From: gregisenberg
The rise of AI-powered applications has opened new avenues for entrepreneurs, demonstrating that significant revenue can be generated through strategic marketing and focused product development, even when leveraging existing AI models like ChatGPT [01:02:02].
Case Study: The Riz App and AI Rizz Apps
One prominent example of a successful AI-based app is Riz, an AI dating coach built on ChatGPT [02:04:02]. This app achieved approximately $190,000 in monthly revenue and 333,000 downloads per month [02:09:00]. The founder reportedly got the initial idea from a Tinder subreddit [02:15:00].
Marketing Focus for AI Wrappers
For “ChatGPT wrappers” – apps that leverage a core AI model like ChatGPT – the product’s unique features are less critical than its marketing and branding [04:05:00]. Key elements for success include:
- Strong Branding and Naming: A memorable name, such as “Riz” (a term popular among young people for charm or attractiveness), is crucial for virality and word-of-mouth [04:29:00].
- Effective Referral Flows: Incorporating features that encourage users to invite friends can significantly boost growth [04:47:00].
- Niche Positioning: Instead of trying to be a general-purpose app, these successful apps focus on specific verticals, such as dating coaching, style advice, or life advice [09:54:00]. This clear positioning simplifies marketing efforts [0:10:14].
Diversified AI App Portfolio
The founder of the app initially thought to be Riz (which was actually Plug AI) operates a small development studio called AI RZ and has launched three apps, collectively generating around $500,000 in monthly revenue [05:35:00]. This strategy minimizes risk by not relying on a single application [23:00:00].
The apps include:
- Plug AI: A texting assistant that uses AI to suggest pickup lines based on user screenshots, marketed as the “ultimate AI RZ” [08:42:00].
- Astra: An AI for life advice, offering guidance on challenges, relationships, personal growth, and dreams [09:05:05].
- Pallet: An AI-powered app that determines a user’s color season from a selfie and generates personalized style and makeup suggestions [09:32:00].
This approach demonstrates the power of AI to provide “coaching in three different verticals” without building extensive new technology [09:54:00]. It falls under the umbrella of leveraging AI for marketing strategies by focusing on specific user needs.
Business Strategy and Sustainability
While AI-based apps can be seen as “flash in the pan” opportunities due to reliance on underlying platforms like OpenAI, they offer substantial benefits:
- Financial Gain: Earning significant monthly revenue, even if temporary, allows founders to achieve financial stability [00:12:00].
- Skill Development: The process of launching and scaling these apps provides invaluable business and marketing skills that are transferable to future ventures [23:55:00].
- “First Nut” Philosophy: Achieving substantial early capital can enable entrepreneurs to “change their world before they change the world,” providing a foundation for future, potentially more impactful, projects [00:08:00], [00:28:00].
“Sometimes you need to change your world before you change the world” [00:08:00].
Anti-Trend Opportunities
While many are focused on developing new AI apps, an “anti-trend” strategy can also be highly effective [13:16:00]. This involves identifying areas where human-led services can compete with, or even complement, AI offerings, often at a premium price point [15:47:00].
For example, an AI dating coach could offer a premium upgrade where human experts provide more personalized advice. Similarly, a human-led “pallet” service could offer a more tailored and interactive experience than its AI counterpart [16:39:00]. The advantage of anti-trends is often reduced competition [16:57:00].
Identifying New Opportunities
Given the high competition in obvious AI assistant applications (like dating or therapy), new developers should seek “non-obvious use cases” for ChatGPT wrappers [19:15:00]. Combining this with an understanding of anti-trends can reveal unique market opportunities.