Stop Vibe Coding. Start Getting Customers.
How to Build Anything with AI: The Importance of Distribution
Introduction to Building with AI
- The discussion focuses on building software using AI and emphasizes the critical need for effective distribution strategies to attract customers.
- By the end of the episode, listeners will learn seven actionable frameworks and ideas that can help in establishing a successful software or SaaS company.
The Shift in Hierarchy within Tech
- A significant shift has occurred in Silicon Valley's hierarchy; previously, engineers were at the top, but now those who understand distribution are becoming more valuable.
- Marketing professionals, once considered less important, are now gaining prominence due to their ability to drive customer acquisition through effective distribution strategies.
Understanding Distribution
- Many founders lack knowledge about distribution, branding, advertising, and content creation—key areas that can provide a competitive edge.
- An example is given of Peter Levels, who generates substantial revenue as a one-person business by leveraging his audience and strong SEO practices.
Common Pitfalls for Founders
- Founders often fall into the trap of focusing solely on product development without considering how to market it effectively.
- Successful builders prioritize audience engagement first; they build an initial following before creating products tailored to their needs.
Effective Strategies for Audience Engagement
- Strategy one involves utilizing an MCP (Multi-channel Platform) server as a sales team. This approach allows users to discover products through AI interactions without incurring customer acquisition costs (CAC).
- Examples include using plugins in OpenAI where users can interact with applications like Google Drive via an MCP server.
Getting Started with MCP Servers
- Building an MCP server presents opportunities similar to early mobile app development; it's essential for certain businesses looking to leverage LLM connections.
- To begin this week: identify what question your product answers as a foundational step towards developing your offering.
Building an MCP Server and Programmatic SEO Strategies
Strategy 1: Building an MCP Server
- The goal is to create an MCP server that can return data efficiently, with a realistic coding timeframe of 24 hours or less.
- Once developed, the server should be published to various MCP registries such as Smithery, MCPT, and Open Tools.
- Every AI assistant connected to your server will work continuously to generate sales for you.
Strategy 2: Programmatic SEO
- This strategy focuses on creating 10,000 SEO pages within 48 hours by identifying keyword patterns like "Best X for Y" (e.g., "Best CRM for Dentists").
- Utilize tools like Firecrawl to scrape and obtain clean structured data that adds value to your pages.
- Implement a page template using frameworks like Next.js and incorporate AI-generated content while ensuring quality control so it doesn't feel automated.
- The potential outcome from this approach could yield significant traffic; for instance, if each page receives just 30 visits monthly, it could lead to $60,000 in revenue based on conversions.
- Start by selecting a keyword pattern and building a dataset. Use AI for unique content generation per page while considering human oversight for quality assurance.
Scaling Up Your Efforts
- Publish an MVP of around 100 pages initially and monitor their indexation before scaling further.
- This method is applicable across various business models including services, SaaS products, apps, or agencies.
Strategy 3: Creating Free Tools as Marketing Funnels
- Develop free tools that serve as marketing funnels; examples include backlink checkers similar to those offered by Hrefs.
- Users gain immediate value from these tools which encourages sharing their results—this creates organic viral loops through social proof and backlinks.
- Collect user data (like emails or phone numbers), which helps in upselling paid products after providing initial free value.
- With advancements in cloud code technology, building these tools has become significantly easier and faster than before.
- Aim to create one free tool weekly; leverage LLM (Large Language Model)-based assistance for brainstorming ideas related to your projects.
10 Ideas for Free Tools to Enhance Your Marketing Funnel
Generating Tool Ideas
- Suggestion to create a list of 10 free tools that can serve as top-of-the-funnel marketing assets, emphasizing audience engagement in the selection process.
- Importance of prioritizing the most effective tools based on audience feedback and interest.
The Concept of a Free Tool Calendar
- Introduction of the idea that while content calendars are common, a "free tool calendar" is often overlooked as a strategic marketing asset.
- Assertion that tools themselves can be powerful marketing instruments, with an emphasis on their potential effectiveness.
Understanding Answer Engine Optimization (AEO)
Transition from SEO to AEO
- Discussion on the evolution from traditional SEO practices like keyword stuffing and backlink building to AEO, which focuses on being cited by AI platforms.
