Don't start an AI Automation Agency

Do not start an AI automation agency. I know that's probably not what you want to hear, especially if you've been watching all these YouTube videos telling you to go sell AI voice agents and chat bots to local businesses. But I'm going to save you six to 12 months of wasted time and probably 10,000 to like, $20,000 in lost opportunity costs. Because here's the truth. 95% of people who start an AI automation agency are going to fail within the first 90 days. Probably 99% of them. Not because they're lazy, and it's not because they're not smart enough, but because the business model itself is fundamentally broken. Really not efficient at all for beginners. And in this video, I'm going to show you exactly why AI automation agencies don't work and what you should do instead. If you want to actually make money with AI. Let's get into it. So let me paint the picture here of what happens when you try to start an AI automation agency. So you watch a YouTube video, some guy tells you, just go sell AI automations to local businesses. They'll pay you $3,000 to $5,000 per month. It's so easy. So you get excited and you make lists of businesses. You start reaching out, and here's where the first problem hits you in the face. And it's that nobody wants what you're selling. You send an email that says, hey, I can help you implement AI in your business. And the business owner reads that and thinks, what does that even mean? It's like if someone came up to you in 1998 and said, I can help you implement Internet in your business. Okay, but how? What does that actually look like? What am I getting? The offer is too vague. And because it's vague, you can't get people on the phone. Think about it like this. If I tell you I can build you a marketing funnel that gets you more customers, you know exactly what, what I'm talking about, and you can visualize the outcome, but I'll help you implement AI. That means literally anything. So right out the gate, you're fighting an uphill battle just to get meetings in the first place. But let's say you do get a meeting. Now you're on call with the business owner and they say, okay, so what can you actually do for me with AI? And you start throwing out ideas. Well, we could build you a chatbot for your website. We could set up an AI voice agent for your sales calls. We could automate your email responses. And the business owner says, okay, let's do the email automation thing. Great, you got a client. Now the nightmare begins. You start looking at their tech stack and they're using some random CRM you've never heard of before. Their email system is connected to three different platforms. They have custom integrations with their accounting software. They have a Zapier account with 47 different zaps that are completely incoherent and nobody knows who made them. And now you have to figure out how to integrate AI into this mess. So you start googling and you're watching API documentation videos at 2am and you're in Discord servers asking has anyone integrated make.com with this obscure CRM that literally nobody uses at all? Do you spend 40 hours trying to get a single automation to work? And then you hit a wall. The API doesn't support the feature you want, or the client software is too old, or there's some weird technical limitation that you didn't anticipate occurring at all. So now you're stuck. And here's the worst part. The client doesn't even have a clear process for how they do things in their business at all. So you're not just a technical implementer, you're now a business process consultant. So you're sitting there asking, okay, so when a lead comes in, what happens? Who, who handles it? What's the follow up sequence? And they're like, uh, I don't know, Sarah usually handles it, sometimes Mike does it. It depends. And you're not building an automation. You're building their entire business process from scratch. And you're getting paid $3,000 for what is actually $15,000 worth of consulting work. This is why most people quit. They get one or two clients, realize it's way more complicated than they thought, and they're out. Okay, but what about the sexy stuff? What about the AI voice agents and the AI chatbots? The stuff that looks really cool in demos? Here's the truth that nobody's telling you right now, but I' they're not good enough yet. And I know that's not what you want to hear. I know there are people on YouTube showing you demos of AI voice agents booking appointments and closing deals. But here's what they're not showing you. The conversion rates are literally terrible. I know hundreds of people running six figure seven figure eight figure businesses. And I'm in all these masterminds with all these very large business owners. So people with massive sales teams doing substantial volume, every single one of them. All of us have tried AI voice agents and AI texting agents. Not like we don't want this to happen. We don't want to have to sit here and pay for sales teams and these commissions. What we prefer if AI could do it. And every single one of us has ended up turning these AI voice agents off because they were losing us money. Every single one. I don't know a single person who successfully uses these and neither do you. It's literally more profitable right now to use humans. Here's a test you can do right now. Go try and buy an AI voice agent service from one of these companies selling them like the infrastructure, the high ticket ones, and go through their full sales process. I guarantee you at some point you're going to talk to a real human. Why? Because even the companies selling AI voice agents don't trust AI voice agents to close the deals. Think about that. The people making money aren't the people using AI voice agents for their clients. The people making money are the people selling the AI voice agent software because it looks cool in a demo and it's super impressive and it's like really futuristic and like, I think it looks really cool too and I really want it to work. But when you actually implement it for yourself or for a client and track the number, it's really, really bad and it tanks your and their revenue. It just really doesn't work. Now, will this change in the future? Absolutely. One day AI voice agents will be good enough to actually work. But when that day comes, you know what's gonna happen? 50,000 other people are gonna have the same idea as you. They're all gonna say, oh, AI voice agents are finally good. I'll just go resell them to businesses. And now you're competing with 49,999 other people selling the exact same same thing as you. And you have no differentiation or nothing to set you apart for them. Plus, here's the bigger problem. When you're just reselling someone else's AI tool, you're not actually providing unique value. You are just a middleman. So the second your client figures out they can go buy the same tool directly for one fifth of what you're charging them, they're going to fire you and buy it themselves. This is the same problem people have with trying to white label Go High Level. So if you don't know what Go High Level is, it's a CRM software that a lot of agencies try to resell. The problem is Go high level costs $97 per month and these agencies charge clients $500 per month. For the same thing. And when the client finds out they're just paying a 5x markup for something they could go buy themselves, what do you think happens? They get pissed, they fire you, and they buy it direct. That's exactly what's going to happen with the AI voice agents. To successfully run that as a