From $199 Investment to $1M/Year: Amazing Business Idea

0:00all right so the fir first idea is uh I want to start with the selling a like subscription service to unlimited designs for Cricut um so Cricut for people that don't know is like a tabletop CNC machine that Crafters use um it's like it huge market share it's one of these companies that's like in the billions that nobody knows about so basically how they make money is it's kind of like a printer company right where it's like they sell this like high ticket item um and it's and then they basically sell materials to these same people over and over again so the test that I ran was I was like you know what

0:34I wonder if I can get AI to basically make all of these graphic designs like that are svgs and these are the files that they use on these machines and so did that and then I was like cool so like let's just go find how many like different keyword phrases that are related to like C Cricut files or SVG files so if you go on like Etsy there's like millions of these shops that sell these types of things right and so anyway we're this kind of evolved into I was like okay we could basically at scale with AI make these SVG files based off of Target keywords that people are

1:07already searching we know there's an audience that already like buys these or wants these so now how do we get this in front of them so if you go on Facebook you can Target people that have an interest in cricket the website so we ran ads to them just to a Shopify store and I created a bundle of svgs it was like I think 20 different svgs that were all like horse related right like floral horse SV VG and uh like floral HSE head SVG like all these different you know variations of it we were getting less than $1 downloads of this thing so like imagine you want to make a list of

1:4010,000 customers like you just go and basically spend like five grand and suddenly you have an email list to zero to one this then what you sell to them um and there's already companies that are doing this that are huge one of them is called creative Fabrica they're doing I think around like 30 million a year they're funded it's ridiculous it's some European company that again nobody has ever heard of but what do is they sell an unlimited subscription to the svgs that are on the site so then it's a recurring Revenue so what you get them in the door with is this free package and then just put them in a drip email

2:10nurture that's basically like want unlimited svgs you can create this so why this opportunity exists now and why it's easier than it was previously is because you can make all of this different uh like files types like at scale with AI and you couldn't do that previously so like five years ago if you wanted to do this you know you have an offshore team of like thousands of graphic designers that would be just yeting these out into existence and then putting them on your site now you can do that same thing with like these tools like s you know background removing tools and then just like upscaling like

2:45tools and then you basically like take that upscaled black and white file turn it into an SVG like that whole thing that I just described there's apis that exist for every single one of those so like again when we made that little bundle that was like these 20 different things that that what we did is like they generated in Discord we down like we had a bot download them we then had uh uh a GitHub repo upscale them we then hit an API to remove background we then uh hit an API to turn it into an SVG and that package was all created with no human intervention all we did was just

3:18provide the target keywords that we already knew that people were searching for so basically you could zero to one this Marketplace overnight get your initial customers and then the long-term play with this is you then go and you build like 100 of thousands of these landing pages on your Marketplace and get those to rank organically for SEO which creates more inbound you give them like you know when they sign up they get one free Bundle download or something and then you upsell them again into that subscription and when you think about the size of this market like this is easily A10 million doll a year company

3:46like you could do this tomorrow like I want to do this so bad but again it's just like one of these things that I we just don't have time for so anyways happy to time deeper on any of that but yeah so I don't know if I I live under a rock but I never heard of cricket it was on uh MFM at one point I think it was like two years ago and I was just laughing to myself when they mentioned it because like so I've been selling um in the print on demand space since like 2010 right so really early in that made a bunch of money in it lost even more

4:17money in it uh because I had no idea what I was doing early on and like how to build brand and actually like do it well um but yeah so that that's like kind of why I know this exists and I this probably was like in two you know during like the the late days of of the pandemic that they like brought this up on one of the shows and again we we know that like this space exist because there's so many people like when you look at Etsy majority of their sellers are these people that own these machines right and so what they're selling on

4:46Etsy and like driving all their revenue for Etsy is literally just like custom you know Tumblr mugs but they're building this with like basically like these SVG files and then uh whatever materials that they're buying and actually using on the printer to like you know make these die Cuts or you know whatever it is that they do that they add to these customized products so and if you were going to build an MVP of this how much money do you think it would require I think you could get this off the ground for like 10 grand like 100% like 10 grand and the five grand in ad

5:19spend like you just use like Shopify already has like a subscription feature and I I would just use like off-the-shelf tools longterm it would like you would hit limitations with the amount of Collections and like landing pages you could build on shop I say that but like there's also this like thing you can do with Pro Shopify just we could go to into this this is another company that's on the list so we can come back to this but Shopify just released this ability to like you basically make these sub folders and then we figured out how to use cloud flare to like bulk create collection

