You know TikTok.
It's one of the world's fastest growing apps...
They hit 3 billion downloads in July this year.
What's their secret?
And how did they grow faster than social media apps like FB and IG?
Here's the 4-part playbook on how TikTok built their platform so rapidly:
It's one of the world's fastest growing apps...
They hit 3 billion downloads in July this year.
What's their secret?
And how did they grow faster than social media apps like FB and IG?
Here's the 4-part playbook on how TikTok built their platform so rapidly:
Some background:
TikTok has reached 1 billion users faster than any other social media app.
Here's how they did it:
1. First be a paintbrush
2. Rapid feedback loops
3. Give everyone a shot at making it
4. Make a small group of people rich first
Let's breakdown each one.
TikTok has reached 1 billion users faster than any other social media app.
Here's how they did it:
1. First be a paintbrush
2. Rapid feedback loops
3. Give everyone a shot at making it
4. Make a small group of people rich first
Let's breakdown each one.
1. First be a paintbrush
“When you want to grow early on, you want to be a brush, meaning you have to be very specific.
Later you want to be a canvas...
And you want all kinds of things to happen on this blank canvas.”
Alex Zhu, Co-founder of Musicly
“When you want to grow early on, you want to be a brush, meaning you have to be very specific.
Later you want to be a canvas...
And you want all kinds of things to happen on this blank canvas.”
Alex Zhu, Co-founder of Musicly
TikTok started mainly as an innocent toy.
Young teens used their lip sync features to make cutesy videos of the latest pop culture music.
It was a tool that people would use to perform a single function.
Nothing more.
Young teens used their lip sync features to make cutesy videos of the latest pop culture music.
It was a tool that people would use to perform a single function.
Nothing more.
This is common in consumer tech platforms:
FB: simply a way for college students to connect and socialize.
IG: downloaded so users could beautify their photos with filters.
Youtube: a place for people to upload and host their videos, so it could be embedded.
See the pattern?
FB: simply a way for college students to connect and socialize.
IG: downloaded so users could beautify their photos with filters.
Youtube: a place for people to upload and host their videos, so it could be embedded.
See the pattern?
Once TikTok had a solid foothold of that niche market...
They were able to leverage it to expand their use cases and branch into:
- music
- memes
- video filters
- dance and entertainment
Hence expanding their market size almost “overnight”.
They were able to leverage it to expand their use cases and branch into:
- music
- memes
- video filters
- dance and entertainment
Hence expanding their market size almost “overnight”.
Such strategies are not unique to the tech world.
During World War 2:
The Allied forces decided to take the beachhead at Normandy (France).
Doing that allowed them to block the Nazi troops from accessing key military sites...
And also establish a presence in Northern Europe.
During World War 2:
The Allied forces decided to take the beachhead at Normandy (France).
Doing that allowed them to block the Nazi troops from accessing key military sites...
And also establish a presence in Northern Europe.
The powerful thing about beachheads:
They are small and insignificant at first.
Thus making them easy to underestimate.
Both Facebook and Tencent (who showed initial interest in this market) were slow to react to TikTok.
And by the time they did, it was too late.
They are small and insignificant at first.
Thus making them easy to underestimate.
Both Facebook and Tencent (who showed initial interest in this market) were slow to react to TikTok.
And by the time they did, it was too late.
To them (FB, Tencent)...
TikTok was nothing more than a fun toy that young teenage girls used to make silly videos.
So don’t look down on niche markets.
But taking a beachhead is only one of the many steps to building a platform business.
Which brings us to the next step...
TikTok was nothing more than a fun toy that young teenage girls used to make silly videos.
So don’t look down on niche markets.
But taking a beachhead is only one of the many steps to building a platform business.
Which brings us to the next step...
2. Rapid feedback loops
In the early days of TikTok:
Videos were only 15 seconds long.
The nature of the short videos allowed them to gain feedback much faster than other platforms.
Because after just a few seconds...
Users would need to tap their phone screen.
In the early days of TikTok:
Videos were only 15 seconds long.
The nature of the short videos allowed them to gain feedback much faster than other platforms.
Because after just a few seconds...
Users would need to tap their phone screen.
This allowed TikTok to gain data faster.
