Meet The Kid Who Made $1M with ChatGPT

Starter Story

30 Aug 202312:07

Summary

TLDRJoe Populus, a 20-year-old computer science student, shares his journey of building a book brand valued at $930,000 by selling AI-generated books. Starting from a minimum wage job, Joe leveraged GPT3 to create and market ebooks to middle-aged moms on Pinterest. Despite initial challenges, he achieved profitability within months, reaching a 70-80% profit margin. His success story, featured by Starter Story, highlights the power of AI in business and the importance of learning and adapting to achieve financial success.

Takeaways

💡 Joe Poplawski, a 20-year-old computer science student, built a book brand valued at $930,000 by using AI to generate books and marketing them on Pinterest.
🚀 Joe's business started with a minimum wage job and self-funding, growing to a profitable venture with a profit margin of 70-80%.
📚 His initial foray into AI was through working on use cases for GPT-3, which led to charging for advice and eventually to the book business idea.
💼 Joe managed to build his business while attending college full-time and working part-time, even dropping two courses to focus on his book brand.
📈 The business model involves creating books with AI, with costs as low as $3 per book, and using Pinterest ads for targeted marketing to middle-aged moms.
🔑 Joe's success with Pinterest ads started with consideration campaigns to identify niches and then moved to conversion campaigns for optimization.
📉 Joe's meticulous approach to proofreading and revising the AI-generated books ensured quality, contributing to customer satisfaction and repeat business.
💼 The business is highly sellable, with Joe receiving an initial offer of $930,000 for his entire operation, and he's now selling parts of his business to investors.
🎓 Joe advises others interested in AI generative books to learn about AI models, find a niche with traffic and emotional appeal, and understand how to elicit desired outcomes through the product.
🎧 Outside of his business, Joe has a passion for making house music under his name, Joe Poplawski, and has songs on Spotify.
💼 With his profits, Joe has been cautious, only purchasing a Rolex to preserve value, focusing on reinvesting in his business and avoiding depreciating assets.

Q & A

How did Joe Poplawski make over one million dollars in one year?
-Joe Poplawski made over one million dollars in one year by starting a business selling AI-generated books. He utilized his knowledge of AI and GPT-3 to create ebooks and marketed them effectively, particularly to middle-aged moms on Pinterest.
What was Joe's initial job before starting his business?
-Before starting his business, Joe was a university student working part-time stocking shelves for 11 dollars an hour.
How did Joe come up with the idea of selling AI-generated books?
-Joe came up with the idea after working on use cases for GPT-3 and realizing the potential of integrating AI into business models. His experience with openAI and the publishing industry inspired him to start his own book brand.
What was the turning point for Joe's business?
-The turning point for Joe's business was when he met with a publishing company and saw their revenue from selling books. This eye-opener motivated him to start his own similar venture using AI for book creation.
How did Joe manage to build his business while attending college full-time?
-Joe managed to build his business while attending college by dedicating several hours each night to work on his book brand, even dropping two courses to focus on it. He balanced his time between studying and working on his business.
What was Joe's first profitable day like?
-Joe's first profitable day was on October 3rd, after which his earnings increased significantly. By December 28th, he had his first day with a profit of 1K, which was a significant milestone for him.
How did Joe fund his initial business venture?
-Joe's initial business venture was completely self-funded, using money he made from his minimum wage job. He made several mistakes initially, which could have been avoided with better planning.
What is the typical profit margin for Joe's business?
-The typical profit margin for Joe's business is about 70 to 80 percent. The main expense is the cost of ads, with other costs including premium extension subscriptions and book creation.
How does Joe approach marketing for his AI-generated books?
-Joe primarily uses Pinterest ads for marketing his books. He starts with consideration campaigns to test niches and then moves to conversion campaigns to refine his marketing strategy and improve conversion rates.
What is Joe's strategy for dealing with competition and market saturation?
-Joe is not concerned about competition and market saturation due to his brand's momentum and loyal customer base. He believes there is plenty of room for growth and that saturation will only drive him to provide more value in his products.
How does Joe's business model handle proofreading and quality control?
-Initially, Joe proofread all the books himself. Now, he has a proofreader on retainer to ensure the quality of the AI-generated books. This helps maintain a high standard of content for his customers.
What advice does Joe have for someone interested in starting an AI generative book business?
-Joe advises taking an interest in AI models, learning how they work, and finding the best settings and prompts for optimal output. Additionally, finding a niche with traffic and ambitious people is crucial for emotional connection and effective marketing.
What is Joe's current valuation and profit made from his business?
-Joe's business is currently valued at 930,000 dollars, and he has made a profit of 390,000 dollars.
How does Joe spend his typical day now that he has a successful business?
-Joe spends his mornings ensuring ads are running correctly and checking in with his proofreader. In the afternoons, he works on teaching others how to build their book brands. At night, he pursues his hobby of making house music.
What is Joe's perspective on investing the profits he made from his business?
-Joe has been lean with his spending, choosing to invest the profits back into his business. He has only bought a Rolex as a depreciating asset and plans to invest more in the future for bigger purchases like a car.
What advice would Joe give to his past self when he was starting out with failed business ventures?
-Joe would advise his past self to prioritize learning over earning, focusing on building a strong skill set that would make it almost impossible to fail in future ventures.

Outlines

00:00

📚 Teenage AI Entrepreneur's Success Story

Joe, a 20-year-old computer science student, shares his journey of building a book brand valued at $930,000 by using AI to generate books and marketing them on Pinterest. Initially working part-time for minimum wage, Joe discovered the potential of AI in business models and began charging for advice on AI integration. After meeting with a publishing company and realizing the profitability of book sales, he started his own venture. Joe self-funded his business, making his first profit in October and hitting $1,000 in profit by December. His business model relies heavily on advertising, particularly through Pinterest, targeting middle-aged moms with AI-generated content.

