His sports betting app went from $0 to $10M ARR in a year—& to $150M ARR in 4. Here's how he did it. | Jon Robin, Founder of Dabble
Dec 12, 2024
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Jon Robin, founder of Dabble, shares his incredible journey of turning a sports betting app into a $150M revenue powerhouse in just four years. He credits extensive market research and a background in affiliate marketing for his success. Jon emphasizes the importance of effective distribution over product quality alone. He also reveals how the COVID-19 pandemic shaped Dabble's evolution into a social betting platform, integrating user engagement with compliance and risk management. His insights on navigating challenges offer valuable lessons for budding entrepreneurs.
Extensive research and preparation over seven years enabled a swift market entry, leading to rapid revenue growth for the app.
Integrating social features within the betting app fostered community engagement, setting it apart from traditional transactional betting platforms.
Deep dives
Remarkable Growth in Sports Betting
The sports betting app generated an impressive $150 million in revenue within just four years of launching, driven by $1 billion in betting volume. Initially, the app brought in $10 million in its first year, showcasing its rapid growth trajectory. The founder attributes this success to extensive research and preparation conducted over seven years before launching the app, which allowed for a smoother entry into the market. This preparation paved the way for a robust audience ready to engage with the product upon its release.
Transitioning from Affiliate Marketing to a Betting App
Before launching the sports betting app, the founder operated an affiliate marketing business in the sports betting space, generating a couple of million dollars annually. The shutdown of a major client during the COVID-19 lockdowns prompted a strategic pivot towards developing the betting app, integrating lessons learned from prior experiences. By leveraging existing relationships and marketing skills, the founder ensured a gradual transition into the new venture, focusing on building a community-oriented platform. This background in affiliate marketing significantly contributed to the app's initial engagement and growth.
Innovative Social Betting Experience
The app was designed to revolutionize the sports betting experience by integrating social features akin to those found on platforms like Twitter. Users can create profiles, follow others, and share betting insights, fostering a community atmosphere that enhances user engagement. This social aspect differentiates the app from traditional betting platforms, which often focus solely on transactional interactions. Through this innovative approach, users can both place bets and interact with the betting community, promoting shared experiences and insights.
Navigating Regulatory Challenges
Building a sports betting app involved navigating complex legal and regulatory requirements, including obtaining a bookmaker's license, which took nine months and required substantial resources. The start-up faced both technological and regulatory hurdles, including developing a reliable platform for managing bets and payouts. The founder emphasized the importance of aligning with competent data providers to ensure accurate odds and efficient risk management. This focus on compliance and sound infrastructure was crucial for the app's smooth launch and long-term sustainability in a highly regulated industry.
Jon started a sports betting app 4 years ago-- now he does $150M in revenue and $1B in betting volume. AND he's profitable. In his first year alone , he did $10 million in revenue.
He took a year to build the app and as soon as he launched it, it took off. He did $10M in revenue in his first year.
Honestly, it sounds too easy. But the reason it worked is because, as he shares on the episode, he'd spent 7 years in research mode. He'd spent years building a marketing agency in the sports betting space. He not only understand the market, the customers and the product, he'd also built a distribution machine and knew exactly how to get in front of users.
Here's how it happened.
Why you should listen - Why distribution is the difference between success and failure - How spending a long time in research mode can make go-to-market much faster - Why simple product difference can lead to huge differences in outcomes
(00:00:00) Intro (00:01:49) Getting Into Sports Betting (00:04:22) Before Dabble (00:08:08) Starting Dabble & First Steps (00:10:55) The Initial Vision (00:17:55) How Sports Betting Works (00:24:26) Nearly Going Bankrupt (00:27:53) Building the App (00:31:23) Launching (00:35:47) Revenue Timeline (00:38:28) Finding Product Market Fit (00:41:48) One Piece of Advice