Meet The Kid Who Made $1M with ChatGPT

Starter Story
30 Aug 202312:07

TLDRJoe Popplus, a 20-year-old computer science student, shares his journey of creating a successful business valued at $930,000 by selling AI-generated ebooks. He started with a minimal budget, learning on the go, and leveraging Pinterest ads for marketing. His approach involves creating book outlines with AI and refining the content for appeal. Despite market saturation fears, Joe's brand has a loyal customer base and continues to grow. He emphasizes the importance of learning and skill-building as the foundation for success.

Takeaways

  • 🚀 Joe Popplus, a university student, made over one million dollars in a year by selling AI-generated ebooks using an unconventional method.
  • 📚 He initially started with a part-time job stocking shelves and discovered the potential of AI through GPT-3 during his computer science studies.
  • 💡 Joe's business idea was sparked by his experience with OpenAI's GPT-3 beta and the high revenue he saw in the publishing industry.
  • 📈 Joe's business model involves generating books with AI and marketing them on Pinterest to a specific demographic, primarily middle-aged moms.
  • 🎓 Despite being a full-time student and working part-time, Joe managed to build his business by dedicating 5-6 hours each night to work on his book brand.
  • 📈 Joe's first profitable day came in October, and by December, he had his first day of over $1,000 in profit.
  • 💰 The business is self-funded, and Joe made significant profits by reinvesting the money he earned from his minimum wage job into his venture.
  • 📊 Joe's business has a profit margin of 70-80%, with the main expense being ads and a proofreader.
  • 💻 Marketing is primarily done through Pinterest ads, which involve starting with consideration campaigns to test niches and then moving to conversion campaigns to refine the sales process.
  • 🔄 Joe's strategy for dealing with competition is to focus on providing more value and building a loyal customer base, as he believes the market is large enough for growth.
  • 🎓 Joe advises new entrepreneurs to prioritize learning and skill-building over immediate earnings, as a strong skill set can lead to long-term success.

Q & A

  • How did Joe Popplus initially start his business?

    -Joe Popplus started his business by generating AI-based books and marketing them on Pinterest, targeting middle-aged moms. The idea came to him after meeting with a publishing company and realizing the potential in selling books.

  • What was Joe's educational background at the beginning of his entrepreneurial journey?

    -Joe was a computer science student at the time he started his business. He had graduated high school in 2020 and began working on a use case for GPT-3, which laid the foundation for his future business.

  • How did Joe monetize his AI-generated books?

    -Joe monetized his AI-generated books primarily through advertising on Pinterest. He used the platform to target his audience effectively and generate sales.

  • What challenges did Joe face while building his business alongside his college and part-time job?

    -Joe faced significant time management challenges. He had to balance his studies, part-time job, and the development of his book brand. At one point, he dropped two courses to focus on his business.

  • How did Joe overcome the challenge of not knowing how to structure a book?

    -Joe overcame this challenge by purchasing and studying his competitors' books to understand what should be included. He then used AI to generate the content and ensured it was structured properly.

  • What is the typical profit margin for Joe's business?

    -The typical profit margin for Joe's business is around 70 to 80 percent. His main expenses are the ads and the cost of creating the books with GPT-3, along with the proofreader's fees.

  • How does Joe approach the issue of market saturation and competition?

    -Joe is not concerned about market saturation and competition because he has built a strong brand with a loyal customer base. He believes there is room for growth and that saturation will only push businesses to provide more value.

  • What was the first offer Joe received for his entire business, and how did he react?

    -Joe received an offer of $930,000 for his entire business. This made him realize that he was onto something significant and led him to explore the possibility of selling parts of his corporation.

  • What does a typical day look like for Joe?

    -A typical day for Joe involves checking on the ad campaigns, ensuring his proofreader is on track, and working on teaching others how to build their book brands. He also spends time on his hobby of making house music.

  • What advice would Joe give to his younger self based on his experience with failed business ventures?

    -Joe would advise his younger self to prioritize learning over earning, focusing on building a strong skill set rather than just making money. He believes this approach would have made it almost impossible to fail.

  • What is the significance of the Rolex that Joe bought with his profits?

    -The Rolex that Joe bought signifies his success and serves as a reminder of his achievements. He chose it as an investment because he believes in avoiding depreciating assets and focusing on growing his wealth.

Outlines

00:00

🚀 From Stock Boy to AI Book Tycoon

This paragraph introduces the remarkable journey of a young entrepreneur, Joe Popplus, who made over a million dollars in a year with an innovative business idea. Initially a university student working part-time for minimal wages, Joe leveraged AI to generate books and market them effectively on Pinterest to a demographic of middle-aged mothers. The story unfolds as Joe shares his humble beginnings, the evolution of his business, and the strategic decisions that led to his success. His business acumen and ability to adapt to new technologies like GPT-3 demonstrate the potential of the AI revolution, and his story stands as a testament to the opportunities it presents.

05:03

📈 The Profitable World of AI-Generated Books

This segment delves into the financial success of Joe's business, highlighting his impressive profit margins and the valuation of his book brand. It discusses the operational costs, including the expenses for AI book creation and proofreading services. Joe shares his experiences with marketing, particularly the effectiveness of Pinterest ads, and the importance of landing pages in converting potential customers. The paragraph also touches on the competitive landscape of AI book selling, Joe's approach to competition, and the scalability of his business model. It concludes with insights on the sellability of such a venture and Joe's personal experiences with potential investors.

