I built a $99K/month AI app
By Starter Story
Summary
## Key takeaways - **No-code AI app generates $99K/month**: Dustin Stout built an AI app called Magi using no-code tools in 8 weeks, which now generates over $99,000 per month. [00:02], [01:08] - **Identify AI gaps, build better tool**: Observing limitations in early AI tools like ChatGPT, such as the inability to search chats or organize them into folders, Dustin saw an opportunity to build a superior product. [02:34], [02:45] - **Leverage personal brand for launch**: Dustin's success was significantly boosted by his decade-long effort in building a personal brand and an email list of over 100,000 subscribers, providing an immediate audience for his launch without paid advertising. [04:38], [05:03] - **Generous affiliate program drives growth**: Implementing a recurring revenue-based affiliate program, where referrers are paid for the lifetime of the customer's subscription, was a key strategy for Magi's initial momentum. [05:16], [05:24] - **Consolidate AI models in one platform**: Magi provides access to multiple leading AI models, including text, image, and video generation tools, within a single subscription, solving the problem of needing multiple subscriptions for different AI services. [07:20], [07:57] - **Don't let past failures define you**: After experiencing significant failures with previous product ideas, Dustin emphasizes that founders should not let past rejections define their future confidence and endeavors. [09:55], [10:16]
Topics Covered
- One AI subscription to rule them all?
- Can non-technical founders build AI apps fast?
- Build in public: Your best marketing strategy.
- Why aggregating AI models is the next big thing.
- Past failures don't define your entrepreneurial future.
Full Transcript
I built an AI platform that makes almost
$100,000 a month.
This is Dustin and just two years ago,
he came across an idea that changed his
life.
I saw very quickly where the world was
headed and almost like a revelation saw
what the next 3 years would look like.
So, he did something crazy. With no
money and no coding experience, he
taught himself how to build apps and he
built an MVP.
I made $3,000 in that first month.
2 months later, he made $10,000 a month
and a year later, he was making $30,000
a month. I brought Dustin onto the
channel to break down exactly how he did
it. And in this video, we'll dive into
the not so obvious problem his app
solves and why it's so successful, his
8-week no code build process from idea
to launch, and why he thinks everyone
should be building an AI right now. All
right, let's get into it. I'm Pat Walls
and this is Starter Story.
All right, Dustin, welcome to the
channel. Tell me about who you are, what
you built, and what's your story.
My name is Dustin. I built a little tool
called Magi. I built the app in 8 weeks
and had my first customers on the first
day that I released it. So, 2 and a half
years later, we're doing well over a
million dollars in revenue, over almost
$100,000 a month.
All right. Well, before we get into the
idea and the app that you actually
built, I just want to get a little bit
of background on you. How do you get to
this point?
I grew up in smalltown Pennsylvania. Mom
and my stepdad always worked hard to try
and provide a good life for us. I wanted
to be an actor. So I moved out to
California to pursue acting. Hated
waiting tables. So ended up starting a
business instead. Found that I had a
knack for social media and technology.
And so I taught myself web design,
taught myself marketing, and starting an
agency. Very quickly though, I learned
that uh I'm a bit of a perfectionist and
that didn't scale very well for me. So I
found that if I focused all that
perfectionism into building digital
products, I could help hundreds of
thousands of people rather than one
client at a time. And so I started
building digital products. My first
digital product was in 2014. Started a
WordPress plug-in company with a couple
of partners. We kind of grew apart as
partners and I made my exit to start a
couple other products that failed
miserably and then found myself in a
place where I was uh not sure if I had
anything left to give but uh kept moving
forward anyways and then uh the idea for
Magi is uh what started this whole new
season of life.
All right. Well, let's dive into that.
How do you come up with the idea for
Magi, this business that's now making
over $100,000 a month? Where do you even
get this idea?
You know, having been through several
different technology booms, I saw the
writing on the wall. I saw that the
whole world was about to change. And so,
as I started using Chat GPT, I realized
that there were some things missing.
There was some features that I wish were
there. You know, at the beginning, you
couldn't search your chats. You couldn't
put things into folders. All these
little quality of life things started
piling up. I knew that I could make
something better and I can improve it.
And thanks to, you know, the journey
that I had been on, I had kind of taught
myself enough about how to develop
working apps using no code tools. And
having some experience with customers in
the subscription SAS space, I knew that
people were completely burnt down on
subscriptions. And seeing all these
different AI companies pop up, I went to
myself, people are going to need like
five or six different subscriptions just
to get the best of the best AI things.
What if I could solve that one problem
for them? And then on top of that, all
these quality of life things that I'm
having with Chat GBT. So that was really
the genesis of the idea.
I want to now get into how you actually
built this thing. That's something that
we really try to dig into at Starter
Story. You didn't have a technical or
big-time developer background, but you
built this amazing SAS software tool.
Take me through the actual build and
launch of Mage AI. How did you do it?
How did you go from zero to really great
product?
Yeah, so you're spot on. I I'm not a
developer. So when I was at the point in
my life where I was broke, no ability to
hire uh developers to help me, when I
had this idea, I had to find a way to
build it myself without spending any
money. And so I actually found a really
great uh online course and I just
started learning as much as I could as
fast as I could. Within 8 weeks, I had a
full MVP built on a combination of
Bubble and a handful of code that I
understood how to build myself. I
launched it thinking nobody would buy
it. But to my surprise, in the first
month, we made uh $3,000. Uh second
month, 4,000. Third month, we were at
10,000 a month. And then after one full
year, we were doing 30,000 a month in
revenue.
