I mean, my third pitch in, I get to the very end of the pitch feeling pretty good about myself. The investor pauses a little bit and then just says, That has to be the worst pitch. Worst idea I have ever heard. Not only are you trying to go against incumbents, you're going against incumbents have massive distribution. You are never going to succeed. You guys are over 100 million AR now, worth over $2 billion.
One of the most interesting ways you guys grew early on was influencer marketing. All the initial influencers I onboarded manually myself. I always jump on a call with each one of them so that they understood what Gamma represented, how to use the product. You want to be able to have them tell your story, but in their voice. I think a lot of people think influencer marketing and they'll think these big trendy creators, people that have a million followers, this is the wrong approach. You basically give them a script to read and immediately feels like an ad. That product is not connected to them in any way.
You're much better doing the hard thing, which is hard to scale, finding the thousands of micro influencers that have an audience where your product maybe is actually useful. People really trust what they say. That ends up becoming this wildfire that can spread really, really fast. Something you talk about, there is actually a lot of ways to think experimentally, even in the early stages. We would have an idea in the morning, come up with some sort of functional prototype. We recruit a bunch of people that are legitimately good prospective users, but have zero skin in the game.
Ship that so people can start playing. In the afternoon, we're already running pretty full-scale experiment. You start actually hearing other people describe their usage of the product. We can also watch them struggle by the evening or by the next day. We can actually go through all of it together and say, OK, we're going back and we have to fix this. This is like not usable. And we've done that for everything.
Today, my guest is Grant Lee, C-owned co-founder of Gamma. This is a really unique and inspiring and very tactically useful conversation because Grant is building something that is essentially the dream for most founders. A massive AI startup that's profitable and has been for a long time that didn't raise a lot of money for a long time. And as a small team, it's just around 30 people, all who can fit in a small restaurant, serving over 50 million users globally.
If you're not familiar with Gamma, they're an AI-powered presentation and website design tool. They just hit 100 million AR in just over two years. They're valued at over $2 billion. And unlike a lot of the fast growing AI startups they hear about, they're growing profitably and sustainably. And in a category that most people did not believe had a huge business opportunity. As you'll hear in the conversation, one investor told Grant, this is the dumbest idea that he has ever heard.
如果你不熟悉 Gamma,这是一款由人工智能驱动的演示和网站设计工具。他们在短短两年内就实现了1亿美元的年收入,并且估值超过20亿美元。不同于很多你听说过的快速成长的AI初创公司,Gamma 的增长不仅盈利而且可持续。而且是在一个大多数人并不认为有巨大商业机会的领域中。如你将在对话中听到的,一位投资者曾对 Grant 说,这是他听过的最愚蠢的想法。
In this conversation, Grant shares the very counterintuitive lessons that he's learned, finding product market fit, how he knew that product market fit, the specific tactics that helped them grow, including a deep dive into influencer marketing, which blew my mind. Also, how they figured out their price, his thoughts on building a GPT wrapper company that is durable, a ton of hiring advice, and so much more. This could honestly have been another two hours of conversation.
I suspect we'll do another follow-up conversation next year. If you love this podcast, don't forget to subscribe and follow it in your favorite podcasting app or YouTube. It helps tremendously. And if you become an annual subscriber of my newsletter, you get a year free of 16 incredible products, including Devon, Lovable, Reflit, Bull, and they then linear superhuman D-Script, Whisper Flow, Gamma, Proplexity, War of Granola Magic Patterns, Raycast, Jeff here, DnMovyn, head on over to Lenny's newsletter.com and click product pass.
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Grant, thank you so much for being here and welcome to the podcast. Lenny's so great to be here. Thank you for having me. I see your face all the time in my LinkedIn feed. I don't know if you know this thing on these JP Morgan Chase heads. I'm so curious if other people see this or if it's just me. Did you know this was a thing? I think it's maybe once a day. Now I get a text message and just no message. It's just a screenshot or an image of me doing something in San Francisco on one of these ads that we're saying. And so yeah, kind of embarrassing, but also we're happy customers of JP Morgan Chase so trying to represent. Oh my God. I hope you love them because it's always you. There's no one else that's like Grant. I know. Can I tag you guys? Stop somebody out? I mean, that would be great. I'm totally fine with that.
Okay. So to get serious, the reason I'm really excited to have you here is unlike a lot of super fast growing AI startups, you are both growing like crazy. You are growing very profitably. We're going to talk about this. You did not raise a ton of money when you started. You waited a long time to raise a bunch of money. You also built a business and a category that I think most people never imagine there was this big of an opportunity. And you're basically, if achieved the dream of a lot of founders these days, especially people building AI startups. So my goal with this conversation is essentially do an anthropological study of a really successful AI startup. Talk about how you found product market fit, how you grew, all the lessons you've learned along the journey. And I'm going to break this conversation up kind of along the different milestones of the journey.
Before we get into the first piece, is there anything that you think is important for people to hear kind of broadly about the story of Gamma? Yeah, maybe I'll just start with the quick story of that. It's really just a founding story. So we started the company back in 2020. This is peak pandemic. Fund raising, even fundraising was just so different. So all of the fundraising was done over Zoom. You were kind of sitting in these Zoom meetings trying to pitch. Many investors never met in person. So just a different error. And so for us, we're first time founders. I was actually living in London at the time. And so, you know, a different time zone. I had to do all of my pitches at night. And, you know, I have two little kids. So wait for them to go to bed, APM. We had a pretty modest flat. So nothing big.
I would basically find this little corner between the kitchen net and the laundry room. They're kind of set up shot far enough from the kids. So they wouldn't, you know, be woken up. And between APM, like 2am, I'm just pitching. You know, trying my best, I'm like the fake Zoom background. So people didn't know where I was. And just pitching. And so, you know, really the first day, kind of, I mean, my third pitch in, trying to tell the story of Gamma obviously just starting to get the hang of the pitch. And, you know, I get to the very end of the pitch feeling pretty good about myself. And the investor pauses a little bit. And then just says, that has to be the worst pitch. Worst idea I have ever heard. Not only are you trying to go against incumbents, you're going against incumbents have massive distribution. You are never going to succeed.
And so like in my head, I'm already kind of shell shocked and thinking, you know, what am I going to, what's my rebuttal? And before I could even have, you know, respond, he hangs up. And so I'm there sitting, you know, they're thinking about it. And, you know, before I could really get down on myself because I had to prepare for the next pitch, I kind of just internalize this feeling that, you know, maybe he's right. You know, maybe something about what he's saying is actually correct. And so for me, I started thinking about if we're going to succeed in this category, we're going to really have to think about growth from the very beginning. category is going to be really, really hard to break into. And so we really kind of made this sort of kind of promise to ourselves that as we continue to build growth is going to be critically important.
And so my thing to kind of, you know, your audience is that, you know, I don't come from a growth background. So if I can learn growth, anybody can learn growth. And I think especially in this sort of market, hyper competitive, oftentimes very crowded, it's going to be essential. That is such a fun story. Oh my God. How bad the most does investor feel at this point? We're going to name names. Just to share some stats, I know this is going to be, by the time this launches, this will be out. But you guys are over 100 million AR now. We're there were $2 billion. A business that, again, most people did not think was going to work in this category.
Yeah, thank you. Yeah, we feel super proud to have accomplished that. And again, yeah, I'm excited to share some of the, you know, the growth tactics and things that worked for us. I think, you know, hopefully it'll help others kind of on their journey as well. Okay. So let's dive into it. Let's talk about product market fit. Tell us the story of just how you found product market fit and how you knew you found product market fit.
Yeah, I'll start by telling kind of the moment where we thought we maybe had product market fit. And I think a lot of founders, you know, ask themselves, do we have it or not? And I think there's a, there's often a sort of temptation to go almost full yourself into thinking you have it. And so we sort of did our first public beta launch. This is back in August of 2022. We launched on product time and, you know, felt really good. We had it, you know, what we felt like was a great launch. Ended up winning product of the day, product of the week, product of the month. And it's like, wow, we, you know, I think we have something here.
And then we'd look at signups and you'd get that initial spike in signups. And then they sort of like flatten out. You're still getting new users every day. But it is clear we didn't have strong word of mouth. There wasn't strong organic virology. And so if we just kind of played things out, you know, we knew that the product wasn't going to grow on its own. Like something was missing there. We didn't have that strong word of mouth so that the product could just continue growing. And so we really kind of asked ourselves like, okay, what do we need to change?
And the answer is like, we need to fundamentally change everything. It for us almost became the sort of bet the company sort of moment. Because at that point, we were running low on runway. You know, we knew we needed to make progress. And we didn't really know, you know, what could be done. And so we got everyone together at this point. The keen was just over 12 people. And we said, okay, we're it's going to be all hands on deck. We are going to do everything we possibly can to make the first 30 seconds of the product feel magical.
The moment you land into the product, it has to be great. And it has to be so great that someone that goes through that onboarding is going to tell all their friends. And if we can get that right, then maybe we have a chance at actually, you know, doing something in this space. And so we spent three, four months actually, you know, after the product launch, we felt great, but we knew we had to go back to the drawing board. We spent the next like three, four months actually revamping the entire onboarding experience.
And of course, this is also where, you know, AI for us kind of played a big role. We actually rebuilt it so that AI was part of the actual onboarding. So every single new user would experience the sort of magic in the first 30 seconds. And so we re-launched this is end of March 2023. In all of a sudden, you know, we'd go from a few hundred signups a day to now, first day, it was like a couple thousand. And then the next day would be like five thousand signups and then 10,000 signups a day. And then 20,000 signups a day. And then it just kept going up.
And we were doing any sort of marketing, no advertising. It was all sort of organic word of mouth. Virality of the product, people using the product and sharing with others, where we for the first time really felt this pull. Like we didn't have to do anything. Product was just growing. And it was just such a distinct difference between that feeling and like coming out of the product, I want to where we could have pulled ourselves in the thinking we had a product market fit. I think the temptation would have been, hey, let's just spend more on ads or spend more on marketing. Because like, you know, we'll just fuel, you know, fuel the top of the funnel and everything else will work itself out. I think that would have been a trap. I think that would have let us down to like this path of trying to brute force our way into product market fit. And it would just always be sort of a fleeting sort of destination. We never actually arrive.
And so I think we made the tough call, the right call. It was a sort of bet the company moment. And I think on the other side, it just felt so different. Grant, this is exactly what I want to discover. So to be I'm so so excited. I have so many questions to follow up on the stuff you shared before we even get to the rest of the journey. So one is essentially what you're describing as product market fit to you was when organic growth started to really take off. And it was just growing through word of mouth. You weren't doing much because it was so awesome. People are telling their friends about it. Is there anything more there that might be helpful for people to share just to hear about just like, OK, here's what it actually looks like?
Yeah, I mean, one piece of advice is that when you're early on, your mindset should almost be like you're trying to create a word of mouth machine. Right? Like if you can get that part right, everything else becomes significantly easier. And if you have any, and I think this applies to both like prosum or B2C as well as even B2B products. Like if you have a B2B product, even if you're not telling all of your friends, you should be telling colleagues where like that product is relevant. You should probably be telling, you know, former co-workers where, hey, you've discovered something like, oh, I wish we had this, you know, in our prior lives. And like that should even be magical. And then you should see that in all the leads that are coming through, like, or people coming through through your prospects and your existing customers.
If you're not seeing a healthy chunk of those leads come through that way, I would go back and I'm like, why? Why is that not happening? Because again, that's like the massive tailwind you need where everything, every single thing you do on top of that, all the marketing, all the sales, all the advertising, you're just going to have like, it becomes way, way easier. How much of this was, you just grab it as a word about the machine. How much of this was like word amount loops and verality features versus just the product itself? One was awesome and two is kind of nately shareable because it's, you know, presentations people share with each other.