In the time it takes for a user to watch a youtube video of a few minutes...
They would be able to watch many more TikTok videos.
So the algorithm learns faster.
And they could make the platform even more personalized to the user.
In the time it takes for a user to watch a youtube video of a few minutes...
They would be able to watch many more TikTok videos.
So the algorithm learns faster.
And they could make the platform even more personalized to the user.
3. Give everyone a shot at making it
Tiktok was a creative meritocracy.
You could win solely based on your ideas.
They prioritized talent over looks and popularity
(which were what other platforms like FB and IG geared more towards).
So TikTok filled this gap nicely.
Tiktok was a creative meritocracy.
You could win solely based on your ideas.
They prioritized talent over looks and popularity
(which were what other platforms like FB and IG geared more towards).
So TikTok filled this gap nicely.
This gave ordinary people opportunities to get famous.
For example:
A chinese farmer making videos from her rural shed also had the potential to go viral by virtue of her talent.
Everyone felt like they had a chance.
This made them work hard to create more content.
For example:
A chinese farmer making videos from her rural shed also had the potential to go viral by virtue of her talent.
Everyone felt like they had a chance.
This made them work hard to create more content.
Fun fact:
This was also how Lil Nas X came to fame.
He previously tried creating videos on Instagram...
But with little success.
The platform was saturated with good looking influencers.
But yet...
This was also how Lil Nas X came to fame.
He previously tried creating videos on Instagram...
But with little success.
The platform was saturated with good looking influencers.
But yet...
His unique beats went viral on TikTok, because of how catchy it was.
He rose to fame with his hit song:
"Old Town Road"
Everyone started making TikTok videos based off the catchy tune.
He rose to fame with his hit song:
"Old Town Road"
Everyone started making TikTok videos based off the catchy tune.
4. Make a small group of people rich first.
Tiktok executed this well.
Because the “GDP” of their platform was still small in the early days...
They didn't spread the riches evenly.
That would cause everyone to end up poor and leave.
BIG MISTAKE!
Tiktok executed this well.
Because the “GDP” of their platform was still small in the early days...
They didn't spread the riches evenly.
That would cause everyone to end up poor and leave.
BIG MISTAKE!
Instead, they created huge income inequality on purpose.
They manually selected a few influencers and drove huge traffic to their videos...
Making them "rich overnight".
This then sparked off a gold rush of people chasing the “Tiktok dream”.
People started uploading videos!
They manually selected a few influencers and drove huge traffic to their videos...
Making them "rich overnight".
This then sparked off a gold rush of people chasing the “Tiktok dream”.
People started uploading videos!
This will keep the "middle class" hardworking.
They will keep creating content, in hopes of catching lightning in a bottle.
This will help populate the platform with videos...
Which will then attract demand.
And with demand, there will also be more supply.
The flywheel spins
They will keep creating content, in hopes of catching lightning in a bottle.
This will help populate the platform with videos...
Which will then attract demand.
And with demand, there will also be more supply.
The flywheel spins
That's it.
These insights were taken from this book:
The Attention Factory (by Matthew Brennan)
If you’ve ever wanted to understand how Platform businesses are built...
This will give a great glimpse.
I read it cover to cover. It's that good.
These insights were taken from this book:
The Attention Factory (by Matthew Brennan)
If you’ve ever wanted to understand how Platform businesses are built...
This will give a great glimpse.
I read it cover to cover. It's that good.
If you enjoyed this, follow me here at @heymaxkoh
I share my journey of how I attained financial freedom before age 30, by investing in great businesses.
I also write about case studies like TikTok.
This helps you understand how great companies were built from scratch.
I share my journey of how I attained financial freedom before age 30, by investing in great businesses.
I also write about case studies like TikTok.
This helps you understand how great companies were built from scratch.
Recap of the 4 part playbook by TikTok:
1. First be a paintbrush
2. Rapid feedback loops
3. Give everyone a shot at making it
4. Make a small group of people rich first
Best quote:
“In order to attract immigration, you’ve got to make a small percentage of people rich first”
1. First be a paintbrush
2. Rapid feedback loops
3. Give everyone a shot at making it
4. Make a small group of people rich first
Best quote:
“In order to attract immigration, you’ve got to make a small percentage of people rich first”
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