How I’d Make $1M with AI in 2026 (Zero Code)
In this episode of the Growth Stacking Show, Dan Martell outlines strategies for building a profitable AI-based business by 2026. He explains how to validate market demand through pre-selling to early adopters, select viable target markets, and choose between different business models ranging from consulting to software products. The discussion covers practical approaches to pricing, building minimum viable products, and automating customer interactions.
Martell also explores the fundamentals of developing an AI business without coding expertise, suggesting tools like Zapier and make.com for automation. The episode covers both immediate tactical considerations, such as how to structure offers and handle customer feedback, as well as long-term strategic elements like building sustainable systems and scaling operations through team development and community engagement.
This is a preview of the Shortform summary of the Jan 19, 2026 episode of the Growth Stacking Show with Dan Martell
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1-Page Summary
Pre-selling and Market Selection
To validate an AI product's market demand, businesses should start by connecting with 10 potential customers. These early adopters can receive a 50% discount in exchange for participating in case studies, providing valuable feedback and testimonials for future marketing efforts. When selecting markets for AI disruption, the focus should be on "boring" industries with manual, repetitive workflows and customers who recognize the value of automation.
Business Model and Pricing Strategy
The highest-margin AI business models for 2026 include AI services (70% margin), consulting (80% margin), digital products (90% margin), and software (95% margin). For newcomers to AI, starting with services or consulting provides valuable insights that can later facilitate a transition to higher-margin software products. To optimize offers, businesses should highlight a single key benefit, offer longer commitment discounts, create scarcity, and address objections with targeted bonuses.
MVP Development and Automation
When building an MVP, functionality trumps perfection. Martell recommends using no-code platforms like Zapier or make.com for those without coding expertise, while engineers might prefer AI-assisted platforms such as Replit. The key is ensuring the MVP delivers real value to customers. Additionally, automating the entire customer journey, from purchase through support, is crucial for preventing operational bottlenecks as the business grows.
Mindset and Long-Term Growth
Building a sustainable business empire requires a "long-term greedy" mindset focused on scaling skills and creating increasingly valuable offerings over time. As systems improve and value increases, businesses can raise prices accordingly. Success extends beyond professional achievements; Martell emphasizes the importance of investing in talented team members and giving back to communities for personal fulfillment and continued growth.
1-Page Summary
Additional Materials
Counterarguments
- While connecting with 10 potential customers can provide initial validation, it may not be a large enough sample size to accurately predict market demand across diverse customer segments.
- Offering a 50% discount to early adopters could potentially devalue the product in the eyes of future customers or set a precedent for expecting discounts.
- Focusing solely on "boring" industries may overlook opportunities in dynamic sectors where AI can also provide significant value and innovation.
- The stated business model margins (software 95%, digital products 90%, consulting 80%, AI services 70%) are optimistic and may not account for the full range of costs and competitive pressures that can affect profitability.
- Starting with services or consulting assumes that the insights gained will be directly transferable to software product development, which may not always be the case due to different market dynamics and skill sets required.
- Highlighting a single key benefit in offers may oversimplify the value proposition and fail to address the diverse needs of different customer segments.
- Creating scarcity as a sales tactic may not be effective for all types of AI products, especially if they are easily replicable or if the market perceives the scarcity as artificial.
- Using no-code platforms for MVP development might limit the complexity and scalability of the solution, potentially requiring a complete rebuild for the full product version.
- Automating the entire customer journey could lead to a lack of personalization and customer service quality, which can be critical for building long-term customer relationships.
- The "long-term greedy" mindset, while focused on sustainable growth, may inadvertently prioritize profit over ethical considerations or social responsibility.
- Raising prices as systems improve and value increases assumes a market tolerance for price hikes, which may not always be the case, especially in price-sensitive markets.
- The emphasis on personal fulfillment and community giving, while commendable, may not align with the goals or capabilities of all businesses, particularly in their early stages or in certain industries.
Actionables
- You can explore AI's potential in your current job by identifying tasks that are repetitive and proposing automation solutions to your employer. For instance, if you work in customer service, suggest implementing a chatbot to handle common inquiries, which can be a stepping stone to understanding AI's impact and learning about its implementation.
- Develop a habit of providing constructive feedback on digital products you use, which can help you understand the value exchange between companies and early adopters. When you encounter a new app or service, reach out to the creators with detailed feedback and suggestions for improvement, positioning yourself as a potential case study participant.
