I Started An AI Agency From $0 To Prove It's Not Luck

There we go. You got me now? Every time I unplug my computer, I have to turn this little switch back on. You guys got me now? Is that good? All right, cool. So beautiful. Anyway, what I was saying, what we're going to be talking about in this particular live stream in this video is how, you know, basically I started an agency about a month and a half ago from scratch, scaled it to $50,000 in its first 30 days. And I'm going to walk you guys through the entire process, everything we did, everything that went behind it. Oh, literally, other than showing you guys the exact niche, because my friend is now running this business and he's trying to scale it to a million dollars a month. So I don't want to reveal everything, but I will give you guys as much as I possibly can. So I put together a whole document. I'm going to show you guys what this looks like. And my whole goal with this video and with this live stream is that you guys learn enough to where you can basically go and kind of replicate the same success. I know some of you guys already have agencies, some of you guys are just getting started, but most people are doing less than 100k a month, I would say. And so I think this is really valuable because, you know, if we can take something from 0 to 50 in its first 30 days, it should prove to you that it's possible to get to whatever your goal is. Some of you, it's 10k a month. Some of you, it's 30. Some of you, it's 50. Some of you, it's a hundred. The point is, it's not complicated when you have the right systems and you approach it from the right way. All right, so first and foremost, you guys can see right here, 55, $965 in the first 35 days. This is from only four customers. Only four customers. You can see all the screenshots right here. I blurred out their names, but you can say 19,000, 10,000, 4,000, 21,000. All right, so this is all 100% doable. And you can see the dates. It's all within the month of December during Christmas, when everyone says it's impossible to sell anyone. In fact, I literally heard that excuse from some people in the group. Nobody's buying because it's December. Completely obliterates that. Right. So let me give you guys a little bit of a backstory on how this business got started, and then I'll walk you guys through, like, what we actually did and how we found the software. So again, I think it was muted when I was saying this earlier, but my friend was looking to start a new business in like the AI lead generation, AI marketing kind of space. Came to me. He had found this particular niche, this particular offer that he had seen other companies doing really big numbers with, you know, multi eight, some even nine figures. And we simply essentially wanted to emulate this and start this business ourselves. So let's start off with what I think is realistically the number one thing that people get wrong when they're trying to start a new agency and start a new business. They worry about all the wrong things. They worry about their sales skills, how they're going to market it. They worry about the AI, the tech, the fulfill, all this stuff, right? This is the only thing that you need to have a successful business, right? Or at least the first thing. If you get this right, everything else will become easy. And that is called a landmine of demand. All right, so what does that essentially mean? Well, basically the concept of a landmine of demand is you want to walk. So here, I'll paint you guys a little bit of a visual. I made a picture. So let's say you're walking in the desert, all of a sudden you step on something and it's like literally a landmine is exploding. You're 15ft high in the air. It's that same concept. But instead of you stepping on a landmine, it's literally just the demand of the market is so strong that it just propels you to the next level. Right? So ultimately, I think we would all love to just immediately find a landmine of demand, right? Like, obviously this would make business easier if all of your customers were just begging for what you had to sell. In other words, other people will call this a starving crowd. You have to have a starving crowd. It doesn't matter how good your offer is, doesn't matter how good you are at fulfilling. If there is not a starving crowd, you will not make that much money. Okay? I want you guys to get that through your head. This is a lesson that I've had to learn many, many times. I've learned it on the side of having a starving crowd. And then it just is a rocket ship. And I've also learned it on the side of not having a starving crowd. And it's like spinning your wheels and in quicksand. Starving crowd. Having a starving crowd is the biggest determining factor of your success in business. Okay? You want to locate a pre existing massive, insatiable demand for a specific result. And I'm coining the term landmine of demand. My friend came up with this. I'm going to coin the term. All right, so it's. We call it a landmine of demand when the market literally is pulling the offer out of your hand. So how do you actually find a landmine of demand? Well, there's a couple different things, all right, I wrote them down, down here. I already went through the origin story. I'm not going to rehash this. How do you identify the landmine of demand? Okay, a couple things you want to look for specifically when it comes to a niche. All right, so two things. One, I'll show you guys the steps to find a landmine of demand. But you have to understand that whenever you're looking for a starving crowd, you want to look for a starving crowd that has the resources to solve the problem that they have, right? So give you a perfect example. There are infinite people out there in the world that want to become a millionaire and become rich, right? That's why you see all these courses people sell. You know, all