Why Your AI Art Isn't Selling (and never will)

Brad Colbow
19 Jun 202308:18

TLDRThe video discusses the misconception that using AI can lead to substantial financial gains, particularly in the creative industries. It uses the example of a Sci-Fi author who earned a modest income by using AI to write books, highlighting the low hourly rate this represents. The speaker shares a personal story about the early days of Amazon's print-on-demand service, noting how the market became saturated with low-quality products, leading to decreased earnings for all. The video emphasizes the importance of building a personal brand and creating high-quality, unique content that resonates with an audience. It argues against the 'get rich quick' mentality and encourages a focus on providing value and authentic experiences. The video also touches on the role of technology in enabling content creation and the necessity of understanding what consumers truly want.

Takeaways

  • 💰 The allure of AI is the promise of making money with minimal effort, but it often results in very low earnings per hour.
  • ⏳ Success with AI, like any venture, requires time and effort; instant wealth is not realistic.
  • 📈 Building a brand is crucial for long-term success, not just relying on AI to produce content.
  • 🚀 The value of a brand comes from the cumulative experiences people have with your content, work, and products.
  • 🎨 AI can help produce a lot of content, but quality and personal connection are what make it valuable.
  • 📉 Over-saturation of the market with AI-generated content can lead to a decrease in value and earnings.
  • 🛑 Low barriers to entry can lead to an influx of low-quality content, which devalues the market.
  • 🤝 Genuine connections with audiences through shared experiences and storytelling are more impactful than impersonal AI outputs.
  • 📚 A single book or piece of art without a brand behind it has less value and appeal to consumers.
  • 🌟 Building a brand takes time and consistent positive experiences, much like the success of the Nintendo brand.
  • 🛍️ For those looking to sell online, platforms like Squarespace offer tools to build a website and an online store, which can help in establishing a brand.

Q & A

  • What is the main message of the video regarding using AI to create and sell art or books?

    -The main message is that relying solely on AI to create and sell art or books is not a realistic way to make significant money. The video emphasizes the importance of building a personal brand and creating valuable content that resonates with an audience.

  • How much did the Sci-Fi author make per hour for writing 97 books using chat GPT?

    -The author made approximately 2.94 cents per hour, based on the calculation of seven hours per book times 97 books, which equals to $2,000.

  • What was the speaker's experience at the conference about designing t-shirts?

    -The speaker gave a design 101 presentation to a room full of entrepreneurs and small business owners. The event focused on a new service called Merch by Amazon, which was a print-on-demand service that allowed people to upload t-shirt designs with no overhead costs.

  • What happened to the market for Merch by Amazon when it opened up to the public?

    -The market became saturated with t-shirts, leading to a decrease in profits for those selling on the platform. Amazon started de-prioritizing print-on-demand content to maintain relevant search results, causing earnings to decline.

  • Why did the speaker decide not to coast on other people's brands?

    -The speaker wanted to build their own brand and be known for their own unique content and products, rather than relying on the success of established brands.

  • What is the speaker's prediction about the future of AI-generated content?

    -The speaker predicts that the amount of AI-generated content will skyrocket, but most of it will be of low quality, leading to a saturated market with little value.

  • What does the speaker suggest is the key to building a successful brand?

    -The key to building a successful brand is creating a positive and consistent experience for the audience. This includes the content, work, art, and products associated with the brand.

  • How did the speaker's brand grow over time?

    -The speaker's brand grew by consistently creating and sharing content, improving with each piece, and building a reputation based on honest experiences and product reviews.

  • What is the importance of an artist's story in selling their art?

    -An artist's story is crucial in selling their art because people often buy into the narrative and personal connection with the artist, which can be more important than the art itself.

  • What is the role of Squarespace in the context of the video?

    -Squarespace is mentioned as a sponsor and is presented as an all-in-one platform for building a website and selling products online, which can be useful for creators looking to establish their brand and sell their work.

  • How does the video suggest one should approach using AI in their creative process?

    -The video suggests that while AI can be a tool in the creative process, it should not be the sole method for creating and selling content. Instead, creators should focus on building a brand and providing valuable, unique experiences to their audience.

Outlines

00:00

🤖 Exploring the Economic Viability of Using AI in Creative Ventures

The video opens with a sponsored message from Squarespace and quickly transitions into a discussion about the profitability of using AI for creative projects, such as writing books with ChatGPT. The example given involves an author who wrote 97 books using ChatGPT, earning $2,000, which equates to an extremely low hourly wage of $2.94. This sets the stage for a broader critique of the over-saturation of markets facilitated by AI and easy-entry platforms like Amazon's Merch service. The presenter reflects on an event about Merch by Amazon, highlighting how the influx of participants and minimal entry barriers drastically reduced the profitability of the venture over time, even leading to market flooding with low-quality, derivative products.

