A $1B app shut down, so I built a $14K/month alternative

Summary

Dennis, a self-taught developer, turned a unique opportunity into a $14,000/month app, Yaphone, in just 7 months. Inspired by Skype's shutdown, Dennis built a simple international calling app over a weekend, validated it via Reddit, and quickly gained traction. With a focus on usability, timing, and a proven market, Yaphone quickly amassed 10,000 users and expanded into B2B. Dennis shares his journey, offering key insights on fast MVP launches, leveraging SEO, and building in proven markets—perfect advice for aspiring entrepreneurs looking to make their mark.

Takeaways

• 😀 Dennis, a self-taught developer, seized the opportunity to create Yaphone after Microsoft announced the shutdown of Skype, launching his app just days later.
• 😀 Yaphone allows people to make cheap international calls through a browser, solving the issue of high international calling rates using VoIP technology.
• 😀 Within 7 months, Yaphone grew to generate $14,000 in monthly revenue, reaching 10,000 registered users and 4,500 paying individual customers.
• 😀 Dennis initially lacked a technical background, having been trained as a diplomat, but taught himself to code through books and courses before venturing into tech.
• 😀 The idea for Yaphone came after Dennis saw a tweet about Skype's closure, and he quickly built a prototype over a weekend, launching it on Reddit and X (formerly Twitter).
• 😀 Dennis launched Yaphone with a simple landing page, leveraging social media platforms like Reddit to gain traction and quickly secure sales.
• 😀 Despite having no social media audience, Dennis successfully used Reddit, targeting specific subreddits like those for travelers and entrepreneurs to promote his app.
• 😀 Timing played a crucial role in Yaphone's success, as Microsoft’s announcement of Skype's shutdown created a surge in demand for alternatives.
• 😀 Dennis emphasizes the importance of starting with a validated market, having the right timing, and possessing the necessary skills to build a functional, appealing product.
• 😀 Dennis shares a playbook for app founders: Identify slow-moving competitors, build an MVP quickly, promote it aggressively, focus on SEO, and consider B2B options for higher revenue and lower churn.

Q & A

What was the key factor that led Dennis to build Yaphone?

Dennis noticed that Skype was shutting down, which created an opportunity in the market for a new international calling solution. A tweet from Peter Levels encouraged people to build alternatives, and Dennis decided to seize the opportunity.

How long did it take Dennis to build the initial version of Yaphone?

Dennis built the first version of Yaphone in just one weekend. His previous experience with coding and previous projects allowed him to quickly execute the idea without overthinking or extensive planning.

What made Dennis' launch on Reddit successful despite having no social media following?

Dennis understood how Reddit works, knowing that you can reach millions of people without a following. His first post included screenshots of Yaphone’s core features and targeted subreddits where his potential audience (travelers and entrepreneurs) would be. Despite getting blocked quickly, he gained paying customers almost immediately.

How did Dennis validate his market for Yaphone?

Dennis validated his market first with a tweet from Peter Levels that echoed the frustration of Skype’s closure, then by quickly launching his prototype and securing paying users through Reddit posts. These actions showed him that there was actual demand for an alternative to Skype.

What role did SEO play in Dennis' growth strategy for Yaphone?

SEO was critical to Dennis’ strategy. He targeted keywords related to Skype alternatives, reaching out to bloggers and website owners to get mentions of Yaphone. This strategy helped him rank higher in search results and drive traffic to his site, even replacing Skype in some articles.

What was the key to building a successful MVP for Yaphone?

The key was rapid execution. Dennis focused on creating a functional and simple MVP that solved a real problem—cheap international calls. The MVP didn’t have to be perfect but needed to showcase the core functionality clearly.

What are the main differences between Yaphone and its competitors?

Yaphone operates on a pay-as-you-go model, which sets it apart from competitors who rely on subscription-based services. This model makes it more flexible for both individual users and businesses. Additionally, Yaphone allows businesses to purchase a central credit balance instead of a subscription for each user.

How did Dennis’ personal background influence the creation of Yaphone?

Dennis has no formal technical background—he was trained as a diplomat. However, he taught himself coding through books and courses. His self-taught skills and previous experience building smaller projects gave him the foundation needed to create Yaphone.

Why did Dennis incorporate a B2B component into Yaphone?

Dennis initially focused on a B2C model for travelers and expats but added a B2B enterprise plan after a customer requested it. He realized that enterprise clients could provide larger, more stable revenue with lower churn. This shift helped diversify Yaphone's revenue stream.

What are some of the tools Dennis used to build and run Yaphone?

Dennis used a variety of tools for building Yaphone: React, Next.js for development; Vercel for hosting; Stripe for payments; and Twilio for handling calls. For AI-powered support and admin, he used Cursor. He also employed Ahrefs for keyword research to improve SEO.