you have to do is buy a supercar and move to Dubai. Next thing you know, you can sell a course. There's a insatiable amount of demand for that product. However, if you were selling to poor people who don't have any money and don't have any resources to improve their life, they have the demand, but they don't have the resources to achieve their desired outcome, right? They don't have the resources to create a good business for you. Right? So you need two things. You need a starving crowd that has resources. Does that make sense? So don't just say, oh, well, I'm going to just go serve homeless people. Like, okay, you can volunteer and help homeless people, but you don't want to create a business off of selling to homeless people. Okay? You want to look for people that have a lot of resources. So how do you find people that have a lot of resources? Well, one, we've talked about this in our niches video. These are some new things that I want to add to that. Again, they sell high ticket items. Don't sell to barber shops, don't sell to massage parlors, don't sell to, you know, like people that mow lawns. Lawn maintenance companies. Like, you don't want to sell to those people. You want to sell to people that are selling high ticket, big ticket items, $5,000 plus per transaction. Wealth managers, lawyers, home remodelers, high end, high end services, things like that, roofers. These are the industries, niches that you want to look at, okay. The next thing you want to look for is heavy ad spend. Okay? This is such a green flag because if somebody can run TV ads successfully, it means that they're, they've reached a point financially where they can just throw money at a channel and not see a direct ROI from it. Right? Facebook ads, for example, Google Ads, YouTube ads. When you run on those platforms, it's direct response marketing, meaning I put a dollar in, I immediately see a dollar out, and I can track all of the metrics in between. With TV advertising, a lot of times it's literally just a branding play. You know, like when you see a Coca Cola ad on TV or a State Farm ad, like there's not always a direct call to action that they're tracking. It's just awareness, brand. Same thing with billboards, obviously, right? Radio, tv, billboards, all of these ad platforms. If somebody's spending millions of dollars on these, just know that they're probably making a lot of money. So if you see a niche that is spending a lot of money on these platforms, they probably have a lot of money to throw around and they're willing to give you a piece of it. Right? This particular niche that we were serving, a lot of them, a lot of the companies spend hundreds of thousands, millions of dollars a month on marketing. If I just get a tiny little sliver of that to go to me, I can build a whole business, you know, relatively overnight, which is exactly what happened. Okay, next, industry stability. You want to find, if possible. This is not a requirement. These are all just the best things possible. The high ticket sales thing is definitely a requirement. Industry stability is an ideal, but you can still run a business without that, right? So businesses that stay open for 30 to 50 plus years, stable recurring revenue. Okay. When you're building an agency, you want to have MRR monthly recurring revenue. Right. If a business pops up and then goes out of business immediately, they're not going to be able to give you MRR because they're unstable. Your business will be unstable if your customers. Businesses are unstable. Okay, so that's the checklist there. How do we identify a landmine of demand? Okay, there's a few ways. Where did I put this? Okay, let's see. Where did I put the checklist? Okay. Doesn't look like it's on here, but anyway, the ways that you identify a landmine of demand is one, you can look on forums. So people talk online and they'll literally just tell you exactly what they want. Right? So if you go into a Reddit forum. If you look on YouTube comments, if you look any kind of online forum for that specific niche, you'll find tons and tons of. They'll just post their ideas and their thoughts and their complaints and what they want. Okay? So one is just entering the mind of your customer, whether it be through forums, whether it be through talking to them, watching podcasts, videos, and just seeing, like, what are they continually asking for? Another thing you can do is literally just talk to them. So one of the things I talk about on this channel is doing the podcast method. So you basically reach out to people in your industry, in your niche, book them on a podcast, ask them about their common frustrations, pain points, dreams, desires, what their ideal solution would be. And that will help you identify landmine demand. The easiest way, I would say, is just one, looking at what other competitors are doing. You know, people that are making lots of money. The cool thing is, is when someone is making a lot of money, they usually want to go talk about, right? So your bigger competitors in the space. For example, we found like two or three big companies in this industry that we were looking at that all had podcasts that they would go on and they would just spill the guts of how they ran their entire business. You know, they would say their numbers, they would say everything, right? So we could just go and watch that. And if you see a lot of people in a space that are just crushing it, that's a good identifier of a landmine of demand. And then the last way is literally just launching ads or doing outreach and seeing how the market responds. When you get a overwhelming response to an offer you're putting out there, that's how you know you found a landmine of demand. Okay, does that make sense? Everyone understand that? Starving crowd, landmine to demand, kind of synonymous, but I like the landmine one. Cool, irresistible