GoodNotes

How Stephen Chan Transformed GoodNotes into a 24 Million User Sensation

Founders

Employees

200 (est.)

Profitable

Yes

Year Started

2011

Customer

B2C

Founders

Employees

200 (est.)

Profitable

Yes

Year Started

2011

Customer

B2C

Who is Steven Chan?

Steven Chan is the founder and CEO of GoodNotes, a top-selling note-taking app; he hails from Hong Kong and developed the app during his final university semester in Australia, where he studied mathematics and physics.

What problem does GoodNotes solve?

GoodNotes solves the problem of cluttered and disorganized handwritten notes by providing a digital platform for note-taking that allows users to easily edit, store, and share their notes without the fear of losing them, making it particularly appealing for students and professionals who need a reliable and comprehensive method of documenting complex information.

How did Steven come up with the idea for GoodNotes?

Steven Chan, a math student in Australia, faced a personal dilemma with the clutter and inefficiencies of traditional note-taking while studying complex subjects. Observing the release of the iPad in 2010, he saw an opportunity to digitize his cumbersome workflow, despite the absence of a stylus like the Apple Pencil back then. The frustration of messy, disposable notes inspired him to create a solution tailored to the unique demands of writing equations by hand.

Steven tried various existing note-taking apps but found none met his needs, sparking the idea to develop his own. Despite having limited programming education, he had been coding since childhood and focused intently on bridging his challenge with technology. He validated his concept by relying on feedback from his peers and the growing community of digital note-takers.

He devoted his final semester at university almost entirely to the development of GoodNotes, sacrificing his academic performance but understanding the potential impact of his product. Steven’s deep engagement with his user base allowed him to refine GoodNotes by addressing real-time user concerns and ensuring high functionality tailored to his audience's needs.

How did Steven build the initial version of GoodNotes?

Steven Chan built the initial version of GoodNotes single-handedly while he was a university student. He developed GoodNotes by leveraging his programming background, which he had cultivated since he was 10 years old. The first version of GoodNotes emerged during his last semester in a quick and immersive development cycle, where he utilized his semester break and elective courses to focus full-time on the app. The original prototype was created for use on the iPad and relied on finger input, as this was prior to the release of the Apple Pencil. The process was challenging given the need to translate the tactile experience of handwriting to a digital format using capacitive styluses, which functioned by mimicking finger touches. Chan faced difficulties ensuring that the digital interface was intuitive, focused on replicating the smoothness and accuracy of handwriting, and often referred to actual notebooks to perfect screen colors and textures. He did everything from coding to customer support himself for five years, which was demanding but ultimately rewarding, as it allowed him to directly shape the product based on user feedback and market demands.

What was the growth strategy for GoodNotes and how did they scale?

Word-of-Mouth

GoodNotes largely grew through word-of-mouth marketing. The app's success was driven by its strong user satisfaction, especially among students and professionals who valued its handwritten note-taking capability on iPads. Users naturally shared their positive experiences with friends, colleagues, and through social media platforms, which resulted in organic growth and widespread brand recognition. This approach leveraged the relay of personal recommendations, building a user base over time without traditional advertising expenses.

Why it worked: As a niche product aimed at digital note-taking, GoodNotes appealed to users who valued detailed, high-quality handwriting solutions that existing apps lacked. By consistently improving the product based on user feedback and focusing on the quality of user experience, users became advocates who shared their enthusiasm with others, helping the app to grow organically.

Product Adaptation with Apple Pencil

The release of the Apple Pencil was a pivotal moment for GoodNotes, aligning perfectly with the app's focus on handwritten notes. Once the Apple Pencil was launched, allowing more accurate and natural handwriting on iPads, GoodNotes experienced significant growth by supporting this new technology. The app was able to capture the interest of both existing and new users who wanted to take advantage of the improved writing experience.

Why it worked: The Apple Pencil enhanced how users interacted with GoodNotes, making digital note-taking feel more like writing on paper. This alignment not only positioned GoodNotes as a leader in its niche but also attracted a broader audience who purchased iPads and Apple Pencils and needed compatible apps for note-taking. This innovation-driven growth tied the app’s functionality with evolving technology, securing its position in a growing market.

App Store Features and Awards

GoodNotes capitalized on App Store visibility, such as being featured and recognized with awards like "iPad App of the Year" in 2022. These features exposed the app to a broader audience and lent credibility that encouraged new users to try it. This exposure was crucial in expanding its user base and establishing itself as the top choice for digital note-taking on Apple devices.

Why it worked: Being featured on the App Store serves as a strong endorsement from Apple, reaching millions of iPad users who might be searching for a reliable and effective note-taking app. Awards and features act as social proof, reinforcing the app's quality and desirability, and incentivizing potential users to download and try GoodNotes.

Localization

GoodNotes implemented localization efforts early on by translating the app into multiple languages such as German, Japanese, and Chinese. This move made the app accessible to a global audience, increasing its appeal and usability among non-English speakers. By catering to a diverse user base, GoodNotes expanded its reach and adoption worldwide.

Why it worked: By ensuring that the app was available in various languages, GoodNotes could appeal to users in different regions, significantly increasing its market size. Localization facilitated smoother user experiences for non-English speakers, making it easier for them to connect and engage with the app's functionality, thus fostering global growth.

What's the pricing strategy for GoodNotes?

GoodNotes adopts a freemium model, offering free basic functionality and advanced features through a subscription at $7.99/year.

What were the biggest lessons learned from building GoodNotes?

Embrace Organic Growth: GoodNotes thrived by relying on word-of-mouth, demonstrating that a strong product can naturally attract users without heavy marketing expenditure. Focus on product quality, and let your satisfied users spread the word.
Adaptability is Key: Stephen recognized the potential of the Apple Pencil and adapted GoodNotes to fully support it, which propelled the app to mainstream success. Always be ready to pivot and adapt your business model when new technologies or opportunities arise.
Start Lean, Scale Up: Running GoodNotes as a one-man operation for five years allowed Stephen to maintain flexibility and control. Aspiring founders should initially focus on mastering their product before scaling and hiring a team.
User-Centric Development: Stephen's focus on creating the best user experience by being a user himself resulted in a loyal customer base. Founders should develop their products based on personal needs and user feedback.
Persistence Pays Off: Despite early challenges and operating as a solo founder, Stephen’s perseverance over the years led to incredible growth and success. Stick with your vision, even when progress seems slow.

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