How to consistently go viral: Nikita Bier’s playbook for winning at consumer apps

Name: How to consistently go viral: Nikita Bier’s playbook for winning at consumer apps
Uploaded: 2024-08-25T11:00:36.000Z
Duration: 3 h 16 min 21 s

Insights from Nikita Bier on Viral App Development

The Genesis of tbh and Market Demand

Nikita Bier discusses his experience launching the app tbh, which went viral and was later sold to Facebook. He emphasizes the importance of identifying market demand.

Notably, he observed that the top app in the U.S. was Surah, entirely in Arabic, indicating a strong latent demand for similar products.

This insight led to rapid adoption of tbh; within six days, he predicted it would reach number one in the U.S. app store.

Product Management Realities

Nikita shares his perspective on product management at large tech companies like Facebook, highlighting that much of the role involves documentation and approvals rather than hands-on product design.

He notes that successful product management requires deep involvement in designing user interfaces and flows.

Growth Strategies and Work Ethic

Despite achieving significant success with apps like Gas (sold to Discord), Nikita describes the chaotic nature of maintaining an online platform during its growth phase.

He mentions working long hours alongside his dedicated team to ensure stability and performance during peak usage times.

Lessons Learned from Building Apps

Throughout his career, Nikita has developed numerous growth hacks for apps that remain largely unknown but are effective for driving virality.

He expresses confidence that skilled individuals can make an app grow significantly if they understand their audience's motivations.

Framing Successful Conversations

The podcast host suggests structuring their conversation around the stories behind successful apps created by Nikita, aiming to extract valuable lessons for aspiring developers.

Why Pivoting to Consumer Apps?

Initial Interest in Political Tools

The speaker reflects on their college interest in how American voters often vote against their financial self-interest, particularly regarding tax policies.

They developed a web app that calculated the financial impacts of political proposals based on user input, such as personal information and family size.

Viral Success and Transition to Business

The app gained significant traction, attracting 4 million users during an election season, leading to inquiries from government entities for similar tools.

After securing funding and contracts, including one with the Obama administration, they faced challenges due to a government shutdown which led them to reconsider their business direction.

Realization and Shift in Focus

The speaker recognized that their passion lay in creating viral internet products rather than selling software to governments. They decided to pivot towards consumer apps instead.

Over four years, they experimented with various consumer apps, achieving moderate success with an app called Five Labs that analyzed Facebook posts for personality insights.

Insights into Targeting Teen Users

Their experience revealed that targeting teens was beneficial because of their adaptable habits and social dynamics; older users were less likely to invite others to new apps.

A notable observation was that user invitations dropped by 20% for each year of age from 13 to 18, emphasizing the importance of building for younger audiences.

Challenges of User Acquisition

The speaker discusses the implications of targeting adults: without organic growth through invitations, acquiring users would require substantial advertising budgets.

They highlight the difficulty startups face when trying to grow user bases among older demographics due to declining invitation rates as users age.

Lessons Learned from Pivoting

Reflecting on their journey from a politically focused tool to consumer apps illustrates the importance of aligning work with personal interests and market opportunities.

Understanding the Shift to Mobile Apps

Personal Journey in App Development

The speaker reflects on their early experience building web apps since age 12, including a full e-commerce business selling pirated games.

Transitioning to mobile app development required a significant mental shift due to the low margin for error in design; every user interaction is crucial as users quickly switch between apps.

Learning from Failures

After launching 14 unsuccessful apps, the focus shifted towards creating applications specifically for teens, leading to valuable insights about consumer behavior.

Over four to five years, the team developed 15 different types of consumer apps targeting various demographics but found that engagement dropped significantly after age 22.

Insights on Target Demographics

The realization emerged that most successful consumer apps target younger audiences (teens), as older users are less likely to adopt new products without substantial marketing investment.

A study highlighted that social connectivity peaks around ages 14 to 21 and declines thereafter, emphasizing the importance of targeting teens who have a higher urgency for communication.

Empirical Evidence vs. Theory

The speaker emphasizes learning through direct observation and experimentation rather than relying solely on theoretical frameworks; this hands-on approach led to better understanding of user needs.