business, you fundamentally have to be tricking your customers and being dishonest with them. And I don't know about you, but I don't want to build a business on decep. Okay, so if AI automation agencies don't work, what should you do if you want to make money with AI? Here's the answer. Don't sell AI. Sell proven marketing services where AI just does 90% of the work for you. So let me explain what I mean by this. Businesses don't want AI, they want results. So they want more customers, more revenue, better marketing, more leads. They don't care how you do it, they just care that it does work. So instead of saying I sell AI automations, you say, I build marketing funnels that get you more customers, or I create email marketing systems that generate revenue, or I write high converting sales pages in ad copy. These are proven services that businesses already pay 2,000 to $5,000 per month for, regularly, all the time. So there's existing demand for it. They understand what they're buying and they know what the outcome is. But here's the difference. Instead of doing all of the work manually like a traditional agency, you use AI to do 90% of the work. So let me give you a real example here. Traditional agency client, a marketing Funnel. You spend 100 hours building it and writing it. You charge $5,000. The hourly rate on that is about $50 an hour. Now, AI assisted agency client needs a marketing funnel. You use AI to build 90% of it. You spend 8 hours on strategy and quality control. You charge $5,000. Your hourly rate is $625 per hour instead of 50. Same exact deliverables, same client result 12x the hourly rate. That's the model. You're not not selling AI. You're selling proven services that businesses already want and already pay for and are easy to sign clients for. But you're using AI behind the scenes to deliver them faster and cheaper and more efficiently. The client doesn't care that you used AI. They care that they got a high converting funnel that makes them money. And here's why this works. The offer is clear. So I build funnels is way clearer than I implement AI. There's existing demand. So businesses already know they need funnels, email marketing and ad copy. You can charge premium prices because you're delivering high value results, like actual quantifiable results. AI does the heavy lifting, so you work 20 to 25 hours a week instead of 80. You don't need to be hyper technical, you just need to know how to use AI tools and check quality. So nothing with like backend API implementations and all that. You just don't have to do any of that. You're also not a middleman. So you're delivering a custom service, not just reselling somebody else's software. This is how you actually make money with AI. The best way for me to help you visualize this is for me to explain to you how banks used to work. Work. Okay, so back in the day before phones, when you went in and made a withdrawal at your bank, the teller had to literally write on a piece of paper that you just withdrew a certain amount of money. And then at the end of the day, they had to hop on a horse, link up with each other all the branches, and get all the pieces of paper from all the branches and make sure everybody's books were reconciled. So you couldn't just go like say you had a thousand dollars in your account, you go to one bank, you ride on over to the other one, you take another thousand dollars out. So you took $2,000 out. You get what I'm saying? It had to be reconciled. So then when telephones became a thing, they started calling each other instead. So saving hours every day because you didn't have to hop on a horse. Right. So then when the Internet became a thing, they started using immediately updating databases where every branch is synced automatically. The inception of the Internet did not make the business model of banking irrelevant. It made it more efficient, easier to start, easier to run, and easier to make money with. If you owned a bank, starting an AI automation agency is the effective equivalent of you starting an IT business. It's infrastructure level consulting, like wildly complex builds that require deep technical knowledge, with hundreds of thousands of intricacies that are insanely complex to manage and foresee. Instead, you can just take proven business models like running a marketing business, which is easy to understand and easy to run, and just learn how to use AI to augment that to be 100 times more efficient. That's exactly what I do, and that's exactly how I've been making my money. I literally made a video on my channel about how I used AI to do a $533,000 launch. AI made absolutely everything for me. Here's what's crazy. Most people are so focused on AI automation agencies because it sounds cool and futuristic, but right now there are thousands of businesses paying agencies 3,000 to $5,000 per month for marketing funnels, email sequences, ad copywriting, content creation, sales pages. And those agencies are doing everything manually. They're literally spending 60 to 80 hours per client per month. They're hiring copywriters and designers and funnel builders. They're paying salaries and managing teams and dealing with overhead. You can deliver the same thing with AI in 1/10 the time. They are the banks still using horses to reconcile the books at the end of every day. Which means that you can charge the same prices like 3k to 5k per month, but work 1/10 the hours and keep 70 to 80% profit margins. Because you have no giant team. Today, you can serve 4 to 5 clients comfortably. You can make 10 to 20k a month working literally part time. That's the opportunity. Not AI automation agencies, AI assistant agencies. You're assisting businesses with proven services. AI is assisting you with the fulfillment. The client gets the results, you get paid. AI does the work. So here's my advice. If you're thinking about starting an AI automation agency, don't. You're going to waste six to 12 months trying to sell a vague offer, getting stuck on technical implementations and dealing with AI tools that don't actually work yet. Instead, start an AI assisted agency. So you're going to pick a proven service that businesses already pay for. You're going to learn how to use AI to deliver that service in 110 the time you're going to charge premium prices and you're going to work 20 to 25 hours per week and make 10 to 20k per month. That's the model that actually works. And if you want to learn exactly how to do this, we just launched a brand new program that teaches you exactly what services to sell, how to use AI to deliver them, how to get clients, and how to charge premium prices. It's called the AI Assisted Agency program. The link is in the description. There are already hundreds of of people inside getting results. The goal is to have you signing clients within the first 30 days and be on track to fully replacing your income with a new opportunity that lets you finally have time, freedom and be able to actually enjoy your life and do whatever you want. So if you're serious about making money with AI, don't start an AI automation agency. Start an AI assisted agency. So click the first link in the description. I'll see you inside and if you found this video helpful, hit the like button. Subscribe if you want more content around building an AI assisted agency and drop a comment below. Are you thinking about starting an AI automation agency or are you can start an AI assisted agency instead because it's obviously a better route? I read every comment. Thanks for watching. I'll see you in the next one. Peace.