Last week I got the chance to pick Daniel Sim's brain on the opportunities he's seeing related to Shopify apps.

What he shared is pure gold. 👇
The default advice that's shared over and over again is this:

"Search for merchant problems and build an app that solves them"

It's of course great if you can find something that way. But how exactly do you find merchant problems worth solving?
You could reach out and ask a few store owners what problems they're struggling with.

However, there are plenty of pitfalls and asking the right questions is an art in itself.

(Book tip: The Mom Test by @robfitz).
Also for introverts like me, talking to lots of strangers is an extremely energy-draining activity. So this is definitely not everyone's cup of tea.
Another possibility is that you start your own Shopify store and then build something for yourself. But if your primary goal is to develop Shopify apps that's a huge detour and even then there's no guarantee you'll encounter a problem worth solving.
So while the default advice is certainly great if you can make it work, it's not as easy as people often make it seem.

Luckily there are lots of other good ways to discover opportunities no-one talks about.
A great way to get started is to look for underserved categories. Here's how you can find them.
Daniel recommends the following trick to find out how popular a given app is.
Once you've found a category, can see a way how you can compete with the big winners and have some understanding why the apps with just a handful of reviews are not as successful, you could be onto a winner.
While categories are interesting, this is not how users usually discover new apps. Instead, like anywhere else, the search bar is king. The majority of apps are discovered on the app store by keyword search, not browsing.
Wouldn't it be great if we knew the most popular keywords merchants are searching for? Daniel shared the following trick to discover those:
Technology is not static. The Shopify platform has a steady flow of changes that affect merchants (e.g. subscriptions and post-purchase upsell APIs).

When something changes or a new thing comes out, the apps that exploit it do well since there aren't many competitors.
To stay ahead of the curve, Daniel recommends the following resources:

- shopify.dev/changelog
- events.shopify.com/partnertownhall
- shopify.dev/concepts/about…
Another strategy he shared is to look for underoptimized popular apps.

The app store has been around for a long time now. There are some apps that have gotten fat and lazy. They've neglected support, features are falling behind, or there are now better ways of doing what they do
You can find them by searching for apps that are slowly but steadily moving down in the "All Apps" rankings.

Other signs to look out for are reviews slowing down, bad reviews accumulating, or a neglected app listing.
Daniel created a database that makes it easy to find underserved subcategories and keywords, underoptimized popular apps, and to understand what's gaining and falling in popularity. But so far he kept all this data for himself.
When he first showed it to me, I was blown away and I'm really happy that I finally managed to convince him to share it with others.

You can get access here.

gumroad.com/l/shopify-app-…
Note that I don't get any form of compensation for writing this. I just genuinely think that Daniel's database is amazing.
Thanks for reading!

Make sure to follow Daniel here on Twitter: @drsim.

And if you enjoyed this thread, you might like my newsletter where I regularly share stuff like this.

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More from @jakobgreenfeld

1 Jun
Since selling his app business for a life-changing sum, Daniel Sim has monitored the Shopify app acquisition industry like no one else.

Here's what I learned from him about what going on right now 👇
Getting from zero to one on a new app if you have no audience is hard.

You can skip that by buying an existing app (e.g. on MicroAcquire) if you can get the numbers to work. (That's a big if.)
The sub-$500k space for Shopify apps is seeing extremely high multiples.

That means if you're just buying these apps for a financial return it's going to take a long time and has a lot of risk.
Read 8 tweets
31 May
I've seen a lot of hype for Arvid Kahl's new book The Embedded Entrepreneur, so here's my non-hypey review.

Overall I'd rate it at a 6/10. Some thoughts below 👇

(Not trying to pick a fight or anything. Just thought that something that's not just pure hype might be helpful.)
The book's working title was Audience First and I'm the guy who wrote that "Build a business, not an audience" essay, so I was of course curious.

I think I'm exactly in the target audience since I've dedicated this year to learning how to bootstrap a sustainable business.
There are two types of non-fiction books:

- Books that were written because the author has something to say.
- Books that were written because the author wanted to write a book.

Lots of gray in-between the two but to me Arvid's book felt closer to the second category.
Read 13 tweets
25 May
A while ago I asked: Why is there no Shopify for SaaS?

Travis Fischer commented that he'd tried to build just that but it never really took off. I wanted to understand why and we scheduled a call.

Here's what I learned 👇

Spoiler: still convinced this is a huge opportunity.
First of all, what does Shopify for SaaS even mean?

When you want to sell a digital product you can focus solely on the product and marketing since platforms like Gumroad handle all the rest.

It all works right out of the box and takes less than 5 minutes to set up.
The same is true for physical products.

Of course you have to find a way to source the products and market them, but Shopify handles everything else.
Read 27 tweets
8 Apr
Inspired by @ShaanVP I recently changed my content strategy, and it definitely works.

In a nutshell:

• focus on "blockbusters", Twitter is hit-driven, consistency is overrated
• always start with a viral emotion - WOW, LOL, WTF, AWW, EPIC, NSFW, OHH, FINALLY
@ShaanVP Shaan explains it in this clip from the MfM podcast

Also Chris wrote in more detail about it here

Read 6 tweets
27 Feb
Has anyone written a good book on taxes and legal stuff indie makers and online entrepreneurs should know about?

What rules and laws are important if you're selling products globally?

When does it make sense to think about incorporating abroad? What are the benefits?
There are so many common misunderstandings and it's extremely cumbersome to find reliable information.

Even without any kind of tax optimization, it's incredibly hard to do things properly.
Standard advice is "talk to an accountant".

But you know what? 95% of all accounts regular people can afford have no clue. They don't understand small tech businesses and at the rates you can afford to pay, they don't do proper research.
Read 15 tweets
27 Feb
This is a fascinating topic.

It's fashionable to say that "passive income doesn't exist".

But how much of the work you're doing is actually necessary vs. stuff you do to keep you busy or justify the money you're making?

(I certainly need to ask myself this more often.)
What would Pieter's revenue look like if all he did was maintenance?

What would Facebook look like if they'd focused on their core product instead of working on dozens of shiny new features?

(We don't have access to parallel universes, so no one really knows.)
I often wonder what all these software engineers at tech companies are doing all day. Maintenance and infrastructure work is probably only a tiny part.

Most of the time, servers keep running without human supervision.

So I guess it's mostly working on new features?!
Read 8 tweets

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