Developing a reproducible testing process became essential for increasing success rates in app development, allowing teams to mitigate risks associated with unpredictable consumer product ideas.

The Breakthrough with tbh App

Despite numerous failures and dwindling resources, the launch of the polling app "tbh" marked a turning point when it rapidly gained traction among students at an early-start school in Georgia.

How to Achieve Number One App Status in the U.S.

The Journey to Number One

The speaker reflects on a moment of realization regarding their app's financial situation, noting a discrepancy between their Amazon bill and bank account, prompting them to initiate a funding round.

A competitive bidding process ensues for the app, highlighted by an urgent meeting with a potential acquirer in LA, where metrics are requested to demonstrate success.

During the meeting, the speaker reveals that their app is actually number one in the U.S., showcasing real-time install data through a dashboard created by their CTO.

Insights into Achieving Viral Growth

The discussion shifts to what it takes to reach number one in app downloads; current estimates suggest 80,000 to 300,000 installs may be necessary due to increased competition from ad spending.

The speaker emphasizes insights gained from previous apps and user feedback that led them to identify a significant trend among teens using Snapchat for anonymous messaging.

Identifying Latent Demand

A senior high school student introduces the concept of TBH (To Be Honest), which inspires the speaker's idea for an app focused on positive feedback rather than negative messages.

Noticing that Sarahah—a top app—was entirely in Arabic signals strong demand for anonymous messaging platforms despite its negative implications.

Creating Positive User Experiences

The speaker advises founders on recognizing latent demand and building products around users' motivations while avoiding harmful outcomes associated with anonymity.

By designing polls that only allow positive feedback, they aim to create an uplifting experience compared to other anonymous apps known for bullying.

Explosive Adoption Metrics

Scaling Challenges and Growth Strategies

The Decision to Scale

The decision to scale servers was controversial within the company, as it involved turning off a functioning system. However, the speaker believed that if the app worked well in several schools, it could be relaunched successfully.

Marketing Strategies for Viral Growth

A leaked memo revealed that effective marketing requires repeated exposure; users need to see a marketing message about three times before downloading an app. Targeted ads were used during testing phases at specific schools.

To encourage synchronous adoption within schools, a dedicated Instagram account was created. High schoolers often include their school in their bios, which helped in following and engaging with them effectively.

Initial user acquisition involved following students on social media to gauge product viability. This method was crucial for understanding whether the app had potential without relying solely on organic growth.

Testing and Feedback Mechanisms

Founders are encouraged to eliminate confounding variables during tests to accurately assess product performance. Ensuring enough initial users can help determine if the app meets user needs effectively.

It is vital for founders to test the best possible version of their product, even if it requires significant manual effort. This approach helps ascertain genuine user interest and value derived from the app.

Customer Support as a Growth Tool

Implementing 24/7 live chat support may seem counterintuitive but provides users with exceptional service while also serving as a valuable feedback mechanism for improving features based on real-time user input.

Continuous feedback collection through customer support allows teams to stay informed about user experiences and adapt quickly, ensuring positive promotion of the app among peers.

Lessons from Rapid Scaling

First-time founders often underestimate how chaotic scaling can be; systems may break frequently requiring constant updates and replacements. Prioritization becomes essential amidst this chaos.

Geofencing strategies were implemented to manage growth effectively by controlling access and preventing crashes during rapid scaling phases.

Understanding product-market fit involves recognizing when things start breaking due to high demand; clear indicators exist when products resonate strongly with consumers.

What It's Like to Sell a Startup and Work at Facebook

Selling TBH and Joining Facebook

The speaker discusses the unique metric of "hourly actives per day" as an indicator of product-market fit, emphasizing its clarity in understanding user engagement.

Selling the company was described as one of the most draining experiences for a founder, highlighting the disparity between their small team and Facebook's extensive M&A team.

Upon meeting with Facebook, the speaker recalls their modest office setup, which surprised Facebook's team given that they had just sold a top app in the U.S.

Transitioning to Facebook marked the speaker's first job experience; they were assigned as a product manager without fully understanding what that entailed initially.

