From: gregisenberg
The current landscape presents significant opportunities for developing specific AI applications and micro apps, driven by the ability to quickly identify and capitalize on emerging trends [00:00:01] [00:00:05]. This approach leverages enhanced trend analysis and rapid product development capabilities [00:25:00] [00:27:00].
The Micro App Strategy
Micro apps are specialized applications designed to perform a very specific action or solve a particular problem [00:42:00] [00:52:00]. This contrasts with broader software that offers a multitude of functions, akin to a “Cheesecake Factory” menu where too many options can be overwhelming [03:59:00] [04:09:00]. People often prefer specialized services that excel in one specific area [04:10:00] [04:15:00].
Key characteristics and advantages of micro apps:
- Highly Focused They perform one specific function, making them easy for users to understand and utilize [00:42:00] [03:57:00].
- Trend-Driven Development Developers can identify viral trends, productize a solution, and release an app quickly to ride that wave [02:51:00] [03:02:00].
- API-First Approach Many micro apps can be built as “API wrapper games,” where an existing API performs the core function, and the app provides a user-friendly interface [03:01:00] [03:08:00].
- Large Addressable Market (TAM) Even for highly specific actions, the potential user base can be enormous, especially for mobile-first solutions [00:50:00] [03:59:00] [04:13:00].
Examples of Micro App Success
- Text Behind Image App This AI app went viral by allowing users to place text behind an image, a popular effect for YouTube thumbnails [02:56:00] [03:17:00]. Its success stemmed from productizing a specific trend and making it easy to achieve [03:37:00].
- Captions App by Veed.io Veed.io launched a standalone app specifically for adding captions to videos, separate from their core video editing product [03:31:00]. This specialized app achieved significant recurring revenue in a short period [03:40:00].
- Other Potential Areas Ideas include specific functionalities like background removal or cloud removal, which can be offered as simple, dedicated apps [03:50:00].
Business Models and Monetization
Micro apps typically adopt monetization strategies common in mobile app development:
- Credit Packs Users can purchase packs of credits to perform actions within the app, for example, $4 a month for 10 credits [03:26:00].
- Subscription Models A common pricing model is a weekly fee that translates to a monthly subscription (e.g., 29/month) [03:37:00]. This often leverages impulse buying [03:50:00].
- High Margin Given that many are software or API-driven, the margins can be extremely high, potentially 90% or more [03:41:00] [03:44:00].
Marketing and Distribution
Marketing for micro apps can be highly effective through platforms like Facebook Ads:
- Broad Targeting Facebook’s AI-driven ad platform allows for extremely effective targeting. By simply defining a desired conversion action, advertisers can target broad audiences, and the platform’s AI will find the most likely users for app installs [04:20:00] [04:30:00].
- Creative Variations Running numerous creative variations (e.g., 100 different ad creatives) helps the AI optimize for the best performing ads [04:43:00].
- Large Audiences For products targeting a significant portion of the population (e.g., 30% of the US), broad targeting with conversion-focused objectives on platforms like Facebook can find users faster than manual targeting [04:51:00].
Building an AI Product Studio
A strategic approach to leveraging these opportunities is to establish an “AI lab” or “product studio” [03:41:00] [03:48:00]. This model focuses on:
- Rapid Development A team of skilled engineers can push out products in as little as 24 hours [03:51:00].
- Modular Frameworks Utilizing an “app framework” allows for quickly swapping out the core functionality (“guts”) to address new trends [03:27:00].
- Continuous Trend Spotting Proactive trend analysis (which is becoming easier with new tools) enables the studio to inject itself into new, viral phenomena [03:36:00] [03:48:00].
Major companies like Adobe already employ this strategy, creating micro apps that funnel users to their main products [03:07:00] [03:15:00]. This highlights the viability and potential of this business model for startups using AI design tools and other AI startup ideas [00:00:00].