Yeah, totally. I think for us, we do benefit from being in a category where, you know, by nature of it, if you like Yamaha, you're sharing it, presenting it to the others. So I think it for us, it's a combination of both. And ideally, you have other ways where, you know, word of mouth or organic verality can happen in your product. So by nature of usage, like it's being shared, you know, we basically had an internal mantra that we go back to like the first 30 seconds. We wanted to be dead simple for someone to create content. We want to be dead simple for them to share it. And everything we did, kind of for that first 30 seconds or, you know, called the first few minutes is remove friction so that they can do both of those things create and share.
And I think other people, you know, when you look at your own product, you think about, okay, what is it, you know, what is it about my product and how it gets used? Can you remove friction such that it can actually spread? And even if it's locally within an organization or like, you know, within a workspace, like just be able to enable that as much as you possibly can. The other really profound point you're making here is the story of, you want product of the day on product kind, which alone is so hard. So many people try to win and don't, most people don't, like I've tried to help companies win and it's like a really hard thing to achieve.
And then you want product of the week and product of the month. And still you're like, no, this isn't working. Most people that achieve that are like, no, we got this and they would not have to bet the company. There was no feeling there wouldn't be a feeling if we have to rethink everything. What is it? Just what is it there that you just like, no, we need this isn't going to work as much as exciting as this is. This isn't it? Yeah, I mean, part of being a founder is being a self-aware as you can and be your own, your own worst critic, right? And so oftentimes you want to have these vanity metrics. I feel good to celebrate and you should celebrate, but you should know when it's a vanity metric versus is this core to our growth engine? Like if this number goes up, does it mean the product is working? And I think that's where we looked at like, okay, you know, felt good to win those things. We kind of put ourselves at least on the map, but it wasn't good enough to actually have this sort of feeling that we had a core growth engine.
We could just invest in and get better and better. That wasn't there yet. So essentially, it kind of started to just plateau and slow. It wasn't like this rocket ship that took off from that. Yeah, it was still like, we're still getting signups, like they're coming through, but you could just tell there wasn't like, there wasn't like, there wasn't this like building momentum, you know? And I think that's, that's where it's always hard to tell you. You kind of have to, you know, me and my co-founder would be sat down or just we're trying to be honest with ourselves like, okay, is this going to be enough? And it just really felt like it wasn't going to be good. The other point here is the power of onboarding, which comes up a bunch on this podcast when you talk about driving retention. So you launch product and did great and then started kind of petering out. How much did the product change after it things started to work versus onboarding, just like how important was onboarding? And then just tell us why the first 30 seconds, where did you come up with that number?
Yeah, so for us, you know, the onboarding and the product experience for us, that's intertwined, right? The analogy I always think about is, you know, if you go into, you know, a restaurant and, you know, maybe the food is good, but when you really think about the user experience, it's like the moment you walk into the door, you get seated, the waitress waiter comes by, creates you, you get order, and of course the food has to taste good. But if that entire, like, and then you finally get the bill and you leave, like is that entire experience something that feels delightful? Is it good enough for you to tell your friends about? If someone just came by and dropped the food on your plate, you know, on the table, and was like, just left and never came with the bill, I'm like, okay, man, I'm not going to recommend this to somebody else.
And so for us, like, we thought about, okay, the first moment someone walks through our door, where, you know, drop it into the product, what is, what is something we can give them? Can we shorten that time to value as much as possible? A lot of this is inspired by, you know, like Scott Belsky, he talks about kind of that first mile, the first 15 minutes. And I think that's totally right. And I think one approach is, you think about new users as you almost have like a cynical view of them. You have to think about them being selfish, vain, and lazy, right? Like they're coming in, they have no desire to learn a new tool. And so what can you give them in that first 30 seconds that earns you the next 30 seconds, and then the next 30 seconds. And so for us, we knew that if we can't, you know, people's attention span is even shorter than today than maybe 10 years ago.
And so what is it in that first 30 seconds? We actually show you something and earn the right to kind of, you know, keep kind of building that relationship with you. We really thought a lot about that. And certainly that's, that's, now that's all we could really afford at that time. We only had 12 people building. And so like, we couldn't make entirely, you know, revamp entire product. We knew that we had to at least put all of our energy into one spot. And so we made that coming into the door, come through the door, make that feel, not more of a magical so that we can do a little bit more over time. I love your point about how, you know, you could think of it as like, okay, it's onboarding versus the product. The lens of how do we make this incredibly valuable and a hawish for the first 30 seconds, almost informs what the product should be.
Yeah, it really helps you, you know, pull for what is the most magical thing about your product, right? Sometimes founders will think about like the 5, 10 features. Well, maybe there's only like one thing that kind of differentiates you. You know, I try to learn a lot from, you know, we'll get into some of the marketing pieces of this. But even just having this sort of founder-led marketing lens of like, what can I do to help a new user just understand? You know, there's this thing from like consumer advertising, which is, you through a consumer one egg, they can probably catch it. You throw them four or five eggs, they're probably going to drop all of them. And like oftentimes founders want to talk about the four or five features they have, maybe 10 features. And then the consumer is totally confused. Like, why do I need this thing? We try to just give them that one egg, that one, you know, like first experience, we're like, okay, you know, create a slide in seconds. That's, that's the egg. I'm going to throw you this egg. Is that compelling to you?
Some people are still going to out-down, but for the people that catch that, you're solving like a real problem for them. And then you can continue kind of building on that over time. Like, you've given them enough so that they'll sit around and like keep playing with your product. But as a hilarious metaphor, I've never heard of it for onboarding time to value. Just focus on one egg at a time. Just going even further back, what was the original insight that you had that led to gamma and what YAMAs today? After the last start, I was acquired. I went back into kind of my roots, which is consulting. I was advising early stage startups. And the sort of medium I was using was Google slides. So I just remember this, you know, late night trying to prepare for next day's meeting, trying to format and figure out the right layout and spending hours just trying to get the sort of look and feel right rather than the content itself. And for me, that just felt completely backwards.
I should be spending 90% all the time on the content, 10% maybe on the design formatting. And so the question just was, what if there's a better way? What if we could reimagine this format from the ground up? Slides have been around for almost 40 years as the default medium of choice for a lot of this. And so we thought about, okay, if we had different building blocks, different primitives, so you're not locked into the fix 16 by 9 slide, what could we offer to new users? And so that was really the start of one of all this. Like hearing this, I could see why investors would be like, you know, like I guess so, but slides has been around PowerPoint has been around 40 years. Like I get it, you know, I get why people would be. And specifically AI, was that a part of the vision initially or did AI start to come up and then wow, great timing. Great timing. It wasn't part of the original vision, although the spirit was there, which is we want to make it incredibly fast and effortless for people to create content.
So it just so happened that AI was a magical gift that allowed us to do all those things along the same sort of ambition or vision that we had. And so we integrated it core to kind of all the building blocks we're already building while before AI was part of the picture. It's such a cool other example. There's so many examples of ideas that were not possible before now very possible with AI. And it's a great opportunity for people to come after as you like places, categories, people think is an impossible place to build a big business AI now allows it. Awesome. Speaking of that, let's talk about the growth journey and how you actually grew from nothing to 100 million ARR in just over two years. I'm thinking we break it up. I know these milestones aren't that clear, but kind of like zero to 100 million ARR, one to 10 to 100, something like that. And let's just kind of see how it goes. How did you get your first set of users? How did you get your say 100 first 100 users? How did you get to 100 million ARR from zero?
所以碰巧 AI 就像一个神奇的礼物,让我们能够按照此前的愿景和目标去实现所有这些事情。因此,我们将 AI 集成到了我们已经构建的基本模块的核心部分,而这些模块在 AI 出现之前就已经在建了。这也说明了 AI 的巨大潜力,很多在以前看来不可能实现的想法现在都可以通过 AI 实现。而且,这为人们提供了很好的机会,让他们在那些被认为无法建立大企业的领域里去尝试,因为 AI 现在使得这些成为可能,这真是太棒了。
谈到这一点,让我们来讨论一下从无到有,再从零增长到年收入 1 亿美元的成长历程。我想我们可以拆分一下,我知道这些里程碑并不是非常明确,比如说从零到 1000 万,再到 1 亿这样的阶段,然后我们看看会如何。首先,你是如何获得最初的一批用户的呢?你是如何获得前 100 个用户的?又是如何在短短两年多的时间内从零增长到年收入 1 亿美元的呢?
Our first 100 looks very different, I'd say. So this was even pre this sort of AI laundry had. The first 100 users for a product like ours, you're trying to convince all your friends. He used the product. Anybody that's ever made a slide that you're trying to talk to. And I think early on, your friends wanted to do your favor so they could try the product. They're also going to lie to you. They're going to tell you how great it is. And then you look at the usage and nobody's coming back. And so I think our first 100 was sort of like gradually hard-earned posts sort of the product launch. People learning like, okay, this is kind of becoming a little bit more useful. Usage was still pretty episodic. So they weren't coming back every week. And then I think, do think, the moment post sort of the AI launch is where all of a sudden we saw that sort of organic growth happening. People coming back to the product regularly.
And so that's where it wasn't even the first 100's like the first 10,000 users all came within a pretty short time period after that initial launch. Awesome. We're going to talk about monetization pricing later, which is obviously an important part of actual getting to a million ARR and 10 million ARR. So what I'm hearing essentially is the product cut launch was a big part of just the first 10,000-ish users. I know there was also a tweet when you first, when you relaunched that helped in a big way. Talk about that. Yeah, so when we did our AI launch, we didn't do our AI launch on product tongue. We just basically said, hey, let's just put it out on Twitter, safely and get some virality.
And honestly, we kind of came up with kind of a clickbaity sort of tweet. It was like, you know, the most valuable skill in business is about to become obsolete. And so, you know, it was intentional in that we wanted to create a little bit of engagement. We knew that having sort of a more provocative tweet would allow people to engage with it. And so after a couple days, all of a sudden it started getting a little bit more viral and a lot more engagement. And we looked, and it was basically because Paul Graham had commented and saying something like, surely the thing that the slide deck is describing is more valuable than the slide itself, right? And obviously, it was fun just to see that comment.
I think once that comment came through, even more engagement on the post. And that was really the whole intent of that post was just to be able to have that level of engagement so that people, you know, we have some level of reach. And so for me, it was almost like my first sort of learning morning going back to, you know, what does founder let marketing even mean? It means like, how do you actually break through the noise? How do you get a chance to have people even engage with like a post like that? Part of that is copywriting, part of that is like storytelling, part of that is just having like even like the right visuals to share.
And so for me, kind of a moment, just understanding, hey, they kind of do this, right? You kind of have to do things that maybe you're not super comfortable with, but it makes a difference. Such a fun story. So you intentionally set that announcement up to be controversial is what I'm hearing. Totally. Yeah. It's a provocative little spicy. That is so cool. So essentially, you got to 10,000 users through product hunt and then essentially one controversial tweet that ended up baiting Paul Graham to comment. Amazing. And was it a comment? It was just a comment. It wasn't even him retweeting it. Not just a comment.
对我来说,这是一个领悟的时刻。理解到,有些事情虽然可能让人不太舒服,但确实能带来影响。这真是个有趣的故事。所以你故意把那个公告设置得很有争议性,对吗?完全正确。是的,这是个有些挑衅性的方式,真的很酷。实际上,你们通过 Product Hunt 和一条有争议的推文达到了1万用户,这条推文成功引起了 Paul Graham 的评论,真了不起。而那只是一条评论,他甚至没有转发它。也不仅仅是一条评论。
Yeah. And then others would, you know, pile on. Yeah, it's interesting. I want to comment can increase the distribution of a tweet versus them retweeting it or quote, tweeting it. Totally. And of course, the algorithm change all the time. So part of which is long based on when it happened, how it happened, who posted? And you let use this term founder led marketing, which I love. And I'm already seeing it in action here. This is you thinking about it's not like delegating to someone in marketing. It's not hiring an agency. It's like, how do I tell a story that I think will break through the noise based on you building this company, having me insight to build this product.
