• Noah

Billion Dollar Opportunity- Mobile Apps 🚀

Updated: May 15

If you've ever wondered how Facebook, Instagram, Coinbase, Uber, Spotify, and other apps grew to be multi-billion dollar companies, then you've come to right place. But first, let's understand the new app world we live in.

The Billion Dollar Opportunity

The Billion Dollar Challenge

After reading the book, How To Build a Billion Dollar App by George Berkowski, I learned a couple valuable lessons that I've listed below.

1. Think Big And Validate The App Idea

No billion dollar app got started by thinking small, think big. Question what is possible. Then, build the first version and test & validate it. Your goal is to get feedback from your target user. This is the only way to find out if your app actually solves a problem. You'll discover valuable insights such as;

  • How are users interacting with your app?

  • What features are they using most?

  • How frequently are they using your app? How long are they staying?

2. Build The Team

Put simply, If you want to go fast, go alone. If you want to go far, go together. Every successful company was built with founders who had the vision and a team who executed on it. A team brings a diverse set of skills, thinking, and resources that your app will need to grow for the long term. As they

say, "Rome was not build in a day." and also, Rome was not built by one person.

3. Choose A Business Model

If you want your app to grow, you're going to need resources to feed its growth.

  • Free, But With Ads: Free to download, but users are targeted by advertisers

  • Freemium: Free to download, but some features are restricted to paid users only

  • Paid Apps: Users pay to download

  • In-App Purchases:Users pay for virtual or physical goods within the app (eg. clothes or in-app credits)

This choice is tricky. If you charge users to download your app, you might not grow fast enough. If you restrict key features for paid users only, your free users may not experience the full breadth or key features of the app and never come back because they didn't find any value. If you price too aggressively or too conservatively, you may cripple your growth. But one thing is for certain, if you don't strategically choose a business model, it'll be difficult to scale your team, platform and gain marketshare.

4. Understand the AARRR Metrics

  • User Acquisition: the act or process of gaining new users through strategies such as advertising campaigns, promotional offers, marketing, and growth hacking...

  • User Activation: the moment initial users receive value from your platform and become engaged with its key set of features, functions, and related content.

  • User Retention: the ability to compel users to regularly revisit or reuse your platform over a period of time.

  • Revenue: the process of monetizing within your platform

  • Referral: the act of recommending, advocating, or mentioning your platform to others

5. Raise Capital & Investment

After your startup has acquired and retained real users, generated revenue, and established a team, then, you can start thinking about raising capital to invest product development and traction. This process has become more straight forward with websites such as AngelList that connects investors with founders.

So what are you waiting for?

Contact us to talk about your big idea and how we can help you build it.

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