Coconote · B2C · AI lecture note-taker
Run paid ads cut by an agency from creators' raw footage
Beat boosting viral posts, but never profitable; stopped
Failedpaid-social
What they did
Creators uploaded raw B-roll/unedited footage to a shared Google Drive; an outside clip agency cut it into performance-specific ad creative. Success bar was first-purchase profitability. Neither founder owned the channel more than part-time.
What happened
Agency-cut ad creative outperformed boosting the viral organic videos directly, but ads never reached first-purchase profitability; paid was stopped.
- Stage
- scale
In their words
Sub Club by RevenueCat · Bootstrapped to $6.7M ARR and an Exit to Quizlet in 2 Years – Brett Bauman & Zack Hargett, Coconote“what would've been success for us was being first purchase profitable on the ads and we weren't able to get there”
“They would chop it up and kind of make something specific to performance marketing that those, as a creative, that cohort outperformed our more organic approach.”
“With that said, we still really weren't able to get ads to work”
Related topics
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All 31 Coconote tactics- Double onboarding from 5 to about 13 screens in one big changeTrial conversion up 16%; one-or-two-screen tests had only given small wins
- When trial users cancel, offer them 7 more free daysKeeps 27% of cancellers in their trial; a smaller share later pay
- Build a novelty free tool (text to brainrot video) and push it on TikTok100-200M views and 3,000 trials in days, but only ~$25K revenue
- Post short videos that show the app solving a real student problemSeveral ~20M-view videos, ~99% organic, converting far better than viral novelty content
- Keep a small team of 10-12 part-time creators, led by a proven oneLead creator drove hundreds of millions of views; founders say it worked
- Let people pay before creating an account; move login after the paywallFounder calls it significant; no separate number
More from this episode
- Coconote: Launch a basic version fast and charge from day one$100K ARR in 45 days, $1M in 4 months
- Coconote: Hire creators with 5-10K followers, found via the Gmail in their bio3 of ~30 made a huge difference; main engine to $1M ARR
- Coconote: Have one hired creator run the brand's main video accountHundreds of millions of views
- Coconote: Tell creators to show the app as a fix or identity, not a noveltyConverted best, per the founders; no numbers
- pdftobrainrot.com: Launch a viral 'PDF to brain rot video' side site to funnel users~41M views on one video, but no paying users; shut down
- Coconote: Aim videos at the parent who pays, not just the studentMany viral Instagram videos used this angle; later scaled back
- Coconote: Ask customers to describe the app; put their words in the first screenshotFounders call it one of their best moves; no numbers
- Coconote: Charge students $99/year and push the annual plan~80% chose annual
- Coconote: Raise the annual price from $99 to $129More users and more revenue at the same time
- Coconote: Give one free note, then require a free trialCredited with early cash flow; no numbers
- Coconote: Double onboarding to ~15 screens with more questions and social proof+16% trial starts
- Coconote: Ask people to log in after the paywall, not on the first screenBiggest onboarding win; removed ~10% drop-off
- Coconote: When people cancel, offer 7 more free days instead of a discountSaved 25% of cancellers; beat a 30% discount and a 3-month pause
- Coconote: Put in ~$10K each and reinvest revenue into creatorsCash-flow positive throughout; no outside funding
- Coconote: Hire a banker to run a buyout so the founders keep buildingSold to Quizlet; revenue roughly doubled during the process