The Start:

Robinhood, a commission-free stock trading app, was founded in 2013 by Vladimir Tenev and Baiju Bhatt.

Both founders, Stanford graduates with previous experience in finance, launched the platform with the vision to democratize finance and make trading accessible to everyone, not just the wealthy.

The Problem:

The founders identified a major problem in the market: traditional stock trading platforms charged high fees, making it difficult for ordinary people to participate in the stock market.

They saw an opportunity to disrupt the industry by eliminating these barriers and offering a user-friendly, no-fee trading app that would empower a new generation of investors.

Getting their fist customers:

Robinhood implemented a pre-launch strategy by offering potential users exclusive, invitation-only early access to its private beta.

Instead of simply inviting people to join a mailing list, Robinhood tapped into their audience's desire to be among the first to experience the app, which caught the attention of Hacker News. The sign-up process was kept short and straightforward.

On the early-access landing page, users only needed to enter their email address to be among the first to use the Robinhood app.

The page was user-friendly, with a compelling message: "Robinhood $0 commission stock trading. Stop paying up to $10 per trade." Users had a single option: to opt-in.

Initial sign-ups came from family, friends, and press mentions. Robinhood created a referral-based viral loop to drive growth. When users signed up, they were placed on a waiting list.

Their position on the list determined how soon they would gain access to the beta.

After signing up, users saw their position on the waiting list on the "thank you" page, along with an invitation to share Robinhood’s offer with others.

The more they shared, the higher their position on the waiting list, allowing them to access the app sooner. This incentive to move up the queue led to exponential growth for Robinhood.

Digging this? Get more actionable strategies like these straight in your inbox for free