offer. The golden rule. And you can go either way with this. But I will just say this is what I would recommend doing. I would rather sell a business or sell a product that is easy to sell than easy to fulfill. Okay? Because if you sell a product that's easy to sell, you now have money where you can solve your fulfillment problems. If you just try to go and do an offer that's super easy to fulfill, then it's oftentimes harder to sell, and you have to spend more time just getting money as opposed to delivering the service. If it's. If your sales is easy, you'll be able to raise a lot of cash, get a lot of cash to then solve your Fulfillment problems. Okay. You look at any of these, like, big businesses, you know, like massive businesses. Amazon, for example, easy to sell, overnight shipping, hard to fulfill. They figured out how to fulfill it because they got everyone's cash and then figured out how to fulfill it. Right. Facebook, social network for everyone. Very easy to get everyone on there when it's literally free. And then monetizing with the ads. They've made billions, trillions of dollars at this point. Right. So I'm not saying you have to build the next Amazon or Facebook, to be clear, but I'm saying find an offer the market already wants and then figure out the fulfillment. Okay. If it's easy to sell, you can use the cash to solve the. All right, cool. Next. There's three main offer structures when it comes to building an agency. All right, three main offer structures. I'll walk you guys through the one that we did. But this is very important when you're first getting started. A retainer model where a client basically pays you a fixed monthly fee for your services. It's very easy to fulfill. Right. You get quote, unquote, predictable monthly recurring revenue, but it's high perceived risk for the clients. So it's harder to sell without a strong brand or testimonials. This is why you see people that have to do, like, crazy guarantees when they're first getting started to sell a retainer. Okay. I would say I used AI to help me build some of this. I kind of like filmed the whole video and then included the transcript. I would say that this model could be good for beginners, but it's harder to sell. It's harder to sell in the beginning. Okay. The next thing, revenue shares. So you take a percentage of the revenue that you generate for the client. Basically, let's say you take a business, they're doing 50k a month. You say, hey, I want to take 10% of the revenue that I bring you. In addition, you scale them up to 100k a month. You've added an additional 50k in revenue. You would take 5k per month. Okay. The great thing about this is it's literally all the incentives are completely in line. The cons are you have to have trust that the client's actually going to pay you. Causes a lot of issues. I know people that make tons of money with the revenue share, but this is one of those things that I would recommend doing. Once you're already established and you have a skill set, start doing rev shares in the beginning. You're just going to over complicate everything. Okay. Last model, which is exactly what we use in this new agency we scaled from 0 to 50k a month, is the pay per X model. Okay, the way this works is you have clients that pay a fixed price for a set number of guaranteed outcomes. Okay, I'll explain that more concretely in a moment. So you're basically selling leads, calls, appointments. Clients showed appointments X can be subbed out for anything, right? Pay per X, pay per lead, pay per call, pay per appointment, pay per client. You guys get the picture. This is very easy to sell. It is more difficult to fulfill because you are bearing the risk of the cost. Okay? Very, very, very easy to sell. Okay? So if you are brand new and you're just getting started, what I actually recommend doing is doing a retainer model with a guarantee and then once you know your costs, switching to pay per X because you can scale faster and it's easier to sell. Okay, So I basically plotted out all of the different things you can sell with paper X. And on the far left here you can see easiest to sell, hardest to fulfill, paper client. If you could literally just take a business and say, every time you give me $2,000, I'm going to give you a client, they would just pay you $2,000 over and over and over again. Right? Extremely difficult to fulfill. Pay per show, very easy to sell, harder to fulfill. And you can see the spectrum. Pay per lead is harder to sell than pay per client, but it's much easier to fulfill. Does that make sense? You guys get what I'm saying? And it's all listed out here, by the way. If you guys want this document, it's going to be posted inside of the free school community at the end of this live. So what did we do? Okay, so I've kind of explained the different types of offers you can do. Giving you guys a little bit more of like the background. So you understand the concept. What we did is we did as close to paper client as possible. So basically we guaranteed a set number of customers and the client would pay upfront for the package. Okay, so for example, we're going to give you a customer per $2,000. Well, the way that it would that it worked, I'll use home remodelers as the example. That's not the actual niche. But just so I can kind of explain the example without giving away the exact niche, let's say it was like, hey, you pay us $5,000 per signed project. Meaning somebody has come to us, they have decided that they are going to do a home remodeling project, and then we get them to agree to sign up, and then you pay us $5,000 per one of those customers. That is essentially what we were selling. Okay. I'm not saying that for a beginner. You should do that to be 100 clear. It's more complicated. There's a lot that goes into that. But just so you can see, when you have an offer like that and you have fulfillment dialed in, you can sell. Like, it's very, very easy to sell those packages. Okay, so let's see. I'm gonna take a second to answer a couple questions. So dubs in the chat. Love it. Appreciate you guys. Pay per x implies that you handle the ad spend. And this example, yes. Doesn't necessarily always have to be that way, but it makes it a lot more simple for the client. Right. Way more simple. Removes all the risk. I'm getting to the point where I believe that the quicker you can get your sales pitch off and the faster you can explain the offer, the better it is. Right. If I can explain an offer to you in five minutes and you're interested versus it takes me an hour and a half, that's a superior offer and a superior product. 