Exploring the Best AI Business Models for Beginners
What's the laziest way to make money with AI as a beginner? After generating multiple millions of dollars online in recent years, it's clear that AI has made getting rich more accessible than it's ever been. So, today this article will share several of the most popular AI business models and compare them against each other to see which one is the best for someone just getting started.
1. AI Content Creation
The first one to consider is AI content creation. If you haven't noticed, AI-generated content has surged across the internet. With just a few clicks, you can create incredibly hyperrealistic articles and media about anything. And the best part is that you can get paid for it.
Let's look at an example. For instance, some social media accounts are making thousands of dollars a month with surprisingly simple content. Essentially, they create wild, sometimes borderline-offensive AI-generated content and use it to sell products through affiliate programs, earning a commission for each sale.
Here’s an example of the type of script they might use:
"Is coming out really good, but I don't know what happened to Juan. Hopefully, he recovers and we can knock this out. Almost forgot to mention, Father's Day is coming up, and this right here is the perfect... The solar fan hats kept us cool this whole job. Make sure to grab yours from Tik Tok."
As you can see from the example, they're promoting a product like a solar-powered fan hat, a product that has gained significant traction on social commerce platforms. Instead of acquiring the product themselves, they use AI-generated content featuring fake people to promote it. And this is making thousands of dollars a week. This demonstrates the immense potential within the AI content creation wave; creativity is key.
There are several ways to monetize this type of AI content. As seen in the example, you can publish it yourself and earn from affiliate marketing or AdSense, or you can offer these content creation services to other businesses. This can be considered a low-effort business model because creating the content is straightforward. The main challenge is being creative enough to generate the prompts, but you can even use tools like ChatGPT to assist with that.
Here’s a quick walkthrough of how to create one of these pieces of content. It's as simple as going to a tool like ChatGPT and asking for a prompt to use in a content generation app like Google's VEO. You can basically say:
I want to get a prompt for Google Flow of an extremely realistic video of a gorilla trying to wear a gold chain with a Jesus piece on it.
The tool will then provide a clear prompt for the generation platform. From that, you get a compelling piece of content ready for any platform. You would take the generated prompt, paste it into the generation tool, and start the process. In about a minute, it will produce a remarkable piece of content. This technology is one of the most incredible tools available today.
Let's examine the result. In just 60 seconds, the content is ready. The quality produced in under a minute is astounding. This is truly insane. A few years ago, creating something similar required advanced 3D animation skills and formal training. Now, anyone can generate content like this in under a minute. It's one of the most revolutionary developments in digital media.
Summary
- Difficulty: Easy. It's not that hard. You just have to be creative enough to come up with the ideas and then spam post them all across social media until a piece of content hits.
- Cost: Medium. To do this properly, you do need access to some tools like Google Flow, which can cost around $120 a month, and ChatGPT, which can cost up to $20 a month. But all in all, it's not that expensive.
- Potential: Low. The main drawback is the limited potential. Since anyone can create similar content, the barrier to entry is virtually non-existent. Because revenue comes from views or affiliate sales, the business's sustainability is very low. One bad month or an algorithm change could cause the entire business to collapse, forcing you to start over. In my eyes, it's more of a side hustle than a real business.
2. Building an AI Software Company
The next AI business model is building an AI software company. When most people imagine getting rich with AI, this is the dream: building the next big thing, becoming a billionaire, and retiring to a yacht. Without a doubt, this business model offers higher financial rewards than almost any other discussed in this article, but it has significant flaws.
This is by far the most expensive business model.
Summary
- Cost: Very High. Launching even a basic AI software can cost upwards of $30,000 just to get started. This doesn't include marketing or team costs.
- Difficulty: Very High. The difficulty is also the highest on this list. You must develop a marketable idea, manage a development team, and then market the product effectively.
So why is it on a list of 'lazy' business models? From experience with a software company that generated millions in revenue and was sold in a multi-million dollar deal, software offers the beautiful advantage of Monthly Recurring Revenue (MRR). If you create a valuable product, customers will subscribe and pay you automatically each month. At its peak, a well-run software company can generate over $100,000 a month in profit while requiring minimal daily work, perhaps an hour a day.
