🤖 Notion Added AI & It's Too Good

Here's why it's an amazing move. Full breakdown.

Author

Darwin B
November 17, 2022

This is The Level Ups. Modern business news for the future business leader (in plain-Jane English).

Today:

  • Notion is introducing AI (it’s wild).

  • Taking workflows to the next level.

  • Breaking down the move.

  • The next step.

Let’s get into it.

Estimated Reading Time: 2 minutes & 17 seconds.

Notion Moves Into AI:

Notion is an everything app, and it’s one of the most successful in the world. Students, workers, entrepreneurs, and everyone in between uses it for pretty much everything.

It helps with notes, projects, journals, fitness planners, etc. Entire businesses are built on selling Notion templates. Like this:

Companies use it for their information database (their wiki). Freelancers use it to manage everything from clients, projects, and their teams.

Notion is valued at approximately $10B. It’s one of the most valuable tech companies in the world.

Next Level Workflows:

Now, it’s added AI. Chances are that the valuation could increase to $15B.

Notion AI is like having superpowers. They’re using an AI that writes for you.

  • Blog posts

  • Job descriptions

  • Sales emails

  • Press Releases

The list goes on. Type a short prompt, and the AI will write the rest for you. Touch it up, and you’re good to go. Imagine how much time it would save. I’m on the waitlist and will try it (all of these emails are written in Notion).

Breaking Down The Move

This move puts Notion immediately ahead of AI generators. It makes sense when you think about it.

This is all about retention. Anything to increase a customer's lifetime value. With software products, lifetime value is based on how long they keep paying for the subscription.

Here's a breakdown.

A $10/month subscription is $120/year.

Software companies valuations are typically between 5-10x their annual revenue.

Which means that one $10/month customer is worth $600 - $1200 in valuation.

If a customer stays for 3 years instead of 1, that single $10/month customer could be worth $1800 - $3600 in valuation.

That’s not all cash, but valuation is key because business owners can take loans based on their valuation.

So if the business is worth $2M, you can get a loan for $500k.

That 500k is not income, so you don’t pay tax on it.

Next year, when the business is worth $3M, you pay it all back and do it again.

People do this already with real estate. You just have to be careful not to borrow too much in case you have a bad year (like the year we’re in now).

So for Notion, who has over 20 million users, we’re talking about billions of dollars for keeping customers on the app for an extra year or two.

Adding AI does that. How many of those 20 million users will try an alternative? Not as many. Huge win.

It also puts them ahead of all their competitors at the same time.

The Next Step:

I signed up for the waitlist, but it’s not the only to start writing with AI.

Copy.ai is one of the original AI writers. Check these guys out to write with AI today.

One of my favourite things about this company is how the founder shares everything that’s happening with the business in public on Twitter.

They’ve got templates for everything (and they’re so good).

Give it a try. It will literally write for you.

Thanks for reading!

Darwin