250 pay per client. 2500 upfront for 10 clients. Yes, sort of. But I mean, obviously, per. To sell them a client, it has to be more than that. Like, we're gonna have to charge a lot more than that. So the industry standard for the niche that we were in to charge per client was like $3,000 per client. Usually you. You pay around $1,700 to $2,000 to fulfill. So the rest of that ends up being profit. Right. And if you work with these really, really big clients, they'll spend $100,000 a month or more with you. So pretty crazy. Yeah. Correct. That's how we frame it. Exactly. Cool. So let me go through. How did we actually generate the customers and generate the leads to then sell them? And I'll walk you guys through the sales process, everything, and then my biggest takeaways for you guys and how you can take this and implement it into your journey as well. So what we did, the ad strategy. When you have a really good offer and you are selling to a starving crowd, your ads don't need to be complicated at all. They're very simple. You don't need, like, some super complex copy and funnel and VSL structure. Like, you can add that, and those things are good. But when you have a really, really good offer in a starving crowd, it's much More simple. So we literally just used simple image ads that we made with AI. Simple video ads that we made with AI. You guys have seen the tutorials on my channel. And then we sent them to an application page and then they would book on our calendar. So here were, here were our numbers. So we spent 6913.72 on Facebook. We booked 150 appointments. $46 per qualified call, 85 appointments showed with a 56.7% show rate. All right, so we got 85 shots off. You guys saw earlier, we closed for. There's more in the pipeline that we'll potentially buy a little bit of a longer sales cycle with this market. So let me kind of show you what the best, what the best ads were for us. So literally we were basically just running these two ads. Attention home remodelers. We help you get, you know, leads, appointments, whatever. We help you get X number of new projects signed every month on a pay per result basis guaranteed. Click here to see if we have spots available in your area. Like, that was literally it. That was everything. The other one, five reasons why smart home remodelers only pay per signed project, not per lead. And then we just left list out five reasons why paying per project was better than paying per lead. Literally just that. And it got us $46 cost per qualified appointments with like very financially sophisticated customers. Couple questions here. What if your clients screw you? Like, refuse to pay after you close, you charge them up front. So it's a, it's a little different. Like, okay, you're not actually getting the clients to pay them. With this market, the way that it works is like the client agrees to work with this individual and then they get them a percentage of what they. Without refueling everything. Basically, the clients we were working for, they work on a pay on results basis, right? So it'd be like if a home remodeler only charged you after they built your house. So you're not actually having to collect money. You're just getting them to agree and sign a contract saying they'll work with this individual. Does that make sense in the market that I was in? Every market's a little bit different. But the principles that I'm teaching you guys still apply. I'm not like, don't go and do pay per customer unless that's like something that is that you're confident you can deliver on and you have costs. So, like, you have costs that you know are in line with what you would sell for. But the point of what I'm Trying to show you is like you want to structure your offer in a way where it's a complete no brainer and you're tapping into a starving crowd. That's really the point of what, what I'm showing you guys up to this point. I'm not saying go and do pay per customer. That will probably end poorly for you. The reason that we were willing to test an aggressive offer like that is because I have experience with marketing and fulfilling those things and we had cash to burn if things went wrong. So like for example, you know, you guys saw we collected like $56,000. Worst case scenario, if we can't deliver on this, we have $56,000 to burn. Trying to deliver the customers. That make sense. But like, if you're just starting out, I wouldn't go and do that. We actually didn't even use the podcast method for this. We literally just ran Facebook ads. So good questions. What would you have done differently if you did not have capital and were bootstrapped? To be clear, this was bootstrapped with $1,000, but we collected $55,000. So I can use their money to fulfill fill it. What I would have done differently if I was just starting off is I would have sold. I would have started off with a retainer with a lead guarantee. I guarantee you X number of qualified leads with certain amount of ad spend and a retainer. And then once you figure out and have optimized your costs in terms of what it costs to deliver a qualified customer of a qualified lead, then I would launch