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Hi! My name is Edmund Mai, and I’m the co-founder of Potato Labs, a hybrid incubator/software consulting company. My partner Aaron Vasquez and I have several internet businesses, with Banana being one of our first and most interesting. I originally studied economics at Syracuse University and was eventually laid off from an administrative job that I hated (and honestly sucked at) at a real estate company.
Everyone around me thought I was nuts for going to school again right after I’d graduated. After four months of part-time web development (this was before coding bootcamps existed) and after asking hundreds of questions on StackOverflow, I mustered up the courage to apply for jobs as a developer. I sent out my resume to all the Ruby shops in NYC, and all but one web agency rejected me.
Banana is a random video chat app for gay men on Android and iOS. We shipped in late January/early February 2017, and it has already acquired almost 200,000 users with zero marketing in less than a year. It currently brings in $300 per month. Actually, neither of us are gay.
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We bounced around some ideas and settled upon a Chat Roulette/Omegle type video chat app on mobile. As users of those successful web apps, we realized early on that all of them had one fundamental problem — the guy-to-girl ratio was always terrible. It’s a two-sided marketplace that is hard to balance.
We decided to simplify the equation: Well, what if everyone was looking for the same thing? We knew we were on to something. By the way, this all happened after I quit my job. I broke all the rules and did everything in the wrong order. Normally, people come up with an idea they think has potential, then they work on it nights and weekends and validate the idea before they quit their jobs.
On top of that, we ended up building a product in a demographic I knew nothing about. As a developer I’ve always liked creating things from scratch, because I knew that at some point in my life I would want to take control of my own future and start my own company.
By the time we started Banana, I was more than confident that we could create it from beginning to end because I had already accumulated a lot of technical knowledge through work experience. The first version took a month to ship, and all the code was stuffed into a single 2000+ line file and a backend with 200+ lines stuffed into one main file.
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Being self-funded from our savings, we wanted to validate the idea as quickly as possible. Banana was initially built purely on curiosity. We honestly just wanted an excuse to play around with interesting technologies like WebRTC, websockets using Elixir/Phoenix, and React Native. After we settled on the technology, we decided on an idea and just started building it with little direction in mind.
The largest risk/commitment was time, which we minimized by literally just shipping as fast as we could. We had so many ideas when we were brainstorming. We wanted to include texting, Snapchat-like face filters, demographic filtering, etc. However, we scoped it down to the bare minimum of just random video matches with a Facebook signup.
We spent only a hundred bucks (if that) to get the project up and running. The largest risk/commitment was time, which we minimized by literally just shipping as fast as we could. Only after we accumulated 10k+ users did we realize that v1 had major bugs that we quickly fixed! Honestly, we’ve been very surprised with our user growth so far.
I think we were lucky to pick an underserved niche, and now we’re one of the biggest players in the space. Launching on both iOS and Android was a really good move since both markets were popular and helped us reach a critical mass of users, so that users were able to match almost instantly at any time of the day.
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We’ve also been lucky enough to be featured on the Google App Store in India. Aside from ASO, in-app marketing has had the largest impact on user acquisition by far. Having links to like and share our Facebook page has helped tremendously in getting the word across with no effort on our end.
Month Users Jan 709 Feb 3213 Mar 12500 Apr 29301 May 46251 Jun 64311 July 85043 Originally, Banana was just a free video chat platform. We’ve only recently integrated in-app texting along with in-app purchases. Users can now purchase gems that they use to start conversations with people they’ve matched with in the past.
We briefly tested video advertisements as well, but decided that it took away too much from the experience with little reward. Since removing ads, our active users continues to increase week to week. Month Revenue June 2017 0 July 2017 17 August 2017 365 September 2017 371 We have a ton of data on engagement that’s just sitting there, so there is a lot of room to monetize that end of the business.
This has all happened faster than expected, and we are just beginning to track more metrics so we can make more data driven decisions. We are in the beginning stages of creating a web version, which would really help in not just acquiring more users, but also marketing since it would open doors to SEO, a blog, etc.
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Given our technology stack, we can easily accomplish this (hooray for WebRTC!). We’ve even had negotiations with a buyer of a renowned brand about licensing our software. Being engineers, we refactored our code in such a way that it has become almost like a template. From this we’ve been able to launch a lesbian and a meeting new friends version using the same code.
A potential buyer picked up on our ability to quickly launch different templates and reached out to us with an acquisition offer. Unfortunately we couldn’t come to an agreement, but it was really exciting having an offer like that, and we hope to market well enough for more business deals in the future.
With our engineering background, marketing hasn’t been our strong suit, and I think it is the key to taking Banana to the next level. Neither of us are big social media users, but we are trying to push more social media content. We added a Facebook page and Instagram account, but neither have really been able to push the needle that far.
We’re still on the fence as to whether we want to charge for the app at all, because we think engagement and retention would increase substantially if everything were free. Monetizing consumer apps is a volume game, and with the 30% cut that Apple and Google take from in-app purchases we think other revenue streams would be more lucrative.
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Something like “Sponsored by XXXXX” on the bottom corner of the video chat or match history screen. So if you’re a sponsor and interested in collaborating, look for my contact info below! I’m really proud of the product decisions we’ve made thus far. In terms of technology, we’ve chosen Elixir/Phoenix for our back end and WebRTC, a peer to peer video protocol, which helped scale to hundreds of thousands of concurrent users on a single server with almost no devops by leveraging Heroku and AWS.
Also, using React Native has allowed us to build rapidly on both iOS and Android with ease. For design, hiring a professional designer to design Banana has been one of the key factors in helping us create a polished product. There are only a few other apps in this space, and the majority of them are missing a clean look and feel.
I attribute a lot of success of Banana to how well-designed it is. In terms of general product direction, we’ve modeled ourselves after successful apps in the space like Azar and Holla, and tried to be as “dumb” as possible. We’ve used proven models to get to where we are and have minimized risk at every step of the way.
However, sometimes it’s okay to focus on your strengths. In our case, we were both engineers and loved playing with new technologies and ended up working backwards. We figured out the niche to go into by figuring out which market we could serve with the technologies we wanted to use.