Okay. Well, on that note, I think a lot
of people watching are wondering, okay,
once you actually launch it, get those
first users, how did you then scale it
or grow it to $100,000 a month? What
were the growth tactics or the marketing
strategies you employed? The most
important marketing strategy that I
could say that I utilized at the
beginning was having built a personal
brand for the last 10 years. You need to
be building in public. People want to
see the journey. Even if it's not
pretty, if it's not Instagram polished,
people want to see. So for the last 10
years, I had a personal blog that had
over 10 years accumulated over 100,000
email subscribers. So when I launched a
product, I had a built-in audience. And
so that carried me doing no advertising,
doing no real marketing aside from just
building in public. I will also say that
I think a big contributor to the initial
momentum that we had was right away I
built an affiliate program into the
product and it was a very generous one.
It was a affiliate program that was
built on recurring revenue. So it's not
just a onetime commission. If they refer
a customer that pays us 12 times, they
get paid 12 times. And apart from that,
I'm very grateful to have some really
great friends in the industry. some
really great marketers who are friends
of mine. I built relationships in the
industry. I I genuinely care about
people. I'm an extrovert. So, like I
really do love people. So, those were
really the three biggest keys to to
growing magi from 0 to 100,000 a month
in revenue. One of the reasons I love
Dustin's story is because he built his
idea fast. He didn't spend months
learning to code and spend a bunch of
money on hiring developers. And I wanted
to mention this because I see a lot of
people getting stuck in the build phase
for months. Well, that's where Rocket
new comes in. Rocket helps you go from
just a few sentences to a full stack
app. No coding required. Just describe
your vision once and get a complete
functional app with back-end
integrations and productionready code.
You can even import designs from Figma,
add integrations like Stripe and
Superbase, and download an actual mobile
APK to test on your phone instantly. And
the best part, you own all the code
forever. Over 400,000 users in over 180
countries are already building with
Rocket because it turns ideas into apps
in minutes, not months. If you're ready
to build your AI app idea without months
of development, check out rocket.new at
the first link in the description. Thank
you to Rocket for sponsoring this video.
I love what you guys are building. All
right. Now, back to the story. All
right. Well, now I mean I would love to
see what you built. Can you give us a
quick demo of Magi? What it does, how it
works. Give me the breakdown of the app.
I'd love to see it in action.
Yeah. So, just like any other chat app
you've used, Chat Petite, Claude, etc.
You open up Magi and you get a input
place where you can start typing to the
AI. You could say hello to the default
model. Now the difference with Magi is
unlike the other apps, you don't just
get to access the one company's AI
model. We give you access to all of
them. So if you look in the top left
corner of the app, you can open up the
full list where all the top models in
the world are accessible. So if you
wanted to chat with GPT5, you just
select GPT5 and then all of a sudden
you're now chatting with GPT5. So you
started the conversation with Claude and
then you brought GPT5 into the
conversation. So yeah, it gives you
access to all of the best AI models in
one subscription, one dashboard. The
other great thing is you're not limited
to just large language models. We also
have image and video models as well. So
we have Dolly, Flux, GBT image, we have
idoggram, all of the top image and video
models as well. So if you wanted to flip
over and create a uh photo of a cat
playing cards, you can do that with Flux
right inside that same chat
conversation. So most of what you're
seeing on the front end is built with
bubble. On top of that, we're using
Stripe as our payment processor.
ConvertKit is our default email
marketing system. Open router is sort of
our central access point for all these
AI models. They've created a unified
technology platform that allows you to
access all the different LLMs with one
API called format. And foul.ai is also
similar. They put all of the image and
video and audio models in one place.
Now, some of the models I do have direct
API connections to. Uh, in fact, with
OpenAI, I have the highest tier. And
then on top of that, it's just your
standard Google Analytics to track, you
know, how users are using the app. Uh, I
use ahrefs as our SEO platform to uh to
kind of monitor our keyword ranking and
uh, you know, how we're doing from an
SEO standpoint. Thanks for showing that.
The other question I have is how do you
monetize this? Are you on a subscription
model? Is there premium free trial?
What's worked for you? Yeah. So, we have
a strictly a paid model. Uh we don't
have any premium. We have a $20 a month
plan for solo users and it gets you the
average amount of usage that you might
need in a given month. So, if you want
to blast through that, we give you the
option to add more usage as you go if
you need it. We have a team plan. It's
$40 a month. Gives you up to five users.
Uh you all share. There's three times as
much usage. And again, you can purchase
more. Uh you can also add team members
for $20 per team member per month if you
need more users. And so that's great for
enterprises who need to scale up to, you
know, a thousand or more users. You can
do that easily right from within the
app.
Well, thanks for sharing that. The last
question that I have for you is if you
could go back in time, stand on Dustin's
shoulder, or share any advice with
anyone who's watching this channel who
wants to do something amazing like
you've done, built a million-doll AI SAS
product. What would be your advice?
I think the biggest problem that
founders face is letting their past
failures define them. I had a lot of
confidence when I launched my first
software company and by the grace of God
it was successful out of the gate with
very little effort. But then I left that
business and I had two more ideas that
completely failed to launch and crashed
and burned. And so my confidence was
shot and those failures were so heavy on
me that I I lacked the confidence that
that I should have had. People rejected
the products. They didn't reject you.
Cool. Thanks for coming on the channel,
Dustin. Amazing story. Hope to have you
back on sometime. Thanks for sharing
everything.
My pleasure.
All right. Thank you, Dustin, for coming
onto the channel. I think one of the
most powerful feelings in the world is
taking an idea from up here in your head
and bringing it to life, just like
Dustin did with Match AI. And this is
exactly why we have Starter Story Build.
It's our program where we will show you
how to build fast using the latest AI
coding tools. And in just a few days,
you'll go from a simple idea to a real
working app. If you're interested in
this, we'll head to the link in the
description and check out Starter Story
Build. All right, that's it for this
episode. Thank you guys for watching.
We'll see you in the next one. Peace.
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