I built a $99K/month AI app

By Starter Story

AIStartupTechnology
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Key Concepts

  • Magi: An AI platform developed by Dustin that consolidates access to multiple top AI models (Large Language Models, image, video) under a single subscription and interface.
  • No-Code Development: The process of building applications and software without writing traditional code, often using visual development platforms.
  • MVP (Minimum Viable Product): A version of a new product with just enough features to satisfy early customers and provide feedback for future product development.
  • SaaS (Software as a Service): A software distribution model in which a third-party provider hosts applications and makes them available to customers over the Internet.
  • Personal Brand: The conscious and intentional effort to create and influence public perception of an individual by positioning them as an authority in their industry.
  • Building in Public: The practice of sharing one's journey, progress, and challenges in building a product or business openly with an audience.
  • Affiliate Program (Recurring Revenue): A marketing strategy where a business pays commission to individuals or other businesses for referring customers, with commissions continuing for as long as the referred customer remains active.
  • LLMs (Large Language Models): Advanced AI models trained on vast amounts of text data, capable of understanding, generating, and translating human language.
  • Unified API: A single application programming interface that provides access to multiple underlying services or models, simplifying integration for developers.
  • Monetization (Subscription Model): A business model where customers pay a recurring fee (typically monthly or annually) to access a product or service.
  • Founder Mindset (Overcoming Past Failures): The psychological resilience and perspective required for entrepreneurs to learn from previous setbacks without letting them hinder future endeavors.

Dustin's Journey and the Genesis of Magi

Dustin, originally from small-town Pennsylvania, pursued acting in California but eventually transitioned into entrepreneurship after disliking waiting tables. He discovered a talent for social media and technology, teaching himself web design and marketing to start an agency. His perfectionist nature, however, made agency work difficult to scale, leading him to focus on building digital products to help a larger audience. His first successful venture was a WordPress plugin company in 2014. After exiting that business and experiencing two subsequent product failures that "crashed and burned," his confidence was significantly impacted.

The idea for Magi emerged from observing the rapid advancements in AI, particularly with the advent of ChatGPT. Dustin quickly recognized the impending shift in the technological landscape. He identified two key problems with the nascent AI ecosystem:

  1. Fragmented Access: Users would likely need "five or six different subscriptions" to access the "best of the best AI things" from various companies.
  2. Quality-of-Life Deficiencies: Early AI chat applications like ChatGPT lacked basic features such as chat search and folder organization.

Dustin's vision was to create a single platform that solved both these issues, offering access to all top AI models under one subscription while providing a superior user experience.

The No-Code Build Process: From Idea to Launch

Despite having "no money and no coding experience" and being "broke" at the time, Dustin was determined to build Magi himself. He leveraged his self-taught knowledge of developing working apps using no-code tools, gained from previous experiences.

His build process was remarkably fast and efficient:

  1. Self-Education: He found a "really great online course" and dedicated himself to learning as much as possible, as quickly as possible.
  2. MVP Development: Within 8 weeks, he built a full Minimum Viable Product (MVP).
  3. Technology Stack (Initial): The MVP was built using a combination of Bubble (a no-code development platform for the front-end) and "a handful of code" that he understood how to implement.
  4. Launch: He launched the product with low expectations, "thinking nobody would buy it."

Rapid Growth and Marketing Strategies

Magi experienced immediate and sustained growth:

  • First Month: $3,000 in revenue.
  • Second Month: $4,000 in revenue.
  • Third Month: $10,000 per month in revenue.
  • One Year Later: $30,000 per month in revenue.
  • Two and a Half Years Later: "Well over a million dollars in revenue," approaching $100,000 a month.

Dustin attributed this rapid scaling to three primary growth tactics:

  1. Personal Brand & Building in Public: For 10 years prior, Dustin had cultivated a personal brand, maintaining a blog that accumulated over 100,000 email subscribers. This provided a "built-in audience" for the launch, eliminating the need for initial advertising or extensive marketing efforts beyond sharing his journey. He emphasized that "people want to see the journey," even if it's not "Instagram polished."
  2. Generous Recurring Affiliate Program: He integrated an affiliate program into the product from the outset, designed to pay affiliates on a recurring revenue basis. This meant if an affiliate referred a customer who paid 12 times, the affiliate would also get paid 12 times, incentivizing long-term referrals.
  3. Industry Relationships: Dustin leveraged his network of "really great friends in the industry" and "great marketers" with whom he had built genuine relationships over time. His extroverted nature and care for people fostered these connections, which proved valuable for growth.

Magi: A Detailed Demo and Technical Stack

Dustin provided a demo of Magi, highlighting its core functionality:

  • Unified Chat Interface: Similar to other chat apps (ChatGPT, Claude), users get an input field to type to the AI.
  • Multi-Model Access: The key differentiator is the ability to access "all the top models in the world" from a single interface. Users can select models like GPT-5 (or other GPT versions), Claude, and seamlessly switch between them within the same conversation.
  • Beyond LLMs: Magi also provides access to top image and video generation models, including Dolly, Flux, GBT image, and Idoggram. Users can generate images (e.g., "a photo of a cat playing cards") directly within the chat conversation.

The technical stack supporting Magi includes:

  • Front-end: Primarily built with Bubble (no-code platform).
  • Payment Processing: Stripe.
  • Email Marketing: ConvertKit.
  • Unified AI Model Access:
    • OpenRouter: Serves as the central access point for various Large Language Models (LLMs), offering a unified API format.
    • Foul.ai: Similarly consolidates access to image, video, and audio models.
  • Direct API Connections: Dustin also maintains direct API connections to some models, notably having the "highest tier" access with OpenAI.
  • Analytics: Google Analytics for tracking user behavior.
  • SEO: Ahrefs for monitoring keyword rankings and overall SEO performance.

Monetization Model

Magi operates on a strictly paid subscription model, with no freemium option:

  • Solo Plan:
    • Cost: $20 per month.
    • Features: Provides an "average amount of usage" for a single user.
    • Flexibility: Users can purchase additional usage if needed.
  • Team Plan:
    • Cost: $40 per month.
    • Features: Supports up to five users and offers "three times as much usage" as the solo plan.
    • Scalability: Additional team members can be added for $20 per team member per month, allowing enterprises to scale to "a thousand or more users" directly within the app.

Key Advice for Founders

Dustin's most significant advice for aspiring founders, particularly those looking to build successful AI SaaS products, is:

  • Overcome Past Failures: "The biggest problem that founders face is letting their past failures define them." He shared his own experience of losing confidence after two failed products following an initial success.
  • Separate Product from Self: He emphasized the crucial distinction: "People rejected the products. They didn't reject you." This perspective helps founders maintain self-worth and resilience in the face of setbacks.

Conclusion and Main Takeaways

Dustin's story with Magi exemplifies the power of identifying a clear market need, leveraging no-code tools for rapid development, and employing strategic growth tactics. His success, achieving nearly $100,000/month in revenue within 2.5 years, demonstrates that significant technical expertise is not a prerequisite for building a successful AI product. Key takeaways include the importance of a strong personal brand, the effectiveness of a well-structured affiliate program, and the critical mindset of not letting past failures dictate future potential. The platform Magi itself highlights the growing demand for consolidated access to diverse AI models and improved user experience in the rapidly evolving AI landscape.

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