The Side Hustle Show - Episode 659: $100k with AI-Coded Apps

Release Date: February 27, 2025 | Host: Nick Loper

Introduction: The Power of AI in App Development

In Episode 659 of The Side Hustle Show, host Nick Loper delves into the burgeoning opportunity of creating and monetizing AI-coded applications. Joined by guest Pete McPherson of doyouevenblog.com, the discussion highlights how advancements in artificial intelligence have democratized software development, enabling individual side hustlers to build profitable web apps without extensive technical expertise.

The Evolution of AI-Coded Apps

Nick Loper introduces the concept by emphasizing the profitability of software businesses and how AI tools like ChatGPT and Claude have revolutionized app development:

Nick (02:23): "This is, we're now at a place where you could basically just type in stuff you want. And believe it or not, like maybe 7 times out of 10, 8 times out of 10, these AI tools are getting better, they're getting faster, they're getting more aware of its outputs."

Pete McPherson elaborates on this transformation, explaining how AI has lowered the barriers for non-developers to create functional applications:

Pete (02:23): "Software as a service has never been easier and faster for everybody, for all of us non-developers, even if you never touched a line of code."

Idea Generation: Strategies for Success

A significant portion of the episode focuses on generating viable app ideas. Pete introduces three primary strategies:

1. Scratch Your Own Itch

   Drawing from personal frustrations to create solutions, Pete encourages entrepreneurs to identify and address their own pain points. He shares his experience building a Chrome extension to streamline game tracking:

   Pete (06:02): "I played a game that doesn't have any tracking whatsoever... I went into my code editor, prompted AI, and boom, it's done."

2. Unbundling Existing Tools

   By dissecting comprehensive software and isolating specific features, creators can develop niche applications. Pete cites his approach with SEO tools, focusing solely on essential functionalities:

   Pete (13:53): "Ahrefs has a ton of different features... I just missed the Site Explorer tool. So that's an idea for a business right there."

3. Rebuilding Cheaper Alternatives

   Targeting overpriced software by offering simplified, cost-effective versions. Pete references AppSumo-style deals, where he built affordable podcasting tools:

   Pete (15:39): "There's a ton of tools... I just built my own. It took like a week with like an hour to a day."

Building and Validating AI-Coded Apps

The conversation transitions to the practical aspects of developing these apps using AI. Pete outlines a streamlined process enhanced by AI-driven coding tools:

1. Leveraging AI Code Editors

   Tools like Cursor allow users to generate functional code by simply describing the desired application in plain language:

   Pete (25:55): "You could literally just fire it up and tell it, please create me a WordPress plugin where I can copy and paste text from a Google Doc."

2. Iterative Testing and Troubleshooting

   Emphasizing the importance of testing and refining, Pete shares his workflow of building, testing, and using AI to resolve issues:

   Pete (30:17): "Test it out, something's not going to work and they're gonna be like, AI, this did not work. Why?"

3. Market Validation

   Utilizing existing audiences for initial feedback and sales. Pete highlights the effectiveness of offering lifetime deals to a trusted email list:

   Pete (21:03): "I have an existing email list that I've been cultivating for years and I generally send it to them within a couple of weeks of having the idea."

Marketing and Monetizing AI-Coded Apps

Nick and Pete explore various strategies to market and monetize these applications effectively:

1. Traditional Launch Platforms

   While platforms like Product Hunt and Hacker News are popular, Pete notes their challenges due to high competition:

   Pete (38:40): "It's super hard because every single day of the week, dozens and dozens of companies are doing this."

2. Strategic Partnerships

   Forming partnerships with individuals who have significant audiences can exponentially increase app visibility. Pete recounts successful collaborations where partners handled marketing in exchange for equity:

   Pete (41:46): "Partnerships, finding people who have the audience that you need... it's a win-win for me, or it's a zero lose for me."