And I guess is there anything more there? You think is important for people to hear about the importance of the founder thinking through this stuff. Yeah. I mean, I think very, you know, most people today are probably familiar with founder led sales, which is still very, very important. I think before you hire your first, you know, sales person or sale, you know, it's great for the founder to understand like what it takes. And, you know, they're going to craft the right narrative, the right story. At my previous role, I was the COO at a startup where I was doing a lot of, I was unfounder, but I was early. And so I was helping the founders go through this and really helping go into meetings with a client or prospect. and saying, hey, this is why, you know, our product is interesting.
And I think, you know, today there's so many AI startups that are much more either B2C or PerSumer. And so you're not necessarily talking to individual prospects, but the idea that you can be, you know, really in control of the narrative on the marketing side is really, really important. And I think, describe a few things where over time, I think that skill set just really, really helps you. One is, you know, you have a chance to kind of be a creator yourself these days. I think a lot of founders are trying to be more active on social media. And I think, you know, if you can kind of overcome the initial cringe factor of like seeing yourself and posting, like, oh, this isn't, you know, feel authentic. If you can overcome that initial feeling, you start investing into like, okay, how do I become a better copywriter?
You know, how do I articulate something that is clear, not just clever? You know, I think there's that saying where, obviously, if you can have that clarity, that's super important. And most people will try to get super like creative with their with their copywriting, but that's not usually the right way to break through and communicate something. So how do you improve your own copywriting? And then that allows you to actually have a higher bar when you start working with other marketers or in this case, like for us, like working with influencers, right? If you're working with influencers and creators and you can totally empathize with like how they approach that work and you know what a good hook looks like or you know how like a just structure a good post, like you can only do that if you've kind of gone through it a little bit yourself and you know how hard it is.
And I think too many founders will then just say, you know, they'll write something that just feels so much like an ad and then they'll give it to a creator to help amplify and then that just never works, right? And so I do think part of founder led marketing is like going through this yourself, using your own platform in the beginning, it's probably going to be super small. But as you get bigger, like you have a platform to need to have a voice and people listen and you're going to get better and better in your own storytelling. I think these are all skills you should invest in as early as possible because you know you're going to have to get better and better. It's like practice. You got to practice over and over. I definitely want to pull on this thread more because you tweeting the lessons you learn building gamma is what led to this conversation.
I was reading and I'm like, okay, he's sharing a bunch of stuff but there's so much more I want to hear. And we're going to talk through this and go a lot in a lot more depth than what you've shared on Twitter. But I love that that's example of that working, getting, having this conversation. So let me ask a couple of questions here. One is just how do you find time as a founder, CEO of a very fast growing, tactic, crazy startup? We have so much to do. How do you just like allocate the time to do this? And then any just key lessons you've learned about doing this well beyond which you've already shared for people that are not wanting to try to start sharing things on LinkedIn and Twitter?
My advice is definitely just to try to start small. Don't let it become so intimidating that you just don't get started. For me, it was like just having a no pad or Google Doc around in the beginning where I would just constantly jot down, okay, this is something I learned or something I observed or something that worked well or something that was unintuitive but worked and just start creating a log of that. And then once I had enough of those and I would spend basically every week I'd block off a few hours to go a little bit deeper. I take a lot of those bullet points and try to say, is there enough here to turn this into maybe a post or something that can be shared broadly? And in the beginning, I didn't have enough. It was all sort of scattered thoughts. But over time, you started accumulating some interesting themes.
And then I would start stress testing that some of that. So I would tell my teammates, okay, this is something interesting. Like, did you find this interesting? And if there were enough, like, oh, yeah, that's I would not have expected that or that's not something I've never heard before, then I then I'd actually start crafting the initial post. And then you actually just put it out there.
I think what I've learned is, you know, even for LinkedIn versus Twitter, the audiences want different things. And so you almost have to then have different tones of voices or like, you know, even nuggets are sharing. For me, I invested much more in LinkedIn early on just because it felt a little bit more natural for me. And then over time, I said, okay, well, I'm going to start packaging certain content for Twitter. That's actually different than what I would post on LinkedIn.
Sometimes on Twitter, you get even more tactical or even more into the weeds. And so I found that that to be helpful. But honestly, I'm still learning. So like, every time you post, you go back, you know, I have a couple of weeks, you go and say, okay, what things are actually being engaged with? Like, are things actually creating? Like, ideally, you're creating enough value where people are either bookmarking it, sharing it, retweeting it, you know, these things that are signals for there's something valuable there.
And then you just go back and you start collecting your own sort of, you know, these are my all-star posts. Like, these are the ones that I've actually, you know, broken through. And then you go back and try to understand, okay, what about that post? I think was actually useful. Is it the actual content? Was it the structure of the content? Was it some sort of contrarian advice? And you start, you know, thematically bunching that together, such that as your brainstorming every week, you just have a good sort of body, you know, body of work to work off.
This is so interesting and valuable. So let me mirror back a few of the lessons that I heard here that I think is easy for people to miss. So one is just what to share. What I heard here, and I completely agree with this, and this is what I try to do is pay attention to things you've learned, things that you find interesting, things that are unintuitive to you. Just like, have a doc and just put these there.
At any time you learn something, find something interesting, just add it to the doc. Or, yeah, I haven't heard before. Is a good one too. So it's essentially just like, if you find it interesting, people on social media will also find it interesting. And one approach is to share it as it's happening, which is what I try to do. Just like, oh, I just learned this thing with Clockcode, with Clockcode, check it out, or save it up for a big long post.
The other interesting, I've never heard this before, is like post different things to LinkedIn and Twitter. I just copy and paste the same thing. I love that you do something different for the two platforms. I think we all kind of have intuition that there's different audiences, right? And so if you know that kind of fundamentally, then the question is, how do you package up the story the right way so that the audience is ready to receive it?
And I think it's getting differed by the type of creator or the founder, whoever's posting it. And of course, the actual content itself. And so for me, I'm still tweaking, but I do find that just copying and pasting from one to the other doesn't usually work. It really, like you almost need to be in the right mindset of like, what do I think will be more engaging on Twitter? And then what do I think will be more engaging on LinkedIn?
And then kind of test the bunch, see what actually works, go back and iterate a little bit. So if you had like one bullet point tip for what works on Twitter versus LinkedIn, you shared maybe more tactical on Twitter, is there anything more there you can share? Yeah, that's what I found is tactical, oftentimes more contrarian on Twitter. And also, I would say technical too.
People really like to know, again, going back to getting into the weeds, is this something I feel like I could replicate? And I'm not going to give you credit, there's no credibility if you just give a blanket statement or something that feels generic. Like I really need to know, because show me the metrics even better. I feel like that. Versus LinkedIn, it's more, oftentimes more even just, you know, either more aspirational or aspirational or like a topic or a theme that just feels like relevant at that point in time.
And you can just kind of make more of a broader statement. It doesn't need to be as tactical. It's more like inspirational. It's like, oh, okay, now I need to go and learn a little bit more about pricing and packaging, for instance. And that could be the sort of spark that somebody needs. And you don't need to spell it completely out. Part of it is also that on LinkedIn, you can't really do threads. And so, you know, doing like a super long form post isn't as practical. Maybe that changes in the future where maybe the tactical pieces, you know, that element might actually change.
And the last piece is you said you just block off time. Is there like a specific time of the week you do this? How do you actually, because everyone's like, oh sure, I'll block off time. And then, I don't know, okay, but I actually got to do all this other stuff. So I'm not going to use it this time. Maybe next week. For me, it's usually two times of the day, very first thing in the morning and lasting at night. And partly is because of kids. It's almost like I need time, but there's just zero distraction. And there's no noise in the house. And so I can actually think.
And then, you know, I think in the mornings, it's about where are you finding inspiration? Like, where are you? Like, what are topics you're energized by? And then I think at night, it's about reflection. Like, what are the things you actually went through that day? You can almost pull up your calendar and be like, okay, I talked to X, Y and Z people. And was there anything from those conversations that might be relevant? That's where I write some of those things. It's more of a recap of, of actually what happened.
And what I, what helps me to not feel like this is some cringy self-promote, egotistical stuff is just it's useful stuff that I've learned that ends up being helpful to people and people in the comments. Or is just like, oh, that is really cool and useful. Thank you. It's not like self-promotions, not just like, look how amazing I am. Look, check out my amazing products. Like, here's the thing I learned. You might find it useful.
That's exactly right. I think, you know, one way of thinking about it, you know, with like founder-led sales, it's always about like exchange of value, right? You want to be able to give, you know, them, the customer, this feeling that they're getting an amazing product and exchange they're going to pay you money for it. I think with like founder-led marketing, it's almost this mindset of you want to give people a ton of content. Maybe it's like, you know, a value in the contents. They're just sharing something, maybe some, you know, some secretactic or, you know, giving them something where they, you know, they're inherently there's value in it.
And in exchange, you sort of get goodwill back. You're not necessarily getting money back. You get goodwill. They're going to follow you. They're going to engage with their posts. They're going to tell others about it. And then over time, you can exchange maybe some of that goodwill for like actually talking about my product and like announcing it and they're going to help amplify the news. And I think that's magic where you kind of kind of bank the goodwill for a long period of time by providing just a ton of value with no expectation of anything immediately in return.
The book I always point people to when they're wanting, when they're struggling with this sort of thing and like, okay, I did this and no one like no one cared didn’t do any good is there's a book by Scott Pressfield, I think is his name called nobody wants to read your shit. Yeah, which is exactly what is right. Nobody wants to read it. The bar for people to care is very high. There's so much stuff to read in process. And so this book gives you a really good lens of just like, okay, the bar is very high and nobody wants to read your shit. So you have to try really hard to make it really good. Great reminder.
We'll look to that in the show notes. Okay, let's get into let's come back to the growth of gamma. So we've talked about how you got your first tens of thousands of users essentially product hunts, rethinking onboarding, making it really magical. And then this very controversial tweet that Paul Graham commented created some buzz. Let's talk about the next phase and maybe I don't know, tell us kind of the ARR at that point through a hundred million, just like broadly, what should we know?
So when we got to about 10 million in ARR, I think there's this feeling for me, which is we knew we needed ways to help just continue to amplify and spread the word about gamma. I think it was already working in terms of the organic viral, the viral day was there. And so we do, we did feel like it was time to start amplifying some of this. And I think the main blocker of my mind that I started feeling was that our initial brand was sort of holding us back. And I think a lot of people discount, you know, whether or not a rebrand is valuable. And I think sometimes it is sometimes it isn't for us. You know, there's a few different things we looked at.
So one, our initial brand was was almost more of a placeholder brand because we created it the moment we sort of incorporated the company, which is again like late 2020, beginning of 2021, where we needed something so that as we built, we could at least share it with people. We could put up a landing page and just feel like, okay, there's something here. But we didn't invest a whole lot into it. And so it was pretty limited in sort of what I call the kind of the DNA of the brand. There wasn't that many, like the art direction was very limited in scope. There wasn't much when it came to like voice and tone.
And so, you know, it was, it was something that we knew was good enough to start, but it wasn't scalable. And when I think about something that could be scalable, it's almost like you can take the ingredients of a brand and replicate it a ton. Like you're kind of, you know, this DNA is something where you can, you can imagine creating tons of content around and all feeling pretty cohesive. And I know, I think that needs to be done by design. Like you're really think being thoughtful about every single element. Like what is the art direction you want to go with? What is the voice and tone such that as you're creating, you know, thousands of pieces of copy, it all feels pretty cohesive.