Experience at Facebook

The workplace environment at Facebook is likened to an academic setting focused on social network development, showcasing rigorous studies on user retention and daily active users (DAU).

The speaker notes a disconnect between their design skills and product management role within a large tech company, feeling detached from hands-on design processes.

Despite enjoying the academic approach to growth strategies, they felt their core design skills diminished over time due to lack of involvement in actual design work.

Challenges of Product Development

While working on new products at Facebook, the speaker built multiple standalone apps but faced challenges presenting innovative ideas within corporate structures.

They express concerns about honesty in discussions around new app ideas, noting that some concepts may not be well-received by seasoned professionals during meetings.

Insights on App Adoption Motivations

The discussion touches upon why people download apps: primarily for financial gain or savings, finding relationships, or escaping reality through entertainment platforms like Netflix or Fortnite.

Presenting nuanced motivations for app adoption can be challenging within large companies where personal reputations are tied to project outcomes.

Distribution Advantages vs. Startup Flexibility

Understanding the Challenges of Innovation in Large Companies

The Perception of Competition from Big Tech

Many founders believe that creating a social app is straightforward, but they often underestimate the challenges posed by established companies like Facebook and Instagram.

Incumbents may take longer to respond to new market opportunities than many assume, which can provide an opening for startups.

Response Time to Market Signals

Large companies typically require 12 to 24 months to react to competitive threats due to their internal processes and decision-making structures.

The complexity of aligning teams around new ideas makes it difficult for large organizations to pivot quickly in response to emerging trends or successful apps.

Internal Incentives and Risk Aversion

Employees within large firms are often focused on personal performance metrics, such as bonuses and reviews, which discourages them from proposing innovative ideas without strong market signals.

Presenting vague concepts in meetings can be risky; employees prefer backing ideas with solid data rather than abstract notions. This leads many teams to favor copying existing products over pursuing original concepts.

Product Management Dynamics

The role of product managers (PMs) in large tech companies is often limited; they may not engage deeply with design or product development but instead focus on administrative tasks and approvals across departments.

Companies like Snapchat and Apple have seen success by allowing designers more control over the product development process, leading to innovative outcomes despite potential organizational challenges.

Balancing Roles Within Organizations

Insights on Product Management and Startup Culture

The Role of Product Managers in Startups

Emphasizes the importance of product managers in shaping consumer products, stating that they should be deeply involved in designing every aspect, from hierarchy to pixel details.

Notes a distinction between smaller initiatives and larger growth projects, suggesting that product managers may have less direct involvement with the finer details in bigger teams.

Unique Experiences at Facebook

Shares an anecdote about being seated near Mark Zuckerberg when joining Facebook's new product experimentation group, providing insight into the inner workings of the company.

Discusses a humorous artifact—a pop art painting of Tim Cook—that symbolized Apple's influence over their work environment and was eventually requested to be removed due to its implications.

Transitioning from Facebook to New Ventures

Reflects on leaving Facebook and the pressure felt as a "one-hit wonder," motivating him to prove his capabilities by starting another venture.

Describes initial intentions to create a scalable venture-backed company after leaving Facebook, sharing ideas privately before generating public interest through social media.

Viral Moments and Market Dynamics

Explains how a meme emerged around his potential app without having launched anything yet; this viral moment created significant buzz despite no actual product being available.

Highlights market conditions affecting startup decisions, including economic downturns leading him to reconsider monetization strategies for previous projects like tbh (To Be Honest).

Rebuilding tbh: Lessons Learned

Contemplates whether monetizing tbh could have yielded greater success than its eventual acquisition; reflects on user demand for features like revealing poll senders.

Growth Challenges and Ethical Considerations in App Development

The Transition from tbh to Gas

The app's previous version, tbh, did not send texts when users voted in polls, as doing so would be illegal and unethical. This led to a decrease in user engagement when transitioning to Gas.

The development of Gas required a complete overhaul of growth systems, including multiple launches and renaming the app, marking it as a zero-to-one development cycle.

Critics often claim that the creator merely replicated the same app; however, significant changes were made to infrastructure and team dynamics.

Overcoming Growth Hurdles

Each stage of growth presented unique challenges such as ensuring message spread within schools and across different institutions while adhering to legal compliance.

