I Sold My Second Mobile App at 27 (Full Breakdown)

Summary

In this video, the entrepreneur shares his journey of building Puff Count, an app aimed at helping people quit vaping, which scaled to $40,000 in monthly recurring revenue before being sold to a major app studio in France. He discusses the challenges he faced, including the app's reliance on paid ads and his personal burnout from handling everything alone. The video also touches on the lessons learned, including the importance of persistence, organic growth, and delegating tasks. Looking ahead, the entrepreneur is focused on a new project called Posted, a platform for connecting brands and content creators.

Takeaways

• 😀 Persistence is key: Success doesn’t come overnight. It requires years of hard work and determination.
• 🚀 Mobile apps have massive potential: With the right idea and marketing, you can scale an app to significant revenue.
• 💡 Don't be afraid to pivot: The journey as an entrepreneur often requires adapting to new projects and ideas.
• 🎥 Content marketing works: Posting consistently on platforms like TikTok can lead to massive organic growth for an app.
• 📉 Be ready for setbacks: Initial app launches may not succeed, but it’s important to keep grinding and improving.
• 💸 Acquisitions are based on revenue: Mobile app exits are often valued by a multiple of yearly recurring revenue.
• 🎯 Focus on organic growth: Relying too much on paid ads can lower the acquisition price due to perceived risk.
• 🙋‍♂️ Delegate when needed: Don’t be afraid to outsource or trust others with tasks like content creation to avoid burnout.
• 💪 Embrace learning: Each business venture provides valuable lessons that will help you in your future endeavors.
• 🔥 Passion fuels success: It’s important to stay focused on what excites you, even when other projects start to take priority.

Q & A

What was the initial idea behind creating Puff Count?

The initial idea for Puff Count came from the entrepreneur noticing the rapid rise in vaping, especially with the introduction of Juul. They saw it as a problem in the market and decided to create an app that could help people quit vaping and live healthier lives.

How did the entrepreneur scale Puff Count to $40,000 in monthly revenue?

The entrepreneur scaled Puff Count primarily through consistent content creation on TikTok. Despite initial struggles and being criticized, they committed to posting TikToks daily for over a year, which eventually helped the app gain significant traction and revenue.

What was the main challenge in marketing Puff Count?

The main challenge in marketing Puff Count was the reliance on paid ads. While the app did get some organic growth from TikTok and SEO, the majority of the downloads and revenue came from paid advertising, which became a perceived risk for potential buyers during the acquisition.

Why did the entrepreneur sell Puff Count despite its success?

The entrepreneur decided to sell Puff Count because their passion for the app had waned after owning it for four years. Additionally, they had new business ideas and ventures they wanted to focus on, particularly a B2B platform called 'Posted' aimed at content marketing.

What role did TikTok play in Puff Count's success?

TikTok played a critical role in Puff Count’s success. The entrepreneur committed to posting daily TikToks, which led to the app going viral. This organic marketing strategy helped the app gain exposure and scale, even though it was initially seen as a cringey effort.

What would the entrepreneur have done differently during Puff Count's growth?

The entrepreneur believes they could have improved Puff Count’s acquisition price by focusing more on organic growth, like improving SEO and App Store optimization. Additionally, they would have delegated marketing efforts earlier to prevent burnout, particularly the TikTok content creation.

What did the entrepreneur learn from building Puff Count?

The entrepreneur learned valuable lessons about entrepreneurship, such as the importance of perseverance, marketing, and personal growth. They also gained insight into the challenges of running a mobile app and scaling a business while balancing personal passion.

How did the entrepreneur address criticism about Puff Count's success?

The entrepreneur addressed criticism by emphasizing the years of hard work they put into the project. They pointed out that success wasn’t a result of luck but came from consistent effort, including content creation, paid ads, market research, and more.

What were the key factors in determining the sale price of Puff Count?

The key factors in determining the sale price of Puff Count were the app’s revenue, profitability, growth, and risks. The heavy reliance on paid ads for growth and the limited organic reach lowered the perceived value of the app, affecting the acquisition price.

What is the new project the entrepreneur is working on?

The entrepreneur is now working on a new project called 'Posted,' a B2B platform that connects brands with creators. The platform aims to revolutionize content marketing by allowing creators to compete in content contests, helping brands find viral marketing opportunities more easily.