- Potential: Very High. If you have significant capital (e.g., $30,000) and several years to dedicate, building an AI software is a prime option for generating substantial wealth. However, most beginners lack the necessary capital and skill level to execute this. While AI software is an excellent long-term goal, it's not the best starting point for a beginner. When it works, it's incredibly lucrative and passive. But the initial effort and cost make it a poor choice for those just starting out.
3. AI-Powered E-Commerce
For those starting from scratch, a more beginner-friendly option is AI-powered e-commerce. This is arguably the best business model for beginners looking to make money with AI. AI commerce involves using AI tools to sell products online.
E-commerce has been a life-changing business for many, capable of turning significant debt into millions in profit. E-commerce remains one of the best opportunities on the internet. With the advent of AI, building an e-commerce store has become significantly easier. If starting over from zero, this is the area to focus on.
In fact, this exact method helped a young entrepreneur with only $38 to his name make his first $10,000 online in just 30 days using AI Commerce. As mentioned, AI has made e-commerce more accessible than ever. You can use various AI tools to find products, build your website, create advertisements, and manage daily business operations. Once your store is optimized, you can generate hundreds of dollars in daily profit with minimal work. It sounds incredible, but it's achievable. A store started just a few weeks ago is already approaching $1,000 in daily revenue.
For example, a business might generate over $552 in revenue by late afternoon, on track to surpass $1,000 by the end of the day. Of course, it's not entirely passive. The business requires ongoing management and optimization. But once you find a winning product, you'll be making sales around the clock, regardless of whether you're actively working.
Summary
- Difficulty: Medium. It requires some effort to get started, but the momentum can be powerful. In the short time it takes to read this section, a store could make $70 in sales. That's the best part about e-commerce: making money continuously, no matter what you're doing.
- Potential: Extremely High. It's possible to build an e-commerce store to over $2 million in revenue and sell it for a life-changing sum, even before the widespread adoption of AI tools. There has never been a better time to get into e-commerce. This comes from years of experience in the industry, seeing its various eras since 2017. This is one of the most opportune moments in the history of the industry.
- Cost: Medium. The primary expense is running ads to acquire customers; other costs are relatively low. In total, an investment of a few hundred dollars in ads can be enough to find a product that generates a thousand dollars a day, a worthwhile investment. All in all, it's one of the best opportunities available, accessible to people at all skill levels. Once operational, it's incredibly consistent and scalable.
4. Starting an AI Automation Agency
The final business model to discuss is a popular one: starting an AI agency, specifically an AI automation agency. This involves selling AI services to businesses to help them streamline operations, increase profits, and reduce daily workload.
An agency like this can offer numerous services, such as AI sales representatives, AI customer support, and AI-driven company management. Essentially, you're selling AI-based solutions to a company's problems. Companies are willing to pay a premium for these services, especially in lucrative industries.
Summary
- Difficulty: High. This model is challenging because it requires an advanced level of AI skill to devise and implement effective solutions. You also need strong sales skills to convince clients to pay thousands per month for services they could theoretically set up themselves. Mastering both technical and sales skills is highly valuable but not easy, especially for a complete beginner.
- Cost: Very Low. The best part about an agency is its low startup cost, making it a great option for those on a tight budget. You only need access to basic AI tools and a way to contact potential clients. That's enough to make your first thousand dollars. The cost is minimal, close to zero.
- Potential: Low. The primary downfall is the limited scaling potential. Dealing directly one-on-one with clients makes it similar to a high-paying job. You are responsible for ensuring the service runs smoothly and delivering on your promises daily. With a few clients, you can easily make $3,000 to $5,000 a month. However, scaling to thousands of dollars a day or millions a year is extremely complex and nearly impossible without advanced systems and a large team. The potential is on the lower end compared to other options discussed. It's also the least 'lazy' model, as you must always be available for your clients.
The Clear Winner for Beginners
The clear winner among these business models is AI Commerce. It is the most scalable, requires the least relative effort, and is the best business model for those with limited experience.
I hope you enjoyed this breakdown.
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