Nikita Bier Is Out Of Office

The Complexity of Growth in the Crypto Industry

Shifting Sentiment and Personal Impact

• The speaker reflects on the unpredictable nature of public sentiment regarding growth, particularly in the crypto industry, noting how quickly opinions can change.

• There is a discussion about X evolving into a financial network akin to a bank, highlighting concerns for its longevity and personal stakes involved for creators.

Introduction to Nikita Beer

• Michael McDano introduces Nikita Beer, head of product at X and former co-founder of Gas and TVH, emphasizing his significant role in the platform's development.

• The setting is established as McDano meets Beer in Roondo Beach, California, where they discuss Beer's background and experiences.

Growing Up in South Bay

Local Culture and Personal Background

• Beer describes South Bay as an isolated yet beautiful area with low crime rates and great weather, contributing to a strong local community.

• Despite being surrounded by surf culture, Beer admits he was not part of it; instead, he spent much time online due to limited activities available locally.

Early Internet Experiences

Learning Through Exploration

• At age five, Beer received his first computer which led him down a path of rule-breaking activities like pirating video games and coupon counterfeiting.

• He credits this period with teaching him critical thinking skills about how systems work and developing an adversarial mindset essential for building consumer software.

Growth Strategies through Adversity

Applying Adversarial Thinking to Growth

• The conversation shifts towards whether thinking like an adversary can also aid in achieving growth; understanding distribution challenges is crucial.

• Beer shares insights on using knowledge from spam filters to optimize outreach strategies effectively while acknowledging past experiences with phishing sites as valuable learning opportunities.

Hacking Culture and Technical Skills

Early Coding Experiences

• Beer discusses his early involvement with AOL hacking during the rise of internet communication tools like IRC and Usenet.

• Although not an expert coder, he learned enough PHP and JavaScript during this time to navigate web development challenges.

Entry into Tech and Product Development

Early Influences and Education

• The speaker reflects on their journey into technology, emphasizing a long-standing desire to build internet products despite initial distractions during their education at Berkeley.

• In high school, the speaker felt pressure to pursue traditional career paths like law or consulting, which they ultimately decided against, believing it would have been a mistake.

Experience at X

• The speaker describes their role at X as the hardest job they've ever undertaken but also one of the most interesting due to their long-term use of the product.

• They consider X as a crucial communication platform in history, likening it to a global town square where significant news breaks and influential figures gather.

Challenges and Team Dynamics

• The small size of the engineering team (about 30 core product engineers) creates an environment similar to that of a startup with minimal communication overhead.

• Daily crises are common; for instance, the speaker mentions dealing with unexpected controversies that arise frequently.

Growth Strategies and Initial Impact

Revitalizing User Engagement

• Upon joining X, there was concern about its relevance among younger users. The focus was on rejuvenating growth by attracting new generations.

• A comprehensive audit of user acquisition funnels was conducted alongside various growth hacks aimed at increasing app downloads.

Achievements in Growth Metrics

• Within 30 days of implementing strategies, X's app store ranking improved significantly from number 78 to number 2, doubling download rates.

• This surge in growth not only benefited business metrics but also boosted team morale as they witnessed their efforts leading to tangible success.

Journey Towards Joining X

Transition from Advisor to Full-Time Role

• The speaker recounts their gradual transition towards joining X after initially advising them on product development while managing other commitments.

• Their reputation for providing valuable insights on consumer products led investors at XAI to seek their expertise for advisory roles.

Secret Projects and Remote Work

• An investor approached the speaker regarding a confidential project requiring assistance while they were traveling abroad; this involved late-night calls coordinating efforts remotely.

• Focus areas included integrating AI capabilities with existing features on X, showcasing how strategic advice could enhance user engagement.

Growth and Development at XAI

Rapid Expansion of the Company

• The speaker discusses the rapid growth of the company, noting that the team size doubled between meetings.

• The engineering team expanded quickly, with significant infrastructure developments like the Colossus data center completed in just two months.

Collaboration with Elon Musk

• The speaker expresses excitement about being contacted by leaders from X and XAI for assistance on projects.

• Elon Musk reached out via direct message on X, leading to a spontaneous trip to Palo Alto for discussions about potential collaboration.

Initial Engagement and Project Kickoff

• During an early morning meeting, Elon encouraged immediate action on projects, effectively turning it into an informal interview.