- Create a personal development plan that focuses on learning about AI and automation in small, manageable steps. Begin by dedicating 30 minutes a week to read articles or watch tutorials on AI trends and tools, gradually increasing your commitment as you become more comfortable with the concepts.
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Pre-selling and Market Selection
Businesses looking to introduce AI-driven solutions should consider pre-selling to validate demand for their products and selecting markets ripe for disruption.
Pre-sell to Validate Demand and Gather Feedback
Connect With 10 Prospects, Identify Pain Points, and Offer Solutions At 50% Off For a Case Study
To validate the demand for an AI service or product, start by connecting with 10 potential customers. Ask these prospects for their insights on challenges they face that could potentially be automated. Once you fully understand the pain points, create a tailored offer for these customers. Provide them with a 50% discount for a year's service in return for their participation in a case study. Importantly, secure permission to use their business name when you promote your product to future customers. This step helps in not only confirming market demand but also in refining your product based on real user feedback.
Select "Boring" Markets With Manual Processes, High Deal Sizes
Industries For AI Disruption: Tedious Workf ...
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Pre-selling and Market Selection
Additional Materials
Counterarguments
- Pre-selling at a discount might attract customers who are more price-sensitive and may not reflect the behavior of your target market at full price.
- A sample size of 10 customers may not be sufficient to validate demand across a broader market or different market segments.
- Offering a significant discount in exchange for a case study could set a precedent for future pricing expectations and undervalue the product.
- Using business names in promotions could lead to a biased perception of the product if those case studies are not representative of the average customer experience.
- Focusing solely on "boring" markets might overlook opportunities in dynamic or emerging industries where AI could also be beneficial.
- High deal sizes in certain industries could also indicate a high cost of sales and a longer sales cycle, which might not align with the business's capabilities or strategy.
- There is a risk that automation might not be the ...
Actionables
- You can create a simple online survey to gauge interest in potential AI solutions by sharing it on social media and relevant online communities. Explain that you're exploring new tech solutions and would appreciate input on what challenges people face that AI could potentially solve. This allows you to collect data on demand without having to create a product first.
- Start a virtual roundtable discussion group with professionals from industries known for repetitive tasks, like accounting or data entry. Use video conferencing tools to host monthly sessions where you discuss industry challenges and brainstorm AI solutions, fostering a community that can provide ongoing feedback and support for AI-driven innovations.
- Develop a blog or video series that highlights how AI can transform mundane business task ...
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Business Model and Pricing Strategy
Businesses focusing on AI are advised to prioritize high-margin models and optimize their offers for improved cash flow and lower upfront costs. This approach aims at achieving high profitability and enticing customer commitment.
Prioritize High-Margin Models: AI Services, Consulting, Digital Products, Software
High-margin AI business models are pivotal to business sustainability and profitability. Industries are encouraged to target models with substantial profit margins. The highest margin AI business models for 2026 are as follows:
- AI services are expected to yield around a 70% profit margin.
- AI consulting could potentially offer approximately 80% margins.
- AI digital products might reach around 90% margins.
- AI software stands out with the possibility of achieving a staggering 95% margin.
By utilizing AI, businesses can significantly reduce delivery costs, which forms a cornerstone for achieving such high margins. For companies just entering the AI domain, beginning with AI services or consulting is beneficial. Such an initial focus provides a deep understanding of the AI required to automate processes, which can be leveraged eventually to transition into creating productized software, offering even higher margins.
Optimize Offer for Cash Flow and Lower Upfront Costs
Optimizing offers means crafting a pricing strategy that not only improves cash flow but also minimizes the initial costs customers face. Techniques for optimization include:
- Highlighting a Single Benefit: Concentrating on one major benefit can simplify the customer's decision-making process and increase the perceived value of the ...
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Business Model and Pricing Strategy
Additional Materials
Clarifications
- High-margin models are business approaches that generate a large profit relative to their costs. They are important because higher profits provide more resources to invest in growth and innovation. This financial strength helps businesses survive market fluctuations and competitive pressures. Sustained profitability ensures long-term viability and success.