- Noting the decline in traditional SEO effectiveness and the rise of zero-click searches, indicating a shift in how users find information online.
Strategies for Implementing AEO
- Highlighting significant increases in AI referrals for businesses, suggesting that optimizing for AEO could yield substantial benefits.
- Step-by-step guide:
- Step 1: Research top questions your customers ask.
- Step 2: Provide clear, structured answers.
- Step 3: Incorporate schema markup and FAQ blocks.
- Step 4: Publish content on authoritative domains or build authority over time.
Creating Shareable Outputs
The Power of Shareable Content
- Emphasis on creating outputs that users want to share, using examples like Spotify Wrapped which generates massive user engagement every December.
- Encouragement to identify what aspects of your product users would want to showcase or brag about.
Steps to Develop Shareable Artifacts
- Outline steps for creating shareable milestones:
- Step 1: Identify key outputs or milestones worth sharing.
- Step 2: Design these artifacts attractively and ensure branding is subtle yet present.
- Step 3: Include share buttons pre-filled with relevant content for easy distribution.
B2B Considerations for Shareability
- Addressing concerns about whether these strategies apply in B2B contexts; affirming that B2B audiences also seek shareable moments within professional networks like Slack or Microsoft Teams.
Growth Strategies for Building an Audience
Strategy 5: Acquiring a Niche Newsletter
- The speaker emphasizes the importance of building an audience, noting that it often takes years and consistent daily content to achieve this.
- Instead of starting from scratch, consider acquiring a niche newsletter. This can save time and effort while providing immediate access to an established audience.
- A niche newsletter with around 10,000 subscribers can be purchased for $5,000 to $20,000, allowing you to inherit trust and plug in your product right away.
- To find potential newsletters for acquisition, visit sites like deuce.com or search on platforms like Twitter or Substack within your target niche.
- Many smaller newsletters may not be monetizing effectively and could be open to selling for a fair price, giving you direct access to your desired audience.
Strategy 6: Leveraging AI for Content Repurposing
- The final strategy involves creating a central piece of content (e.g., podcast episode or blog post) that can be repurposed into multiple formats using AI tools.
- One piece of content can generate various outputs such as tweets, LinkedIn posts, short videos, and newsletters through AI automation.
- Tools like OpenAI's Claude or other creative LLMs can help automate the creation of diverse content types from the original material.
- Start by recording a 30-minute piece of content; this is often easier than writing lengthy essays and provides raw material for repurposing.
- Consistent weekly output using these strategies could lead to more content than competitors within three months due to increased touchpoints across platforms.
Conclusion: Embracing New Growth Tactics
- The speaker concludes by highlighting that many businesses are not utilizing these growth strategies effectively.
- They stress the importance of having numerous attempts ("shots on net") rather than focusing solely on follower count.
Distribution as the New Moat
Importance of Distribution in Business
- The speaker emphasizes that distribution is the most critical aspect of business success, referring to it as the "new moat."
- They argue that while product development is essential, it has become commoditized, making distribution a scarce and valuable asset.
Seven Distribution Weapons
- The speaker introduces seven strategies for effective distribution:
- MCP (Minimum Viable Product): Focus on creating a basic version of your product.
- AI Selling: Utilize AI tools to automate sales processes.
- Programmatic SEO: Generate thousands of web pages quickly to enhance visibility.
- Free Tools: Use free tools as marketing instruments to attract users.
- Answer Engine Optimization: Position yourself as a go-to source for information using AI.
- Viral Artifacts: Create shareable content to increase reach and engagement.
- Newsletter Acquisition: Buy or develop newsletters to build an audience.
Actionable Steps for Growth
- The speaker encourages listeners to select two out of the seven strategies and implement them immediately, stressing the importance of taking action rather than just coding without purpose.
- They highlight the goal of gaining customers and generating revenue, which can then be reinvested into further growth.
Commitment to Support
- The speaker expresses their willingness to provide more insights and strategies in future discussions, aiming to help entrepreneurs succeed with actionable ideas and growth tactics.