5:50pages so traditionally Shopify has a API rate limit that's like not great if you have like a ton of SKS so say you have 100,000 SKS and you want to make 10 million land landing pages for longtail keywords related to the SKS on your platform you just like couldn't do this right and so we basically figured out how to do this with like the technology like this Cloud fair and what Shopify offers now technology but the kicker was that we could have air write SEO content based off of those keyword phrases so again when you're saying like SVG horse bundle it could write all of the all the

6:22the content and that would go on that page so again when you look at like these huge marketplaces like like house.com as an example like how do they actually make money it's because they have millions of landing pages that all rank for all of these keyword phrases and they're basically just brokering traffic like that's actually what the business is when you look at a Marketplace like how marketplaces actually make money is they broker traffic for transactions and then they make even more money off the ads that they're selling on the platform like if you look at the like p&l of an Amazon as an example like where they actually make

6:52revenue is not the marketplace fees it's on people bidding on these specific items and the reason for that is like there's only so there's a floor on how low you can go on product cost right and like the margin you could squeeze out of that but there's no ceiling on ad spend that people can go right so it's like they can go up infinitely and you see this already in Google but we're just like like for example if you look at the lawyer space some cpcs depending like if you look at like DUI lawyer uh Denver right like the CPC on it it's like $110 right crazy absolutely crazy but when

7:24you look at that like the value like if they get if they close one of those that's like a 15K deal for that lawyer so of course it's like that right it basically can go up infinitely as high as the market can sustain it but you can all you can't decrease the costs like the cost has a floor so anyways to get back to this this idea of like how cheaply you could do it I think that you could probably get this off the ground for like 10 grand um and then it's just like you'd have to have like a little bit of technical knowledge to kind of

7:50like piece together all this but again our MVP was like a human put in like you know something into a Discord Channel downloaded and then just these public like API end points like it's not I mean a python script could do that whole thing right so so your Marketplace point I just want to talk about that for a second because I think it's really really smart so the best marketplaces to me are really Niche with high intent so yes Amazon has a lot of intent but it's not which is amazing like you're in the buying mood you want to you want to make a purchase and a lot of people buy on

8:27Amazon but at the end of the day like it's pretty horizontal whereas this you know your idea here it's like a pretty specific type of person and just like scanning YouTube right now it seems like a lot of women uh moms 100% yeah so moms seem to be really into it I was chatting with a buddy today who's building a Marketplace for uh Elder Care like how you know your parents are getting older um they need someone to come in house great idea yeah assisted living like in your house so he's building a marketplace around that super smart because not only are they gonna make money on the transaction of

9:04just like bringing you to connect you with this elder care person but now of a sudden you can sell them like 500 other things because you know where they are in their life cycle yes exactly also they're like typically historically like a high net worth individual because they've accumulated that wealth over their like whole lifespan right um I I want to I want to kind of pull out a piece of this as well on the marketplace side like I think that right now like every Marketplace could be disrupted like with AI tools right so like you have these huge players like Amazon I think you could cve out carve out these

9:39subsets like for every all these different niches that exist Within These large marketplaces and like historically like you'd have an engineering team of a thousand people they would be working on this massive Marketplace and it's like yo we just again like in our test that we did so my friend has this shop she has like 10,000 SKS and so we're like all right this that shop if I think talking about let's just like throw up a 100,000 landing pages and see what happens and we'll do some like Auto indexing on the back just like submitting to Google over and over again so like overnight increased her organic

10:10traffic by 10% and increased her organic Impressions by like about 20% so I mean again super small test it was only like over a six-month period validated the idea but I'm just thinking about that for like any sub like like custom Koozies or like you know any of these kind of weird Niche spaces you could B basically build out these sites now for so like so cheap of cost like this I I think that you there there's this huge opportunity for uh Founders to just go and do these things if they want to create like a really powerful cash flowing business and like this is actually where I see the opportunity in

10:44programmatic SEO like everybody's like you know I'm gonna write 100,000 blog posts with AI from like it's general knowledge like all right that's kind of cool but like what if I do like 10 million product landing pages on a website right and like all it's selling is print on demand products you're at that scale like you're talking about as many like Pages as a as a as an Etsy and then building like okay how do I build links to this to actually get this to rank it's like just reach out to like Mommy bloggers and be like do you want a free product off this like pick one of

11:14these I'll send it to you at like do a post on your site and like that just costs you eight to build a link that has a DA of 50 like that's the that's the like economics of the business here from like a marketing standpoint so [Music] B