And so we kind of went back to the drawing board and we spent many months kind of rethinking what would be the, you know, the brand. What is, what is this vision that we have longer term? Our creative doctor internally partnered with Smith Indiction and Amazing Agency that has helped, you know, what folks like Probelexity also do their rebrand or their initial brand. And we work, we are so many months just like really trying to craft kind of what we think is like the core DNA of the brand. And doing so in a way that we could replicate it as much as possible.
Replication piece of it comes into play because as you start scaling, you're going to have to create a ton of content. Your own content on social media ads, you know, for performance marketing assets for influencers to be able to use and showcase in their content. And so you're going from like, you know, tiny pieces of content to all of a sudden every week we're testing thousands of pieces of creative. And you cannot do that if you don't feel confident that as you're replicating, like you have that sort of cohesive feel. So for us that we realize it was going to be necessary and why we invested so much and end up being I mean way more expensive, way more time consuming that I would have imagined, but I think coming, you know, on the other side of it being the right investment feeling that that was the right time to do.
I love how many things you did that feel like this wouldn't this would will not work out. Building a startup within the presentation space doing a whole rebrand in the middle of scaling also just reworking the entire product after you launched and just like rethinking the whole thing like all these things and everyone's always like no this is not how we went and interestingly worked out for you guys. I want to come back to the brand stuff, but one of the most interesting ways you guys grew early on was influencer marketing, which a lot of people hear about and talk about I haven't heard a much of like had actually do this and what actually works.
Talk about that as a broad growth lever free guys and then I want to get into just like what tools did you use who actually was really helpful there. So yeah, just give us the big picture. Yeah, I think a lot of founders assume that with influencer marketing it's almost like turnkey. You set aside a budget, you find some creators, you figure out the right campaign or the right moment of time to do it and it's all done. You're ready to go. And I think the reality is like going back to like this founder led marketing mindset is like well you're going to set yourself up for success if you actually are super involved in that entire process.
So for us what this meant was like all the initial influencers I onboarded manually myself. We would find I would spend time I would jump on a call with each one of them so that they understood what gamma represented how to use the product. You want to be able to have them tell your story but in their voice right and they can't do that if you're not willing to put in that investment. And so we would spend a lot of time like going through it wasn't my job to tell them how to pitch gamma but it was my job to make sure that they understood what gamma was as a product. And so we would spend a lot of time like me just walking through the product then asking questions us like just kind of brainstorming what could the hooks be and me just giving them some initial feedback and like saying oh yeah this one I love that I think it's going to work great for your audience but not trying to be super prescriptive.
And working with a ton of micro influencers people that don't have massive followings but are committed to giving going back to giving value to your audience like they're committed to giving value to their audiences. They want to be able to showcase tools that actually they would use or they are using. And how do you do that in an authentic way like you can't really fake that you really need to spend the time doing that. And just like you would onboard a customer you onboard and influence are the same way you want them to be an extension of your team. And I think they can feel whether or not you're willing to put in the work. And if you're not then they're just going to treat it like any other project ship it and be done with it. If you invest in that relationship you know guess what they'll they'll be back to actually post about you again.
And like you're all of a sudden having this sort of you know this relationship that actually can build over time. I think that's really where the magic is like too many people discount that initial piece. This is awesome. To be clear influencer marketing essentially a person with a following answer I ticked out Instagram Twitter LinkedIn whatever gets paid in some way to promote your product. That's how you describe that's the simple way to understand influencer marketing.
Yeah. Yeah so it's definitely the simple way and I'd say you know there's definitely a different you know levels. I think a lot of people think influencer marketing and they'll think you know these big trendy creators people that have like a million followers for instance. And they're the ideas that okay we're going to carve out a really big budget. We're going to you know choose like five or six that we feel like a really thick that taste makers in the space and put all of our money into like just help you know having them talk about our product.
And I think usually this is this is kind of the wrong approach because many of them you know they do have massive audiences. And for you you're basically like you basically give them a script to read and it immediately feels like an ad right like they don't feel like that product is not connected really to them in any way it's just something that they're you know for this week they happen to be working with you and then they move on with their life and it never feels organic or authentic and you wasted a ton of money doing so.
I think you're much better doing the hard thing which is hard to scale but it's like finding the thousands of micro influencers that have an audience where your product maybe is actually useful. And for instance you know for us like early on it would be you know educators. People that for them part of their job is creating slides every day because they need to engage their students. And so like for them you know having a tool that actually save them a ton of time was something they love talking about.
And if you can find some of these pockets we call them echo chambers where if you find a pocket like educators teachers love telling other teachers about products they love using. During summer break they all come together and talk about okay what are the things that we're going to actually improve you know my job next next school season. And you know obviously during this AI wave a lot of those have been okay what are the AI tools I just saved me a ton of time.
And so if you can start actually tapping into these pockets of like echo chambers that's even better. Like that it doesn't have to be this flashy you know like well known influencer it's actually just this person that has an audience of where people like really trust what they say. And and that's amazing that ends up becoming this sort of you know wildfire that can spread really really fast. And what's like the dollar amount these folks get it's like a few hundred bucks few thousand bucks some like that.
Yeah a few hundred to low thousands. Single digit thousands. What are how do you find these folks are their tools that use is it just like a bunch of manual searching and looking. Yeah in the very beginning it was all manual a lot of cold outreach. And then we ended up finding a couple different things. One is a platform a YC company called first collab that has been amazing they basically do all the automated outbound for you. Plus you can help them you know actually create profiles or personas of different creators. So like for instance educators being one and then they'll go out and actually you know based on that profile find all the right creators for you. So they've been amazing really great to work with.
是的,大约有几百到一两千人,具体来说就是一千多。这些人是怎么找到的呢?有没有什么工具帮助寻找,还是全靠人工搜索和查找?一开始确实都是人工的,进行了大量冷启动的接触。后来我们找到了一些不同的方法。其中之一是一个名叫 First Collab 的 YC 公司平台,它非常棒,几乎可以为你完成所有的自动化外联工作。此外,你还可以帮助他们创建不同创作者的档案或人物角色。比如说,把教育工作者作为一个类型,然后他们会根据这个档案帮你找到所有合适的创作者。这个平台真的很好用,非常愉快的合作。
And then we've also found small agencies to also help kind of augment that. Like I look for you know agencies that are super young and hungry. These are people that you know are social they're native to social media. And so you know they really understand it and they can really be able to bring in creators that you know are great to work with. And I think part of it is like if you find creators are great to work with everything everything else becomes easy. So we've had a few one is AKG media actually the UK and they've been fantastic to work with as well. So you kind of find a few different things either agencies or platforms that can help you actually scale the signal.
And these when they post they're generally transparent about this as a paid promotion right they're not just pretending I found this tool and I love it. Yeah exactly right. Okay and so how much impacted this lever of influencer marketing have on your growth say from 10 to 100 like is this the biggest lever of growth other than just word of mouth people continue to share it. Yeah so word of mouth has definitely been the biggest. So we look at kind of all kind of new subscriber growth over 50% of this is word of mouth. It's either people searching you know direct coming direct entering gamma dot op or going through search and typing in gamma like a branded keyword search where they're looking for gamma they've heard about gamma.
But I think for us social media and influencers specifically has always been an amplifier. So every time we invest in influencer marketing we actually see word of mouth increase even more. And it's always like you can just you can just see it like basically anytime you spend you know a little bit of money you start seeing people come through influencer the word of mouth factors actually one point we'll get another 1.5 additional users on top of that which has been really interesting to see. And I think part of this is just recognizing that and I think we kind of understand it but like with influencer marketing because it why it's so effective you know we all know you know dumb bars number which is you know have this number like 150 people you call kind of your network.
And your network you trust more than the average stranger down the street. Like if they tell you something you know they recommend something there is a sort of halo effect right you learn to trust them there a lot of these influencers the reason why they share so much about their lives is because they want to be in your network they want you to feel super close and once you feel super close you trust them to actually you know share things are going to be useful. And so when they recommend a tool there is this sort of halo effect where it doesn't feel like it's coming from a stranger it feels like it's coming from a friend.
And that's where every time we've spent money there you actually see this amplification like okay that's kind of interesting you wouldn't necessarily expect that but for us it's been this sort of amplifier from from yeah the very beginning. This is so fun to hear about I've not heard this level of detail on how influencer marketing works and how to make it work. A few more questions here. So you said there's maybe a few thousand people you ended up working with roughly influencers. Over the course of yeah like a year it wasn't all in the same time it was like you know you find basically in the beginning you do in the very very beginning we had a small budget it was like you know 20 creators a month and then you start increasing that to like 50 then 100 and then you know we're still not we're not definitely not fully scaled at this point but I could easily see a point where you know you're working with many many creators every single month and that gives you a chance to actually test a variety of you know again content hooks ways to talk about the product value props.
Amazing and you said the key here is you spend time with every one of these creators influencers early on to help make sure they understand what you're doing get excited about it isn't just like a thing you outsource. I think there's a lot of value there it's hard to again hard to quantify and in most creators feel like the most founders probably feel like they're too busy to allocate that time but I think it was a good investment because going back to you want them to feel like an extension of your team they're not going to feel like an extension of your team if if one they've never met you and two you've never even told them really how the product works they're just forced to kind of go to your website to figure it all out those are going to be you know not a whole lot of love that they're feeling from from from the outset.
So I'm hearing is quality over quantity especially when you're getting started and then there's this other piece of niche which I think is very counterintuitive instead of going to large large influencers or the huge audience it's good if folks that are small what's like an audience size roughly that you think is ideal for this sort of what niche just means. Honestly I don't think there's a minimum because even with platforms like TikTok they oftentimes are giving you credit for a brand new account they want to help amplify that new account because you know obviously you know if they're thinking from a creator perspective you know if that new creator feels like oh coming to TikTok is like a massive win for me they're going to be more invested in it and so there there really isn't a minimum a lot of these platforms are trying to shift to to kind of the same thing where they really reward new creators on the platform and so you could have a small audience it doesn't really matter you could have 10,000 followers that's also good I think as long as the content feels you know again engaging authentic to that to the to the people you're talking to I think has a really good chance of actually taking off.
That's such a good point when we take talk where it's not follow related it's it's if it's useful and people find it clickable whatever likeable viewable yeah it'll it'll it'll algorithm will spread it to a lot of people such a good point. Totally. Okay there's a couple more points you made in the tweet that I want to make sure we highlight so one is you made this point that 90% of your reach in influencer marketing comes from less than 10% of people is there anything there that you think is important for people to hear.
Yeah I mean this just goes back to it's it's hard to know where that 10% is going to come from so you kind of just have to cast the super wide net right you can sort of I think try to again trick yourself into thinking you're you're great at picking creators or you're great at telling them how to like post about your stuff whether reality is like even for me I could never guess like I kind of had some idea but I just had to make sure that I was meeting enough creators broadly such that when you meet enough they're all posting there's some pocket that end up just taking off and I was not a good predictor of that I was not smart enough to actually know which ones to take off I just knew that we had to play this sort of numbers game to make it work.
So when your tips here is is people fail often in this because they start too small or they're budget a little too small you recommend 10 to 20,000 a month over six months and just trying this it sounds like you're doing like 20 to 30 creators a month is that the right framework for how to just start this thing and explore.