a pay per X model. Okay, so in my main agency we still do a retainer, right? We still do a retainer. If I was just getting started, I would do retainer with a guarantee. And then once I again, once I had an idea of my cost, then I would launch paper act. Does that make sense? So like now in my main agency, we're launching a pay per show deployment model. I'll keep you guys posted with how it goes. Right now, you know the cost per call on that model is way, way better than the like the retainer offer we put out. But I'll keep you guys posted with how it goes. But that's what I would do because the retainer, you don't have a ton of risk. You get paid regardless and you can't lose money delivering it. Makes sense. So this is literally what the funnel was. Simple ad, literally just an image ad. You guys have seen me make these on other lives. If you haven't, just go and check out my how I run ads for my 500k per month AI agency video. So it's a simple ad to an application and then a calendar booking. That's literally all we did. And the result was around 46 cost per qualified appointment. Now, what happened, and this is probably similar to what some of you guys run into very commonly, is you kind of start to like hit a wall with sales. So you can see here on the proof, look at the dates on this. So first client sold December 1st, next client sold December 12th. So we went 11 days in nearly 100 sales calls without closing a single deal. Right? 100 days or 100 calls, 11 days without closing a single deal. Now, the objection. Let me know if you guys ever heard this. When you jump on a call, they're like, oh, this sounds great, but who else have you done this for? Do you have any case studies or testimonials? Drop a 1 in the chat if you've ever gotten that objection or that question from your clients when you're trying to sell. If any of you guys have, you know, jumped on sales calls, I guarantee you've heard that right. The reason why is it's simply just a trust objection. They just clicked on some random ad or they just respond to some random email that you sent them or whatever, jumped on a sales call, your pitch sounds good, you have good vibes, they like you, but they don't trust you enough to pay you whatever you're asking. In this example, we were asking them for $20,000, so of course they were going to give us this objection. So what we did is we had this idea to launch something called the Ambassador program. And to be clear, we didn't close anyone on this specifically, but I think that this would be helpful for some of you guys. And also I think it eased a lot of the prospects. They didn't actually go for it, but it made them a little less skeptical. So what we did for the people that said no, initially due to a lack of proof, we basically made them a special offer. So we said, hey, you know, whatever prospect name, I know you're really interested in what we were doing, but you wanted to see some results first. Here's the thing. We're launching an Ambassador program for a select few partners. So what you basically do is you give them a discount of the service, or if you're doing a retainer, you could do it for free. That's cool. You give them a significant discount in exchange. All you ask from them is that once you deliver them the positive results, they will be willing to speak to future profits prospects who ask the same question that they asked. Right? So say, hey, we're taking on three of these clients right now because we get this question a lot. All of our other clients are too busy to answer these questions. But if you would be willing to take those calls and when someone asks for a referral, you'll talk to them and tell them about your experience. We'll give you this at X significant X discounted rate. Right? So you're basically reframing their objection into an opportunity for them. But the thing is, most people just don't want to do that. Most, most people don't want to be your ambassador because once you start scaling and you're talking to people consistently, they're just going to have to answer random client questions all the time, which they probably don't want to do. So in a way it makes them realize that their request to speak with a bunch of different people is a little bit unreasonable. Because, for example, like within our own agency, we take probably 12 to 20 sales calls a day, depending on the day. If all of those 12 to 20 people wanted to speak to somebody and I sent them to one of my clients, they would literally be talking to people all day long. Right? So when you explain it that way, it eases their mind quite a bit. Right. And if they choose to do it, then you just have an ambassador that will help you overcome that objection every single time. Like if someone is actually on the fence and they just want to talk to one of your clients, if you have somebody that will then talk to your clients, you're going to close a lot more deals. Very simple. So then what we basically did, this was kind of an idea we had. This is not what actually pushed people over the line. What pushed people over the line, and this is very important is every call you do learn one thing. Every call you do learn one thing. Again, we went into a brand new niche, brand new offer, brand new company. Nothing was the same from our existing business. We didn't know anything about how this niche operated or how they work or the questions they would have. And so likely we got lucky. On the first deal, we closed for 21k and then reality set in for the next 100 calls because we didn't know how the to talk to these people. Right? And they could sense that. So what we did is every call we had, we would write down why didn't they buy, what are questions that we didn't have answers to, and what are some new things that we need to add to this offer or take away. In every single call we took, that data iterated on it for the