My app made $80K in 6 months

Summary

Prren, a former software engineer from India, shares his journey of quitting a $250,000 job to build his own app. Despite initial failure with a subscription model, a pivotal shift to a one-time purchase model turned his app into a success, generating $80,000 in six months. Prren discusses the importance of understanding your ideal customer, the benefits of a lifetime deal for bootstrap businesses, and the strategic pricing that helped him grow. He also emphasizes how AI tools and a clear value proposition can drive user engagement and growth in the competitive tech space.

Takeaways

• 😀 Prren, a former software engineer from India, quit his $250k/year job to pursue building apps full-time.
• 😀 His first app launch, Rabbit Holes AI (formerly known as Canvas Mode), initially saw little success despite the effort put in.
• 😀 The app’s core idea is to allow users to interact with AI models in a non-linear, more flexible way, unlike typical chat-based systems.
• 😀 The initial pricing model was a subscription-based model with a free trial, but it failed to gain traction due to lack of a strong personal brand and an oversaturated customer base.
• 😀 Prren pivoted to a one-time purchase model for Rabbit Holes AI, which helped reduce costs and increase user buy-in.
• 😀 Switching to a one-time payment model allowed users to bring their own API keys, eliminating recurring AI costs and server expenses.
• 😀 The pivot to a desktop app and a one-time purchase led to $80,000 in revenue over the course of 6 months.
• 😀 Prren recommends that bootstrap businesses should consider offering a lifetime deal (LTD) to generate immediate revenue and validate their ideas.
• 😀 The lifetime deal pricing started at $29 for early users, increased to $49 after 100 users, and will continue to rise as the user base grows.
• 😀 Growth for Rabbit Holes AI was driven by a well-targeted landing page, Twitter engagement, and offering solutions tailored to Power AI users, not just direct promotion.
• 😀 As of now, Rabbit Holes AI generates around $80,000 in revenue, with 75% profit, 200 paying users, and 60% of them on lifetime deals.
• 😀 The technical stack includes React, TypeScript, Electron, Next.js, and the AI SDK from Versel, which helped streamline AI provider integrations.

Q & A

Why did Prren quit his $250,000 job?

Prren quit his job because he always knew he wanted to build his own thing. Despite making a significant income, he decided to pursue his passion for app development.

What was Prren's first attempt at building an app, and what was its result?

Prren’s first app, Rabbit Holes AI, didn’t get much traction after its initial launch. Despite his effort, the app failed to generate significant interest or success.

What pivotal change did Prren make to his app that led to success?

The pivotal change was shifting the app to a one-time purchase model instead of a subscription model. This allowed Prren to reduce costs and better serve his users, which led to $80,000 in revenue over six months.

Why did Prren choose to move away from a subscription model?

Prren realized that his ideal customer profile (ICP) consisted of power AI users who were already paying for multiple AI subscriptions. Additionally, he didn't have a personal brand to support a subscription model, so he switched to a one-time purchase model.

How did Prren minimize his operating costs after switching to the one-time purchase model?

Prren minimized costs by creating a desktop app that offloaded server and AI usage costs to the users. By using their computers and requiring them to bring their own API keys, Prren avoided incurring significant operational expenses.

What does Prren mean by 'bring your own keys' in the context of Rabbit Holes AI?

'Bring your own keys' means that users provide their own API keys for AI models. This strategy allowed Prren to avoid the costs associated with using AI services and made the app more cost-efficient to run.

What role did the lifetime deal (LTD) play in Rabbit Holes AI’s growth?

The lifetime deal (LTD) provided an initial cash boost and helped validate the product. It allowed Prren to generate revenue upfront while building a user base that was invested in providing feedback and improving the product.

How did Prren price his lifetime deal, and why did he start low?

Prren priced his lifetime deal initially at $29 when he had fewer than 100 users, then increased the price to $49 once the user base grew. The low price for early adopters helped generate interest and gather valuable feedback.

What strategies did Prren use to grow Rabbit Holes AI?

Prren focused on optimizing his landing page, targeting the right customer profile (power AI users), and promoting the product on Twitter. He didn’t aggressively sell the app but subtly hinted at its value in relevant conversations.

How did Prren handle the technical aspects of building Rabbit Holes AI?

Prren used tools like AI as a co-founder, Cursor for coding, and hosted the landing page on Next.js with Cloudflare. The app itself was built using Electron, React, and TypeScript. The AI SDK by Vercel also helped integrate AI models seamlessly.

What was Prren’s key piece of advice for new founders?

Prren’s key advice is to focus on finding product-market fit as soon as possible. He emphasizes that entrepreneurs should aim to create something that genuinely improves people’s lives, rather than appealing to their peers.