• The speaker enlisted a designer to collaborate on redesigning the onboarding flow for the X app over a weekend.

Product Development Insights

• After presenting a prototype of the onboarding flow to Elon, he approved moving forward with it, marking a successful test of ideas.

• The speaker reflects on their extensive experience in consumer product development and how they applied this knowledge to optimize user onboarding processes.

Importance of User Experience

• The speaker believes their presence as an active user on the platform influenced Elon's decision to hire them but emphasizes that understanding user experience is crucial for product development.

• They highlight that consumer product development involves running experiments rather than following strict playbooks due to its complexity.

Feedback Loop and Community Engagement

• Being an active user allows for immediate feedback after launching new features, creating a responsive development cycle.

• The approach taken includes sharing early ideas with users to gather feedback before finalizing features, ensuring precision in launches.

Challenges of Visibility and Responsibility

• The role comes with challenges such as managing customer support for millions while being highly visible within the community.

• Acknowledging potential risks associated with visibility, including threats and safety concerns related to being responsible for platform changes.

Professional and Personal Risks in Leadership

Navigating Professional Challenges

• The speaker reflects on the professional risks associated with their role, emphasizing the potential consequences if their project (X) does not resonate with users.

• They acknowledge that operating at scale attracts extreme reactions from individuals online, highlighting the unpredictable nature of internet dynamics.

• Despite challenges, the speaker believes they have a strong understanding of their community and has earned user respect through various initiatives.

Accountability and Oversight

• The speaker discusses their limited oversight over certain areas, particularly algorithms managed by XAI, while still feeling accountable for overall performance.

• They actively seek feedback regarding algorithm performance and meet weekly to compile user sentiments about timeline experiences.

Algorithm Changes and User Experience

• A significant change involved rebuilding the algorithm from scratch during a critical period in the company's history, likened to changing an engine mid-flight.

• Post-migration engagement levels exceeded previous records, indicating successful adaptation despite initial concerns about user experience.

Community Reactions and Cultural Sensitivity

Adapting to User Expectations

• The speaker notes that long-term users may struggle with changes due to familiarity with the platform's original functionality.

• They recount an incident where algorithm adjustments led to backlash from crypto Twitter (CT), illustrating how minor changes can escalate into larger controversies.

Humor Amidst Criticism

• The speaker finds humor in memes created around them during this controversy, showcasing resilience against public scrutiny.

Shifting Sentiment in Crypto Culture

• They describe how quickly public sentiment can shift on social media platforms; one week they were criticized for impacting crypto negatively, but by week's end were viewed as a hero.

Strategic Initiatives and Community Engagement

Enhancements for User Benefit

• The speaker highlights upcoming initiatives aimed at benefiting the crypto community, including real-time financial data integration into timelines.

Addressing Spam Issues

• A major success was blocking a form of spam known as Infoi that had been proliferating on the platform. This action significantly reduced unwanted content across replies.

Understanding the Evolution of X and Its Community

The Importance of Community and Intentions

• The rapid news cycle has shifted sentiments, but there is a genuine effort to improve the platform. The speaker emphasizes their commitment to ensuring X survives long-term.

• As a creator on X, personal stakes are high; if the platform fails, they face direct consequences, highlighting the mission-oriented nature of their work.

Discovering Niche Communities

• The speaker's journey on X began in 2012 but deepened around 2016-2017 when they explored various interests leading to significant audience growth from 5,000 to nearly 800,000 followers.

• They discovered that every niche is represented on X by diving deeper into specific communities like tech Twitter and consumer internet, showcasing the platform's diversity.

Enhancing User Experience with Starter Packs

• A vision for community building includes helping users find like-minded individuals (e.g., plumbers), which is challenging due to the affinity-based nature of X.

• Starter packs were developed as a feature based on discussions with mentor Josh Elman, aimed at improving user onboarding by connecting them with relevant communities.

Impact of Starter Packs

• Since launching starter packs, there has been a remarkable increase in time spent in-app for new users—doubling engagement metrics significantly.

• This feature has particularly benefited non-English-speaking countries by providing tailored content such as Peruvian politics.

Onboarding Challenges and Feedback

• Effective onboarding involves selecting interests based on location; however, initial feedback was mixed—50% loved it while 50% disliked it. Data showed positive results despite varied opinions.