Yeah totally and I'd say it's not just that the budget's too small it would be that they put all their eggs in one basket so you can also easily blow that 20k on just one you know bigger influencer and then be like oh that didn't work so I'm gonna try it again that didn't work okay I give up and I think rather than doing that you should be like okay that 20k I could actually probably work with you know 40 different influencers and see what actually works and we'll cross the 40 I'm gonna try to find a variety of personas a variety of use cases spend a lot of time with them and then actually see you know what's working what's not and then next month take those learnings and you know double down like if educators are working go with educators if consultants are working go with consultant find work consultants there's going to be more there I think that's where the outputting all your eggs in one basket is just are the surest way to fail because like you're gonna miss a ton and it's gonna take you way too long to learn and you're gonna come to the conclusion as a waste of time.
I feel like this whole podcast conversation could be just about this one lever so much I want to be talking about but there's more questions here because this is so useful and interesting you have this line in your tweet about how virality is not an accident and that this approach is how you figure out what actually works and then once you do that then you start leading into that messaging talk about that.
This goes back to obviously if you're you're testing a bunch you'll finally find that sort of you know post or set a post actually go viral going back to yeah just the fundamentals like make it easy for your influencers to be able to tell your story in their voice but one thing we did you know we open sourced our basic entire brand we have brand.gamma.app which is everything about our brand our voice and tone our art direction what we use in mid-journey to create this sort of art direction that we have so that a creator can can do the same right and they can actually just copy all of that so that they don't have to reinvent the wheel every time they're trying to post about gamma.
The have all of that and I think that going back to like this notion of like just make a dead simple for them remove friction they already have enough to like on their plate that to figure out don't make it any harder than it is and if you remove friction then it's like oh you get into this rhythm of adding creators is easy having them post as crazy easy reviewing what's working what's not as easy.
And if you're able to do that relentlessly over many many months then all of a sudden like hitting the sort of viral post is easy because you're going to have enough at bats there where some are going to you know some are actually going to pop off but you kind of only can get there after you've like done all the hard work before that to make you know you know kind of remove friction from the process and feeling like it's almost like a you know well oiled the machine at that point.
Is there a platform you find most helpful for the stuff you guys are doing is it like TikTok and Instagram linked in something else yeah I mean this is one where you know for us we cast a pretty wide net too but it's very clear you know linked in the conversion rates are just substantially higher there the 4x maybe 5x higher than other platforms and I think a lot of people are probably still sleeping on LinkedIn frankly and so it's one where you know the some of the some of the influencers there are creators there can be a little bit more costly but if you can be highly highly you know eventually be more targeted knowing that hey this type of creator is pretty impactful for for you know our product then working with them it's just like oh that's that's great like the conversion rates are just so strong and it really feels like we're like just getting started there.
So you know if you're in the beginning you're not sure it's always helpful to cast a pretty wide net and then you know similar to sort of just the influencer strategy like test and iterate you'll figure out many of these things will fall the power a power loss was like you know one or two channels are going to be the most important for you for instance Twitter for us hasn't been that impactful and I think for tools like notion they've been really really impactful you're not going to really know and so just test and then double down on the ones that really move the needle for your product.
I think that many people are sitting now are like wait LinkedIn post are sponsored sometimes I didn't know that what's like how do you know if it's a sponsored post is like a hashtag sponsored or something like that how do they communicate that usually they'll say you know they're a partner or yeah basically it is sponsored in some form or you know they'll the hashtag you know add or you know something along those lines so that's probably the the way you'll you'll see it the most cool by the way I don't do this sort of stuff if you ever see me on LinkedIn I'm not doing any paid stuff just so people know and I don't plan to do that.
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Let's come back to this brand point so one of your big lessons is invest in brand before you go heavy into hit ads and performance marketing I imagine you do some ads at this point Facebook and Google and things like that yeah we run ads performance marketing you know I think there's this this like the stigma that you know brand marketing and performance marketing or sort of at odds with each other I very much follow kind of the the sort of the thought that brand marketing is performance marketing like everything is some form of performance marketing it just not might not be as attributable.
So like the ability to actually map back to every single dollar spent is a little bit harder but it doesn't mean that it's not impactful and I think as a company scales you have to invest in both. and ideally they work really really well together like the more you invest in brand marketing it strengthens your performance marketing this goes back to like having enough creative to even test if you're too limited in scope and you don't have a brand you feel like you can actually amplify your handicapping your ability to actually have a good performance marketing program.
I love that he risk to go how do you know if you are under invested in brand is if you're limited in the number of ideas you can try in performance marketing like is or your design design system just like is everyone having to redesign things from scratch and come up with all these frameworks every time they run an ad exactly yeah yeah it's like basically you kind of have a feeling for you know if I were to scale this up to a thousand pieces of creative would it still feel cohesive or is it kind of all over the place and it feels like it's all over the place and you kind of have to go back to the drawing board.
You said when you talked about the rebrand that it took a lot longer than you expected that it was more expensive than you expected that's like the fear I think everyone has when they hear this like oh I don't think we're rebrand well yeah I also imagine because your product is so visual that it makes more sense to invest there and to spend the time and money for the typical founder do you mean you just said I don't know thoughts of just like here's when it makes sense here's a sign you really needs to invest here have believe versus like an ad will probably be all right.
Yeah, I mean I do think it's probably more geared to anything that's a little bit more prosumer consumer because so much of your product you're trying to create you know that this feeling for a user like what are they experiencing and the experience it happens way before they even drop into your product it might be they see an ad or they see a billboard or they see something is like okay that piqued my interest a little bit and then you need some sort of like symmetric messaging and that they see there's some symmetry and that they see that they will then they drop into the product with land on your website they it feels cohesive and it feels like okay this is this is interesting I'm going to go all the way through to sign up and then maybe actually start using the product.
That's a little bit different when it's like a B2B product or you know where there's a there there isn't as much for lions on you know that that initial moment they they might just hear about it through you know colleague and and then sign up for it and then go through a huge procurement process and then it's like okay maybe it matters but probably not so much as like for a product where the brand can have so many different touch points.
I want to talk about some kind of broader things that have worked to help you grow but before we do that I just want to visualize the pie chart of how GAMARK rose say post 10 million ARR if I have it correctly in my head it's over 50% just word of mouth organic people sharing it doing presentations for each other oh it's yeah my just go check it out sign up then it feels like the second biggest bucket is influencer marketing kind of social stuff and then is the third performance slash paid marketing yeah that's right yeah cool.
So on the last piece is there anything else there for people that are starting to explore performance marketing essentially Facebook ads Google ads all these other platforms is there anything else that you think might be helpful for people to hear or learn just to get started down this road I would just have two recommendations like one going back to my initial piece of advice which is don't invest until you have word of mouth don't fool yourself into thinking that you'll solve other problems by just starting to ramp up a performance marketing program but just get the word of mouthpiece first so that you have you're coming into this program with some tailwinds and then start ramping it up.
The second piece is like set some constraints you don't want your product to be at a point where more than 50% of your acquisitions are coming through paid acquisition I think if that is happening your core growth engine is broken and you know feeds right back to point number one which is that if you if your core growth engine is broken you just have this leaky bucket you're trying to spend so much money building top the funnel people are not making it all the way through something else should be fixed before you really try to dial it up and it doesn't mean like you don't spend a little bit of money but just don't dial it up until you feel like your core growth engine is actually working.
When you said the first point about wait until you have word of mouth before investing in performance marketing is that essentially like a large chunk of your growth should be coming from word of mouth direct organic yep yeah and for us even at scale again going back to more than 50% of you know new sign ups still come through word of mouth like we that that for us is a sign that okay you know something is still working people are using the product telling other people and you want that feeling before you really start dialing anything else.
Is there like a percentage that you think is helpful for people to think about just like is like 25% or more something like that of just word of mouth before you to feel like okay we actually have organic growth as a major growth engine yeah I mean I think this comes back to maybe just how maybe aggressive you want to be you know I think just rough you know erasik is the more the better if it's over 50% I think that's great if it's like approaching that good and just going back to like don't fool yourself into thinking just ads is going to be the way grow because you can do that but everything else becomes harder and harder.
If you rely on paid acquisition to be the main growth engine you should be prepared for things like tack like customer acquisition cost to keep going up and the more you're trying to reach like a new audience it gets more and more expensive so don't assume it's going to be flat and then all of a sudden you're running on this treadmill that's actually running faster and faster and so that's where it's it's easy to get hooked on that early on when you're just investing a small amount of money and then it's almost impossible to get off that treadmill when you're too far into it so anticipate that and give yourself a better chance that actually be able to sustain that growth long term important advice.
Okay there's a couple more elements you've shared that were key to Gamma's growth one is sharing prototypes with users before you ship what does that look like what does that mean why is that so powerful yeah I mean this for us was a huge unlock you know going back to like early days when you're just trying to get your product into anybody's hands you're good into your you know friends trying to use it and again they're going to lie to you tell you how great it is and then never come back to using the product.
I think what you want to be able to do you know the ideal situation is you recruit a bunch of people that could you know they're legitimately good prospective users or customers of your product but have zero skin in the game they do not care at all whether or not your product succeeds they're just in it to test it and you you know for us it was like people to have made slide decks or make slide decks regularly let's drop them into Gamma give them very little context we just tell you hey this is an alternative to PowerPoint go ahead and try it and then as you're going through the onboarding flow and testing the product just tell us everything that's going on in your head.
Like describe what you're seeing tell us what you're trying to do we'll give you maybe a few different tasks like oh create you know create a piece of content and when you watch them do that and also hear what they're saying. you just immediately feel the pain like all the places they're struggling and all the places are so confused by like what they're seeing and you sort of then can internalize that pain and say okay we're going back and we have to fix this this is like not usable like we you know we oftentimes are dog fooding everything and so you can get to the point where you're so familiar with your own product everything kind of feels kind of easy you you know where things are but when you start actually hearing other people describe their usage of the product that's like a gift like you're all of a sudden you're like okay now I know we're to actually spend the time people aren't even getting to the third screen they're stuck on the first screen because they can't even find the button that we think is like so dead obvious is let's go back and actually re-engineer re-architect that piece of it and we've done that for everything landing pages onboarding experience new feature launches you know export sharing every single piece of that such that you know we can actually see where things are working or not and then every time we'll learn something that's kind of painful but obvious that we need to fix and we go back and fix it.
How do you scale this or the thing how do you run every new big idea and you feature change by people do you have like closed beta group do you some platform how do you actually do this there's a couple great platforms so voice panel which is also YC company full disclosure angel investor and then there's also you know platforms like user testing that really help you source and you know find find these people that fit again that persona or profiler looking for so in our case like people that are in a specific job function or you know create decks regularly and so you can use those platforms to really scale up these programs pretty fast and then once your team knows how to use those platforms like we would we would have an idea in the morning and then that afternoon we're already running you know a pretty full-scale experiment or like you know a research study and and by the evening or by the next day we can actually go through all of it together so it's pretty fast once you have it set up it's more about like how do you get the program you know onboarded the right way.
如何扩展这一过程,或者说如何在人们之间推广每一个新的大创意和功能更新?你是否有一个封闭测试小组,或者使用某个平台来实现?其实有一些很棒的平台,比如 Voice Panel(也是 YC 的公司,顺便说一下,我是天使投资人)以及 User Testing 等平台,这些平台能够帮助你找到符合你目标用户特征的人。在我们的情况下,比如那些在特定工作岗位的人,或者那些经常创建演示文稿的人。你可以利用这些平台快速扩大项目规模。一旦你的团队学会了如何使用这些平台,我们可能早上有一个创意,下午就能开展一个全面的实验或研究项目,到晚上或者次日就可以一起分析结果。设置好流程后速度就很快,关键在于怎样正确地实施这个计划。
I think the other sort of mechanism we did early on was once we had some repeat users we created a sort of a program for our power users we called it the Gambaster program which is we put for them to a separate slack workspace and that was a place for us to kind of share very very early prototypes like wireframe for rire frames sometimes they're functional prototypes and get them to get some get some initial feedback as well this definitely helps with more sort of you know later stage or like you know a features or things that aren't going to be necessarily important was part of onboarding but like once you understand gamma like oh how do you share it for instance like this was a great way to start testing some of that because they already understand gamma but now you're adding net new functionality and then we can also watch them struggle and hear how they're struggling with the product and so that has been a great way just to have a separate slack workspace anytime we're thinking about something they're the first to hear about it give us some early indication if we're on the right track or not.