Founders often overlook ethical considerations in their growth strategies; the speaker emphasizes the importance of transparency and responsible use of user data.

Ethical Design Philosophy

The speaker likens the internet's response to unethical practices to the Gaia Hypothesis, suggesting that negative actions against users will lead to repercussions for companies.

A commitment to positive user experiences is crucial; this includes designing systems that promote healthy interactions among teens rather than exploitative tactics.

Positive Impact on Users

Despite criticisms about fostering insecurity among teens, Gas has received messages from users expressing gratitude for its positive affirmations which have helped them reconsider self-harm.

Unlike other social networks that can induce jealousy or negativity, Gas focuses solely on uplifting communication by ensuring all users receive votes through an equitable system.

Addressing Misinformation and Hoaxes

A hoax emerged claiming that Gas was linked to human trafficking; this misinformation threatened the app's reputation despite its benign purpose of sending compliments anonymously.

The Journey of Building the Gas App

Overcoming a Hoax

The creator of the Gas app initially believed it would fail quickly but decided to fight against false claims linking the app to human trafficking.

They worked with journalists to ensure accurate headlines, leading to a prominent Washington Post article clarifying that the app was not associated with human trafficking.

Despite facing significant user account deletions (3% daily), they managed to reduce this figure to 0.1% through persistent efforts, including creating informative TikTok videos.

The creator described the situation as both challenging and absurd, highlighting how unexpected hoaxes can arise during rapid growth phases.

Managing Growth and Crisis

During this tumultuous period, the creator only slept three hours a day for three months while managing server stability and scaling operations.

They strategically engaged investors by insisting on celebrity endorsements to counteract negative publicity surrounding the app.

Networking played a crucial role; they reached out directly to TikTok's CEO for assistance in removing misleading content about their app.

Success Metrics and Financial Strategy

The Gas app achieved remarkable success with $11 million in sales and 10 million downloads, surpassing previous apps like tbh.

Operating primarily on startup credits allowed them to maintain cash flow without external investors, showcasing tactical financial management.

Lessons Learned from Product Development

Reflecting on their experience, key lessons included validating product features sequentially rather than attempting simultaneous improvements across all areas.

Focusing intensely on perfecting one aspect of product development at a time helps avoid scope creep and ensures clearer feedback signals from users.

Strategic Insights for Future Startups

How a Viral Hoax Impacted an App's Success

The Emergence of the Hoax

The discussion begins with the importance of testing and learning quickly in product development.

A viral message on Snapchat warned users against downloading the Gas app, claiming it was linked to human trafficking. This message gained traction through multiple screenshots shared by users.

Initial reactions from the team downplayed the threat, but concerns grew as negative reviews flooded the App Store, labeling the app as dangerous.

Rebranding Efforts

After realizing the severity of the situation, they attempted to rebrand and relaunch the app under a different name in another region.

Despite initial success with this strategy, misinformation spread again when users connected across states, reigniting fears about human trafficking associated with the app.

Insights on Naming and Branding

Previous names for the app included "Crush" and "Melt." Testing revealed that "Crush" had lower invitation rates due to its feminine branding.

To appeal more broadly, they changed their branding to a more masculine aesthetic with a black flame icon and renamed it "Gas," which significantly improved user engagement.

Challenges in Building Durable Consumer Apps

Questions arise about whether it's possible to create durable consumer apps amidst fleeting trends. Notable figures like Scott Belsky have commented on this phenomenon.

Existing communication platforms have established strong network effects, making it challenging for new entrants to provide superior experiences without significant innovation.

The Nature of Growth vs. Durability

Retention in consumer social apps is often random; successful products are rare occurrences rather than predictable outcomes.

While growing an app can be approached scientifically through marketing strategies, creating something lasting remains elusive and often relies on unpredictable factors.

Personal Motivations Behind Product Development

The speaker expresses a passion for rapid product development and witnessing immediate impact—seeing an app go viral is described as an exhilarating experience.

Insights on Quality of Life and Business Management

Balancing Impact and Personal Satisfaction

The speaker reflects on their quality of life, emphasizing the satisfaction derived from building a high-impact product that positively affects teens while also generating decent income.

