How to build a $1M+ Consumer SaaS App (step-by-step guide)
November 13, 2024
AI Summary
5 min readIn 2022, TikTok Shop launched, and within two years, a wave of consumer apps started quietly pulling in millions of dollars in revenue by borrowing marketing tactics from e-commerce. Joseph Choi, who runs a community of consumer app founders, breaks down the exact playbook: instead of chasing the App Store for distribution, founders should treat TikTok as the new storefront, using cheap, scalable content formats that most people are overlooking.
The Carousel Hack: Why Slides Beat Video for Beginners
The most surprising insight from the conversation is that the most effective TikTok content for driving app downloads right now is not short-form video—it is the humble carousel slide. Choi points to examples like the supplement brand Colostrum, which posts AI-generated slideshows (using Midjourney) with hooks like "POV you divorced bread." These slideshows get hundreds of thousands of views, and even a 0.5% conversion rate to Amazon is enough to make the strategy wildly profitable. The same format works for apps. The wedding photo app POV App uses carousels with strong negative hooks ("Our guest hated the controversial rules we enforced at our wedding") and then reveals the app as the solution on the last slide. The reason this matters for founders is simple: creating a Midjourney carousel takes minutes, not hours of filming. The barrier to entry is near zero. Choi notes that
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What you'll learn
- 1 (00:00) **Introduction: The TikTok Goldmine for Consumer Apps** - Joseph Choi explains that TikTok organic is the most underpriced distribution channel for consumer apps, with tactics borrowed from e-commerce.
- 2 (04:17) **E-Commerce Content Formats to Steal** - Joseph shows how e-commerce brands use simple, scalable content formats that can be adapted for apps.
- 3 (07:29) **Why Carousels Beat Talking Heads for Beginners** - Carousels are lower converting but far more scalable, making them ideal for getting started without a budget for influencers.
- 4 (11:14) **The TikTok Shop Affiliate Goldmine** - A step-by-step strategy to find and leverage TikTok Shop creators who are already experts at selling products via organic videos.
- 5 (18:17) **The "What Colors" Model: Building Apps for Existing Niches** - How to identify app ideas by looking at what e-commerce products are selling well on TikTok.
- 6 (21:55) **High LTV Niches: Golf, Tennis, Poker** - Specific, high-value niches where an AI-powered app can solve a real problem and command high revenue per user.
- 7 (33:19) **The New Influencer Marketing: Hire Actors, Not Influencers** - A framework for cheap, scalable TikTok content creation by bypassing traditional influencer marketing.
+ Full timestamped outline available in the app
Show Notes
Join me as I chat with Joseph Choi, Founder of Viral App Founders Community, as we discuss his frameworks and strategies for finding and building profitable Consumer Apps. Learn his step-by-step formula to building and growth hacking apps.
Episode Timestamps:
00:00 Intro
04:01 Ecom Marketing Strategies applied to Consumer Apps
11:07 TikTok Shop Affiliate Center = goldmine for app ideas
22:16 Profitable Niches that are Underserved
33:26 Influencer Marketing 2.0
40:58 Capitalize on internet "cults" & movements
1) TikTok organic = BIGGEST underpriced distribution channel right now
- Cost of creating & distributing content = low
- Potential reach for consumer apps = high
- Time to leverage this opportunity!
2) E-commerce tactics are invading the app world
- Remember Tabs Chocolate? 0 to $10M/year with mass UGC creators
- Now these tactics are being used for consumer SaaS
- Higher margins + better exit multiples = Bigger Opportunity
3) Carousels perform better than Short-form video on TikTok?!
- Surprising trend: Photo carousels are CRUSHING IT
- Easier to create + more scalable than talking head vids
- Pro tip: Use Midjourney for quick, eye-catching visuals
4) TikTok Shop Affiliate Center = goldmine for app ideas
- Find top performers in any niche
- Build apps to help them sell better
- Get free marketing from influencers
Win-win-win situation!
5) High LTV niches are UNDERSERVED on TikTok
Think: Golfers, poker players, niche sports
Example: Golf swing analysis app
- 10k downloads / month
- $70k revenue / month
- Huge potential for more!
6) Myth: TikTok users are all young
- Reality: Diverse demographics, especially in niche content
- Serve content to underserved niches = Underpriced reach
7) Rethink influencer marketing for TikTok
- Old way: Pay for followers
- New way: Hire creators as ACTORS, not for their audience
- TikTok algorithm favors good content, not follower count
8) Capitalize on internet "cults" & movements
Examples:
- Looksmaxing (YouMax app)
- Make money online (Crayo app)
1. Find passionate communities without products
2. Build the app they need
3. Profit
Bonus tip: Product quality is CRUCIAL
Nail your metrics before scaling marketing efforts!
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