A Look Back at Douyin’s Sudden Rise
Here’s a knowledge point to help you determine whether you have a chance of scaling up.
A 30-day retention rate of 8% won’t get you to 30 million DAU, but when Douyin reached 30 million DAU, its 30-day retention had already surpassed 20%. Once a product’s 30-day retention for new users exceeds 20%, it enters a phase where it can grow without needing constant intervention.
In entrepreneurship, what you really fear is burning money on a dead-end track and not spending enough on a promising one. The former will eventually run out of cash, and you overestimated yourself. The latter—failing to spend in a great track—means big players and competitors will inevitably move in. So the truly outstanding companies find themselves in a strong market and dare to invest heavily at key moments.
This might just be the second recommendation.