I love this workflow that you shared of you have an idea in the morning you build the prototype do you build it with like like AI prototype tools like cursor lovable something like that yeah yeah that or it could be yeah I mean we're lucky a lot of our you know designers also know how to code so even before the recent tools like you know kind of come up with some sort of functional prototype and then and then be able to ship that so people can start playing with it.
Yeah so you you have an idea in the morning you build a prototype using various tools you by the end of the day you are getting feedback from real people using one of these platforms voice panel or user testing and just like that loop saves you I imagine potentially months of just building the thing nobody wants and shipping it launching it and then just failing totally yeah I mean I think this is even more probably helpful for you know certainly a lot of folks that are starting to do much with vibe coded apps like yeah that's great like you've lowered the you know amount of time to get something out there now prove that it's useful to like some set of users and this should be again like every day every week you should be able to go through a ton of these and and then build on the things that seem to be working I feel like that's like it's almost like a a way to speedrun a lot of that early sort of your idea maze you think you have something that could kind of work how do you actually break through so that you know people are actually finding value in what you're building.
Yeah I love it because so many people hear this idea of just like run your stuff by users before you ship you know do the user research it sounds so hard and heavy lift and in the way you're describing this like very automated very very quick to do you don't have to go think about finding random people to in a coffee shop it's just like these platforms exist where you can go plug in your thing get feedback by the end of the day totally yeah and that helps you just move way faster is there a feature that you were super excited about that you built and ran through this and just like okay that was a huge failure I mean I don't think any of the ones where we you know we always try to kind of chunk it down so like none of the things we're testing earlier on or like these massive features they're always like an inception or like a starting point of like this could be something interesting and then we take that initial learning and actually then build the product around it it's never like oh we spent like four months work on this thing let's see if anybody actually wants it.
It's almost like we always start super early and a bunch of ideas die right away but there's still pretty small ideas and then the ones that kind of past initial test you start building towards something that could be hopefully more game changing or much more value add and by the time you're actually shipping like you've gone through you know 10 different layers of actually testing and iteration before it actually sees the light of day. It's really interesting about you and the way you company operates your guys are ex optimizally people say you're very reversed in experimentation a lot of people talk about a be testing experimentation as something that doesn't make sense for a startup because the scale is so low what I'm hearing here and I know this is something you talk about is just there is actually a lot of way to a lot of ways to think experimentally even in the early stages there's something more there you think is important for people to hear.
Yeah I mean I really think it's more you know the mindset you go into to almost any problem or opportunities you know the saying of you know strong opinions weekly held I think it's totally fine to have like some of these assumptions or like hypotheses going into a lot of these things but you should always know that there's a way to start trying to validate some of this you know as a founder you're always trying to build conviction and so you build conviction by you know not you know having it all live in your head but getting it out there and start testing this with users prospect customers and starting to see like what are the things that actually feel right and sometimes you have enough data to be statistically significant sometimes it's more of a hey we at least were able to gut check this a little bit and get some qualitative feedback I think that's still valuable it shouldn't be this sort of like all or nothing like it has to be static for it to be useful.
I don't think that's true in fact I'll just share kind of the very early story of you know when we first started gamma we knew we wanted to help change the way people communicate and we actually had two different ideas we were parallel pathing kind of at the same time so of course we had you know presentations reimagining how people were creating presentations and we also actually had the separate idea which we called the lobby which is a virtual office this is a place where you know this is again peak pandemic much more hybrid work much for a virtual work and so this was a place where everybody on a team whether you're in the same office or not could gather collaborate it would feel pretty magical and we worked on both for six months we worked on both the virtual office and the presentation product for for six months we would dog food both so like oftentimes we'd be in the virtual office presenting the the presentation tool and kind of use both.
After six months we came to this conclusion that we wanted to go all in on the presentation tool and the reason was when we looked at the virtual office tool we were sort of always competing against what we thought was something we'd never be able to surpass which is in real life experience like actually being able to work shoulders shoulder with her colleagues and having this environment where you know you really feel like you're building together like virtual office could get pretty good but we would never beat that and so we were almost like limited in our own imagination about how good could this product be versus the the presentation product we ended that with like a million more ideas we thought we could actually introduce that could be better than how you work in PowerPoint today we were just so like so energized by it.
And so for us that was like a you know this sort of AP test of like testing these two things that we invested equally amount of equal amount of time into and coming out at the other end realizing that one was going to be the product we were poor sort of you know all of our blood sweat and tears into making it great because we saw the potential in it there's I didn't know that about you guys that you explore that other idea that there's so many startups that did that during COVID times I'm like okay this is the future we're all going to be remote and let's work remotely and virtual offices there's a startup and I'm a tiny investor in Lindy that is now a big AI agent company and they did the same thing I imagine you know that was their whole first concept there was just like these little avatars is like a little game where you walk around go to little virtual yeah it was a fun project to work on so but yeah it's interesting how we just reverted to the base back to like the mean of just lay people are in offices again that was a fun fun experience although things have changed.
So just to highlight this point you made that I think is really powerful I haven't heard it describe this way before just the power of testing prototypes very very very early using these platforms that make it super easy we always here okay you have you have a mock you have a prototype yeah it's always feels like this heavy thing you gotta have a user research team go do interviews do one on ones like what you're describing is something I don't know why everyone's not doing this and with AI tools it's so easy now have an idea build the prototype tested with I don't know is it like dozens of people how many people actually run through a prototype on average 20 20 people so 20 people look at this thing give you a bunch of feedback you realize this was very down or here's the nugget that we want to lean into and instead of building the thing instead of doing all these user research sessions things like that super cool.
Okay is there any other big lesson or lever that has helped you grow to today is a hundred million there are two billion dollar company we talked about influencer marketing we talked about testing prototypes investing in brand and a little bit of paid growth anything else certainly for us the ability to sort of adapt and move fast in this environment you know I attribute a lot of you know what we've been able to accomplish a few things one is we do have a small team and a lean team one that's able to move really fast I think that is that means by default like we have to look for a lot of levers where a small team can do a lot of different things we're going to talk one you know obviously about like how do you construct like a team like ours and what I think has worked and then to going back to experimentation being this sort of thing where for us it's been a huge unlock right because it allows you to not only you know test things and like you know iterate a ton it allows you to build much more efficiently and so we've been a startup where we've had great unit economics from the very beginning we run profitably we have really strong margins I don't think that would be possible if experimentation was in kind of core infrastructure to us because the temptation would be you just throw the most expensive model at you know every job and assume that's going to work and the reality is that never is the case and so for us to build actually test across you know 20 different models in production today always trying to align kind of value we're delivering to our customers with you know our ability to do actually scale this operation that's been at the sort of in the background and not always things that are easily you know quantifiable or things that you know you're sharing broadly but it is kind of core to our DNA and again going back to the team that came from Optimize you know probably not surprising but I do think that's been part of our sort of ability to actually execute at this level.
I love that the product is so beautiful and such a great experience it's such a good example of experimentation and being really obsessed with running experiments a BTS like your data can create really beautiful products and experiences that aren't just feeling like some kind of micro optimized flow totally yeah and just going back to like one part of the team part of the place a huge role which is you know you want to build a product you know people talk about taste and you know brand and all these things are they a mode I'm not going to kind of throw in whether or not yes or no but I do think it makes a difference and for us at some point you know more than a quarter of a team or about a quarter of our team was product designers and I think that's like a un sort of unintuitive level of investment or at least that's not common like you don't see many startups like on our stage or early stage you know where we're a quarter of the team's product designers and I think that was an important investment for us because when you think about you know with AI companies so many companies are trying to invent new surface areas or you know new user experiences and that's not possible if you're not really getting the foundation right really thinking deeply about you know user problems and how can you solve them in a novel way and so for us like we made that investment in the very beginning even if it was counter to what other startups would do because we actually felt like it was the right thing.
Okay I definitely want to spend more time on hiring before we get to that you've touched on this kind of concept that you guys are with many describe a GPT wrapper company you essentially sit on top of other models do some cool stuff charge for that there's historically and there's been a big shift here historically there's a sense that okay you're just this thin layer on top of the model how is there any sort of motor leverage or long-term business model here when it's just the model that is doing the thing and charging you guys to do all this AI work feels like people have started to realize maybe that is where the all that is the only place money will be made because the models are just so hard to compete with and that's not a place you can build a business anymore talk about just what you've learned about this concept of being a GPT wrapper and how maybe what people may not be understanding about the business opportunity there.
You know when you think about maybe just literally only being a wrapper on like you know one model or you know one provider yeah maybe there's only you know limited amount of utility or value add but then when you start thinking about okay I'm going to go really deep into this one workflow and it's not just one model it's maybe 20 plus models powering all different parts of the product and then you think about the orchestration that's required and you're thinking about obviously if you're experimenting like constantly being able to test across the newest models versus you know models that have been around that are cheaper like you're doing a lot to really you know your your job is to again like align value you know maximize the value you're delivering to to the end user in a way that's sustainable for you as a business and so there's a lot more to that.
And so for us you know we've always been passionate about being very close to our our customers our users who for them their job to be done is you know visual communication visual storytelling and the default tool today is going into like a power point or Google Slides where the amount of effort to create something you know we've all been there later now trying to form out a deck trying to find the right layout all this manual and tedious work well what if you could abstract all that away and give them something that feels a little bit more delightful a little bit easier much more effortless what would that earn you in terms of a customer that wants to come back to your product.
And so that's everything that we focus on is like you need to go deep into the workflow the empathetic to the user and their job that you're trying to solve and of course apply the best technology possible so that you're you're delivering on that promise about product experiences way better than the status quo and I think if you can be laser focused on it doesn't matter if you're a rapper or not like what is the technology you're doing in applying that makes a real difference so that's that that's the ultimate goal.
This is a really cool framework for how to think about what it takes to build a successful rapper company that is I don't know let's just I'll keep using that term I don't know if it's truckers or not but just like you know some ideas don't work because these model companies are launching their own products here and there so what I love about your describing here is kind of like the almost like a heuristic that'll tell you if there's if there's an opportunity slash how to be successful as a GPT rapper company.
I'm putting in air quotes it sounded like maybe there's three here but talk about just like if you think about the bullet points of what you need to do to build the successful business on top of existing models I mean I think the most important thing is you know before we even talk about the technology so we're we're skipping to the part where you're trying to you know apply the most interesting models or technology to solve some problem start with solving the problem you actually care about you know I think it's very tempting right now to chase shiny objects like a founder might be able to gain some initial traction by literally being that GPT rapper and like solving any sort of problem and like you start and see some traction and then you just go with that.
