🔗 Takeoff #52: A creator's favourite tool
Welcome to Takeoff, your weekly dose of product deep dives and new learning opportunities. Today, we're diving into the Linktree story. Lessgo!
🌲 Linktree’s product growth story
In this week's edition, we will be looking into Linktree, the popular link-in-bio tool that most creators use in their Instagram bio. Linktree's story makes a compelling case study on building a niche and viral product for a specific user segment. The idea of Linktree was born out of creators' frustration with not being able to keep multiple links in their bios. The crazy part? They built the initial version in just 6 hours! Talk about shipping speed and MVP.
Solving a personal problem
The founders of Linktree used to run a marketing agency, handling the accounts of multiple bands. They would regularly post about new shows, merch, and tracks, and they had to change the link in the bio every time they did so. This was a very frustrating and time-consuming process for them. Alex, one of the co-founders of Linktree, decided to solve this problem once and for all. He sketched the initial flow of Linktree on paper and asked the tech team to build it, and voila, they shipped the first version in 6 hours. Linktree’s success was accidental; it resulted from the founders' attempt to solve their problem, which apparently was a common issue faced by a niche of users.
Linktree’s founders: Alex, Nick and Anthony ^
Growth Loop
Linktree experienced its first sign of virality when 3000 users flocked to their platform overnight, causing their servers to buckle under the surge. In the beginning, their primary users were musicians and creators, the very clients of Alex's agency. Thriving on robust word-of-mouth and a built-in growth loop, the product enjoyed a steady rise. Initially, they garnered about 10 sign-ups daily, but that number skyrocketed to an average of 800. Today, Linktree boasts an astonishing average of 40,000 sign-ups per day. The credit for this explosive growth goes to celebrities who embraced the platform, introducing millions of their followers to Linktree. Moreover, their freemium plan played a pivotal role in attracting a massive user base with seamless sign-ups.
Celebrities such as Dwayne Johnson, Robert Downey Jr, Paris Hilton, and Priyanka Chopra use Linktree.
Data and Experimentation
Linktree's growth thrives on a data-driven and experimental culture. Jessica Box, the head of growth, harnessed the power of data to make strategic decisions. By collecting relevant insights, she identified growth opportunities, such as building teams in markets like Brazil and Argentina to amplify momentum. Adopting a holistic view of each market, they allocated resources to fuel growth where it mattered most. The company's experimental spirit shone brightly as they ventured into TikTok, despite initial uncertainty. The success and adoption they witnessed validated their platform-agnostic approach, unlocking a broader market to conquer. Linktree's journey exemplifies how data and experimentation fuel innovation, propelling them toward becoming the internet's identity layer.
Closing Thoughts
It's interesting to observe that Instagram took a whole 7 years to address the very problem that Linktree set out to solve. Surprisingly, Instagram was well aware of Linktree's existence and has even issued occasional bans on the platform, citing spam issues. Nevertheless, Linktree managed to bounce back with an apology from Meta. This lengthy delay in implementing a seemingly simple feature can be attributed to what Shreyas Doshi refers to as "The Gorilla Tax." Curious to know more about the Gorilla Tax? Check out this intriguing thread.
🚀 Flying High: Prasad, PM at ConveGenius
We recently sat down with Prasad Akki, PM at ConveGenius and alumnus of our Product Management Launchpad, to chat about his journey from compliance associate to product manager! 🤩
Prasad's story is inspirational for all aspiring PMs. If you would like to watch the full video for his tips, click here
💁♂️ Product Jargon of the Week
Customer Lifetime Value
Customer Lifetime Value (CLV) is the total value a customer generates for a business during their entire relationship. It factors in the revenue they contribute and helps assess their long-term worth. By comparing CLV with Customer Acquisition Cost (CAC), companies can evaluate their profitability and optimize marketing strategies.
Example: Linktree spent $10,000 on marketing and acquired 500 new customers. CAC = $20 ($10,000/500).
Assuming customers stay for 12 months and pay $10/month, CLV = ($10 x 12) - $20 = $100.
CLV > CAC ($100 > $20), indicating positive profitability.
🫂 What’s new in our community?
We recently started a new initiative in our community called ‘product prompts’. It’s a way for our aspiring and existing PMs to put on their thinking hats, brainstorm and share their ideas on popular products. It’s a way for them to showcase their creativity, problem-solving skills, and out-of-the-box thinking. The first one was on Zoom and what they’d change about the product. Super engaging responses!
If you would like to join our community and be a part of such fun learning activities, consider joining our Product Management Launchpad. Check it out here
That’s all for today, folks! We hope you enjoyed this week’s newsletter. 🤗
Until next week, keep learning and growing! 👋