Fomo
About the Company
Fomo is a social proof tool for eCommerce businesses, designed to help online stores build trust with potential customers by showcasing real-time customer activity. The tool integrates with various platforms such as Shopify, WooCommerce, and BigCommerce, allowing stores to display notifications like purchases or reviews. Initially a Shopify app called Notify, the platform was rebranded and expanded to serve a larger market. Fomo quickly became the largest player in the social proof space, helping businesses increase conversion rates by leveraging the power of customer engagement.
Idea Behind Company
Kulp never planned to enter the tech industry. As a musician who played in several bands, he initially dreamed of a rockstar career. However, when that didn’t pan out, Kulp shifted his focus to academics and marketing, working for major companies like Red Bull and Microsoft. His passion for consumer psychology and marketing ultimately led him to the idea of social proof. In 2016, he discovered Notify, a social proof app, and saw its potential. His deep understanding of marketing and consumer behavior made the purchase and subsequent rebranding of the app a natural fit.
Creating the Company
When Kulp acquired Notify, he knew that its infrastructure needed to be reimagined to scale beyond Shopify. Fomo was redesigned to support multiple eCommerce platforms through a simple JavaScript snippet, allowing for easy integration with over 100 services. Kulp reinvested all revenue back into the company, hiring a development agency to improve the product while learning coding himself. This hands-on approach enabled Fomo to grow rapidly. Kulp’s focus on social proof as both a product and a growth strategy drove customer acquisition through honest reviews and case studies, solidifying Fomo’s position in the market.
Launching the Business
Fomo’s launch in 2016 was modest, with little fanfare. Kulp and his co-founder posted about the product on Product Hunt and sent emails to their followers, resulting in slow initial growth. However, Kulp was undeterred. By leveraging a 0% APR business credit card, they were able to fund development and operations during the early stages. Within the first year, Fomo doubled its revenue, allowing Kulp to pay off debts and continue scaling the business. Key lessons from this period included thriving under pressure and finding creative ways to ship projects on time despite limited resources.
Earnings
Fomo’s revenue now exceeds $1 million annually, with margins optimized at over 65%. The company has steadily grown, thanks to its integration-based growth strategy, which led to widespread use among eCommerce businesses. Fomo’s low customer acquisition cost (around $24) and high lifetime value (between $400 and $700) have contributed to its profitability. Additionally, Kulp’s focus on automating processes and creating a strong internal culture has helped Fomo become a stable and efficient operation. The acquisition by Relay Commerce in 2022 marked the next chapter in Fomo’s success, with plans to expand its offerings to more business types.