But before you do that you should think about is this a problem I can invest five to ten years it's actually solving do I care deeply enough about it because if you can you're never going to go sort of actually think about overcoming the variety of different hurdles whether it's other startups or other you know incumbent tools that are trying to start doing the same thing and so for us like we we go back to like you know we've started this company because we really care about helping change the way people communicate their ideas we really feel like this idea of like visual communication visual storytelling matters it helps elevate everybody and it gives people much more opportunity.
to do the things that you know in the past if you weren't great at making slides your ideas might have died and someone else that was able to actually articulate their ideas better and the dub winning you know the deal or winning the you know the favor of their manager or their boss and so we felt like that was the wrong you know that that didn't feel right and and so could we help democratize visual storytelling visual communication that was sort of our north star and then you go back into thinking okay every step of the way what are the tools and technology I can apply to help solve that and actually move the average person closer to that long term vision of ours and of course AI has been again like this gift where yes you can apply that to solving this job you can also apply that you know AI to many different jobs figure out what is the problem you care deeply enough to go deep because going back to this sort of idea like you need to own the sort of end-to-end workflow a customer needs to have you like you want you to live you want your product to live in their brain somewhere where when they think about a after creative presentation they come to you as the default tool.
and the moment they start creating it to the moment they ship it and send it to you know their boss that end-to-end experience needs to feel magical needs to feel great and I don't think you can really do that unless it's actually a workflow you either know deeply yourself or you care deeply to actually help solve for somebody else so some of the elements I'm hearing here is one is just like care actually really care about solving this problem not come from oh wow this cool thing happened in a work wow maybe I could sell this thing to people because you may end up having to work on this thing for 10 20 years totally um two is understand the problem really really deeply and have real empathy for the people trying to solve this problem you have this problem that you uh creating presentations of your previous jobs you understood it and I imagine you understand it understand even more deeply now that you work on this so essentially like care really deeply uh go really deep on the problem have real empathy for the people facing this problem and then there's this like actually be able to solve this problem using the technology out there and you made this point about how you guys use 20 different models to do what you do talk a little bit more about that just because you know people may think oh okay like I could just go to open a jet jet to ptr cloud and it'll create an awesome presentation for me why does it take 20 different models why is that such a big part of this success here.
yeah so go on back to the workflow you know you're trying to go and break down every step of you know the creation process for for a user so the moment of the initial idea to maybe creating an outline of of what you want to you know present articulate to creating the first draft like what do we you know show you there to editing the content like okay I have a first draft but it's only 60% of the way there how do I get to 100% of the way there those are all things that might require different models like the initial outline might be better served by something that's purpose built for actually creating you know the best outline the best narrative the best story arc versus one where you're actually going back and saying you know gamma our agent can actually go and review your entire deck and say actually if I were to add suggestions I would say you know you may want want to change the visual layout on these set of cards and you may want to actually change the imagery or the visuals for these cards to match you know everything else.
these are things out again like every model might be better served for different things and so knowing how that actually breaks down into the end user sitting down working on the product working on working on you know their presentation how do you help them I think you can only do that by understanding that workflow and then breaking that down into finding the right tool for the right job that is super interesting essentially there's like here's the things that AI has to do for us I don't know imagining some kind of storyboard and then it's figure out the model. and level of model and prompt for that model to achieve each of these steps as best as possible totally yeah and it applies to you know even on the visual side finding the right image I think certain models of great photo realistic output versus others you know want more of the artistic vibe where like you know something that feels more abstract and so again you can choose the right model for the right job it doesn't mean that you'll never use other models is just like as you're going through that workflow certain that the content might dictate you know what's the best use case so in that particular you know particular use case and so you're always trying to map to that what is the end user trying to accomplish in that certain moment which models are you finding most useful in in the work like I don't know is there anything surprising about oh wow this model is actually really good at this and this is really bad at that
yeah I think surprising or not surprising the leaderboard is constantly changing and and so this is where you almost you have to have the mindset that you can be adaptable we're just going to the point where there's going to be more personalization to is going back to like you know a consultant's going to have different needs in an educator if an educator is trying to engage their students they may want to have you know language or visuals are more animated and that that makes sense consultant can't get away with that they may need something that you know is much more structured or information dense and so again like how do we actually be the same tool that can serve both of those needs I think that's where it becomes interesting and it's almost like there is isn't necessarily even a quote-unquote best model it's like what's the right model for that right and for that particular user that's not too much harder problem to solve and we're just starting to you know trying to embrace some of that now is there one that's just like oh that's actually really cool for some that we didn't expect early on things like creating the outline perplexity was actually great you know not one that people talk about is often but creating the outline and doing web search and you know actually integrating some of those elements together for us was was pretty powerful
they're okay there's two more things I want to talk about one is pricing how you guys figured out your approach to pricing you guys started monetizing really early and that feels like such an important piece to AI startups because you're spending real money on and inference and other things and then I want to talk about hiring so in terms of pricing when did you decide it was time to really start charging and then how did you pick your approach to pricing your actual price
yeah so we kind of stumbled into having to do pricing and packaging I mentioned our big AI launch in March 2023 this is pre-revenue so we wanted just to get the you know we focused all of our effort on the first 30 seconds literally all hands on deck just trying to get that right and we spent zero time on actually monetization so we you know we had a credit system on the users get 400 credits once they burn through those credits there's actually nothing more you could do with AI it kind of just got cut off and so intercom for us was just blowing up with people saying how do I purchase more credits like I want to keep using this thing in a very fair question so basically all of April we ended up having to do a quick you know sort of pricing and packaging exercise we did a couple different things we did run a form of van western door which is just understanding what is the overall will miss the play and what will nest to pay and which are we did we did use that we did kind of integrate some forms of like conjoint analysis which is just like trying to understand you know what are the features or things that people actually value in your product and so we'd survey a lot of early users and and can it ended up coming to a price point that was in the beginning we only had one plan type was roughly like 20 bucks a month part of this was also just realizing we we almost didn't need to overthink it too much because this is one the the initial wave of like AI companies and startups are coming out and products are coming out and you're almost end up becoming anchored by what is chat you be to charge because everyone becomes familiar with that price point and so we asked ourselves like how complicated do we want to make it we always default to remove friction
make it as easy as possible for a user to understand and so we end up coming up with like a similar price point and kind of ship that as the the V1 basically end of May 2023 and for us we wanted to see a couple things like okay we we have the initial price point is it economical for us like at the price point we actually making money and we'd monitor there for that for many many months realizing that yes like actually at that price point we could still generate pretty good margins and that would allow us to reinvest that profit back into growing the business continue to add you know obviously headcount but then also you know investing even more into inference costs whatever we wanted to do to experiment broadly with AI and so we've always had that like you know pricing and packaging is not only it doesn't not only need to be easy to understand for a user you know obviously you have to have like strong conversion rates but it should be something where you feel like you could build an enduring durable business off of and if it's not right then you can always go back and try to tweak things but it's something you should be monitoring
you know as early as possible what's interesting we have the head of chat GPT on the podcast and he shared the way they picked chat GPT's prices the Vaden West Endorp survey that they ran in Google forums oh yeah yeah I listened to that one yeah I was great one oh what a that survey man what a and not only just that survey being the like I'm imagining that xkcd comic with like the open source little I don't know block holding up the entire world like this one little piece of code that's like the survey just like behind everything but it's interesting how that one decision just created this ripple effect on all AI startups 20 bucks a month of course that's what everyone's doing. It's all right who knows what what happened if they chose a different number but right everyone be so much more rich it's just like 25 bucks someone imagine the the GDP growth yeah from that oh man okay and then the way so is Ben West Endorp helped you pick a price point and then you said this conjoined analysis we actually have a guest post that I think describes how to do this well and if not we'll find pulling people to add actually approach this and you started charging so it was post product cut launch you launch with no paid features people are just like I want to pay I want to keep using this you're like okay I guess we got to start charging.
That's right yeah. Is there anything looking back I guess just like you wish you've known when you were approaching pricing for folks that are doing this now like oh we should have done this differently or should have thought about this. Yeah I mean that's well no one's hard I think you know you never want to obviously just throw something together without giving a much thought but for us you know we we limited resources we focused on the only thing we thought mattered which was like getting some initial users and having that organic growth and I think there's there's maybe like two checkpoints of thinking about whether or not you feel like you have product market fit.
I think one checkpoint is organic growth the second is our people willing to pay for the product and I think if you pass both those you feel like you you've you've you've at least within some pocket of the market you have some PMF so I think you know those are both important questions to ask depending on your resources ideally you can do kind of both an experiment a little bit along you know at the same time and then by the time you actually have paying users you you sort of checks them those boxes for yourself.
Well I love the Jews like you launch pricing you're like okay let's figure out if I actually make you money or not it's not obvious with AI companies. Well we also didn't have a choice because at that point runway was also low you know so it's like if we weren't making money well you know we would actually be in a tough spot. That's such a good point that you did not have a huge amount of money sitting around to spend on like the way a lot of companies in AI do just we'll deal with it and we'll figure out how to make money later.
Totally yeah within a couple months we had hit a million in ARR and became profitable and so those were both two exciting milestones for a company that months prior were you know heads down figuring out how we how we even survive. What a story I'm so excited to be telling the story okay final topic I want to talk about is hiring you have some really hot takes on hiring clearly it's worked out for you guys what are some things you've learned about hiring well what is your approach to hiring.
Yeah so we had this mantra internally I mean even before you know the sort of AI launch for us which was higher painfully slowly and I think you know the temptation is once start you know things start working you to start let's scaling this thing and start adding more and more headcount and for us that always I don't know they didn't feel right we wanted to build the team very thoughtfully be lean but also be a team that every individual feels like they have high you know amount of impact that they can have on a daily basis and and so for us yeah that was from sort of the very beginning and so even you know as we've scaled up I think we've been super efficient by nature of just being a very lean team.
So I think a lot of people here this advice of Staleen be efficient you have some even more concrete pieces of advice here just like what that looks like you have a huge I don't know philosophy of just like huge leverage per person you focus a lot on it revenue per employee talk about so we actually I mean we we we obviously we look at things like revenue employee but we never let that be the sort of nor star it's not something that dictates our strategy per say same thing with like profitability I think by being efficient like that ends up becoming like a side effect those yeah we are profitable and growing but I think for us more it's like we care a ton about you know adding the right team members so you know it's easy you can almost sort of shoot yourself in the foot as a founder by just setting the wrong goals.
If your goal is to double and headcount and like add a hundred people to the company then that becomes the goal right the goal is no longer to add the best people it's no longer to maintain a high quality bar the goal is to hit a hundred people and that's that's everything everyone's focused on so then guess what if that's the goal then the thing that ends up dropping is okay maybe we'll settle for employees that are good enough and we're gonna make sure we get to that hundred because hundreds gonna help us get to the next phase of growth and the next phase of growth and I think we've tried to resist that temptation.
Which is we want everybody that comes through the door and joins our team to really be you know the type of person that represents gamma our first 10 to 12 employees we spent so much time like really getting the DNA right I think Brian Chesky talks about this like your goal is like you get that first 10 and you want to be able to then replicate the next 10 and then replicate the next 10 but that 10 needs to be all super cohesive you need to have the shared same shared values same principles same ambitions same vision and if you don't then like what are you even replicating right at that point you're just adding headcount and you know you can easily just be adding headcount because they're chasing the next shiny startup to join and so for us we really focused on that first 10 that allows us to really have this you know this sort of community of of like a teammates that that basically you know want to stick around a lot of founders think about you know not wanting to have a leaky bucket on the product side but the same thing applies on the team size right if you have a leaky bucket people are just constantly leaving revolving door that's a huge amount of cost the continuity cost is massive and it's really hard to quantify.
And that I mentioned our first 10 employees all 10 of them are still here today five years later right and so that sort of continuity and means that you have this tribal knowledge that sticks with you and means that people can continue building and having that sort of cohesive feeling so I think that's one piece just like it's hard to quantify by do you think you know startups I would advise just to really be thoughtful about that like get that to a point where you really feel confident that as you're adding the next 10 and next 100 you're actually replicating the same DNA and not actually just adding a bunch of random people to the company one of your very specific piece of advice is hired generalists versus someone that's just like really deep in one thing why why is that important what does that look like this very much feels like the age of the generalist or the rise of the generalist right now when we think about you know a team that can be really flat you want people that can you still want people that can be very spiky in certain areas.
