He Made $10M with 3 iPhone Apps

Key Concepts

AI-powered mobile apps, app development, idea validation, marketing strategies (TikTok, Instagram, influencer marketing, UGC), monetization (subscriptions, Superwall), cost management, tech stack (Figma, React Native, Expo, Cursor, CapCut, Mercury, Upwork), self-improvement, creating urgency, first principles thinking, distribution vs. product.

Main Topics and Key Points

1. Blake Anderson's Success Story

• Blake Anderson taught himself to code using AI (ChatGPT) and has built multiple successful AI-powered mobile apps.
• Riz GPT: AI dating assistant, reached $2.5 million in annual revenue.
• Umax: AI glow-up app, generated almost $5 million in revenue in the past year.
• Kai: Co-founded AI app, reached over $1 million in revenue per month within 6 months.
• Total revenue across all apps is approaching $20 million per year.

2. Opportunity in the App Market

• AI advancements: Easier and cheaper to solve problems using AI, especially with large language models (LLMs). Riz GPT would have been impossible to build without LLMs.
• Novel distribution techniques: TikTok and Instagram algorithms incentivize new creators, allowing for rapid organic growth and user acquisition. Algorithms are in "bloodbath competition" and push more views to new accounts.
• Apps are easier to build and market now, making it a great business to start.

3. Blake's Background and Motivation

• Entrepreneurial from a young age (mowing lawns, mining Ethereum, scaling Instagram meme pages).
• Faced financial hardship after college, motivating him to achieve financial independence.
• Set a goal to make $50,000 within 12 months of graduating.

4. Riz GPT: From Idea to $250k MRR

• Idea: Solve the problem of people not knowing what to say on dating apps.
• Taught himself to code with ChatGPT in one month.
• Initial app version was basic (no notifications, poor design).
• Marketing breakthrough: Paid two "underground" creators $50 each for promotions, resulting in 5-10 million views overnight.
• Achieved 45,000 downloads on the first big day, 200,000 in the first week, and 500,000 in the first month.
• Reached $80,000 MRR quickly, scaling to over $250,000 MRR before plateauing at $150,000-$200,000 MRR.

5. Identifying Million-Dollar App Ideas

• Fragmented tools: Opportunity to consolidate AI tools (e.g., LinkedIn image generator, resume analysis) into a single "career AI" platform.
• Language learning: Leverage advanced voice mode in ChatGPT to create a personal AI tutor. Duolingo makes $400 million/year; capturing 1% of that market yields a $4 million app.
• Niche monetization: Identify niches heavily monetized with physical products (e.g., skincare) and create software solutions for related problems.
• All-in-one AI glow-up app: Building on the concept of Umax, a more comprehensive application to help people improve their appearance.

6. Idea Validation Process

• Social media deep dive: Create an account in the target niche (e.g., calorie counting) and consume content to understand the target market's needs and desires.
• "Putting yourself in your customer's shoes" to understand their needs.

7. Building an App from Scratch (Blueprint)

• Design: Use Figma. Learn to use Figma to ensure a user-friendly application. Use references from other apps with similar functionality.
• Development: Use React Native with the Expo framework and Cursor as the IDE.
• Marketing:
  • Influencer marketing: Pay influencers to promote the product.
  • Internal UGC (User-Generated Content): Create content around the application and post it to branded accounts. Use CapCut for editing (slideshows, faceless videos, or direct-to-camera content).
  • Constant iteration: Ruthlessly test different marketing strategies and double down on what works.

8. Marketing Mistakes and Solutions

• Mistake: Expecting immediate responses from influencers after sending a few DMs.
• Solution: Be creative and persistent in contacting influencers (e.g., finding Discord links, contacting family members).

9. Monetization Strategies

• Subscription model: The primary monetization model for most successful apps.
• Lower price points: Encourage wider adoption, positive user sentiment, and sustainable long-term growth.
• Superwall: Use Superwall to split test different price points (weekly, monthly, yearly) and placements within the app to optimize revenue per user.

