Monetizing AI in Software Creation

0:00Moto Casino, America's social casino. Welcome to Moto Casino, where the excitement never ends. With thousands of the hottest free-to-play social casino games, fastest payouts, and the best promotions in the industry. No tricks or gimmicks. Owned and operated in the USA. Moto Casino is a free-to-play social casino. No purchase necessary. 21 plus to play. Void or prohibited. Sign up today for a generous welcome bonus. Moto Casino. America's social casino. Download the Moto Casino app today. I'm here on the job site with Dale, who's a framing contractor. Hey, good morning. They all traded up to GEICO Commercial Auto Insurance for all his business vehicles.

0:38We're here where he needs us most. Yep, they sure are. We make it easy for him to save on all his insurance needs, all in one place, with coverage that fits his business and bottom line. Oh, I shouldn't have looked down. It's all right. We're so far up here. Look at me. Take a deep breath. No, I'm good. So good. Get a commercial auto insurance quote today at GEICO.com and see how much you could save. It feels good to GEICO. Welcome back to the podcast. Today we have an interesting topic. Like developers are refusing now to work without AI because it makes it so much easier to code. But there's some new data out that says actually a lot of your tokens that they're spending on development are going to debugging the software.

1:18So it is buggy. If you've ever made something before, you know that a lot of times things don't work right away and have to go back and solve the problem. them, especially those of us who are pure vibe coders who don't have any coding experience. But this is a valid point about the debugging and the token cost. We're going to get into all the economics today. But before we do, Jamie, why don't you tell them about our school community? Yeah, every single week we record a bonus video over on our school community. This week is actually really cool because Jamie got access to ChatGPT's ads. So like putting ads inside of ChatGPT.

1:54And he has run some ads in there. He has some results and some analytics for his business. that he's showing. He shows you how much it costs, how to get it set up, how to do the targeting, what the inside of the platform looks like. If you were doing any sort of business online, and this is something that's interesting to you, you're going to want to check this video out. It is absolutely fascinating how Chad Chippity is running their ad program. And also there is like almost 100 other videos or maybe like 50 other videos in there breaking down all of the tools, tricks, strategies, numbers, all the inside stuff we don't share anywhere else.

2:24So go check out the the AI hustle school community. It's only$19 a month. We have 300 members in there. It is a good time. Let me tell you. So yeah, go check it out. Link is in the description. Okay. Let's talk about what's going on. I am very fired up about this topic in particular. So GitHub copilot, they used to have subsidized billing, basically like, like what Claude has. So you could pay a flat rate of $29 to$50 a month. And they're saying on June 1, which is today, that is switching. So no longer will they will you be able to get those flat rates. Now you're gonna have to pay with the API.

3:04Now, why are they doing that? Because they're losing a ton of money on this. But it's Microsoft. So like, shouldn't they try to lose money to get developers? That's the question you're asking. And the answer is evidently not. They don't want to take the hit anymore. Because for what you used to be able to pay$30 a month to$50 a month for developers are now if they're paying just the raw API, they're paying$750 to$3 ,000 a month. Guys, I am so fired up about this. Jamie's laughing at me. But I have been telling everybody about this to the point where I kind of make I made a satirical post about this on LinkedIn that got me on the front page of Reddit's LinkedIn lunatics, which in my post, I was joking, but I said I got a second laptop to run a second CloudMax subscription.

3:43And everyone's like, well, why don't you use a virtual machine, which is probably maybe a good point or something the reality of this situation is you don't need a second laptop to get a second cloud max subscription you can just log out of one and log into another which to trigger many people is actually what i did yesterday for the first time ever essentially have two cloud max subscriptions so uh you're now running two cloud subscriptions which is pretty intense i recently just started my first cloud max subscription um what types of tasks are you doing that are taking so many tokens if I may ask.

4:19Yeah. So to be fair, it's not something that I plan on doing long term. I'm just doing it for one month because I have a bunch of tasks that just burnt through my tokens super fast. And I don't and like it's like basically I'm blocked out till Wednesday. So I'm blocked out for three days, Monday, Tuesday, end of Wednesday. And I'm like, OK, if I can burn through all my tokens in four days, I'm just going to get another account. And for this month, I'll tag team back and forth. The big projects that I've been working on is I've probably talked about this before on the podcast, but I have a Bible study app that I'm writing.