So for instance the obviously you know a product designer that knows how to code that's great it allows you to actually span across many different domains and again a organization that's super flat when you're wearing a lot of different hats that means every individual if you're a generalist you can wear by default a lot of different hats and that's helped us like just maintain this idea that the work you know the opportunity in front of us it can easily expand each person plays a huge role they don't need to wait and ask for permission they can go after and pick up a piece of work because it's there and they can at least get it started even if they're not the one that owes season through and so for us I do think this rise of the generalist is going to be important you can always augment that by working with contractors or agencies that are hyper specialized in certain areas.
And this is where like for instance going back to influencer marketing you might work with an agency rather than kind of scale up your own influencer you know marketing team you work with like a hyper specialized team there but my marketing team is all generalist you know we are head of marketing more recently launched this cool drone show in San Francisco we have like 4,000 people in San Francisco calm the mayor came by she created that entire project a manager entire project end of henner herself right while also managing the entire marketing team and so it's like this idea that a generalist is able to play all these different roles can still you know be super high impact for us it also goes hand in hand with I mentioned sort of this other role which is the player coach traditional management layer is like a manager manages a ton of people and that's kind of their core focus.
All of our people leaders are player coaches in that they still do the end work themselves and they can like mentor and coach those around them this analogy came from where this mindset came from I was something about from just the sports world in general because there's a lot of sports that just move incredibly fast like football for instance it moves really really fast and so you might have a coach that has that's calling in a play but the quarterback can actually make a last minute adjustment based on what he's seeing the defense do right and so you want a player that is on the field that can adapt as needed and that way the coach doesn't have to call every single thing in he's just kind of giving you the general intent of what you want to run as the play and then the quarterback quarterback it still make the adjustments and so all of our people leaders our management layer is all folks that actually can make those adjustments if they're seeing something that doesn't feel right on a daily or weekly basis.
There are kind of adjusting priorities for that team and they're still doing the work themselves too they're so close to that they understand like what is the relative prioritization at all times so though both of those I think I've been you know when I think about founders they oftentimes think about innovation in the sense like we're going to innovate on products or innovate on technology I think every founder today has a chance to innovate on org design and that starts by just thinking about what is the type of company we want to build today what does it mean and when it comes to like the management later we're sort of leaders to rehire what does it mean when it comes to hiring specific roles and specific functions all that is a chance for you to be very thoughtful and build a company that you're excited to be out for hopefully many many years to come.
So what I'm hearing here is manager there's no pure managers again when your plan is to not have people that are just managing the ideas everyone even a manager is doing their own I see work yes and then the other piece of advice here is generalists people they can do a lot of stuff and I hear this a lot on this podcast just like everyone is there's no more just like you're a designer that's all you're going to do designers need to build stuff market stuff write some BRDs probably and I think I mean just one thing to add is like you know that's for where we are where we are at today I think being adaptable means that you know certain things may evolve and change and like how the player coach model evolves you know and maybe in certain functions or as the team scales like that's not going to be practical everywhere.
I think the reality is like you just have to know and be willing to kind of adopt like different frameworks over time and like being honest with yourself with what's working what's not I think we're constantly trying to you know learn and evolve ourselves because I think you were doing it in a way that we don't believe it really has been done before and so we have to kind of pave our own path over time. I love that giving yourself an out when the time comes when you need to just hire managers a year later when you invite me back I'll say yeah this will be learning yeah well you know that makes sense that's probably going to happen it's like people are like we don't need product managers and then I see maybe we do yeah it makes sense.
One last piece I want to talk about is you have this really cool quote that you shared on Twitter when you find someone exceptional bed big on them this is a big part of your philosophy is just like bed big on the people that are doing super well just talk about what that looks like and why that's so important yeah I mean this starts top of the funnel which is like you meet candidates you decide who you know you actually hire and so if you don't start with a high bar there you know going back to what is the goal the goals the high hit a hiring target versus like you know maintaining super high quality you know hiring bar those are different goals and I don't think we've ever kind of dropped our bar and so then you bring somebody in that you think is exceptional that brings something unique to the table that can be a good teammate when they're when they're thriving you just give them more and more resources.
I think what you realize going you know another sports analogy is like you know when you're when you're on a you know in the 18 for instance or a team that you feel like is exceptional you know a player is one actually more playing time like you never see a star player that says actually one less playing time they want more time on the field they want to actually go after the hardest problems they want to be able to feel like they're making a huge impact and so if you have fewer you know exceptional teammates where you can just throw almost anything at them and they'll figure it out that feels that for you. as a team just feels great because then they they get what they find rewarding which is the ability to go after hard hairy problems and to be able to come out through that they're in feeling like they've accomplished something and I think that for us has always been something that goes beyond just you know almost everything else like we give people a chance to really thrive in this environment and we try to nurture that as much as humanly possible every step of the way.
Is there anything else around hiring that you think is really important or big lesson you've learned or lesson you share that you that we haven't talked about yet? I mean there's some of these intangibles which is you know for the founding team does this feel like this could be your life's work right like when you're pitching when you're pitching a potential candidate like this is feel like something where you're actually committed. The unfortunate side of a lot of the you know what's happening in the AI world broadly is I think you're coming to learn which founders are sort of missionaries versus mercenaries and many that were just chasing maybe just a big outcome where like something shiny or like something to feel good about themselves they'll go off and then the company you know I guess doesn't live on or maybe has to find a different way a different path.
And so you know something I admire is like you look at some of the founders obviously before the sort of AI era you know folks like Dylan or Melanie Figma Canva you know Ivan at Notion they've been doing this for over a decade now they had many chances to just you leave and you know sunset off into doing whatever they wanted to do but they care so much about the mission they've stuck it through. I think when you're talking to candidates can this can kind of tell like is this something like the founders even care about and I think you're gonna have a better chance of attracting you know true missionaries people that want to build with you for the long haul if it's authentic and it's something you actually care about.
Oh man I feel like I keep saying this I feel like we could have at least five more hours of stuff to talk about uh that'll be good content for when you come back and you're making a billion dollars a year. Before we get to our very exciting lightning round grant is there anything else that you think uh is important for people to hear any last I don't know less than you want to double down on anything you want to leave listeners with? Yeah I mean just going back to the original story of um that was probably the ultimate low point you know having an investor that spent 20 minutes listening to my pitch telling me that it was the worst thing worst idea in the world you know I think throughout the journey there's gonna be those low moments and when I think about you know being a founder and uh we're gonna start up you're honestly just trying to increase your luck surface area as much as possible and for me luck surface area has two dimensions the first dimension is people who are you surrounding yourself with that share your same ambition share the same values same principles and find those people and then give yourself enough time to prove that you guys can you know accomplish great things.
I'm lucky to have two amazing co-founders we've been working on this thing for five years there's zero percent chance we'd be where we are if I didn't have them and we've had to overcome a lot but I guess for us it's like creating that own luck over a long time horizon has been the only way that you know it's been possible. Well it's clearly showing the success you guys are having grant with that we've reached our very exciting lightning round are you ready? Yep yes all right I've got five questions for you first question what are two or three books that you find yourself recommending most to other people?
Yeah so I'll give one that's for pre-product market fit folks and the one post product fit pre-product market fit I would say is shoe dog which is written by Phil Knight founder of Nike and you know he talks about two things like one you should chase your sort of crazy ideas but these are these should be ideas you're your passion about or he was an athlete and so not surprisingly he focused a lot about you know creating tools or you know shoes in this case for other athletes and was passionate about that and the second thing he taught me was going back to the team thing he surrounded himself with other people that were super passionate about athletics and shoes as well and so the folks out he had as his his initial startup crew or all that and I think that gives you a chance of like overcoming a ton where you're focused on problems you actually care about solving you're doing with a team that shares the same ambition as you.
Post product market fit there's a book called Seven Powers by Hamilton Helmer where I think when you think about how to build a durable business there's so much in there I think there's a lot that you can kind of read and reread as you kind of evolve and kind of hit new milestones yourself and so much of that can be both tactical but also like zooming out and thinking about what are the big picture strategic questions you as a founding team you'd be thinking about so both are great Hamilton was on the podcast willing to that episode I also love that book many people mentioned it.
Next question do you have a favorite recent movie or TV show you've really enjoyed yeah uh the Lazarus project is one I'm a I'm a huge sucker for time travel and sci-fi so this is one I just started watching and for me it has like all the right ingredients for a fun show is there a product you recently discovered that you really love yeah I mentioned this already voice panel so again a full disclosure angel investor but we've been using it and going back to kind of being a cheat code for folks that are you know starting to experiment a ton with different ideas vibe coding maybe some of these like get the sense of the hands of users hear what they think about it I think an honest it can help speed up a lot of things and save you time from wasting time on on kind of the wrong ideas or ideas where there's no market.
Is there a life motto that you often find yourself going back to and work or in life yeah so there is this Chinese idiom that my mom used to say it's a gene deez of wa which the translation is a frog at the bottom of a well and the story is like there you know there's a frog at the bottom of a well he looks up every night and he sees the world and he imagines he you know he knows everything about the world and then one day a bird comes along and describes all the things that he sees the ocean the mountains and the frog realizes that what he sees is just such a limited part of the world and you know the bird asks like do you want to come join me and kind of see the rest of it and so frog goes long and so for me you know I came from you know pretty modest childhood you know my parents we didn't have a whole lot and I think it would have been very easy to kind of have a very narrow kind of lens on the world and be like oh this is this is what it is but my mom never allowed me to do that she always pulled me to dream much bigger to say hey the world is vast it's your opportunity to seize it like you have to go out there don't have a narrow you know view of what's possible always dream bigger and so for me that's always carried through and every time I feel like I'm thinking too little or too small I try to zoom out and remind myself that there's much more out there to go after.
That is so good and so important and so valuable in today's world we're so much more as possible just like most of what limits people feels like now is just I don't know what the idea I have like I don't know what to do now you could get things done so much quicker and so much more as possible so that's such valuable thinking.
Okay, final question you help people present better you know your tools basically help people become better presenters what's like one tip you've learned or one tip you teach people to become better presenters that might be helpful to listeners yeah I mean we'll go back to the consumer advertising concept which is you know one idea at a time so you know this this notion of you give them one egg someone can catch you given too many eggs are gonna drop it so don't try to throw too many concepts all at once keep it simple people will appreciate it and so with every sort of presentation like break it down into the core concepts try to make sure you're covering one at a time and I think once you sort of see the through line there then it becomes easy for a package up and some that feels more cohesive less is more as they say.
Probably grand two final questions work in folks finding online working they find gamma what should they know that's just like plug anything you want and then how can listeners be useful to you yeah so you can find me on both Twitter and LinkedIn DMs open I honestly here just knowing how hard the the journey is in general whether just thinking about a startup idea or your deep into startup land I want to be hopefully helpful I'm going to be you're hopefully your biggest cheerleader so let me know I can help and then for us like you know we're always looking for feedback so if you're trying gamma it's falling shorter of your expectations let us know we'd love to help in terms of just trying to make it better and yeah really appreciate you know all the feedback and support along the way.
Grand this was awesome I really appreciate you making time I know you're trying to build a crazy fast growing startup with a lot going on so I really appreciate you making time for this thanks Lenny it's been a blast it's been a blast for me too bye everyone thank you so much for listening if you found this valuable you can subscribe to the show on Apple podcasts Spotify or your favorite podcast app also please consider giving us a rating or leaving a review as that really helps other listeners find the podcast you can find all past episodes or learn more about the show at Lenny's podcast.com see you in the next episode.