10. Cost Management

• Apple fees: 15% (closer to 20%) of revenue up to $1 million, then 30% (closer to 33%).
• AI costs: Generally sub 3% of expenses (unless using image generation or advanced voice mode).
• Marketing and staff: The bulk of expenses.
• Profit margins:
  • Internal UGC: 50-80%
  • Influencer marketing: 25-70%
  • Paid ads: 0-30%

11. Tech Stack

• Design: Figma
• IDE: Cursor
• Video Editing: CapCut
• Banking: Mercury (best platform for startup banking in the US)
• Freelancers: Upwork (hire multiple freelancers for short tasks and select the best)
• Coding Languages: React Native and Node.js

12. Blake's Current Project: Apex

• An all-in-one self-improvement ecosystem.
• Creating content, building a free community, developing free mobile apps, and selling low-margin, high-quality physical products.

13. Biggest Lesson Learned

• Creating a sense of urgency: Most productive periods occur when there is high risk and pressure to succeed quickly.
• Examples: Building Riz GPT while facing financial hardship, building Umax after leaving previous team.

14. Advice for Aspiring Entrepreneurs

• Think from first principles: Abstract yourself from social media and external advice; think independently.
• Naval Ravikant quote: "If you want to make the wrong decision, ask everybody."

15. Starter Story Academy

• Focuses on building an idea and, more importantly, figuring out how to get attention, acquire first customers, and gather feedback.
• Emphasizes distribution and attention over just product development.

Notable Quotes

• "I taught myself to code with chat GPT." - Blake Anderson
• "Tik Tok and Instagram are very solvable right now." - Blake Anderson
• "If you want to make the wrong decision ask everybody." - Naval Ravikant (mentioned by Blake)

Technical Terms and Concepts

• AI (Artificial Intelligence): The simulation of human intelligence processes by computer systems.
• LLM (Large Language Model): A type of AI model that uses deep learning algorithms and massive datasets to understand, summarize, generate, and predict new content.
• MRR (Monthly Recurring Revenue): A measure of predictable revenue generated each month from subscriptions.
• MVP (Minimum Viable Product): A version of a product with just enough features to satisfy early customers and provide feedback for future development.
• UGC (User-Generated Content): Content created by users of a product or service, often used for marketing purposes.
• React Native: A JavaScript framework for building native mobile apps.
• Expo: A framework for building React Native apps that simplifies the development process.
• Figma: A collaborative web application for interface design.
• Cursor: An AI-powered code editor.
• CapCut: A free video editing app.
• Superwall: A platform for managing and optimizing in-app subscriptions.

Logical Connections

The video progresses logically from Blake's initial success to the specific strategies and tools he used. It covers idea generation, validation, app development, marketing, monetization, and cost management. The discussion of each app (Riz GPT, Umax, Kai) provides concrete examples to illustrate the principles being discussed. The interview format allows for a natural flow of information and the exploration of different aspects of Blake's journey.

Data, Research Findings, or Statistics

• Duolingo makes $33 million per month, equating to $400 million per year.
• Apple charges 15% (closer to 20%) of revenue up to $1 million, then 30% (closer to 33%).
• Profit margins for internal UGC are typically 50-80%, influencer marketing 25-70%, and paid ads 0-30%.

Synthesis/Conclusion

Blake Anderson's success in building AI-powered mobile apps highlights the opportunities available in the current app market. By leveraging AI, novel distribution techniques, and a focus on user needs, aspiring entrepreneurs can create profitable businesses. Key takeaways include the importance of idea validation, a strategic approach to marketing, and a relentless focus on iteration and optimization. The video emphasizes that distribution and attention are more critical than product perfection, especially in competitive markets. Finally, creating a sense of urgency and thinking from first principles are crucial for entrepreneurial success.