The Startup Ideas Podcast
The Startup Ideas Podcast

How to build $1M+ Viral AI Apps

November 6, 2024

AI Summary

5 min read

How to Build $1M+ Viral AI Apps

Blake Anderson was 22 when he stumbled into a corner of the internet most people don't know exists. He built an app called Plug AI that hit three million downloads and $200,000 in monthly revenue. Then UMAX—over 10 million downloads, peaking at $700,000 a month. Then Cal AI, launched just over six months ago: two million downloads and over a million dollars in monthly revenue. He is 23.

The space he operates in sits at the intersection of two things: new application functionality made possible by AI, and novel distribution tactics pioneered by e-commerce people on TikTok. The result is a small cohort of 18-to-22-year-old indie hackers running bootstrapped mobile apps that each pull in one to five million dollars a year. Anderson walked through three specific ideas, the psychology behind how he builds and distributes them, and the conditions under which the approach works.

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What you'll learn

  • 1 (00:00) **Introduction & Blake's Background** - Greg introduces Blake Anderson, who built multiple viral AI apps generating millions in revenue.
  • 2 (02:18) **Why AI Apps Are Exploding Now** - AI enables new functionality that was previously too expensive or complex to build.
  • 3 (05:01) **Idea #1: Career AI** - An all-in-one career advancement platform combining fragmented tools.
  • 4 (08:49) **Blake's Framework for Viral Distribution** - Highly iterative split-testing of hooks and influencers.
  • 5 (13:40) **From Idea to Product: Building Process** - How to flesh out an idea and engineer for virality.
  • 6 (17:28) **Idea #2: Journal AI** - An AI-powered journal that gives back personalized analysis.
  • 7 (20:20) **Naming Strategy: Should You Put "AI" in the Name?** - It depends on the industry and trust level.

+ Full timestamped outline available in the app

Show Notes

Join me as I chat with Blake Anderson, Co-Founder of Apex, as we discuss his frameworks and strategies for building and scaling viral AI Apps. Learn his step-by-step formula creating viral apps. 

Episode Timestamps: 
00:00 Intro
02:59  Why build AI Apps
04:58 Startup Idea 1: Career AI
08:19 Blake's framework for building Viral AI Apps
10:38 Finding influencers
13:23 Product Development
17:25 Startup Idea 2: Journal AI
24:01 Paywalls and Payment Strategy
29:03 Startup Idea 3: Language AI
24:01 How to find more AI app ideas

1) Career AI: The all-in-one career advancement tool
• Combines resume analysis, career quizzes, & job application tips
• Use AI to create a 6-factor rating system for resumes (like Madden ratings)
• Design viral hooks: "I'm a senior and it says I should study CS!"

Distribution strategy:
• Target students on IG, TikTok, LinkedIn
• Partner with ed-tech influencers
• Split test different hooks across niches

2) Journal AI: Your AI-powered second brain
• Branded as a journal, functions like an emotional support assistant
• Provides productivity insights, relationship analysis, and emotional support
• Uses ChatGPT with enhanced memory storage
Key insight: People already use ChatGPT as a journal. This makes it official.
Naming tip: Consider friendly names like "Juni" or "Journey" instead of "AI"

3) Language AI: The Duolingo disruptor
• Create a dynamic, AI-powered language learning app
• Leverage newest AI voice-to-voice models as they become cheaper
• Update content dynamically, unlike Duolingo's static modules

Why it could work:
• Even 1% of Duolingo's market = $100M company
• High-intent users willing to pay
• Established players move slower than scrappy startups

4) Blake's framework for building viral AI apps:
1. Iterate on virality from day one
2. Split test hooks, influencers, and product features
3. Build personal relationships with influencers (don't use marketplaces)
4. Design around both functionality AND virality
5. Use tools like Superwall for easy paywall testing

5) Pricing strategy: Optimize for (users^n * profit per user), where n is greater than 1
• This prioritizes growth and market dominance over short-term profits.
• Blake's hot take: The "evil" onboarding flow that works

1. Get users to input personal info for "customization"
2. Hit them with a paywall at the end

• It's effective, but Blake admits it feels morally questionable. Use at your own risk.

6) Bonus tip: Create burner social media accounts to immerse yourself in your target niche.
• Curate your feed around your app's topic to truly understand your audience.

Want more free ideas? I collect the best ideas from the pod and give them to you for free in a database. Most of them cost $0 to start (my fav)

Get access: https://www.gregisenberg.com/30startupideas

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