Submagic’s First $1 Million Story
How they bootstrapped their way to $1M ARR in 90 days, powered by TikTok and affiliates
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Like many marketers, I used to be skeptical about TikTok as a growth channel for SaaS. That changed when I came across Submagic. They went from launch to $1M in ARR in under 90 days, using TikTok as their main growth channel.
Let’s look at how they did it.
About Submagic
Submagic is an AI-powered tool that helps individuals and businesses create powerful short-form videos in just three clicks.
They launched in May 2023 and now make $8M ARR, with a team of 13 and no outside funding.
The Founding Team
Submagic was co-founded by David Zitoun and Tsi-fei Chan.
David, the non-technical founder, has been into video since he was 12. The idea came from his own struggle to add captions to his content.
Tsi-fei brought 8 years of experience building a website builder. He’s a believer in “three-click” simplicity, which shaped Submagic’s product philosophy.
They met through YC’s Co-founder Matcher and decided to test the partnership by building MVPs. Submagic was the first. They built it in six weeks with one core feature and a working payment flow. It worked, they looked back.
The Premise
A painkiller product
Bootstrapped
Lean team
No marketing budget
Built in 6 weeks
Clear ICP (creators, agencies, small businesses)
Charged from day one
Submagic’s Marketing Strategy
Submagic focused on solving one clear problem: adding captions to videos.
Their strategy was simple: get in front of creators, small businesses, and agencies already using short-form video to grow. David saw TikTok, LinkedIn, and YouTube Shorts as their main distribution channels.
They didn’t try to do everything. Instead, they focused on:
Founder-led TikTok content
Affiliate program with creators
Word of mouth
Founder-Led TikTok Strategy
Unlike most platforms that reward followers, TikTok rewards content. David realized you didn’t need a big audience to get big reach. If the content was good, TikTok’s algorithm would take care of the rest.
So he ran the playbook himself:
Created a new TikTok account (@submagic.co)
Filmed simple product demos
Posted daily with small content variations
Nothing happened for 10 days
Then one video went viral and hit 100,000 views
That video brought in 40–50 paying customers at $16–$20/month
Sounds cool?. But that was just the start.
Generous Affiliate Program
Recognizing TikTok’s growth potential, David looked to scale what had already worked. So they launched an affiliate program within 30 days of its first customer.
The idea: let TikTok creators drive growth by posting content with affiliate links.
Found small creators (often students)
Onboarded 50–70 early affiliates
Offered 30% lifetime commission
Proved 20K views could earn ~$500
Encouraged daily posts from fresh accounts
It worked. In the next 60 days they hit $1 Million ARR. Their affiliate network grew to 3.5K in 6 months.
Why it worked?
It was a win-win. David wanted to scale TikTok without doing it all himself. Creators wanted an easy way to earn online.
He used his own success ($3K from 100K views) as proof. If they could get 20K views, they could earn $500. The pitch was simple and compelling.
It led to early success for the first group of creators. They shared those results, which brought in more creators. What started small became a viral loop.
Today, Submagic has over 9,000 affiliates driving 20% of its revenue ($1.5M+).
Word of Mouth
While affiliates were the main engine behind the first $1M ARR, Submagic also delivered exceptional customer experience from day one.
David personally reached out to their first 100 customers, collected their WhatsApp numbers, and created “Submagic Lovers” groups.
In those groups, customers co-built the product: offering feedback, testing new features, and acting like true product managers.
That made them feel valued, and naturally, they started talking about Submagic within their networks. This not only built credibility but also drove direct signups through word of mouth.
Submagic’s Growth Mix
Conclusion
Submagic’s journey challenges the conventional SaaS playbook.
From day one, they were clear about the problem, the user, and the channel. That clarity helped them turn TikTok — a platform most SaaS founders ignore — into their growth engine.
They built virality into their growth through an affiliate program. Instead of scaling TikTok themselves, they let creators do it, essentially building an army of TikTok marketers for Submagic.
If you’re looking for an unconventional growth strategy, Submagic offers a blueprint. It shows that the right product, in front of the right audience, on the right channel can unlock serious scale.