Addressing Identity Verification Issues

Free Speech vs. Authenticity

• X positions itself as a social network that champions free speech while grappling with identity verification challenges to prevent manipulation within discourse.

Balancing Mission and User Trust

• Users must verify authenticity without compromising free speech principles. This balance is crucial for maintaining trust in what people read and ensuring diverse perspectives are accurately represented.

Free Speech and Misinformation on X

The Challenge of Authenticity

• Discussion on the inherent conflict between free speech and the potential for misinformation, emphasizing the need for authentic content on platforms like X.

• Introduction of a feature suggested by users aimed at revealing the country of origin of posts to help users assess authenticity, particularly in political contexts.

Addressing Political Misinformation

• The feature is designed to combat political misinformation by allowing users to verify if a post originates from someone with relevant stakes in the issue.

• Historical context provided about X's previous allowance for pseudonymous accounts, leading to challenges in verifying user identities.

Privacy and Verification Challenges

• Emphasis on balancing privacy safeguards while ensuring transparency regarding content origins; introduction of a region toggle feature.

• Technical difficulties discussed regarding location verification due to VPN usage, highlighting the complexity of maintaining user privacy while ensuring authenticity.

Unmasking Deceptive Accounts

• Launching the new feature revealed numerous deceptive accounts masquerading as legitimate users, including notable examples like an Ivanka Trump fan club account based in Nigeria.

• Acknowledgment of unsettling discoveries within internal operations regarding account authenticity and identity misrepresentation.

Enhancing Transparency

• Exploration of additional methods for providing transparency beyond country of origin, such as community notes that allow collective input on content validity.

• Mention of Grock as a complementary tool for verifying information alongside X's features, reinforcing their shared mission towards truth-seeking.

The Future of AI and Content Verification

Human vs. AI Generated Content

• Discussion around challenges posed by AI-generated content; difficulty in distinguishing human-written posts from those generated by AI tools.

• Recognition that many users utilize AI to enhance their writing, complicating efforts to define clear boundaries between human and machine-generated content.

Aligning Interests for Solutions

• Importance highlighted regarding alignment between companies developing frontier AI models and social media platforms like X to address these challenges effectively.

Ongoing Challenges with Content Regulation

• Acknowledgment that identifying AI-generated content is becoming increasingly difficult; ongoing discussions about how best to manage this evolving landscape.

Link Posting Dynamics on X

The Controversy Surrounding Links

• Overview of longstanding debates about link posting practices on social networks; concerns over links potentially diverting traffic away from platforms.

Understanding Engagement on Social Media Platforms

The Challenge of Links in Social Media

• Social media platforms like Instagram and TikTok restrict links in captions to keep users engaged within the app, as external links can lead to decreased time spent on the platform.

• On X (formerly Twitter), when a link is opened, it blocks engagement buttons (like and comment), preventing user interaction while reading content, which affects the platform's ability to gauge content quality.

Innovations for User Engagement

• To address engagement issues, a new feature was designed allowing users to interact with posts while reading linked articles. This involved placing engagement options directly below the web view.

• Prototyping this feature led to increased link impressions without reducing overall time spent in the app, marking it as a significant success for both writers and readers.

Impact on Algorithm and Content Prioritization

• The new feature allowed X's algorithm to receive better signals about user engagement with links, leading to improved prioritization of such content rather than demotion due to lack of interaction.

• Previously, links were deprioritized because they took users off-platform; now, with visible engagement options during article reading, user interactions are captured effectively.

Development Insights and Personal Contributions

• Reflecting on changes made, it became clear that modifying core product features could significantly enhance user experience. Some development work was personally coded by the speaker using cloud code.

Working Under Elon Musk's Leadership

• The speaker shares insights about working at X under Elon Musk’s leadership: it's characterized by a flat organizational structure where many report directly to him.

• Unlike other companies where approvals take months, ideas can be built and deployed rapidly at X. Weekly reviews involve direct feedback from Musk himself.

Unique Approach to Problem-Solving

• Musk emphasizes tackling challenging problems over seeking quick wins. His focus on long-term solutions has contributed significantly to wealth creation across his ventures.

Building Miracles: The Power of Agency in Engineering

Empowering Engineers to Achieve the Impossible

• Hard tasks often seem impossible, but when engineers are given agency and tight deadlines (like two weeks), remarkable outcomes can occur.