10:03

🎧 Daily Life and Future Aspirations of a 20-Year-Old Millionaire

In this final paragraph, Joe provides a glimpse into his daily routine as a successful entrepreneur, emphasizing the management of his advertising campaigns and the mentoring of others to build their own book brands. His passion for house music is revealed, along with his aspirations for the future. Despite his young age and significant earnings, Joe remains focused on growing his businesses and avoiding depreciating assets. He shares a personal philosophy of prioritizing skill acquisition over immediate earnings, which he believes is crucial for long-term success. The summary ends with a motivational message encouraging others to follow in his footsteps and harness the power of AI books for their own success.

Mindmap

Keywords

💡AI generated books

AI generated books refer to the process of using artificial intelligence, specifically GPT-3 in this context, to create written content that can be compiled into books. This technology enables individuals like Joe Popplus to produce a large number of books without having to manually write each one, which is a core element of his business model. In the video, Joe uses AI to generate books and then markets them on platforms like Pinterest to a specific demographic, middle-aged moms.

💡Business idea

A business idea represents a concept or plan for a commercial venture, often stemming from identifying a need or gap in the market. In the video, Joe's business idea involves leveraging AI to create and sell books, which he developed after realizing the potential of AI in different business models and observing the success of publishing companies.

💡Pinterest marketing

Pinterest marketing refers to the strategies and tactics used to promote products or services on the social media platform Pinterest. It involves creating visually appealing content, such as images or videos, to attract users and drive traffic to a website or sales page. In the context of the video, Joe uses Pinterest to target middle-aged moms with his AI-generated books, which is a key component of his marketing strategy.

💡Chat GPT

Chat GPT, or generative pre-trained transformer, is a type of AI model developed by OpenAI that is designed to generate human-like text based on the prompts it receives. It is used for various applications, including content creation, conversational AI, and more. In the video, Joe utilizes Chat GPT to generate the content for his books, which is a crucial aspect of his business operation.

💡Revenue

Revenue refers to the income that a business receives from its operations, such as from the sale of goods or services. In the video, Joe's book business generates significant revenue, with his profits amounting to $390,000 and the business being valued at $930,000.

💡Proofreader

A proofreader is a person who checks written content for errors in grammar, spelling, punctuation, and consistency. In the context of the video, Joe hires a proofreader to review the AI-generated books to ensure quality before they are published and sold.

💡Landing page

A landing page is a standalone web page, designed specifically for marketing or advertising purposes. It is the page a user lands on after clicking a link in an email, social media post, or online advertisement. In the video, Joe uses landing pages to provide more information about his books, previews of chapters, and to convert leads into sales.

💡Competition

Competition in a business context refers to the rivalry between firms or individuals striving for the same market share or customer base. In the video, Joe acknowledges the potential for increased competition as more people enter the AI book market but remains confident in his brand's momentum and loyal customer base.

💡Profit margin

Profit margin is a financial metric that indicates the percentage of revenue that exceeds the cost of goods sold, reflecting the profitability and efficiency of a business. In the video, Joe mentions that his business has a profit margin of about 70 to 80 percent, highlighting the high profitability of his venture.

💡Self-funded

Self-funded refers to a business or project that is financed entirely by its founder or members, without external investment. In the video, Joe's business was completely self-funded, meaning he used his own money from his minimum wage job to start and grow his book brand.

💡Investor

An investor is an individual or entity that commits money to an enterprise, project, or individual for the purpose of financial gain. In the video, Joe receives interest from investors who want to purchase a part of his book brands, allowing him to continue building and selling more book brands.

Highlights

A young entrepreneur made over one million dollars in one year with a unique business idea involving AI-generated books.

The entrepreneur, Joe Popplus, started his venture while being a full-time college student and working a part-time job.

Joe utilized AI and GPT-3 technology to create and sell thousands of ebooks, demonstrating the potential of AI in the publishing industry.

The business model evolved over time, with Joe initially starting with a different approach before finding the most efficient method.

A significant part of the business's success is not how the books are created, but how they are advertised, particularly targeting middle-aged moms on Pinterest.

Joe's business idea was sparked by his experience with GPT-3 and his interest in integrating AI into various business models.

The publishing industry's profitability was an eye-opener for Joe, motivating him to start his own book-selling venture.

Joe's first profitable day came in October, marking a turning point in his business journey.

The business was entirely self-funded, showing the potential for entrepreneurship with minimal initial investment.

Joe managed to build his business while studying and working part-time, highlighting the importance of time management and dedication.

The first AI ebook Joe created was not successful initially, but through learning and iteration, he improved his products.

Joe's approach to marketing involves using Pinterest ads and understanding the platform's campaign structure to reach the right audience.

Landing pages play a crucial role in Joe's marketing strategy, allowing him to showcase the value of his books and convert leads into sales.

Joe's business has a high profit margin of 70 to 80 percent, with the main expense being ads and proofreading services.

Despite the potential saturation of the AI book market, Joe's brand has built a loyal customer base and continues to grow.

Joe's business model is highly scalable and repeatable, allowing him to sell book brands and build new ones continuously.

Joe's daily routine involves managing his ads, working on his music, and teaching others how to build their book brands.

Joe's advice for aspiring entrepreneurs is to prioritize learning and skill-building over immediate earnings.

Joe's success with AI-generated books showcases the potential of leveraging AI technology in innovative and unconventional ways.

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