next call. So like, they would ask us questions we had no idea how to answer. Immediately after the call, we would go and figure out how to answer the call, that question moving forward. And that's what you have to do, right? When, especially if you're first getting started, you're getting your first few customers, you have to collect data and then act on the data. If you're not closing deals, that's good. That's a sign that you can improve, right? It's a sign that you're doing something wrong. Because I guarantee you there are other people that are making money in the exact industry that you're in. So you take data, you go and execute, you go and implement, and then you move forward. And it's just that constant refinement process of just improving this, improving that, improving this, improving that, and next thing you know, you're there. All right? And for us, once we hit our next deal, you can see the, the, the other ones just kind of like flew in. So it was like December 12, December 22, December 31. So still a little bit of a gap. Obviously it was the holidays, but the momentum started to pick up once we kind of figured out how to talk to these guys. So here were the results. 50k in revenue, like 55k, four clients closed. Average deal size 12,500, $6,914 spent, 150 appointments booked. And you guys can see all the data here. So to recap, number one, find your starving crowd, your landmine of demand. Again, this was AI, so don't take this literally. I would say for you guys, do a retainer with a guarantee and then eventually test the Paper X offer. You're going to run simple direct ads, use whatever kind of ambassador program or whatever you need to do to get your first few clients and testimonials and then go from there. So that's what I got for you guys. Questions on how we did that or questions about what you guys are doing specifically happen to answer them for our remaining time. A $46 MQL I would say is unusual for any industry, at least from what I've seen. That's really low, especially for the caliber of people that we were getting on calendars. So, yeah, I mean, if you're getting a 46 MQL and they're like actually qualified people, you've got a money printer on your hands, you know. But if they're 46$MQLs and they're, like, broke, you know, probably not, but 46MQL is, like, really good if you're getting actual qualified leads to have money. Will there be a video on fulfillment? There already is. We did a bunch of videos on that. I think it was two or three weeks ago, but we did two live streams in a row on fulfillment. So I'll drop you the link to that. But those. I would definitely recommend checking those out. How to do fulfillment and how to make ads are the two videos. I'll drop them in here for you. Good question. All right, what else do we got? What other questions, Ladies and gents, let's see if there's any others. So while I'm waiting for more questions. Sure. Here we go. I'm currently doing niche research. My dad is a general contractor here in the uk and I'm thinking of going into the home improvement niche, but don't know which sub niche to target. I mean, I've seen people do well with like, bathroom remodeling. I mean, realistically, just like, if you're in home improvement, I would. The way I would look at it is like, who makes the most money in home improvement and spends the most on marketing? And then that's what I'll go after. Realistically, I don't know that much about the home improvement market. My experience is more on the finance side. But general principles is like, find somebody that's already making a lot of money and then also look at what are the other AI agencies that are doing well in that space and what niche are they going after and then just emulate that. To be honest, would you say cold ads or cold email might be easier to run for the dental niche? I would say, to be honest, that's. That's the wrong question to ask because I have no idea, right? Like, I've never done anything in the dental niche. Ads work, cold email works. Just go. You probably just need to do more of one or the other, to be honest. But, like, just by the way, the question that you're asking is like a question that comes from lack of experience. Like, the people that are making money are not thinking in that way, right? They're not saying what's going to be easier to run in this niche or that niche. Because, you know, I'll give you a perfect example. Like, I won the school games, like 2024 or whatever, and I went and asked Hormozy a question and he's like, dude, I don't fucking know. Just test it. And it's like, there's no such thing as, like, I know you can ask chat GPT and it'll give you, you know, some answer. Like it's 100% sure, but nobody actually knows until you just test it. So like you asking me what's going to be better ads or cold email for the dental niche? Like, I have no idea. You just need to test it and then find out what works best for you. You know, like, cold email might be the best thing in the world or it might not work that well. I've very rarely seen ads not boost the business, so I'm, I'm more of an ads guy personally. I haven't really done too much with cold email. We did a little bit of cold email with this new offer, but most of our clients came from ads. So the biggest thing is like, with something like that, you just have to test it. You just have to test it. I have an AI automation agency for student enrollment. Agencies offer Speed, delete, automation and CRM. I have one client from uk. He loves my service delivery, but can't see how I can get more. Well, the way you would get more is you would make content about what you're doing for that guy. You would reach out to student enrollment agencies in the uk. I don't really know what exactly what that is, but fill me in. Or you would run ads. So those are like the three things that you would do. You'd either make