• Small teams with minimal communication overhead can lead to extraordinary results, exemplified by building a data center in just two months instead of the projected two years.

The Impact of Elon Musk's Vision

• A unique incentive program allowed employees to visit Starbase for a rocket launch, highlighting the innovative culture fostered by Elon Musk.

• Starbase is described as a city built around the goal of reaching Mars, showcasing extensive infrastructure including factories and restaurants.

Innovations at X

• Exciting developments at X include new features like smart cash tags that provide real-time financial data and allow trading directly from timelines.

• The aim is to engage dormant users who primarily check for news by enhancing their experience with tailored content and onboarding flows.

Financial Services Integration

• Elon Musk envisions transforming X into a comprehensive financial network where banking services can be conducted on the platform.

• Focus has been on ensuring product-market fit for core features while gradually integrating financial functionalities into user experiences.

Enhancing User Engagement through Transactions

• There’s potential to merge financial features with creator compensation systems, incentivizing transactions within the platform.

• Users could eventually transact directly from their timelines based on recommendations, reflecting how sentiment on X influences purchasing decisions.

Revitalization of Advertising on X

• Since its acquisition, approximately 90% of advertisers have returned to X, recognizing its influence among key decision-makers and public opinion leaders.

Exploring the Journey of Building Viral Apps

The Beauty of the Strand and Personal Background

• The speaker introduces a visit to the Strand, highlighting its beauty and personal significance as a place where they grew up.

• They mention Palace Verdes as one of the most beautiful locations in LA, setting a nostalgic tone for their story.

Early Ventures: From Politify to TBH

• The speaker discusses starting their first company, TBH, after college, initially launching it as Politify—a tool analyzing presidential policies' financial impacts.

• While at Berkeley during their senior year, they realized their passion for building consumer products rather than pursuing law or consulting careers.

Pivoting from Politics to Consumer Apps

• After facing challenges with government contracts during a shutdown, they pivoted from selling software to creating consumer apps that resonated with users.

• Noticing teenagers on Snapchat sending compliments led them to develop TBH—an app designed for anonymous positive feedback among friends.

Unique Features and Impact of TBH

• TBH utilized polls for users to send anonymous compliments, focusing on positivity while avoiding bullying—a common issue with similar apps.

• The app quickly went viral within two weeks of launch and had significant emotional impact; users reported feeling valued and reconsidering self-harm due to affirmations received through the app.

Acquisition by Facebook and Launch Strategy

• Facebook acquired TBH just 30 days post-launch, illustrating the rapid success and appeal of the app in its early stages.

• The speaker reflects on how many viral apps have short lifespans but can still create meaningful societal value before fading away.

• Transitioning from a small team to working at Facebook marked a significant change in scale for the speaker's career.

Launching in Georgia: A Strategic Move

• They explain launching TBH in one school in Georgia was strategic; it allowed them to validate concepts within a concentrated group before expanding further.

• By flooding the school with targeted ads, they aimed to build enough user density necessary for social network effects.

How to Launch a Successful App: Insights from Experience

Strategies for App Launching

• The speaker discusses the importance of achieving critical mass by encouraging simultaneous downloads of their app across multiple schools, which served as a validation tool for product resonance.

• They emphasize that if the product resonates with users, it will grow organically, and they would test new products at various schools to gauge initial reactions.

• Within 48 hours of launching an app, they could determine its success. For TBH, they recognized its potential almost immediately after launch despite team fatigue.

Transitioning from Startup to Meta

• The speaker reflects on their experience working at Meta (formerly Facebook), noting the differences in operational dynamics compared to running a startup, including increased communication overhead and stakeholder management.

• They spent four years focusing on building social apps and advising platforms like Instagram and Messenger, appreciating the learning opportunities provided by such a large organization.

Recreating Success with Gas

• After leaving Meta, the speaker revisited a previous app concept with an engineer named Isaiah. They questioned whether monetization would have changed their trajectory had they pursued it earlier.

• The new app "Gas" retained similar optics but required reinvented growth mechanics due to changes in the social landscape since their last launch.

Learning from Past Experiences

• The speaker highlights their strength in developing social apps by ensuring users can easily connect with known contacts upon signing up.

• They launched Gas at the same school in Georgia five years later and noted that many new users had not experienced TBH before; however, it still gained traction quickly.

