happened
This shipped together with other changes, so the result can't be credited to this alone.
In their words
Josh Peleg - $172M of App Building Advice in 50 Minutes
Joseph ChoiDo you think that this is partly because it's Sam Harris? Like, how dependent is the conversion rate, do you think, on like being attached to his persona?
Josh PelegI think quite high on this app, because in the onboarding, the first meditation track you listen to is Sam Harris's voice. So he's absolutely using his brand here. But there are other examples of this. I mean, you've got Jeff Nippard, the fitness YouTuber, his fitness app, MacroFactor, uses his content to push it. You've got a new app by um the guy who did The Subtle Art of Not Giving a F*ck.
Joseph Choi… sort of like a AI therapy app, but a little bit more like Mark Manson vibes, like um you know, self-improvement type of stuff. 20k downloads a month, $200,000 in revenue a month. I actually looked at this the day that it launched, as well, and it had a a pretty similar ratio. Would you recommend like apps like this launching with big influencers like that that have very deep trust with their audience that'll create such a strong conversion rate?
Josh PelegThe answer is yes. The problem is it's super hard to find those people. But if you have connections to a an influencer or a YouTuber with that kind of trust and distribution, you should be trying to build an app with them, cuz you get distribution from day one.
Joseph ChoiSo let me show you this. A lot of app founders I talk to have a feeling their app has viral potential, but don't want to be the person brainrot scrolling an hour a day hunting for formats. Or worse, burning thousands on creators shooting videos that just flop. Recently, I've been telling every founder I meet about Spytok. It's basically an AI TikTok viral marketer that I've seen a lot of top app growth teams using. You just paste a link to your …
Joseph Choithat person would probably be included in that in that acquisition anyway?
Josh PelegHere's the problem: your distribution is in an individual. Without him or her, you don't have distribution. So you'd need to construct the deal in a way that keeps them on board, willing and kind of able to make content for the app. And if they kind of didn't do that, you're going to lose your distribution, which is a lot of the value here. So it's a tricky deal to negotiate, cuz often influencers don't want to do like an earn-out, they don't want to stay on board, they've got their own thing going. So it's quite it can be quite tricky to sell these kind of products.
Joseph ChoiMaybe if the if the buyer had access to additional influencers and could kind of like continue the the distribution machine, so they're not completely dependent on one.
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More from this episode
- Pitch the app as #1 in women's health instead of competing in all of healthBecame the first women's health unicorn: $200M+ raised at a $1B+ valuation
- Aim the app at first-time runners doing couch to 5K, not all sportsEarned a strong valuation; Strava bought it to reach beginner runners
- Charge $20 a month or $150 a year for a meditation app~25K downloads a month bring in over $1M a month (Sensor Tower estimate)
- Run over 100 experiments a monthGuest cites it as part of what made it a top health app; no direct numbers
- Buy a beginner running app so new runners later move up to your app
- Buy a viral food-scanning app for its knack for pulling in new users
- Sell the app again after its growth has already slowedResold for over $100M less than the $475M paid five years earlier
- Buy apps that already found fans, then add a full team to grow themWorked really well, per the guest; no portfolio numbers given
- Buy apps that get lots of downloads but lose users, then fix the productA couple of such deals brought outsized returns for founder and buyer, per the guest
- If you charge under $10 a month, test $20 on 10-20% of users
- Use weekly plans for apps people need for a short time, like datingWorks well in dating and follower-tracking apps; fine for cash flow, weaker for an exit
- Pick a buyer type, study its last 5 deals, and start talking a year earlyGuest's favorite deals came from founders he'd messaged with for ~12 months
- Once a TikTok works, spin up 20 to 100 more videos on the same ideaBuyers value a repeatable viral machine over one-off hits; no numbers given
Tags: podcast, youtube, creator-led-app, distribution-first