I analyzed every aspect OpenAI's chatGPT launch since November.
It was a masterclass in execution and a key factor in shaking Google.
Here are 7 key takeaways from OpenAI's journey to 100 million users that you can apply to your B2C startup today:
It was a masterclass in execution and a key factor in shaking Google.
Here are 7 key takeaways from OpenAI's journey to 100 million users that you can apply to your B2C startup today:
1/ Ship quickly
It wasn’t perfect, it was prone to making stuff up, and it was down 70% of the time.
But that didn’t matter, because chatGPT blew the internet’s mind.
It wasn’t perfect, it was prone to making stuff up, and it was down 70% of the time.
But that didn’t matter, because chatGPT blew the internet’s mind.
Google tried to release their "perfect" version, but it blew up in their face, resulting in a 100 billion dollar loss in market cap.
In the meantime OpenAI kept improving their product
Takeaway: Ship quickly and iterate faster with customer feedback.
In the meantime OpenAI kept improving their product
Takeaway: Ship quickly and iterate faster with customer feedback.
2/ B2C is extremely difficult
Even with a tool that was borderline magic, many power users had a difficult time paying $42/mo.
They eventually dropped the price to $20/mo.
Takeaway: Humans are bad at conceptualizing value, so pricing is just as important as the product itself
Even with a tool that was borderline magic, many power users had a difficult time paying $42/mo.
They eventually dropped the price to $20/mo.
Takeaway: Humans are bad at conceptualizing value, so pricing is just as important as the product itself
3/ B2C products need to be cheap + scalable
Popular consumer-grade apps like Netflix, YouTube, and Spotify, etc. are all priced at most $15-$20/mo
All of them have a free version with ads.
Popular consumer-grade apps like Netflix, YouTube, and Spotify, etc. are all priced at most $15-$20/mo
All of them have a free version with ads.
People have a hard time justifying spending money on digital products unless it solves a major problem for them.
Takeaway: Your product needs to be cheap or free with ads and have the potential to scale
Takeaway: Your product needs to be cheap or free with ads and have the potential to scale
4/ B2C is slow
Most of us aren’t building the next chatGPT.
Unlike a B2B SaaS, where 1 client can generate 10k+ in revenue, B2C startups are lucky to get ~$20 per customer.
The best part? They’re both equally difficult to acquire.
Most of us aren’t building the next chatGPT.
Unlike a B2B SaaS, where 1 client can generate 10k+ in revenue, B2C startups are lucky to get ~$20 per customer.
The best part? They’re both equally difficult to acquire.
If you expect to be profitable < 6 months, you likely have the wrong outlook on your business, and might be better suited for B2B.
Takeaway: Focus on organic growth (includes free marketing vectors like TikTok), and minimize churn
Takeaway: Focus on organic growth (includes free marketing vectors like TikTok), and minimize churn
5/ People are cheap
It's strange how our brains work - we wouldn't hesitate to spend $20-$30 on a meal once a month.
Butpaying $10/mofor a tool that makes our lives easier? Naaaaah.
It's strange how our brains work - we wouldn't hesitate to spend $20-$30 on a meal once a month.
Butpaying $10/mofor a tool that makes our lives easier? Naaaaah.
Unless your product solves a problem, it can be difficult to convince people to pay for a generic tool.
Takeaway: People are more likely to pay for a product that solves a problem than a generic tool.
Takeaway: People are more likely to pay for a product that solves a problem than a generic tool.
And thats it guys! Hopefully you enjoyed this thread, be sure to follow me for more content like this @SullyOmarr
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