3 $1M+ AI startup ideas targeting profitable niches and how to build viral apps

Introduction

This tutorial provides a comprehensive guide to creating successful AI startups, based on insights from Blake Anderson, Co-Founder of Apex. We will explore three innovative AI app ideas and a framework for building viral applications. Whether you are an entrepreneur or a developer, these strategies can help you navigate the competitive landscape of AI technology.

Step 1: Explore Startup Ideas

Consider the following three AI startup concepts that target profitable niches:

Career AI

• Concept: An all-in-one tool for career advancement.
• Features:
  • Resume analysis and tips.
  • Career quizzes to guide user decisions.
  • Job application advice.
  • A 6-factor resume rating system (similar to Madden ratings).
• Viral Hook: Create engaging hooks like "I'm a senior, and it says I should study CS!"
• Distribution Strategy:
  • Focus on platforms like Instagram, TikTok, and LinkedIn.
  • Collaborate with educational technology influencers.
  • Conduct split tests on different hooks across various niches.

Journal AI

• Concept: An AI-powered journal that acts as an emotional support assistant.
• Features:
  • Offers productivity insights and relationship analysis.
  • Utilizes ChatGPT with enhanced memory storage.
• Key Insight: Many users already use ChatGPT as a journal, making this app a natural fit.
• Naming Tip: Choose friendly names like "Juni" or "Journey" instead of explicitly using "AI."

Language AI

• Concept: A dynamic language learning app that rivals Duolingo.
• Features:
  • Incorporates the latest AI voice-to-voice models.
  • Updates content dynamically, improving user engagement.
• Why It Could Work: Capturing even 1% of Duolingo's market could lead to a $100M company.

Step 2: Apply Blake's Framework for Building Viral AI Apps

To maximize the virality of your app, follow these guidelines:

1. Iterate on Virality from Day One: Build features that encourage sharing and engagement.
2. Conduct Split Tests: Experiment with different hooks, influencers, and product features to find the most effective combinations.
3. Build Personal Relationships with Influencers: Engage with influencers directly rather than relying on marketplace connections.
4. Design for Functionality and Virality: Ensure that your app is both useful and shareable.
5. Utilize Tools for Monetization: Use platforms like Superwall to test paywall strategies effectively.

Step 3: Develop a Pricing Strategy

Create a pricing model that supports growth and market dominance:

• Optimize for Growth: Use the formula (users^n * profit per user), aiming for n greater than 1.
• Onboarding Flow:
  1. Ask users for personal information under the guise of customization.
  2. Present a paywall at the end of the onboarding process.
• Caution: While effective, this approach can feel morally questionable.

Step 4: Understand Your Audience

To deeply understand your target market, employ the following tactics:

• Create Burner Social Media Accounts: Immersing yourself in your niche will help you curate relevant content and understand user preferences.
• Curate Your Feed: Follow topics related to your app to gain insights into audience interests and behaviors.

Conclusion

Building a successful AI startup requires innovative ideas, a solid framework for virality, and a deep understanding of your audience. By exploring the concepts of Career AI, Journal AI, and Language AI, and applying effective strategies for product development and monetization, you can position your startup for success. Consider these steps as a pathway to launching your own AI application and tapping into lucrative markets. For more ideas and resources, visit Greg Isenberg's site.