4:47It is, I'm making these really in-depth 20-minute long Bible study guides for every single chapter in the Bible. There are 13, somewhere between 1 ,000 and 1 ,300 chapters in the Bible. And I'm like adding some of like the Apocrypha. I'm not Catholic, but Catholics have the Apocrypha in their Bible. So I'm trying to make it for them too. Shout out to all you Catholics. My Bible app loves you. And so anyways, there is a lot of chapters in this and there's really in-depth study guides. And in addition to that, the study guides, I'm like, I don't want it to just be like general AI kind of generated stuff.

5:22So I'm like, hey, go do some like deep research on every single topic. Go add like resources and links to archaeological evidence for all of this stuff. Go find open source images. images I had to scrape. The Met has an API where you can embed all of the famous art from people for the last 1 ,000, 2 ,000 years that have painted stuff in the Bible, in cathedrals and stuff. It's all open source publicly available. But I grabbed all of those libraries and I'm embedding images from if someone painted John the Baptist, it's getting embedded into the Bible study with John the Baptist in it. So anyways, it is a massive gnarly project.

5:58There's over 7500 images that I've sourced and indexed. There is 1200 chapters that I've written. I've written adult chapters. I've written children's study guides. So like you can read it for your kids. Anyways, it is a massive project. It's my Sunday project. I work on it after church on Sunday. So it is but it's a massive project. And it absolutely crunches tokens because of how intense it is. So I have like 100 other projects going on at the same time, but that one pushes it over the edge every time. So I'm like, all right, well, I'm just getting all the content finished up this month for it.

6:32I'm just going to get two subscriptions because otherwise that was burning through all my tokens and I was getting locked out till Wednesday. In addition, my wife rebuilt our first app we ever made, which is called self pause from scratch in the last two weeks that used up a ton of tokens, but she rebuilt the whole thing from scratch. It's incredible. She's published it. We're waiting for it to get approved. I'll probably tell you more about it when that happens, but we have a lot of projects going on. It's also me and my wife and my studio manager in Arizona. We were all using the same account.

6:59It wasn't enough. So is it really me using all the tokens? No, it's like three people. So it was worth splitting it and getting a second account at this point. Okay. Gotcha. Yeah, that makes sense. Well, you know, one thing that people are frustrated with when it comes to all the usage tokens and things like that is the fact that AI or that Claudic should say even Claudco does make mistakes. Like sometimes there'll be a bug or an error or in my case, something I'm building right now, I realized, so I'm basically having, I'll just tell you what I'm doing. I'm having Claude scrape local businesses.

7:33And then I'm pulling a few API tokens from other places to enrich the data, basically get contact and email information for different business owners in the area. And then I'm going to do an email automation to them that's personalized. Anyways, one of the things I was going to send in that personalized email was a audit to show them where they currently rank when it comes to Chachamutee search or Gemini search, if they show up in AI search results or not. Come to find out that the token usage for those APIs and pulling all that data for each automated email is like a crazy amount. So it's like 10 times more expensive than just pulling their name and email and reaching out with a custom message.

8:24So doing those extra things, I didn't realize as a vibe coder would cost me so much. And so that was a little frustrating. But to get to that point, I also had to spend a lot of tokens back and forth with Claude. So, you know, I don't know. I think for for someone like me, who's not a huge coder, it still comes as a value. But if you maybe are deeper in the space, you know exactly what you want, that I think the mistakes would be maybe frustrating to have to pay for it to fix them. Yep, I agree with you there. So that brings me to another interesting thing, which is what you started the episode off with it, which is the article, which is developers are refusing right now to work without AI.

9:06And so there's some new data, allegedly that is questioning the productivity gains of AI. Okay. I don't know what galaxy people are on where they're questioning the productivity gains of AI. Actually, I do know what galaxy. Basically it comes from the CFO of, um, shoot, like Spotify or like some big company. I can't remember. But anyways, there was this thing where they're like, yeah, like our revenue hasn't really gone up that much, um, since we started using AI. So I don't know if it's like really justifiable. Okay, that's like where a lot of this happens. But other than that, the productivity gains, are you kidding me?

9:42I just rebuilt an entire app from scratch that used to have bugs and published it. And it makes me real money every month. So that's going to be a big bump. I've been able to launch tons of platforms. I've been able to run like all of my businesses. I've made meaningful revenue from I have an entire podcast network of sleep history podcasts. that I was able to build a tool that can automatically run that. I'm making money every single month from that now. I should do a whole, probably a school community episode on that. But anyways, there's a thousand things that I'm doing right now, and all of them are making either my businesses.