They express a preference for maintaining a fun work environment over managing a large organization, indicating that financial success does not necessarily equate to personal fulfillment.

Future Aspirations in Business

The speaker acknowledges the challenges of creating a successful consumer app, noting the difficulty in achieving lasting growth. They express interest in potentially running a venture-scale business but are cautious about long-term commitments.

They highlight concerns regarding the dilution of founder equity through multiple funding rounds, suggesting that some founders may end up with comparable returns to those achieved through less intensive efforts.

Navigating Venture Funding Decisions

Lean Operations vs. Large Corporations

The speaker discusses the possibility of pursuing venture funding under specific operating principles, favoring lean team structures similar to those employed by successful entrepreneurs like Elon Musk.

Consumer App Development Insights

Rapid Fire Advice on Building Successful Apps

A segment begins focusing on practical advice for developing consumer apps, highlighting key insights shared by Nikita regarding app growth strategies.

Changes in Contact Permissions (iOS 18)

The introduction of new contact permissions is discussed as a significant challenge for app developers, making it harder for users to invite friends due to lower consent rates and cumbersome selection processes.

The speaker predicts difficulties in establishing social connections within apps moving forward and suggests that companies must rethink their approach to contact synchronization.

Importance of User Experience

Emphasizing user engagement, they stress the necessity of delivering immediate value—referred to as "the aha moment"—within seconds of using an app. This is crucial given diminishing attention spans among users.

How to Achieve Rapid User Activation

The Importance of Aha Moments

The speaker emphasizes the need for a memorable and iconic way to expose users to an "aha moment" quickly, suggesting that this should be a primary focus when developing a product.

A case study is shared about a product called Dupe.com, which successfully went viral after implementing a simple URL trick, leading to significant revenue growth in under 60 days.

Success Rates and Insights

The speaker notes that while achieving success can happen about 50% of the time, there are also instances of outright failure due to the unpredictable nature of consumer behavior.

A key insight is highlighted: aiming for a three-second time-to-value is crucial for user activation.

Crafting Effective Onboarding Experiences

Effective onboarding requires ruthless design choices; cutting unnecessary features can enhance user experience and speed up activation.

Exceptional product people leverage APIs creatively, using non-traditional methods (like contact sync) to provide immediate value and facilitate user engagement.

Common Pitfalls in User Engagement

Founders often underestimate the complexity of user engagement by relying on unrealistic methods like username exchanges instead of simpler solutions that require fewer actions from users.

Analyzing User Behavior for Growth

When advising startups, the speaker reviews analytics closely to identify barriers preventing users from reaching activation milestones.

There’s an emphasis on integrating marketing with product growth strategies; both should align seamlessly to create effective user acquisition funnels.

Working with Startups: Strategies and Goals

The speaker works primarily with consumer mobile companies at various stages but recommends seeking advice only if venture-backed due to cost considerations.

Growth Hacks and Insights from Nikita

Building Successful Apps and Growth Strategies

Nikita shares his experience in building apps, highlighting the growth hacks he has developed over the years that remain largely unknown to others.

He mentions advising Saturn and rebuilding their Friend Finder, which has achieved a top position in the productivity section, surpassing ChatGPT.

Nikita indicates that he invests in about 10% of the companies that seek his advice, showcasing his selective involvement in startups.

Value of Expert Advice

The conversation emphasizes the value of expert guidance for companies with cash, suggesting that hiring someone like Nikita is a worthwhile investment.

There is an acknowledgment of demand for Nikita's expertise, with a suggestion that he may be undercharging for his services.

Personal Insights and Perceptions

A personal reflection on Nikita’s character reveals him as thoughtful and kind, contrasting public perceptions of him on social media.

The discussion highlights how Nikita's advice is grounded in real experiences rather than theoretical musings.

Future Endeavors and Engagement

When asked about current projects, Nikita teases upcoming work but remains vague, encouraging listeners to stay tuned for more information.

Engaging with the Audience

As a final note, listeners are encouraged to follow Nikita on Twitter to engage with his content and enjoy his posts.