Reflecting on Tess.Design: Lessons Learned from an AI Licensing Marketplace
Tess.Design, launched in May 2024, aimed to create an ethical space for AI image generation. Despite the buzz around AI tools like DALL-E, artists were often left unrewarded. Tess was designed to solve this:
- Royalty Model: Artists earned 50% royalties whenever their styles were used.
- Transparency: Every image was traceable to its artist, ensuring fair compensation.
We faced a challenging journey:
- Diverse Feedback: Found artists were hesitant due to concerns about brand dilution and the ethics of AI.
- Legal Roadblocks: Ongoing copyright litigation left publishers wary.
Ultimately, after generating $12K in revenue but accruing losses of around $7K, we made the tough decision to shut down in January 2026.
Key Takeaways for Entrepreneurs:
- Understand that creator adoption is challenging.
- Build clear moderation controls to preserve creative integrity.
- Be strategically focused for faster growth.
If you’re navigating the AI landscape, I invite you to connect! Let’s shape ethical AI together.
