Two cofounders built an all-in-one AI image and video generator that they say hit $10,000 MRR within four months
BasedLabs grew to about 150,000 signups with free AI tools like face swap and character generators, spending under $500 on marketing.
Subject: BasedLabs (Andrew and Michael)Freemium AI generation platform with free tools that lead to paid plans
Case Overview & Background
Andrew and Michael started BasedLabs in December 2023 while both were unemployed with a few months of savings. Michael had 15 years of development experience and had just built a CapCut competitor. They first tried to build an automated short-form video tool, but could not find good AI b-roll, which led them to build an all-in-one AI generator instead.
How AI Is Used
Step-by-Step Process
They needed AI b-roll for another project and built the tool instead.
They were among the first image-to-video sites after a new open model came out.
Free AI tools bring in users who later pay.
Customer Acquisition & Distribution
Limitations, Risks & Failure Modes
What may not apply to you, and what could go wrong:
- The figures are self-reported and were not independently checked
- AI generator sites compete with many similar tools
- Face swap and character tools carry misuse risks
Key Takeaways
- Free single-purpose AI tools can be a cheap acquisition channel
- Speed when a new model launches can win early users
Sources
Starter Story: How Our AI SaaS Crossed $10K MRR In Less Than 3 Months
Note: Written founder interview. States the $10,000 MRR, about 150,000 signups and the free AI tools.
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