How a 3-minute video built a $10B company

Jacob Dutton

3 Apr 2025

The Explainer Film Test is one of the simplest ways to validate demand before building anything. The idea is simple—you don't need a working product to test if people want it. You just need to help them imagine it exists.

What's an Explainer Film test?

It's not feature benchmarking. It's not building an MVP. It's creating a simple video that shows how your product would work if it existed, then measuring if people take action after watching it.

No prototypes. No expensive development. Just a clear, compelling explanation of how your solution solves a real problem.

Most teams focus on building something to test. But sometimes, all you need is to show people what you'd build.

How Dropbox built a $10B company with a 3-minute video 

Before Dropbox was a household name, founder Drew Houston had a challenge. Building the actual product would take months, but he needed to know if people would use it.

His solution was to create a simple 3-minute video that:

  • Demonstrated the problem (managing files across devices)

  • Showed how Dropbox would solve it

  • Made it appear as if the product already existed

He posted the video on Hacker News, and something wild happened:

  • Signups increased from 5,000 to 75,000 overnight

  • People shared it widely without prompting

  • Investors who previously ignored them started calling

All for a product that didn't actually exist yet.

This validation gave them the confidence to spend the next year building the real product—which grew into a $10 billion company. 

How a corporate innovation team saved $600k with an Explainer Film test 

A manufacturing client we worked with wanted to build a mobile app that would let customers visualise their products in real environments using AR. The development estimate was £850K and 8 months.

Instead of jumping straight into development, we created an explainer film first:

  • A 2-minute video showing the app "in action"

  • Carefully crafted visuals that made it seem real

  • A call-to-action to join the waitlist

They promoted it to 5,000 existing customers through their email list.

The response was tepid at best. Only 1.2% signed up for the waitlist—far below their 5% viability threshold. In follow-up interviews, customers told us they didn't see enough value to justify downloading another app.

Based on this feedback, the team pivoted to embedding AR features in their existing website instead of building a standalone app. The new approach cost £250K to develop and saw 4x higher engagement than their original concept would have achieved.

How to run an Explainer Film Test

To run this test, you'll need:

  • A clear script explaining your concept

  • Visual assets (can be as simple as sketches or stock footage)

  • A way to measure audience response

1. Focus on the problem first

Start by clearly articulating the problem you're solving. Make viewers nod and think, "Yes, that's exactly my issue!"

2. Show your solution in action

Demonstrate how your product or service would work in a realistic context. You're selling the outcome, not the technology.

3. Create a clear call-to-action

Give viewers a way to express interest, like:

  • Joining a waitlist

  • Pre-ordering

  • Signing up for early access

  • Sharing with others who have the same problem

4. Track what matters

The metrics that truly validate demand:

  • Conversion rate from video views to signups

  • Referrals and sharing behaviour

  • Comments and questions about availability

  • Unprompted follow-ups asking when it will launch

Common mistakes to avoid:

  • Making the video too polished (it can actually reduce credibility)

  • Focusing on features instead of outcomes

  • Setting unrealistic expectations

  • Not having a clear way to measure response

  • Targeting too broad an audience

Try this in the next 10 days

Think of a concept your team is working on. Create a simple 60-90 second video explaining how it works. Share it with 50-100 potential users. Track how many take action afterward.

The cost? A few days and perhaps £2-5K. The potential savings? Millions in avoided development costs for ideas that won't resonate.