#2291 He keeps launching AI businesses
Timestamps are as accurate as they can be but may be slightly off. We encourage you to listen to the full context.
Podcast Summary
This episode features Joe Apfelbaum, founder of Ajax Union and EvyAI, discussing how entrepreneurs can leverage AI to build profitable businesses. Joe, who previously grew Ajax Union into an Inc. 500 company, shares his journey of rebuilding his business with AI-first systems after losing 75% of revenue during COVID. (23:00) He demonstrates how AI has enabled him to create scalable businesses without growing headcount, offering practical strategies for anyone to start making money with artificial intelligence.
- Main Theme: Five specific ways entrepreneurs can use AI to generate revenue: creating done-for-you services, building educational courses, offering quick-turnaround products, teaching AI skills, and developing simple software solutions.
Speakers
Joe Apfelbaum
Joe Apfelbaum is the founder of Ajax Union, a digital marketing agency that previously achieved Inc. 500 status, and EvyAI, an AI-powered sales and social media assistant used by thousands of businesses worldwide. After losing 75% of his recurring revenue during COVID and going through personal challenges including divorce, Joe rebuilt his business using AI-first systems. He's a longtime entrepreneur who has written five books and is part of YPO (Young Presidents' Organization), focusing on creating scalable AI services that help businesses grow without expanding headcount.
Andrew Warner
Andrew Warner is the founder and host of Mixergy, conducting interviews with successful entrepreneurs to extract actionable business insights for ambitious professionals.
Key Takeaways
Transform Services into AI-Powered Offerings
Joe demonstrates how to create profitable "done-for-you" services where AI performs the work while humans handle customer interaction. (00:51) His AI photographer service charges $200 for 10 professional headshots created using 30 different prompts in tools like MidJourney, with a VA handling the execution for just $5 in costs. The key is positioning this as a premium service with money-back guarantees rather than asking customers to use software themselves. People prefer paying for results over learning new tools, making this approach highly scalable with excellent profit margins.
Create Educational Products Using AI as Your Co-Teacher
Instead of needing expertise before teaching, Joe shows how to learn AI publicly while monetizing the process. (06:18) He created a $500 AI course using LinkedIn polls to validate demand, then used AI tools to generate course content from his existing knowledge base. His ongoing $3,000/year mastermind involves learning AI together with students, creating pressure to stay current while building community. This approach works because most people haven't even logged into ChatGPT, creating massive opportunity for basic AI education.
Build Industry-Specific Solutions for Maximum Impact
Focus beats breadth when building AI-powered businesses. Joe's Ajax Union targets only restoration franchises, creating reusable systems that scale without additional overhead. (25:47) By specializing in one industry, he can hire prompt engineers rather than experienced marketers, train them on specific frameworks, and serve 100+ customers without adding staff. This laser focus allows him to become the "king of the industry" with standardized solutions, frameworks, and processes that work across similar businesses.
Leverage Existing Communities for Customer Acquisition
Rather than building audiences from scratch, Joe infiltrates existing AI learning communities where hungry prospects already gather. (29:44) He joins paid communities like Tony Robbins' AI course, adds genuine value to discussions, then uses tools like Apollo to extract member information for targeted outreach. This strategy works because many AI educators aren't providing substantial value, creating opportunities for those who can deliver practical, actionable insights to convert community members into paying customers.
Start with MVPs Before Scaling Infrastructure
Joe built over 200 working features for EvyAI using AI tools before investing in proper development infrastructure. (40:57) He creates detailed Software Requirement Specifications (SRS) using AI conversation, then builds HTML/JavaScript prototypes that demonstrate functionality. Only after validating features does he hand them to developers for proper backend implementation, security, and scalability. This approach allows rapid testing and iteration while minimizing development costs and ensuring product-market fit before major investment.
Statistics & Facts
- Joe's Ajax Union generates approximately $1 million annually, while EvyAI is approaching $1 million in annual revenue. (00:32) He notes that additional revenue now flows directly to profit since the infrastructure is built.
- His AI photographer service costs only $5 per customer (paid to a VA) while charging $200, creating a 95% profit margin. (02:18) Facebook lead generation costs approximately $2 per form completion.
- EvyAI currently has 23,000 users across 40 countries worldwide. (45:42) The platform serves as an AI sales and social media assistant for businesses globally.