05:03

💼 Building a Business While Balancing School and Work

Despite attending college full-time and working part-time, Joe managed to build his book brand by dedicating long hours to his business. He dropped two courses to focus on his book brand, spending most of his day on school and then working on his business at night. Joe's business has a profit margin of 70-80%, with the main expense being ads and a premium extension subscription. He initially proofread all his books but now has a proofreader on retainer. Joe's marketing strategy involves using Pinterest ads to target specific niches and optimize conversion campaigns for better results.

10:03

🎓 Scaling and Selling a Profitable AI Book Business

Joe's business has grown to a point where he is now mentoring others to build their own book brands. He has a loyal customer base and is not worried about competition or market saturation due to the large market size and his brand's momentum. Joe has received offers to sell his business, with the first offer being $930,000, which he is considering by selling parts of his corporation. His daily routine involves managing ads, working with proofreaders, and teaching others about his business model. In his spare time, Joe creates house music as a hobby, with songs available on Spotify.

Mindmap

Keywords

💡AI-generated books

AI-generated books refer to literary works created with the assistance of artificial intelligence. In the video, Joe Popplus utilizes AI to generate thousands of ebooks, which he then markets and sells. This concept is central to the video's theme, illustrating how technology can revolutionize traditional industries like book publishing.

💡GPT-3

GPT-3, which stands for 'Generative Pre-trained Transformer 3,' is a language model AI developed by OpenAI. It is capable of generating human-like text based on given prompts. In the context of the video, Joe leverages GPT-3 to create the content for his books, showcasing the practical application of AI in content creation.

💡Revenue

Revenue is the income generated from the sale of goods or services. The video discusses how Joe's business model, based on AI-generated books, has led to substantial revenue, with a valuation of $930,000 and a profit of $390,000, demonstrating the financial success of his venture.

💡Pinterest

Pinterest is a social media platform primarily used for sharing images and ideas. In the video, Joe mentions using Pinterest to market his AI-generated books, particularly targeting middle-aged moms. This highlights the strategic use of social media for advertising and reaching a specific demographic.

💡Profit margin

Profit margin is the percentage of profit relative to the total revenue generated. Joe's business has a profit margin of 70 to 80 percent, indicating high profitability. This is significant as it underscores the efficiency and potential of his business model.

💡Landing page

A landing page is a standalone web page, designed to promote a specific product or service. In the video, Joe discusses the importance of a well-designed landing page for selling his books, emphasizing its role in presenting product value and enhancing the customer's first impression of the brand.

💡Proofreader

A proofreader is someone who checks written material for errors in grammar, spelling, and style. In the context of the video, Joe mentions hiring a proofreader to ensure the quality of his AI-generated books, which is crucial for maintaining the credibility and appeal of his products.

💡Competition

Competition refers to the rivalry among businesses striving for the same market share. Joe addresses the issue of competition in the AI book market, stating that he is not deterred by new competitors due to his established brand and loyal customer base, reflecting the importance of brand strength in a competitive landscape.

💡Investor

An investor is an individual or entity that provides capital for a business in exchange for equity or profit participation. The video mentions an investor interested in purchasing part of Joe's book brands, indicating the perceived value and scalability of his business model.

💡Minimum wage job

A minimum wage job is employment that pays at or near the minimum wage rate set by law. Joe contrasts his previous job stocking shelves at $11 an hour with his current earnings from his AI book business, illustrating the transformative impact of entrepreneurship and innovation.

💡Case studies

Case studies are in-depth analyses of specific instances or situations, often used for educational or evaluative purposes. The video mentions Starter Story, a platform with a library of case studies, which Joe suggests can help others learn from successful business models, like his own, and avoid common pitfalls.

Highlights

A university student named Joe Popplus made over one million dollars in one year with an AI-generated book business.

Joe started with a minimum wage job and built his business while attending college full-time.

The business idea originated from Joe's experience with GPT-3 and his interest in integrating AI into business models.

Initially, Joe provided advice on AI and GPT-3, eventually charging for his expertise which led to the book business idea.

Joe's first profitable day with AI books came on October 3rd, marking a significant milestone in his business journey.

He generated 40 AI books by September and reached a daily profit of 1K by December 28th.

The business was entirely self-funded, starting with the money Joe made from his part-time job.

Joe dropped two courses to focus on his book brand, balancing school and business.

The key to starting in AI generative books is understanding AI models and finding a niche with traffic and ambition.

Joe's first book was not successful, leading him to study competitors' books to improve his own.

The business is valued at $930,000, with Joe making $390k in profit with a 70-80% profit margin.

Marketing is primarily done through Pinterest ads, with a focus on niche targeting and conversion campaigns.

Landing pages are crucial for showcasing the book's value, with a professional appearance to avoid high bounce rates.

Despite the low barrier to entry in AI book creation, Joe's brand has significant momentum and a loyal customer base.

Joe is selling parts of his business to investors while continuing to build and sell more book brands.

His daily routine involves managing ads, working with a proofreader, and teaching others to build book brands.

Joe also creates house music as a hobby and has songs on Spotify, hinting at a potential future in AI music.

With his profits, Joe has been conservative, only purchasing a Rolex and focusing on business growth and future investments.

Reflecting on his journey, Joe advises prioritizing learning over immediate earnings to build a strong foundation of skills.