content, do outreach or run ads. So the way you get more clients is do one of those things a lot. And if you don't get more clients, you're doing one of those three things wrong. So have you tried, like, what have you tried, you know, have you tried reaching out to people and do you have a concrete offer that you can put in front of them and you say, hey, this is exactly what we're doing. This is the result that we got for this guy. Do you want help or are you just saying you can't seem to get more and you haven't tried those things? What's the expected client churn within first year and net margins in your experience with an AI agency? Totally depends on the offer, the niche and the market. For example, the market that I serve is insurance agencies and agents. The average insurance agent in their first, in their first five years. In the first five years, 92% of insurance agents churn and leave the industry. So my churn rate would be high compared to somebody that's selling to, you know, an established roofing business. Right. So, you know, for me, my turn rate would be higher than somebody else simply because of the industry that I'm in. You know, if you're doing services for brand new businesses, you're going to have higher churn. You're doing it for more established businesses, you're going to have lower churn. Net margin also would depend, depends on how good your offer is because of the arbitrage that you'll get on ads. But I would say like a good margin to shoot for would be anywhere from 20 to 40, 50%. I know it's a massive range, but it really just depends. Like some people can do 50, 60, 70, 80% if they're not doing any ads and they're doing all outreach and they're selling to businesses that never churn and they have low costs, that's 100% possible. But for other people, you know, they might be doing a lower margin, but they maybe are doing more revenue and so they're making more profit overall at all, overall in general. So different things, you kind of, kind of got away there. It's hard to say an exact margin because like in any business, it just varies so wildly. But a good margin is, I would say anything above like 30%. So the student enrollment centers are affiliates, universities. They get students to go to universities. To be honest, I didn't do anything at all. It's hard to get access to owners. I just tried to deliver for my client for now. Well then, yeah, of course you can't get new clients because you're not doing any of the things that you would need to to get new clients. So I guarantee you it's not that hard to get access to those owners if you, you know, go on a service, scrape their info and call them or email them, or you know, run lowbudget ads. I don't know how big that niche is. I don't know if ads would actually make that much sense for it. But you know, if you do outreach and, and get in contact with other people that have that service and deliver that service, you'll certainly, certainly be able to get more clients. But before starting to run ads to acquire B2B clients, what budget would you want to have in order to be comfortable doing it? Especially if you've never done it before? I'd say a few thousand bucks realistically. And I wouldn't like if you've never run ads. I wouldn't only run ads. I would also do cold outreach to find more clients that way as well. So I would be doing ads and outreach simultaneously. Ads will get you more people faster. That have expressed intent in what you offer. Outreach will. Outreach doesn't cost anything, right? So it's like the more outreach you do, the more clients you close from outreach, the more you can invest into ads and scale and grow. So that's what I would do. I mean, a few thousand bucks, it really depends on like what are you comfortable with. You know, like if you have five grand saved, I mean you don't really need, you don't need to spend five grand before you know if your ads are working. You could probably spend like 2 to 3 and have a solid idea. Good question. What else we got, ladies and gents? Did you guys have any sales assets for that new agency? No, no, literally nothing. We didn't even have a website. It was literally just a funnel and a made up name and some ads. So no, no, that I would recommend having sales assets. That would have made it easier. We kind of started to build things out as we went. But in the beginning, no, no. And that's just like, that should show you guys that yes, there's a lot of things that you should have and that you, you should add on. But like that whole business was just a perfect example of the execution of don't overthink things at all. You know, like we just kind of like just ran and figured it out and it was wildly profitable as you guys could see from the numbers. I mean $7,000 spent, $55,000 collected. Pretty good. No, we did all ads. We did all ads on that, on that agency. All ads. Well, actually no, we did some cold email, but we didn't. I don't think we sold anything yet from code. Might as well. One of those clients might have been from cold email, but yeah, it was cold email and ads, but most of the customers came from ads. Good question. What was the monthly budget on ads? We were spending couple hundred bucks a day. We started 100 and then scaled up. Yeah, yeah, yeah, yeah. But yeah, I mean like again, if I was starting off, starting over, like literally you got, you guys got to realize also like I have skills from a couple years of doing this, but if I was literally starting from scratch, what I would do, I would charge a retainer. I would have a guarantee attached to whatever I was offering. I guarantee you will get X result or I'll work with you for free until you don't or I'll, you know, do it. I guarantee you'll get X result or you don't pay whatever it is. And then I would go through and get customers, figure out what my costs are and my margins are to deliver a