- AI services involve delivering tailored AI solutions or support directly to clients, often including implementation and maintenance. AI consulting focuses on advising businesses on AI strategy, feasibility, and integration without necessarily building the technology. AI digital products are ready-made AI tools or applications sold to users, such as datasets or AI-driven apps. AI software refers to packaged AI programs or platforms that customers license or subscribe to for ongoing use.
- AI automates repetitive and time-consuming tasks, reducing the need for manual labor and lowering operational expenses. It enables faster service delivery and minimizes errors, cutting costs related to rework and customer support. Digital AI products and software can be distributed at scale without significant incremental costs. These efficiencies reduce overall expenses, allowing businesses to maintain high prices and thus achieve higher profit margins.
- Productized software is a ready-made AI software product sold to many customers with minimal customization. Unlike AI services or consulting, which involve personalized, hands-on work tailored to each client, productized software offers a standardized solution. This allows for scalability and higher profit margins due to lower ongoing labor costs. It shifts the business from service delivery to product sales.
- Optimizing offers for cash flow means designing pricing and payment terms to ensure steady income over time rather than one-time payments. Lowering upfront costs reduces the initial financial barrier for customers, making it easier for them to start using the product or service. This can increase customer acquisition and encourage longer-term commitments. Techniques like subscription models, installment payments, or trial periods help achieve these goals.
- Highlighting a single benefit focuses the customer's attention on the most important value your product or service offers. This reduces information overload, making it easier for customers to understand why they should buy. It also creates a clear, memorable message that stands out among many options. Simplified choices increase the likelihood of a purchase by minimizing confusion and decision fatigue.
- Offering discounts for longer commitments incentivizes customers ...
Counterarguments
- High-margin models may not always be sustainable if they lead to a lack of competitive pricing or if they ignore broader market trends and customer needs.
- Focusing solely on high-margin services might limit market reach and could alienate potential customers looking for more affordable solutions.
- The profit margins suggested for AI services, consulting, digital products, and software are optimistic and may not account for increasing competition, which could drive prices down.
- Reducing delivery costs through AI is not guaranteed and depends on the successful implementation and integration of AI within existing business processes.
- Starting with AI services or consulting requires a significant investment in skilled personnel, which could be a barrier for new companies with limited resources.
- Highlighting a single benefit might oversimplify the value proposition and fail to address the diverse needs of different customers.
- Longer commitment discounts could potentially lock a business into less favorable terms in a rapidly changing market, where flexibility might ...
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MVP Development and Automation
Martell offers advice on creating a Minimum Viable Product (MVP) that is functional and delivers real customer value, using automation to streamline customer delivery from purchase to support.
Use No-code, AI-assisted, or Developer Tools to Quickly Build an MVP
The MVP Must Deliver Tangible Customer Value
Building an AI MVP doesn't require perfection or aesthetic appeal; functionality is key. He recommends utilizing no-code platforms like Zapier, make.com, or N8N to eliminate manual processes, making MVP development accessible even to those without extensive coding skills. For deeper customization, AI-assisted platforms such as Replit or Google's anti-gravity platform offer more options for engineers. However, if you do opt to engage a developer for custom solutions, Martell suggests beginning with small, testable projects. He underscores that an MVP must solve real problems for customers, recommending that entrepreneurs show their MVPs to customers to validate their usefulness.
Automate Customer Delivery: Purchase ...
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MVP Development and Automation
Additional Materials
Counterarguments
- While no-code platforms can speed up MVP development, they may limit the product's complexity and scalability, potentially requiring a transition to custom code later.
- AI-assisted platforms may not always provide the level of customization necessary for certain MVPs, which could hinder the product's ability to solve specific customer problems.
- Engaging developers for custom solutions, even with small projects, can be costly and time-consuming, which might not be feasible for all startups or entrepreneurs.
- Over-reliance on automation in customer delivery could lead to a lack of personal touch, which is sometimes crucial for building customer relationships and loyalty.
- Automation tools and platforms can sometimes fail or have bugs, which might lead to a poor customer experience if there's no manual oversight or intervention process in place.
- Validating an MVP solely through customer feedback might not provide a comprehensive understanding of the ...
Actionables
- You can create a feedback loop with potential customers by setting up a simple online survey. Use a free tool like Google Forms to ask users who interact with your MVP about their experience, focusing on the problem it solves and the core functionality. For instance, if your MVP is a new scheduling app, ask users how much time they saved or if they encountered any scheduling conflicts.
