You post a TikTok about your new app. It goes viral, getting millions of views and bringing in tens of thousands of users (for free!).
That's the dream, right? But it can quickly become a nightmare. Let's talk about the "TikTok spike" 🧵
Lately, I've seen a number of consumer companies post app demo videos on TikTok, and have them completely (and unexpectedly) blow up!
The TikTok algo is unique in that you don't need followers to have your content boosted. You can get millions of views on a brand new account.
But like a ProductHunt or TechCrunch spike, TikTok virality raises Qs about how "real" your traction is - & on a much larger scale, given TikTok's audience!
Why? Imagine you're raising $ for an app w/ 100k downloads, with 50% from a TikTok video. Here's what I'm worried about 👇
1/ The growth is often not sustainable. A few days post-viral video, you'll see downloads, DAUs, and MAUs fall.
It's easy to get investors excited when your charts are up and to the right, but this could be short-lived. Are there viral loops within the app to keep growth going?
2/ "TikTok cohort" quality is often low. These users tend to be higher churn + lower engagement, and can actually make your aggregate metrics worse.
This is particularly true for apps reliant on density (geo or social group), as viral videos tend to pull in unconnected users.
3/ Your product may not be ready for primetime. Going viral with an app that's buggy, crashes, or doesn't yet "hook" users is tough. You get one first impression!
These users will churn or leave negative reviews, and you'll have to fight to change perception when you re-launch.
So, how CAN you use TikTok? 1) Build a pre-launch audience around your vision. You may even recruit team members! 2) Send users to a waitlist to collect info on their needs, and find beta testers. 3) Lurk! Let the algo help you find users to partner with/target when you're ready.
If you do have a "TikTok spike," split out growth and engagement for these users in investor convos. Show your data with & ex-TikTok. It helps us understand you're thinking about this, too!
What am I missing? Would love to hear from founders who've found success on TikTok.
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It was March 26, 2012, and Brian Armstrong was desperate.
YC apps were due in 3 days. Despite some close calls, he had no co-founder for his "PayPal for BTC" idea.
5 months later, Brian was still solo. But he did have a product, growing at 20%...per day!
How did he do it?🧵
The company, of course, became Coinbase. And Brian did find a co-founder later in 2012 (on Reddit!).
In the meantime, he pulled off an incredible debut - reaching thousands of users & $65K in transaction volume in 5 weeks.
Three lessons from the Coinbase launch👇
1⃣You aren't launching in a vacuum.
In summer 2012, interest in BTC was rising - but hacks/thefts were rampant.
Coinbase messaging played up the company's YC backing (which brought major cred) & Brian's fraud prevention background - which made it a more trusted alternative.