Photo AI has today announced a 20% price increase starting October 3, 2024. In an email sent to its users, Photo AI says the starter plan will see an increase of $20, rising from $99 to $119 per year. The free plan was also earlier discontinued.
In an interview with Lex Fridman, Peter Levels, the founder of PhotoAI.com, revealed that the free plan was dropped because it was not making financial sense. The free users were not converting.
PhotoAI.com has grown substantially since its re-launch in March 2023, when Pieter Levels acquired the domain for $40,000 and revamped the product with additional automation features. According to data from Simple Analytics, PhotoAI.com receives approximately 295,000 visitors per month. Between August 29 and September 27, 2024, it gained 1,800 new paid subscribers and had 600 cancellations.
Peter noted on Twitter that Photo AI currently generates $161,000 per month, with a significant portion of that revenue being used to cover the growing costs of GPU expenses.
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