SaaS Entrepreneurship

How I Built It: $40K/Month iPhone App

Starter Story 17 min #44
How I Built It: $40K/Month iPhone App

This is how Steven Cravotta built a viral iPhone app to over $40,000/month.


Summary

  • Steven Cravotta

    • Builds viral mobile apps and has reached over 12 million total downloads across his apps.
    • Built Puff Count, a mobile app doing about $40,000 in monthly recurring revenue.
    • Had no coding experience and does not design or develop the apps himself.
    • Focuses on ideas, team building, marketing, and iteration.
  • Puff Count

    • Helps people quit vaping.
    • Generated $43,000 in sales over the last 30 days shown in the episode.
    • Generated just over $112,000 in sales over the last 90 days shown in the episode.
    • Took about four years to become meaningful revenue, with most of the revenue coming in the last six or seven months.
  • Why Mobile Apps

    • Offer unlimited scale because the product can be built once and sold many times.
    • Are easier to start than many people think because of no-code tools, templates, and freelance developers.
    • Remain relatively untapped because many founders assume apps are too hard to build.
    • Reward founders who can solve a real problem and market the solution well.
  • Idea And Validation

    • Starts with problems Steven experiences in day-to-day life.
    • Treats himself as the ideal user when he is solving his own problem.
    • Looks for products that create a transformation, such as weight loss, dieting, quitting vaping, or quitting drinking.
    • Validated Puff Count through market research.
      • Studied quit drinking and quit smoking apps in Sensor Tower.
      • Checked Google Trends and saw vaping was rising.
      • Looked on TikTok and saw vape videos going viral.
    • Believes founders often give up too quickly before marketing has been figured out.
  • Product Development Process

    • Brain dumps all app ideas, features, and competitors into Google Docs.
    • Sketches the app on paper with pencil.
    • Studies competitors’ features, onboarding, and UI to understand what a good app looks like.
    • Uses 99designs to turn sketches into professional UI concepts.
    • Uses Upwork to hire developers and turn the design into an app.
    • Prefers Eastern European developers for quality code at lower cost.
    • Pays developers per completed project after the app is live and bug-free.
    • Says a straightforward MVP can be built for less than $5,000, and some apps can be built for less than $1,000 with templates.
  • Marketing

    • Says marketing is about 95% of the success of a mobile app.
    • Uses organic TikTok as the main marketing channel.
    • Studies viral TikTok videos in the niche and saves them in a spreadsheet.
    • Looks at hooks, value, and filming style to understand why content works.
    • Makes content entertainment-first and adds only a short call to action at the end.
    • Uses organic performance as a signal for paid ad creative.
    • Runs winning creatives on paid channels such as Facebook ads and TikTok ads.
    • Tests influencer content but finds it difficult because many influencers want high upfront payments.
  • Monetization

    • Used ads in earlier game apps because users spent more time inside those apps.
    • Uses in-app purchases for tool-focused apps like Puff Count because users are not expected to stay inside the app for long sessions.
    • Uses a free app with onboarding followed by a hard paywall.
    • Saw the business change overnight after switching Puff Count to a hard paywall with a free trial.
    • Reached conversion rates around 20% to 25% after the hard paywall change.
    • A/B tests pricing from $4 to $12 and optimizes for the highest lifetime value.
  • Onboarding And Analytics

    • Uses onboarding to make users think through the problem the app solves.
    • Asks many questions before the paywall, even though some users may find it annoying.
    • Uses Superwall to remotely configure and A/B test paywalls.
    • Uses RevenueCat for analytics and lifetime value data.
    • Uses AppsFlyer as the mobile measurement partner connecting the app to ad platforms.
    • Uses Mixpanel and Amplitude for deeper product analytics while staying on free plans when possible.
  • Advice For App Builders

    • Focuses on health-related apps because helping people improve themselves can be lucrative.
    • Encourages founders to outsource skills they lack and build a trusted team.
    • Recommends launching a simple MVP, talking to users, gathering data, and iterating.
    • Warns founders not to spend months on unvalidated features before releasing.
    • Believes projects can take months or years to work, so founders need commitment and willingness to learn.
  • Life And Work

    • Was traveling as a nomad in Europe during the episode.
    • Starts work later in the day, around 1 p.m., after coffee, gym, and personal time.
    • Works into the evening and sometimes later depending on what needs to get done.
    • Uses travel to create space for inspiration and focused building.
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