05:01

🏗 Building a Genuine Brand in the Age of AI and Mass Production

In the second paragraph, the focus shifts to the importance of brand building and providing meaningful content rather than just mass-producing generic items. The speaker draws from personal experiences and observations from a tech conference about Merch by Amazon, explaining how successful individuals in such platforms often invest in quality and strategic partnerships, like licensing deals with recognized brands. They emphasize that creating a lasting and influential brand goes beyond superficial appearances and involves deep connections with consumers through consistent, positive experiences, using Nintendo as a prime example. The video ends by reiterating the value of Squarespace for building a robust online presence and selling products effectively.

Mindmap

Keywords

💡AI

AI, or Artificial Intelligence, refers to the simulation of human intelligence in machines programmed to think and learn like humans. In the video, AI is discussed primarily in the context of generating content, such as books or art, with minimal human effort. The speaker highlights the saturation of the market with AI-generated products and suggests that while AI can produce large quantities of content, it often lacks the distinctive quality or brand identity that differentiates successful products or services in the market.

💡brand

A brand in marketing terms is a name, term, design, symbol, or other feature that distinguishes one seller's good or service from those of other sellers. The video emphasizes building a personal or business brand rather than relying solely on generic AI-generated content. It argues that a strong brand is built through consistent positive experiences and unique offerings that resonate with consumers, contrasting this with the impersonal nature of mass-produced AI content.

💡Merch by Amazon

Merch by Amazon is a print-on-demand service that allows individuals to design and sell custom merchandise without inventory overheads. In the video, this service is discussed as an example of a platform that initially offered substantial earning potential with low entry barriers. However, as more people began to use the platform, it became oversaturated, leading to a significant decrease in profitability per individual, illustrating a common pitfall in digital entrepreneurship.

💡saturated market

A saturated market is a scenario where the supply of a particular product or service exceeds the demand for it. The video discusses how markets like AI-generated content and print-on-demand services can quickly become saturated as they are accessible to everyone, leading to diminished returns and increased competition. This concept is used to caution viewers about entering markets where the barrier to entry is low and competition is high.

💡print on demand

Print on demand (POD) is a process where items such as books, t-shirts, and other merchandise are printed individually as each order is made, eliminating the need for inventory. The video discusses POD in the context of Merch by Amazon, highlighting how such services can initially offer high returns but may see diminishing profits as more entrants flood the market.

💡arbitrage

Arbitrage involves buying products in one market at a lower price and selling them in another market at a higher price to profit from the price difference. In the video, arbitrage is mentioned as a common strategy among sellers on Amazon before they switched to using Merch by Amazon, reflecting the tactical shifts that online sellers often undertake in response to new opportunities.

💡drop shipping

Drop shipping is a retail fulfillment method where a store doesn't keep the products it sells in stock. Instead, when a store sells a product, it purchases the item from a third party and has it shipped directly to the customer. The video references this method in the context of discussing various online business models that entrepreneurs engaged in before moving to print on demand.

💡licensing deals

Licensing deals refer to agreements where one party (the licensor) allows another party (the licensee) to use a brand, copyrighted material, or technology under specific conditions. The video mentions a successful Merch by Amazon user who prospered by securing licensing deals with established brands like NASA and Harley Davidson, illustrating a strategic approach to creating value and maintaining relevance in a saturated market.

💡Nintendo

Nintendo is a multinational consumer electronics and video game company known for its influential and well-loved gaming consoles and franchises. In the video, Nintendo's brand strength is highlighted as a result of decades of building positive consumer experiences, illustrating the long-term effort required to build and maintain a powerful brand.

💡siren song

The term 'siren song' refers to an alluring but ultimately deceptive or dangerous appeal, often leading to a bad outcome. It's used in the video to describe the enticing but unrealistic promises of easy money through automated systems like AI for creating books, underscoring the video's theme that sustainable success requires more substantial, genuine engagement and brand building.

Highlights

The inefficiency of using AI for writing books highlighted by an author making only $2.94 an hour for 97 books.

The video is sponsored by Squarespace, emphasizing their support for growing businesses and brands online.

A Sci-Fi author uses ChatGPT to write 97 books, earning $2000, showcasing the modest financial returns from high output AI-assisted projects.

The disillusionment with quick AI monetization schemes, stressing that they are unrealistic financial goals.

The discussion at a conference about Amazon's print-on-demand service, illustrating its initial promise and eventual market saturation.

Early advantages of Amazon Merch highlighted: no overhead costs and access to a vast customer base.

Market saturation as more public access is given to Amazon Merch, leading to diminished returns.

Examples of people exploiting the system with unoriginal or copyright-infringing designs on Amazon.

A successful case where a person hires designers and secures licensing deals, emphasizing the importance of legitimate business strategies.

The narrative shift from exploiting to creating genuine brands, with a focus on building something valuable and unique.

Insights into the power of brand loyalty through personal experiences with brands like Nintendo.

The speaker's emphasis on not relying on others' brands but building one's own through consistent quality and unique offerings.

The importance of authenticity in content creation, rather than just outputting high volumes of low-quality work.

The role of personal connection in selling art at conventions, where buyers are often more interested in the artist's story than just the artwork itself.

A call to focus on creating meaningful interactions and products that genuinely resonate with an audience.