You don't have a people problem. You have a lack of systems problem. AI doesn't fix that — it just makes poor operations move faster.

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In the last 90 days I’ve met many founders who are scaling new AI agency offers.

Most are technical and have been building AI native agencies from the ground up. 

What shocked me was how many of these founders have GTM plans to scale to 100-1000 clients at a $1000 price point. This isn’t just 20 something year old founders either, one of my friends running an agency holding company with over $1M in EBITDA is doing the same thing. 

His newest offer is 90% automated and the results they’re generating on AEO/GEO services are amazing. 

If you’re like many of the agency owners I meet, you may be too bogged down with your operations to strategically respond to this market shift. 

If you haven’t seen this trend, please use today's newsletter as a fair warning. 

Strategically plan. 

Consider the options in front of you, and if you’re too damn busy being stuck inside of your operations, fix that ASAP so you can have the space to address this looming market change. 

Option 1: Go premium.

Raise your prices and lean in with a premium positioning. 

Probably the best option but this requires better ops to fulfill. Premium pricing with a B-level talent is…STRESSFUL.

Option 2: Build the downsell.

I think the majority of the marketplace will end up having some form of lower tier price point. With a fully optimized back end and lower cost structure, it's inevitable. 

The new agency owners will come in to undercut the price because they want market share but because margins are so high, they won't have to increase price as they grow due to their ability to have good revenue per employee metrics. 

Option 3: Do nothing.

Keep the same offer, the same funnel, the same operation, and hope the market doesn't notice.

Option 4: You tell me.

What do you think should be the fourth option? Ill read amd reply to every email!

Tens of thousands of agencies lose large %s of their their business.

$5M goes to $2M. $2M goes to $1M. $1M goes to $500K.

Pound for pound, the founders I'm meeting are going to take those clients. Not because they're smarter. Because they have a lean, AI forward operation that is scalable. 

This is an important PSA I hope you do not overlook. 

Use this week, or this quarter, to sit down and decide: are you optimizing the operation to raise prices and position as premium? Or are you building the downsell? Then work backwards into what has to change in your operation, your process, your funnel, and your offer.

👋🏼 For a limited time, I’m doing 1 on 1 consults:

In 30 minutes I'll map your operations, pinpoint where AI adds profit instead of headcount, and hand you the plan. You keep it whether or not you hire me.

The systems we build protect retention, lift margins, and get you out of the day-to-day.

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