He Made $10M with 3 iPhone Apps

Starter Story • • 20min • #52
He Made $10M with 3 iPhone Apps
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Summary

  • Blake Anderson

    • Graduated college with no job while friends landed six-figure roles in New York City
    • Moved back home, borrowed money from his older brother for groceries, and set a goal to earn $50,000 within 12 months
    • Taught himself to code using ChatGPT in mid-2023 and launched his first app within weeks
    • Built three successful AI iPhone apps in under two years, collectively generating nearly $20 million in annual revenue
    • Left Riz GPT after a co-founder conflict, choosing to pursue new projects while retaining equity
    • Currently building Apex, an all-in-one self-improvement ecosystem combining content, free apps, and physical products

  • Products and Offerings

    • Riz GPT: AI dating assistant that helps craft responses on dating apps; reached $2.2 million in annual revenue
    • Umax: AI-powered appearance optimization app; generated nearly $5 million in revenue in one year
    • CI: Co-founded AI app launched six months ago, now earning over $1 million per month
    • Apex: New venture focused on self-improvement through content, community, free apps, and high-quality physical products

  • Metrics and Financials

    • Riz GPT: $2.2M annual revenue, scaled to $250K MRR before stabilizing at $150K–$200K MRR
    • Umax: Nearly $5M revenue in first year, consistently over $100K profit per month
    • CI: Over $1M monthly revenue within six months of launch
    • Internal UGC marketing yields 50–80% profit margins; influencer marketing yields 25–70%; paid ads yield 0–30%
    • AI backend costs are under 3% of revenue unless using image generation or advanced voice mode
    • Apple takes ~20% cut up to $1M earnings, then ~33% beyond that

  • Strategy and Growth

    • Leverages AI to solve previously impossible or costly problems at low development cost
    • Uses TikTok and Instagram as primary distribution channels through influencer partnerships and internal user-generated content (UGC)
    • Targets niches already monetized with physical products as strong indicators of software conversion potential
    • Validates ideas by immersing in target communities on social media and identifying unmet needs
    • Employs aggressive, creative outreach to micro-influencers (e.g., joining Discord servers, contacting parents)
    • Focuses on rapid iteration—doubles down on any marketing tactic that shows profitable returns

  • Tech Stack and Infrastructure

    • Design: Figma (uses competitor apps as references)
    • Development: React Native with Expo framework, Cursor as IDE
    • Content creation: CapCut for slideshows, faceless videos, and direct-to-camera content
    • Banking: Mercury (U.S. startup banking platform)
    • Hiring: Upwork (tests 5–10 freelancers with small tasks before committing)
    • Backend: Node.js

  • Lessons and Advice

    • Create a sense of urgency—personal pressure fuels productivity and speed to market
    • Think from first principles instead of blindly following social media advice
    • Distribution matters more than product perfection; attention wins in consumer apps
    • Use Superwall to A/B test pricing, offers, and paywall placements to maximize revenue per user
    • Prioritize lower subscription price points to boost virality, user sentiment, and long-term sustainability
    • Validate demand before building by becoming your target customer on social platforms
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