3. Subscription vs. Lifetime Models

   While lifetime deals are effective for validation, Pete advocates for subscription-based models for sustainable revenue:

   Pete (43:20): "If you plan on selling your app, even if it's a very small chance... I think you should go a very traditional route. Monthly payment, annual payment, subscription-based business."

Selling AI-Coded Apps: An Exit Strategy

Pete shares his successful experience selling an AI-coded application, FAB AI (Fully Autonomous Blog Bot), for $45,000 through Acquire.com, a brokerage platform:

Pete (47:38): "I slid the valuation price point slider on my screen all the way down. I was like, I just want to get rid of this. And it was like $45,000 or something. And I was like, sold."

He emphasizes the importance of choosing the right brokerage to facilitate smooth transactions and handle legal complexities:

Pete (45:35): "I was blown away by how easy it was. They met on a Zoom call... they actually emailed the listing out to their list and it was great."

Technical Insights: Backend as a Service

Addressing the often daunting technical aspects, Pete introduces Backend as a Service (BaaS) solutions like Firebase and Supabase, which simplify database management and authentication:

Pete (53:22): "Backend as a service is relatively new and it's basically software products itself that you can go use for no money... it's free to start with and go from there."

This approach allows non-developers to implement essential backend functionalities without deep technical knowledge:

Pete (53:43): "You can ask AI to do it these days and it'll tell you like, oh, first you need to create a Google account and then do this."

Future Projects and Final Advice

Looking ahead, Pete shares his ambitious plans to develop innovative applications, including an AI Mastermind Group and a dirt-cheap affiliate tracking software. He encourages listeners to harness AI's capabilities to bring their unique ideas to life.

Concluding the episode, Pete offers a poignant piece of advice for budding entrepreneurs:

Pete (61:12): "Quit quicker. Drop your projects faster, drop your ideas faster, and move on to the next thing."

He underscores the value of recognizing when a side hustle no longer serves its purpose and the benefits of pivoting swiftly.

Key Takeaways

1. AI Tools Empower Non-Developers: Modern AI-driven coding tools make app development accessible to individuals without traditional programming skills.
2. Effective Idea Generation: Strategies like "scratch your own itch," unbundling existing tools, and creating affordable alternatives can lead to profitable app ideas.
3. Streamlined Development Process: Leveraging AI for coding, testing, and troubleshooting accelerates the app creation lifecycle.
4. Strategic Marketing Partnerships: Collaborating with partners who have established audiences can significantly boost app visibility and sales.
5. Sustainable Monetization Models: Subscription-based models offer more sustainable revenue streams compared to one-time lifetime deals.
6. Simplified Backend Management: BaaS solutions eliminate the need for deep technical expertise, allowing creators to focus on app functionality.
7. Exit Strategies Matter: Selling apps through reputable brokerages can provide substantial returns and validate the business model.
8. Know When to Pivot: Recognizing when to discontinue a side hustle and move on is crucial for long-term entrepreneurial success.

Notable Quotes

• Pete McPherson (02:23): "Creating software products, creating stuff you can use, you can sell to your existing audience."
• Pete McPherson (06:02): "I could totally just build a Chrome extension. I'd never built a Chrome extension before. But I went into my code editor, prompted AI, and boom, it's done."
• Pete McPherson (13:53): "Unbundling. That's perfect. I love it."
• Pete McPherson (21:03): "I have an existing email list that I've been cultivating for years..."
• Pete McPherson (43:20): "Subscription-based business... that's just the truth."
• Pete McPherson (61:12): "Quit quicker. Drop your projects faster, drop your ideas faster, and move on to the next thing."

Conclusion

Episode 659 of The Side Hustle Show offers invaluable insights into harnessing AI for creating profitable applications. Pete McPherson's firsthand experiences demystify the process, providing actionable strategies for aspiring side hustlers. Whether you're a seasoned entrepreneur or just starting, the episode underscores the transformative potential of AI in leveling the playing field of software development.

Connect with Pete McPherson:
Website: doyouevenblog.com
Email: peteevenblog@..., etc.

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