Rapid Growth and Acquisition Interest

• With lessons learned from TBH, Gas grew even faster than anticipated. This rapid growth attracted interest from companies like Discord within months of launch.

• Despite having no urgency to sell initially, they decided to capitalize on momentum when Discord expressed interest after successfully monetizing Gas through optional subscriptions generating $10 million in 90 days.

Unique Startup Dynamics

• The entire operation was run on free startup credits without salaries; equity was shared among team members instead.

• The narrative around selling a similar app twice emerged due to favorable circumstances aligning once again for the speaker's ventures.

Consulting on Growth: Insights from a Product Growth Expert

Transitioning to Consulting

• The speaker discusses stepping away from Discord and transitioning into consulting for growth, becoming a product growth expert.

• They began sharing their learnings on X since 2017, which helped them build a significant audience that sought advice on app development.

• A friend introduced them to Intro Rod, allowing the speaker to assist various startups in gaining exposure within the ecosystem.

Lessons Learned in Growth Strategies

• The speaker emphasizes that many lessons learned in growing social networks can apply to other products, highlighting hard-fought growth hacks.

• They share an example of advising an app called Bible Chat, which eventually surpassed their own app after implementing effective growth tactics.

Key Tactics for Achieving Virality

• The speaker notes there is no "silver bullet" for growth; they focus on maximizing every potential avenue for user engagement and virality.

• They explain the importance of achieving a K factor of 1.0 for true virality and discuss strategies like organic distribution and paid acquisition.

Understanding User Acquisition Funnels

• The discussion includes methods of user acquisition through referrals and one-to-many sharing techniques, emphasizing the need to unpack these funnels thoroughly.

• The speaker distinguishes between organic virality driven by product mechanics versus viral trends seen on platforms like TikTok.

Importance of App Positioning and Funnel Analysis

• In some cases, renaming an app can significantly improve its value proposition and conversion rates; they provide an example with a longevity app renamed from "Most Days" to "Dev Clock."

• Proper positioning leads to better understanding by users when landing on the app store page, ultimately resulting in higher installation rates.

Methodical Approach to Analyzing Growth Metrics

• The speaker highlights that many startups fail to methodically analyze their entire funnel, leading to unexpected drop-off points.

• They advocate starting at the top of the funnel by assessing install rates and tracking user interactions step-by-step for effective optimization.

Angel Investing and the Impact of AI on Startups

Journey into Angel Investing

• The speaker reflects on their journey in consulting, highlighting the valuable connections made during that year.

• They mention investing in a childhood friend's tech company, Spider Tech, which aimed to provide CRM solutions for police officers but did not succeed significantly.

• The friend later pivoted to a new venture called Aerodome, focusing on using drones for public safety. This company has gained traction with clients like Rodono Beach PD.

• The technology developed by Aerodome reportedly reduced car break-ins in San Francisco by 80%, showcasing its positive impact on community safety.

The Role of AI in App Development

• Discussion shifts to how AI is transforming app development, with engineers now acting more as conductors rather than traditional coders.

• There’s an observation that nontechnical individuals are increasingly able to create products that would have previously required extensive technical expertise.

• The speaker speculates about the future role of engineers, suggesting they will still be essential but may focus more on validating ideas quickly rather than extensive coding tasks.

Changes in Product Distribution Dynamics

• Concerns are raised about security when building production code; however, the validation process for new ideas is expected to accelerate significantly.

• A notable increase in app submissions to app stores is observed, indicating a surge in creativity and product personalization opportunities for niche markets.

• Previously economically unviable ideas can now find funding and development paths due to lower costs associated with app creation.

Personal Anecdote: Health Incident and Community Engagement

• A humorous personal story is shared about choking while eating fried chicken, leading to an unexpected diagnosis from community feedback online.

• The incident highlights the power of social media interactions and community support; it also serves as a marketing moment for X (formerly Twitter).

Conclusion of Interview Segment

• The conversation wraps up with gratitude expressed for sharing insights and experiences related to angel investing and technology's evolution.

Introduction to the Show

Overview of the Podcast

• Nikita Beer introduces the show and encourages listeners to subscribe or follow based on their platform.

• The podcast is produced by Lightseed and Pod People, indicating a collaborative effort in content creation.

• Listeners are invited to learn more about Lightseed through their social media handle @Lightseedevp.

• Personal engagement is encouraged as Nikita shares his own handle @Mcnano for followers interested in his updates.