How This App Built a $1B Brand by Solving Real Problems

TRIBE Newsletter – November 8, 2024

Hey founders!

First off – what a week! The US election has wrapped up. And no matter where you stand, we hope you’re doing well :) 

In today’s newsletter, you’re in for a treat. 

We’re diving into the story behind WhatsApp – a business that grew from a simple solution to a $19B acquisition by Facebook. 

WhatsApp is a prime example of how staying true to core principles, solving real problems, and simplicity can lead to massive – massive – success. 

Let’s get into it!

1. Solve Real Problems

Jan Koum’s (co-founder) original goal was straightforward: he wanted to create a reliable, no-frills messaging service.

Coming from a lower income region in Ukraine, he wanted to solve problems he and the people around him had.

That meant it needed to work seamlessly even on low-end phones and weak networks. 

This wasn’t about chasing trends; it was about addressing a basic need for accessible communication for himself and those around him.

When you focus on solving a genuine problem, you’re building a solution that has staying power.

Even better when that problem is one you know deeply.

Instead of adding features for the sake of it, WhatsApp became successful by ensuring one thing: reliable connection to people no matter where they were or what device they used.

Think about your product or service. 

Are you solving a problem that truly impacts your customers’ lives? Or are you simply following the market’s lead? 

Start by identifying a specific pain point for your target audience and refine your solution around that need.

2. Stick to Core Principles

From day one, WhatsApp made a bold choice: no ads and no selling user data. 

This was Koum’s line in the sand.

And that meant turning away one of the easiest revenue sources he could have gone after.

This helped build user loyalty and, ultimately, created a brand that users trusted globally.

This led to growth of users instead of just growing revenue.

3. Think Globally and Inclusively

WhatsApp’s rapid growth wasn’t limited to high-income markets.

Instead he went after a market with a much much larger reach, even if that reach held lower revenue markets and customers. 

Koum built the platform with an international mindset, understanding that real opportunities lay in overlooked and underserved regions.

WhatsApp was optimized for low-end devices and it could run on slower networks, making it a top choice in many countries outside the US. 

Think about how you can make your product accessible and relevant to a broader audience. 

Challenge yourself to look beyond the obvious audience and ask how your product could serve a larger, more inclusive market.

This may mean short term less revenue, but longer term…

Accessibility is often an overlooked growth strategy, yet it can be a powerful differentiator.

The Big Picture: Build with Focus and Determination

Jan Koum’s journey is a reminder that sometimes success is less about flashy innovation.

Sometimes it’s more about sticking to the basics—solving a real need, respecting user privacy, and staying focused. 

Are you building with a clear focus?

Or are you distracted by what everyone else is doing? 

True success often comes not from having the most features but from creating a product that people can’t live without.

Questions for the Road:

  1. Is your offering simple enough? Can it be simpler?

  2. What real problem are you solving, and how can you refine your product to address it better?

  3. What core principles do you stand by, and are they evident in every decision you make?

  4. How can you make your product more accessible and relevant to underserved markets?

That’s it for this week! Keep building with focus, stay true to what matters, and remember: sometimes the simplest solutions have the biggest impact.

— The Tribe Team