Meet The Kid Who Made $1M with ChatGPT

Summary

Joe 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.