- Organize a virtual focus group using social media platforms to gather real-time reactions to your MVP. Create a private Facebook group or a Discord server and invite a diverse group of users to try your MVP. During a live video session, observe their interactions with your product and ask for immediate feedback, which will help you understand the MVP's practical value and identify any critical functionality that may be missing.
- Streamline your customer delivery process by mapping out each step an ...
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Mindset and Long-Term Growth
Successful entrepreneurs understand that the path to lasting business empire lies not just in short-term gains, but in a dedication to long-term growth and personal fulfillment.
Adopt a "Long-Term Greedy" Mindset for Sustainable Empire Building
To build an enduring business, one must focus on scaling skills and creating a suite of offerings that provide increasing value over time.
Build Skills to Sell, Scale, and Stack Offerings Over Time
As your business grows and your systems improve, raising prices to reflect the increased value you provide is a smart move. When your business generates substantial cash flow, it offers the flexibility to expand your portfolio through partnerships, in-house development, or acquisitions. The ultimate goal is to construct a business empire that fuels a life of unending creativity, one that doesn't necessitate retirement because of its sustainable and self-stimulating nature.
Be Your Best Self: Share Impact Strategies
Personal success and fulfillment come from both striving to be your best self and also giving generously of your time, knowledge, and re ...
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Mindset and Long-Term Growth
Additional Materials
Clarifications
- A "Long-Term Greedy" mindset means prioritizing sustained growth and value over immediate profits. It involves making decisions that benefit the business far into the future, even if short-term gains are smaller. This approach focuses on building lasting assets, relationships, and skills that compound over time. It contrasts with seeking quick wins that may harm long-term success.
- To "scale skills" means to develop abilities that can be applied broadly and efficiently as the business grows. It involves creating processes or systems that allow these skills to be used by others or automated. This enables the business to handle increased demand without a proportional increase in effort or cost. Essentially, it’s about multiplying the impact of your expertise.
- "Stacking offerings" means creating multiple products or services that complement each other and can be sold together or separately. This approach increases customer value and revenue by addressing different needs or stages of the customer journey. It also builds customer loyalty as clients find more solutions within the same brand. Over time, stacking helps scale the business by diversifying income streams.
- Raising prices as business systems improve reflects the increased value and efficiency your business delivers. Improved systems often mean better quality, faster service, or enhanced customer experience, justifying higher prices. Higher prices can also fund further improvements and growth, creating a positive cycle. Customers are generally willing to pay more when they perceive greater value.
- "Substantial cash flow" means having enough consistent profit after expenses to cover new investments without risking the core business. This financial surplus allows a company to fund growth initiatives like developing new products, forming partnerships, or acquiring other businesses. It provides the liquidity needed to seize opportunities quickly and sustain operations during expansion. Without substantial cash flow, expansion efforts may require external financing, increasing risk and complexity.
- Expanding through partnerships means collaborating with other businesses to share resources and reach new markets. In-house development involves creating new products or services internally using your own team. Acquisitions are when you buy other companies to quickly gain their assets, customers, or expertise. These methods help grow your business portfolio and increase overall value.
- A "self-stimulating" business empire generates ongoing growth and innovation internally without constant external input. It reinvests profits and resources to create new opportunities and improvements automatically. This reduces reliance on the owner's direct involvement for daily operations. The business continuously evolves, maintaining momentum and value over time.
- A business empire that is sustainable and self-stimulating generates continuous income without requiring constant active management. This financial independence allows the owner to choose how and when to work, removing the traditional need to retire. Additionally, ongoing creative engagement provides personal fulfillment, ma ...
Counterarguments
- Long-term growth is important, but entrepreneurs must also be adaptable and responsive to short-term market changes to survive.
- Scaling skills and offerings is valuable, but businesses must also maintain quality and customer satisfaction, which can sometimes be at odds with rapid expansion.
- Raising prices to reflect increased value can alienate existing customers or price out certain market segments, potentially limiting growth.
- Cash flow is crucial, but overemphasis on expansion can lead to overextension and increased risk, which might threaten the business's long-term viability.
- The concept of never retiring may not align with everyone's personal goals or definitions of success and fulfillment.
- While hiring smart, innovative individuals is beneficial, it also requires effective management and a strong company culture to e ...
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