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My First Million

The best business ideas come from noticing what's working and doing it better, faster, or for a different audience.

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business models

Consumer Apps as the New Drop Shipping

Timeframe: Happening now, 1-2 year peak opportunity window

What's Changing

AI-enhanced consumer apps are becoming the new accessible high-profit business model for young entrepreneurs, replacing drop shipping as the go-to side hustle

Driving Forces

AI tools making app development more accessible

TikTok/Instagram providing free distribution channels

Subscription model economics superior to physical products

Lower barriers to entry than traditional software

Winners

  • Young creators who understand viral content mechanics
  • AI API providers enabling rapid development
  • App store platforms collecting platform fees
  • Influencers getting paid for app promotions

Losers

  • Drop shipping educators and courses
  • Physical product arbitrage businesses
  • Traditional software agencies without AI focus
  • Older entrepreneurs without social media skills

How to Position Yourself

1

Focus on apps with clear social media demonstration potential

2

Build AI features that create immediate wow moments

3

Master influencer outreach and paid promotion strategies

4

Choose subscription models over one-time purchases

Early Signals to Watch

More consumer apps using AI as primary differentiatorShift in entrepreneurship education from ecom to appsIncreased competition in consumer AI app categoriesPlatform policy changes affecting app marketing

Example Implementation

“Multiple apps like Cal, Quitter, and others hitting 7-figure revenue using similar AI+influencer marketing playbook, replacing the drop shipping gold rush of previous years”