10:15Oh my gosh, Jamie rebuilt with Search Saddle my entire business for my podcast studio, az.com. I have a podcast studio, just a local brick and mortar or whatever. That business, I am not joking, has tripled its revenue, at least since Jamie rebuilt the entire website using, he used lovable for the design, but it's actually just self hosted. But since we used AI to rebuild it, it used to be on WordPress. It wasn't, I'm pretty good at WordPress. I've done it for almost 10 years now. It was like, okay, website, but it wasn't like premium. Jamie rebuilt it with AI. So it looks incredible and premium.

10:51And I am not joking. We're working with like, we have like nerd wallet recording at our studio. Now we have like massive organizations, huge companies that never, uh, that never worked with us before paying, you know, they'll rent the whole thing out for the whole day. They don't really like money. That isn't really what they're, they're concerned about. I promise you, none of those people were booking when our website was just mediocre as soon as we completely redid it. So I'm seeing revenue on every business, basically grow, improve new things. I was never able to do get fixed features. I was never able to create.

11:21Oh, I mean, okay, I'll stop rambling in like a second, but something else I'm really stoked about is for self-pause. That was my very first positive affirmation meditation app. We grew it to 150 ,000 users. My wife and I started that. We always had the problem that we spent hundreds of thousands of dollars on development. And we always had the problem that it was like basically the developers had a bandwidth issue and it was a price issue. We just couldn't put all the features in. There was bugs a lot of times that we couldn't get fixed. It's just an expensive business. and now that it's AI is really cheap, we've been able to completely revamp it.

11:52We'll probably do a relaunch once it's rebuilt and you'll hear me plug in on the podcast more. But something really cool I just did with it in the last three days is I actually, we built the iOS app and so I just went to Claude and I was like, hey, build a web app. So like if someone goes to selfpause.com, its website, they get all of the features of the app, like all of the self-recorded affirmations, like the meditations, like the soundscape, like all the features. We never had that before. And so anyways, businesses are upgraded. I am so triggered by the data questions the productivity gains line.

12:27But otherwise, yeah, I'm pretty stoked about what you could do with AI right now. yeah i mean i think there's i think the pushback overall is just coming from the way the back and forth of you know okay are these layoffs from these big corporations is that due to ai and coding or is that the overall economy people are just worried about that and so i think they're i mean it is important that everyone's trying to actually figure out the true value of AI here. But like you said, even at two clawed max subscriptions, you're able to make so much more money and do so much more. I mean, before you had all these virtual assistants and all this slowness to develop and to grow, where now it's so fast, streamlined, better, cheaper.

13:17So like, yeah, I'm in the same boat as you. I don't really see the, you know, even if if Claude Max went up and doubled, you know, in the short term, I think it still is well worth it. So, but yeah, it'll be interesting to see where the price ends up staying long term. So I don't know. Yes. Yeah, that's true. I think that Claude and everyone else is going to have to actually raise their prices at some point. I think they're just trying to absolutely absorb as much of the market as they can. They're making a lot of money. So I think that's probably where Anthropic is at. However, I'm just going to try to get as much code and as much stuff built and done as soon as possible.

13:55That's why I'm not like, oh, I'll just wait till my rate limit runs out on Wednesday. I'm like, nope, buying another CloudMax subscription. I'm just trying to get all my projects pushed through. I don't know when their IPO happens. I don't know if that means they're going to be more serious about trying to generate revenue. Because right now, Cloud is subsidizing, potentially, according to my math that triggered a lot of people, potentially$11 ,000 a month if you're fully using your Claude Max tokens that comes from it used to be like half of that but then they said they doubled the they doubled your usage limits when they signed the SpaceX Colossus one data center contract it's really hard though because they don't always tell you exactly like how many tokens you're getting but from my experiment so basically when I last time when I first ran into this problem where I ran out for a day of my tokens and they were like, OK, you're like, you know, you're locked out for a day.

14:47I was like, OK, fine, whatever. I'll just buy some tokens because you can you can just pay the API directly. I paid two hundred dollars and I use that in one day. So I'm like, OK, two hundred dollars a day times 30 days a month times they just doubled the rate limits. That probably gets me somewhere around eleven grand. Don't double check my math, but I think it's something like that. crazy well yeah i mean like you said speed really is is a factor right now and i think anyone who is aware of the capabilities of ai is is trying to build as much as they can so if you guys are building we'd love to have you again be a part of our school community it's a great place of like-minded people and don't forget to leave us a rating or review wherever you're listening those really help us out a lot we just passed 100 reviews and we're trying to get to 200 now.

15:35So if you can help us with that goal, that'd be awesome. Thanks for listening and we'll see you next time.

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