My Apps Make $4.5M/Year With $0 Marketing

Summary

Ericos, a designer turned entrepreneur, built a $4.5 million Shopify app business, Kaching Bundles, with almost zero marketing spend. His success came from identifying unique opportunities in the Shopify ecosystem and creating apps that cater to e-commerce store owners. With a focus on user experience, low competition, and market validation, Ericos scaled his business rapidly. His strategy involved building apps quickly, gathering reviews, leveraging customer support, and offering free trials. He shares insights on building successful apps, marketing strategies, and how anyone can replicate his journey with the right tools and mindset.

Takeaways

• 😀 Ericos built a $4.5 million/year Shopify app business with almost zero marketing spend, relying on organic growth and the power of the Shopify marketplace.
• 😀 Ericos started his entrepreneurial journey as a web designer making $2 per hour before transitioning into building products on the side and eventually creating successful Shopify apps.
• 😀 The key to Ericos’ success was focusing on user experience in Shopify apps, offering simple, easy-to-use solutions for e-commerce store owners.
• 😀 He validated his app ideas by engaging directly with users in online communities and gathering feedback, ensuring there was real demand before building.
• 😀 Ericos leveraged platforms like Discord and Facebook groups to interact with potential users and gain early traction for his apps.
• 😀 His app, Kaching Bundles, now generates around $400k in monthly recurring revenue, with four other apps also contributing to his overall success.
• 😀 The secret to his growth was building on top of existing platforms (like Shopify) with a built-in customer base, eliminating the need for extensive ad spend.
• 😀 Ericos followed a lean development process, starting with simple ideas, validating them quickly, and focusing on creating apps with low competition in the marketplace.
• 😀 Customer reviews played a crucial role in Ericos’ strategy, and he implemented a gamified system for his customer support team to incentivize obtaining positive reviews.
• 😀 Ericos emphasizes that starting a business with a small team (a designer and a developer) can be enough to succeed, as long as you focus on solving real customer problems.
• 😀 He recommends joining entrepreneurial communities for support, learning from others' experiences, and potentially finding a co-founder to help build your business.

Q & A

How did Ericos go from making $2 an hour as a designer to generating $4.5 million annually?

Ericos started his career as a designer earning $2 an hour. After gaining experience, he transitioned into freelancing and later ventured into building Shopify apps. By focusing on building apps with excellent user experience and low competition, he scaled his business to $4.5 million annually.

What was the key to Ericos's success in the Shopify app ecosystem?

The key to Ericos's success was identifying the gap in the market for apps that were simple, user-friendly, and had a great user experience. He also focused on building apps that were easy to develop, served a broad market, and had low competition.

How did Ericos validate his app idea before building it?

Ericos validated his app idea by engaging with potential users in online communities like Discord and Facebook groups. He posted designs of his app and received positive feedback, which confirmed the demand for the product.

What marketing strategy did Ericos use to grow his Shopify apps without spending money on ads?

Ericos used a strategy of manually reaching out to his network of clients and friends using Shopify, offering them the app for free in exchange for feedback and reviews. This helped generate organic installs, improve the app, and build credibility through positive reviews.

How did Ericos approach customer support to enhance his app's reputation?

Ericos focused on providing top-notch customer support, with a team of technical support agents available 24/7. They helped users with their issues and encouraged them to leave reviews, which contributed significantly to the app’s success.

How did Ericos incentivize his customer support team to encourage more reviews?

Ericos implemented a gamified bonus system for his customer support team, tracking who brought in the most reviews and offering bonuses for high conversion rates. This incentivized the team to actively request reviews from users.

What role did Ericos's co-founder play in building their Shopify apps?

Ericos's co-founder played a crucial role in the technical aspects of building the apps. Ericos found him through a Facebook group for developers, where he presented his experience and vision for a successful Shopify app business.

What was Ericos’s approach to pricing and monetization for his apps?

Ericos initially offered the apps for free to reduce friction and encourage installs. Once he gained organic installs and reviews, he introduced a subscription model and offered tiered pricing based on usage. He also offered a free trial and refunds to reduce the risk for new users.

How did Ericos manage to maintain high profitability (90%) in his business?

Ericos focused on keeping his business lean and efficient. By staying frugal and managing expenses carefully, he was able to achieve a high profitability rate of around 90%.

What advice did Ericos offer to aspiring entrepreneurs looking to build an online business?

Ericos advised aspiring entrepreneurs to start small, with a designer and a tech partner. He emphasized the importance of engaging with the community, learning from others, and finding a co-founder who can complement your skills. Additionally, he recommended offering exceptional customer support and continuously refining your product based on user feedback.