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

Starter Story 18min #61
My Apps Make $4.5M/Year With $0 Marketing
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Summary

  • Ericas (from Lithuania, currently living in Paris)

    • Background and origin story

      • Started as a designer at a local web design agency earning $2 per hour right after finishing school
      • Always thought about how to 10x earnings; realized freelancing was the path to earning more
      • Freelanced for 3-4 years while building products on the side
      • Stumbled onto Shopify Partners page while browsing for landing page inspiration for a client
      • Discovered top 25% of Shopify app developers were making nearly $300k/year—far more than freelance work
      • Decided to build in the Shopify ecosystem with his existing experience
    • Pivotal moments and turning points

      • Identified a gap in the market: solo developers lacked great UX, while VC-backed apps moved slowly
      • Posted in a local Facebook developer group highlighting his Shopify experience, design skills, and existing client base to find a co-founder
      • Found a technical co-founder through this post
      • Validated his first app idea by posting a design mockup in drop shipper Discord communities and e-commerce Facebook groups—got 100+ likes and comments asking where to download the not-yet-published app
    • Business growth and current status

      • Launched first app in August 2022
      • Currently at $4.5 million annual recurring revenue
      • Achieved 90% profitability from day one
      • Built 5 apps total in the discount/upsell category
      • Kaching Bundles scaled to approximately $400k MRR
      • Apps have generated over $400 million in additional revenue for merchants
  • Products and Offerings

    • Core products (all in the discount/upsell category for Shopify merchants)
      • Kaching Bundles – Bundle pricing app, flagship product at $400k MRR
      • Kaching Post Purchase Upsell – Upsell app triggered after purchase
      • Kaching Pop-up Upsell – Pop-up based upsell functionality
      • Kaching Card Drawer Upsell – Card drawer style upsell (launched weeks before interview)
      • All apps designed to increase average order value for Shopify stores
  • Metrics and Financials

    • $4.5 million annual recurring revenue
    • $400k monthly recurring revenue for Kaching Bundles
    • 90% profit margin maintained from day one
    • Over $400 million in additional revenue generated for merchant users
    • Business runs lean with minimal expenses
  • Strategy and Growth

    • Primary growth engine: zero paid marketing, entirely organic through Shopify App Store

      • Achieved by ranking high in App Store search results
    • Unique customer support and review strategy

      • Optimized all processes toward getting five-star reviews
      • Built review requests directly into the product
      • Sends monthly emails to users showing how much revenue the app generated, with a review request included
      • Approximately 95% of reviews come from customer support interactions
      • Provides 24/7 technical customer support—agents can dig into code and fix issues
      • Introduced gamified bonus system for customer support team with monthly leaderboard, raffles, and “Persuader of the Month” award based on review conversion rate
    • Launch strategy (3-step approach)

      • Always launches new apps for free to reduce friction and maximize installs
      • Grandfathers existing users so they never pay
      • Only monetizes new users after establishing organic traction
      • Offers free trial and full refund with no questions asked (believes risk of one-star review outweighs refund costs)
    • Validation approach

      • Talks to users before building: joins Discord communities of drop shippers and e-commerce Facebook groups
      • Posts design mockups to gauge interest
      • Collects emails or takes pre-orders to validate willingness to pay
  • Tech Stack and Infrastructure

    • Communication: Slack
    • Customer Support: Intercom
    • Feature Requests: Features.vote (users can suggest and upvote features)
    • Task Management: Linear
    • Shopify Operations: Mantle (affiliate partnerships, metrics, customer management, funnels)
  • Lessons and Advice

    • Direct advice to other founders

      • Start with just two people: a designer for product work and a technical person
      • Do customer support yourself initially to understand what clients are struggling with
      • Hire customer support only after getting more tickets and scaling
      • Hang around other builders—community helps learn from mistakes and may lead to finding a co-founder
    • Key insights

      • Platform app marketplaces offer built-in customer bases without needing to spend on ads
      • Great UX can beat both solo developers (who build technical but complex apps) and slow-moving VC-backed companies
      • Low competition + broad market + easy to build = good app idea criteria
      • Risk of negative reviews outweighs the cost of offering full refunds
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