Nika

Does faking MRR really help a business grow? [mini-case study example]

This is rooted in psychology.

When you show that there is enormous interest in something, a crowd of people will flock and want to see it.

I woke up this morning, and X was full of this message:

"We launched 3h ago and hit $1M ARR just now."

Some were confused, others claimed that it was a good marketing trick.

Apparently, it was a false statement, but such marketing had almost 1M views. Distribution is good.

The question is:

Will it damage the brand's reputation too much? (if it's not true)?

And maybe an additional question – what if a harmless lie that is supposed to create a sensation really helps the hype so much that people start buying things for real?

I often see this on social networks as well, when the "impression of popular posts is created.)

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Nikhil Shahane

This is just lame. This is done to trick algos, but the trust it erodes is not worth the temporary spike. I like how a16z think about it - they're in the business of building a reputation. It's done over time and is incredibly hard to build and maintain. One misstep can send you back to the ground floor.

I typically ignore such content and my brain flags them as untrustworthy.

Boris Gostroverhov

Hi Nika! 👋 Just my personal opinion — this approach isn’t long-term. Reputation is built over years, even decades, but can be lost in an instant. Yes, they catch some hype, but such actions are risky for themselves. They’re creating a trap that will be hard to get out of later.

Nika

@gostroverhov They started wrong from the very beginning (probably) :DD

Artem Anikeev
Perhaps, there’s no other way to attract attention?
Nika

@artem_anikeev Yes, it should be, but this seemed to be for them the easiest way(?) Maybe.

Konrad S.

I'm not sure what $1M ARR in 3h is supposed to mean.

But faking data and other kinds of lying will sure hurt the reputation, and even if it didn't, it would just be wrong. Success is not all that matters.

Nika

@konrad_sx I also don't like when people fake their success like this, because what if the product really has potential but they are ki*lling it by lying and hiding the truth? There's no way to trust such a company.

Tereza Hurtová
@busmark_w_nika The distribution spike is definitely tempting. But as I see it, faking MRR buys you attention for a day and costs you the only thing that compounds long-term: trust. The moment it gets exposed, you don’t just lose that post - you pay a “liar’s tax” on every future claim. Not worth it. I’d rather share a verifiable signal instead: waitlist growth, activation/retention, a revenue range (not an exact number), or a simple public dashboard. 🙂
Nika

@tereza_hurtova Or they could put their Stripe link here https://trustmrr.com/ ... after that, we would see the real Flex :D

Tereza Hurtová
@busmark_w_nika Haha, love it. 😂 “Verified flex” is the only flex I respect.
AJ

As dishonest as it is.

On the one hand: if it works it works.

on the other...

If this sets a trend, people will not trust that company

Nika

@build_with_aj They should put their Stripe link to https://trustmrr.com/ :D

Alberto Luengo
-Will it hurt reputation? Don’t know if it will, don’t know if it matters. -Will it attract attention? Likely. -Will it convert users and retain them? Unlikely.
Nika

@alberto_luengo I would say that the first one can happen if it is not executed well :D

Alberto Luengo
@busmark_w_nika probably, specially depending on your startups domain and ecosystem. My current domain is unserious but VCs here are very conservative, a stunt like that would blow in face 😅
Max Yan

It is a way to attract attention.
A similar approach I have seen includes

Announcing we got viral on x at Instagram/TikTok, announcing we got viral on TikTok at Instagram/x, announcing we got viral on Instagram at TikTok/X.

If you got attencion, this is a successful move.

Nika

@wei_yan4 But it is a difference to announce it when it is true vs when it is not true :D

Ojas
I think there's always bad actors in the market, and it just doesn't work for very long, so i would just focus on operating in good faith, and hope to outlast the bad actors.
Nika

@ojas_j I think that from their side, it was supposed to be a part of guerrilla marketing.

Ojas

@busmark_w_nika yeah, i never understood what people mean by that, but there's a lot of it i guess, and in some shape or form even established players engage in that.