How This Entrepreneur Built a $10K/Month AI Business From Scratch

How This Entrepreneur Built a $10K/Month AI Business

In 2023, while working a 9-5 job, Alex Rivera launched an AI-powered resume optimization tool—and hit $10,000/month in just 90 days. No venture capital. No tech team. Just smart execution.

Today, we’re breaking down exactly how he did it, including:
✔ The low-cost AI tools he used (no coding required)
✔ His 3-step customer acquisition system
✔ The biggest mistakes he fixed to scale faster

If you’ve ever thought about starting an AI business, this is your blueprint.


The Idea: Solving a Pain Point With AI

How He Spotted the Opportunity

  • Noticed friends struggling to get interviews despite great experience

  • Resumes weren’t passing ATS (Applicant Tracking Systems)

  • Existing tools were expensive or outdated

The Solution

Built ResumeGenius AI—a tool that:

  • Analyzes job descriptions to tailor resumes

  • Optimizes for ATS with keyword matching

  • Generates cover letters in 30 seconds

Key Insight: He didn’t build the AI himself. He used:

  • ChatGPT API (for content generation)

  • Hemingway Editor (for readability scoring)

  • Stripe (for payments)


Step 1: Validating the Idea for $0

The “Fake Door” Test

  • Created a landing page (using Carrd) with a “Get Started” button

  • Ran $50 in Facebook ads to target job seekers

  • Measured sign-ups (even though the tool wasn’t built yet)

Result: 200+ sign-ups in 3 days → proof of demand.

Minimum Viable Product (MVP) in 72 Hours

  • Used no-code tools: Bubble (frontend) + OpenAI API (backend)

  • Offered 3 free optimizations to beta testers

  • Collected feedback to improve


Step 2: The Launch That Generated $3,000 in Week 1

Pricing Strategy

  • $9 one-time for a basic resume edit

  • $29/month for unlimited optimizations + cover letters

  • $99 “Done For You” premium package

Traffic Hacks That Worked

  1. Reddit & Facebook Groups

    • Posted in r/resumes and “Job Seekers” groups

    • Offered free critiques (then upsold the tool)

  2. TikTok Organic Growth

    • Posted before/after resume examples

    • Gained 50K+ views in 2 weeks

  3. Affiliate Partnerships

    • Recruited career coaches to promote for 30% commissions


Step 3: Scaling to $10K/Month

The “Big 3” Automation Upgrades

  1. AI Chatbot (ManyChat) – Handled 80% of customer questions

  2. Self-Serve Dashboard – Let users edit resumes without support

  3. Email Drip Campaigns – Nurtured free users into paid

Key Metrics That Drove Growth

  • Conversion Rate: 12% (free to paid)

  • LTV (Lifetime Value): $89 per customer

  • Churn Rate: 8% (low due to job-search urgency)


The Biggest Lessons Learned

What Worked

  • Niche focus (only resumes, not all AI writing)

  • Freemium model (hook with free, upsell premium)

  • Community trust-building (Reddit, TikTok)

Mistakes to Avoid

  1. Underpricing at first (raised prices 3x with no drop in sales)

  2. Ignoring SEO (later ranked for “AI resume writer”)

  3. Manual processes (delayed automation cost time)


How You Can Replicate This (Even Without Experience)

5 AI Business Ideas You Can Start Now

  1. AI-Powered Cover Letter Generator (Same model, different angle)

  2. LinkedIn Bio Optimizer (Huge demand for professionals)

  3. AI Dating Profile Writer (Growing niche)

  4. Custom ChatGPT for Local Businesses (e.g., realtors, dentists)

  5. AI Video Script Generator (For YouTubers & agencies)

Starter Tools You Need

  • No-Code Builder: Bubble, Softr

  • AI Backend: OpenAI, Jasper API

  • Payments: Stripe, PayPal

  • Marketing: Carrd (landing pages), ManyChat (automation)


FAQs

Do I need to know AI to start?

No—use existing APIs (like OpenAI) and focus on solving a problem.

How much does it cost to start?

As little as $100 (domain, hosting, API credits).

What’s the biggest challenge?

Getting first customers—solve this with free offers + communities.

Can this work outside the U.S.?

Yes! Remote job seekers globally need resume help.

How long until profitability?

Alex hit **3,000/monthin30days∗∗,10K in 90 days.


Conclusion

You don’t need a tech background or big budget to build an AI business. You need:
✔ A real problem to solve
✔ The right no-code tools
✔ A lean marketing strategy

Your Move: Pick one niche from the ideas above and launch a MVP this week.


Free Resources to Start:

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