Two entrepreneurs scaled from $0 to $300M+ in revenue and were Cash Flow positive from day 1… 👇
After graduation, Acton Smith started a company selling toys and gadgets online.
Meanwhile, his friend, Alex Tew was becoming an internet celebrity by building the Million Dollar Homepage.
This shared passion for entrepreneurship made them fast friends.
Meanwhile, his friend, Alex Tew was becoming an internet celebrity by building the Million Dollar Homepage.
This shared passion for entrepreneurship made them fast friends.
Despite starting 3 successful companies with exit opportunities, Acton Smith found himself stressed and with little motivation to keep working.
His friend, Alex Tew, suggested he tried meditation.
That was the start of Calm. It started as a simple website.
His friend, Alex Tew, suggested he tried meditation.
That was the start of Calm. It started as a simple website.
Calm App was created in 2012 between Acton Smith and Alex Tew. But they were late to the party...
Their biggest competitor, Headspace, had raised $75M in funding and had 150 employees, while Calm remained at only $3M with 20 people on their team.
Yet, within 7 years...
Their biggest competitor, Headspace, had raised $75M in funding and had 150 employees, while Calm remained at only $3M with 20 people on their team.
Yet, within 7 years...
Calm surpassed Headspace and is growing faster... Source: business of apps. How did they do it? Here are the lessons I learned... 
1) Figure out what your customers want.
Early on, Calm noticed a weird pattern in their data. Usage spiked between 9-11pm each night. Then it hit them: users were using the app for SLEEP.
They pivoted the whole business based on this insight and started crowing quickly.
Early on, Calm noticed a weird pattern in their data. Usage spiked between 9-11pm each night. Then it hit them: users were using the app for SLEEP.
They pivoted the whole business based on this insight and started crowing quickly.
The beauty of any internet biz is analytics.
Every single thing your customer does, you can track.
You can see WHEN, HOW, and WHO is using your product. Use this data consistently to better tailor your product.
Every single thing your customer does, you can track.
You can see WHEN, HOW, and WHO is using your product. Use this data consistently to better tailor your product.
2) Freemium + Investing in your paid experience = magic.
We all know the freemium model can work.
Calm has been able to grow their free to paid sub rate from 2% to 5% over the years.
How? They’ve kept the free experience the same while significantly improving the paid product.
We all know the freemium model can work.
Calm has been able to grow their free to paid sub rate from 2% to 5% over the years.
How? They’ve kept the free experience the same while significantly improving the paid product.
3) Annual billing can fund your growth.
Most subscription COs charge monthly.
Calm charges annually: $70. This fee funds marketing costs, tech, content, etc. After that, renewals are pure profit.
Calm has the holy grail of negative CCC!
Most subscription COs charge monthly.
Calm charges annually: $70. This fee funds marketing costs, tech, content, etc. After that, renewals are pure profit.
Calm has the holy grail of negative CCC!
https://twitter.com/jspujji/status/1387812511064395780?s=20
4) Build a brand.
Calm early on used celebrities: Lebron as a spokesman. Matt McConaughey reading stories.
The founders of Calm think about the brand similar to Disney. Hotels? Branded products? An Island?! The name itself is winning: Calm
Brand is the ultimate moat.
Calm early on used celebrities: Lebron as a spokesman. Matt McConaughey reading stories.
The founders of Calm think about the brand similar to Disney. Hotels? Branded products? An Island?! The name itself is winning: Calm
Brand is the ultimate moat.
If you want to learn more and enjoyed this thread, follow me @jspujji and check out my new Business Breakdowns podcast with special guest (my brother) @VPujji where we dive deep into Calm. Such a cool story:
https://twitter.com/patrick_oshag/status/1392449397666074624?s=20
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