certain result. And then I would launch a pay per X offer. So for example, in our main agency, you know, I've been running ads for some of these insurance products that we do going on two years now. I know what it costs for me to get a lead and for me to get an appointment and for me to get an appointment to show. So I'm going to launch an offer. In fact, we've already launched it. By the way, this is separate from the new agency. To be clear, for anyone that doesn't have full context, I'm launching an offer. You only pay per showed appointment. I know based off of what I'm pricing it at, that I can get a show for this cost. Right. So if I sell it for this cost, I have this margin in between. Right. And I can pay people to call me leads. I can use AI, whatever. If you were just getting started off, I was just starting off. I wouldn't know what it costs to get a showed appointment. I wouldn't even know if I could deliver a show. Right. So the retainer model gives you more cushion to figure all those things out. And then once you know, you can go and make that grand slam pay per X offer. Would you sell lead packages to the big insurance companies? Yeah, I've done a little bit of that for sure. I want to lean more into that. Most of what I've been doing is like, you know, medium sized agencies and agents. But yeah, definitely, definitely. We'll, we'll get into that for sure. I have one contract I'm working on right now with a, you know, pretty big insurance company. Good question. Let's see, what else do we got? About to go get a, a massage, couples massage in 30 minutes. So I got a few minutes left here. So you think the best is to record where I've done for this client. This client's organically plus ads. So you think the best is to record what I've done for this client. I'm not really sure I understand. Would recommend potentially working with Matthew Larson. He's pretty big in that space. He does Legion for Insurance in a mastermind with him. But I haven't, haven't had like a ton of conversation with him, but he seems like he's doing some pretty cool stuff. Yeah, yeah, yeah, Yeah. I don't really know what exactly you're asking here. Wild profile photo, But I would figure out what exactly you're delivering for that client, package it into an offer, and then I'll package it into a solid Offer and then I would sell that offer via cold outreach, ads, etc. Right. And make. You mean you can make videos explaining what you've done. You can do content, cold outreach and ads. The first thing you need to do is like crystallize what exactly you're doing into a concrete offer. Otherwise you're not going to be able to get cold traffic to want to do it. Right. So like, what is it exactly that you're delivering for this guy? Put simply, distilled in like two sentences. Yeah, definitely. That would, that would help. And then you can send that organic content to people that come from ads or whatever. Right. So that 100 makes sense. Do you think doing paid ads right off this, right off at the start is good for the SaaS business model? Rather, rather than agency assuming 14 day free trial for SAS and onboarding them, et cetera, assuming the product is strong. I've never built SaaS, so take everything that I say on that with a grain of salt. I would say like, your money model has to be good, you know, so if you're selling them a 14 day free trial and you're running ads, you're probably not going to make money. Right. I remember Alex Becker scaled highros because he was selling high ticket on the front end and then he had a recurring base on the back. Right? That's the big thing that he did. So what you need to figure out is like, how could you sell your offer high ticket on the front end, sell it for a lot of money in the beginning so that you can pay for your ads and then have the recurring after that? That's what high risk did. High risk didn't offer a free trial in the beginning. It was, hey, come on, pay 3,000, $5,000. You get access to the software and then you use the software and then you pay monthly for it after that time. So regardless of what you're selling, you want to be able to charge a high ticket up front to cover your acquisition cost and make you money on the front end. And then all of the money on the back end is just chatter, just cake. And that goes for, you know, everyone. Like I wouldn't do, like I wouldn't run ads to do then a free trial for your agency. That just doesn't make sense. You got to be able to, if you're going to spend money to acquire customers, you got to be able to make money when you acquire the customers. What else do we got? Going once, going twice. All right, cool. So, ladies and gents, that document that I showed you guys that I was just going through this one. Screen, this one right here. If you guys want access to this entire doc, which breaks like everything that we did down, the entire philosophy behind it, it's going to be hosted inside of the Free school community. So if you guys are not already inside of that, I'm going to drop a link for you. And then if you guys want to get one on one coaching from me, shoot me a DM on Instagram. I'm opening up a couple spots. I charge a thousand bucks an hour, but I can go through and review your entire agency. I've helped a couple other people scale, so if you want more one on one help for me with your specific situation, shoot me a DM on Instagram. Not for everyone, thousand bucks an hour. But you know, I've scaled an agency to 500k a month and you just saw it, literally did it from 0 to 50. So if you need help with scaling, if you're trying to get to the next level, hit me up. Happy to help. Not no worries. Enjoy the free content, but want to throw that out there for everyone else. So, ladies and gentlemen, I'll see you guys next week. Take care. Enjoy. Go make some money and update me on it inside of the Free School. See you later. Peace.