How to Buy AI Tools Without Breaking the Bank (or Your Brain)

Let’s face it: Buying AI tools can feel like navigating a minefield blindfolded. One wrong step, and boom—you’ve overpaid for a chatbot that thinks “hello” is a complex query.

But don’t worry. I’ve got your back. Here’s how to buy AI tools like a pro (without needing a PhD in machine learning).

In today’s email:

• Know What You’re Buying (Hint: It’s Not Just Code) …

• Red Flags to Avoid (Unless You Like Burning Money)

• Negotiate Like a Shark (But Be Nice)

• Don’t Forget the Fine Print

• Use Dutch Auctions to Your Advantage

  • PS:

Know What You’re Buying (Hint: It’s Not Just Code)

AI tools are like onions—they have layers. And no, I’m not talking about ogres (though some founders can be a bit grumpy).

When evaluating a tool, look beyond the shiny demo. Ask:

• What’s the tech stack? (PyTorch? TensorFlow? Or just a fancy Excel sheet?)

• Does it have proprietary IP? (Patents, datasets, or secret sauce algorithms.)

• Who’s on the team? (A solo founder or a team of AI wizards?)

Pro Tip: If the founder can’t explain their product in plain English, run. Fast.

Red Flags to Avoid (Unless You Like Burning Money)

Not all AI tools are created equal. Here’s how to spot the duds:

• High Churn: If users are leaving faster than a sinking ship, it’s a bad sign.

• No Revenue: $0 MRR isn’t always a dealbreaker, but it’s a red flag.

• Overhyped Claims: “This tool will replace all your employees!” Yeah, right.

Joke Break:
Why did the AI tool cross the road?
To prove it wasn’t just a glorified toaster.

Negotiate Like a Shark (But Be Nice)

Buying AI tools isn’t a flea market, but that doesn’t mean you can’t haggle. Here’s how:

• Start Low: Offer 70% of the asking price and work your way up.

• Ask for Proof: Request audited financials or customer testimonials.

• Bundle Up: Buy multiple tools from the same seller for a discount.

Pro Tip: If the seller says “This is my final offer,” it’s probably not.

Don’t Forget the Fine Print

Buying an AI tool without reading the terms is like marrying someone without a prenup. Risky.

Before you sign:

• Check the IP: Make sure you own the code, not just a license.

• Review the SLA: What happens if the tool breaks?

• Plan for Growth: Can the tool scale with your business?

Joke Break:
Why did the AI tool get a lawyer?
To protect its artificial intelligence.

Use Dutch Auctions to Your Advantage

Here’s a secret: Dutch auctions aren’t just for tulips and art. They’re perfect for buying AI tools at the right price.

How it works:

• The price starts high and drops over time.

• The first buyer to claim the price wins.

• No bidding wars, no overpaying.

Pro Tip: Set an appropriate starting price and stick to it. (Yes, even if the tool is really cool.)

Ready to find your next AI gem?

PS:

“Forward this to 1 investor you know. If they join, you both skip our waitlist.”