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The Genius of Dynamic Pricing in B2C Apps
PLUS: How to use Google Trends
Startup Spells 🪄
November 09, 2024
The Genius of Dynamic Pricing in B2C Apps
Kyzo created a simple B2C app that analyzes your Twitter (X) personality.
The app was built on top of Wordware as an example app to showcase how Wordware works.
It quickly gained popularity in Japan after a popular Japanese user shared it with their followers. It got 2.2m views.
Japanese X User talking about X Personality App
X Personality App
The app also includes funny “roasts” based on users’ tweets, which helped it spread even faster.
And the roasts are hilarious too.
X Personality Roast
The app’s success seems natural, as many people enjoy this kind of content so the demand is there.
A good example is the subreddit /r/RoastMe with over 5.3 million members.
Just 2 weeks ago, the app was only a demo. Now, it's a viral money making machine.
The genius of X Personality
The biggest lever seems to be localization. Many B2C AI tools are heavily focused on Western markets, but this app shows the potential in non-Western regions.
At its peak, the app made $4,000 USD per hour.
X Personality Revenue
Dynamic Pricing Model
Kyzo used a clever pricing strategy. They adjust prices based on demand. When the app grows too fast, they turn on the paywall to slow it down. Then, they lower prices to boost virality again.
In Japan, users didn’t seem to mind the paywall. Many started paying for the app, which led to high revenue numbers, like $4,000 per hour. The revenue dropped only because of the time difference — Japan was asleep.
X Personality Viral User Growth
Their dynamic pricing approach is based on traffic:
When traffic is high, prices go up.
When traffic slows down, they lower prices.
The app also charges higher prices in wealthier countries, while other regions are set to $1.
A snapshot of their current pricing tiers where 699 = $6.99 USD. They are using Posthog.
X Personality Dynamic Pricing
They don’t fully automate the pricing, as many factors can affect it, like traffic spikes, scrapers, and technical issues. Full automation would require decent financial runaway or funding, which is why it’s only partially automated.
Due to the high cost of the X API, the team uses Apify to fetch user tweets. This allows them to keep costs down while still providing the core functionality of the app.
When the app went viral, it attracted over 5 million users and made $22,000 in just 8 hours.
X Personality Total Revenue
Even now, the app continues to grow organically, as you can see by searching for "wordware" on X.
Wordware going viral on X
The app likely passed $100,000 in revenue, and the founder stopped discussing it publicly—perhaps because it prints money.
People love taking personality tests. For some reason, even very smart people find them irresistible. One of my smartest friends keeps telling me to take the popular Myers–Briggs Type Indicator test.
Many enjoy sharing their results with friends, making these apps highly shareable.
Top Tweets of the day
1/
Russell Brunson's "One Funnel Away" thing is actually true
Have seen many clients go from low 6 figures to multi 7 figures just by cracking one channel
It's just a matter of testing fast until you find what works, then doubling down until plateau, then testing again
— Leo X (@LXMoore_)
12:54 AM • Nov 6, 2024
2/
I only studied apps doing huge rev numbers. What they are doing typically just works.
Simply learn from the best and adapt to your specific use case
— Steven (@StevenCravotta)
2:16 AM • Nov 9, 2024
You don't have to invent most things. Just clone 1:1 from the big money-making apps.
Want to write "Welcome" email for your newsletter? Steal it from a popular newsletter. I did and reply rate on my Welcome email increased.
Want to create onboarding for your B2C mobile app? Find the top app in the App Store and clone its onboarding 1:1.
Want a marketing strategy for your SaaS on TikTok? Find SaaS that blew up on TikTok and re-try their marketing tricks.
3/
Once you realize that 90% of your audience are very "short-term" thinkers, you'll win.
Everything is about NOW, not later. Now, now now. Now problems, now money, now health, now now now...short term solutions that require short-term thinking, short-term effort, short-term trade… x.com/i/web/status/1…
— Alen Sultanic (@IAmAlenSultanic)
12:22 PM • Jul 1, 2024
Think about how many pieces of content you've consumed this week that were made in the last 24 hours. The answer probably is >99%.
The term Lindy Effect is popular but <0.01% actually read Lindy books. In fact, I think the term Lindy Effect is only popular in my bubble.
Rabbit Holes
How to use Google Trends by Undatable
One Minute Blog: The Elon Special by Shaan Puri
Building a business is hard. Don’t make it any harder than it has to be. by Man Bites Dog
Until next time!
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