Hey — It’s Nico.

This is Behind Tactics 🧠, the Failory newsletter where I share the strategies behind the best startups.

This issue takes 6 mins to read. If you only have one, here’s what you need to know:

• Side Project Marketing involves building free, useful tools to attract users and drive organic traffic.

• Advances in AI, like LLMs and coding tools, have made it faster and cheaper to create these tools.

• Startups like SiteGPT and individual creators are building AI-powered tools in minutes, without developers.

• This strategy allows startups to reach niche audiences and drive consistent traffic.

Let’s get into it.

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The Strategy

Tools in Minutes

Some time ago, I talked about how Wise created thousands of free mini tools, like their exchange rate calculator, and how this strategy helped them attract millions of visitors while keeping costs low.

In the last few months, this strategy has been gaining popularity due to recent advances in AI. Let’s see how many new startups have been following Wise’s example and implementing it.

A Reminder

The strategy Wise used is known as Side Project Marketing. It involves creating small, helpful tools to attract users and generate organic traffic. Wise’s implementation was a brilliant example of this. They built an exchange rate calculator that met a very specific user need: quickly converting currencies.

The idea is simple: Someone searching for currency conversion tools is likely considering international money transfers, making the calculator a natural entry point to showcase Wise’s services.

However, Wise didn’t stop there. They created thousands of variations of the tool—one for every possible currency pair and even for specific amounts like “100 USD to EUR.” This allowed them to rank for countless niche keywords, collectively driving millions of visitors to their site each month. While each individual page targeted a small search volume, the aggregated traffic from all these pages was massive.

At the time, this strategy required a lot of resources. Developers had to program the tools, designers needed to create user-friendly interfaces, and marketers worked on SEO optimization for each page. Despite these costs, it was worth it for Wise because it generated significant organic traffic and converted visitors into customers. However, for smaller startups, this level of investment was often out of reach.

AI Makes it Easy

Recent advances in AI have made Side Project Marketing not only easier but also more accessible to startups of all sizes. Two major developments have driven this change:

1) The Growth of LLMs

Tools like GPT have simplified the process of creating mini tools. In the past, building something like a business name generator required vast databases of names and sophisticated algorithms to combine them. Now, an LLM can do this with just a well-crafted prompt. The same principle applies to a wide range of tools, from quiz generators to content planners.

Take a look, for example, at how SiteGPT has quickly developed a variety of mini tools powered by LLMs. These include tools like an AI FAQ Generator and an AI SaaS Generator.

Without AI, building some of these tools would have been difficult or even impossible. By leveraging AI, even an intern was able to develop them independently.

2) The Growth of Coding AI Tools

Platforms like Cursor and v0 have democratized the ability to build tools. Previously, creating a tool required coding knowledge and access to a developer team. Today, marketers and product managers can use these platforms to develop fully functional tools without writing a single line of code. This drastically reduces the cost and time required to implement the strategy.

Take a look, for instance, at how Ian Nuttall quickly built a compound interest calculator using V0:

Or consider Josh Pigford, who uses Cursor and Claude to create mini tools in just 15 minutes:

These examples highlight how AI has made it incredibly easy and fast to develop this type of mini tool.

Should I?

Why This Works

• Boosts Organic Traffic: Mini tools usually will rank for long-tail keywords, which are easier to target and less competitive. Individually, these keywords may have low search volumes, but collectively they can bring in significant traffic.

• Provides Value Upfront: Offering a free, helpful tool builds trust and credibility. Users are more likely to engage with and remember a brand that solves their problem without asking for anything in return.

• Scalable with Minimal Costs: Once the tool is built, creating variations (like Wise’s currency pages) is inexpensive. Modern AI tools make this scalability even easier, allowing startups to target niche audiences without significant extra effort.

• AI Makes It Faster and Cheaper: Advances in AI, such as Large Language Models (LLMs) and coding tools, have reduced the need for manual work. Startups can now build, launch, and scale tools in a fraction of the time it used to take.

• AI has Unlocked New Types of Tools: AI hasn’t just made it easier to build tools; it has enabled entirely new kinds of tools that weren’t possible before. For example, AI-powered tools like personalized content generators, real-time language translators, or business idea generators can now adapt to unique inputs and deliver tailored outputs. This means that there are still a bunch of tools to create if you are creative.

How to Apply It

• Create tools your customers search for: Start by understanding your ideal customer’s pain points and the problems they search for online. For example, if your target persona is a small business owner, they might be looking for tools like “Invoice Generators” or “Tax Calculators.” Build tools that directly address these needs to attract high-intent users who are more likely to engage with your product or service.

• Convert Users with Strategic CTAs: Don’t stop at providing a helpful tool—guide users toward the next step. Add clear, well-placed CTAs within the tool that prompt the user to learn more about your service. CTAs should feel natural, offering additional value while encouraging users to take action, such as sharing their email or signing up for your product.

• Think Micro-Tools, Not Big Projects: Focus on solving one specific problem rather than trying to build an all-in-one solution. A lightweight, focused tool is faster to build and easier to rank for in search engines. For example, instead of building a full budgeting app, start with a “Monthly Expense Tracker.”

• AI Makes the Impossible Possible: Many tools that were once impossible can now be built with AI. Be creative and explore ideas that leverage these capabilities.

Yes, But

• Low-Quality Tools Can Hurt Your Brand: AI makes it easy to build tools, but rushing to release poorly designed ones can harm your reputation. Users won’t trust your brand if the tool is buggy, inaccurate, or unhelpful.

• Niche Markets May Limit Tool Reach: If your business operates in a very niche industry, it might be challenging to find tool ideas that appeal to a wide enough audience. This could limit the tool’s potential to drive significant traffic or generate leads.

• Users Might Not Trust AI Results: In industries like legal or healthcare, users may be skeptical of results generated by AI tools, especially if accuracy is critical. This can lead to lower adoption rates or a perception of your brand as unreliable.

Keep Learning

Others Playing It

• This guide explains how to do Side Project Marketing and has over 10 different examples.

• A few months ago, I discussed how Verse used AI to build a personalized “Internet Bedroom” for its users. This is a great example of a side project that leverages AI to create something both unique and highly shareable.

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That’s all for this edition.

Cheers,

Nico