Is This The End of AI Agencies? (Brutal Truth for 2025)
By Albert Olgaard
Summary
## Key takeaways - **AI Market Saturation Isn't Necessarily Bad**: A saturated AI market signifies that money is being made and there's a genuine demand for AI services, rather than indicating it's too late to enter the space. [02:13] - **Focus on Benefits, Not Tech Features**: Successful AI agencies focus on the results and benefits AI provides to clients, like saving time or money, rather than getting bogged down in technical details of models or tools. [04:04] - **AI Agencies are a Sales & Marketing Business**: New AI agency owners should prioritize sales and marketing to acquire clients, rather than solely focusing on the technical aspects of setting up automations. [05:28] - **AI Technology's Compounding Growth**: Massive investments in AI are driving rapid, compounding technological advancements, meaning AI capabilities will accelerate exponentially, not stagnate. [06:15] - **AI Agencies Adapt with Evolving Tech**: As AI technology improves, AI agency products become more valuable and in-demand, leading to increased revenue and the need for updates on previous implementations. [08:06] - **AI is the Internet's Successor**: AI is compared to the internet's transformative impact, suggesting that companies failing to adopt AI will face obsolescence and bankruptcy, similar to Blockbuster. [11:09]
Topics Covered
- Saturated markets signal opportunity, not decline.
- Sell AI's results, not its technical features.
- AI's compounding tech means products constantly improve.
- Small businesses will always pay for AI services.
- AI is the internet of our generation; adapt or die.
Full Transcript
I hear this almost every day. People are
talking about an AI bubble. They are
saying that if you're hearing about it
now, then it's already too late. But is
that actually the case? In this video,
I'm going to break down all the things
that I've heard and my honest opinion if
it makes sense to go into AI right now
or not. The brutal truth, is it too late
right now to go into AI? When I scroll
on social media on X and on Instagram, I
see a lot of people comparing AI to
things like NFTTS, drop shipping, the
prime of SMMA, and crypto as this brand
new business model that's going to fade
out like all the other things in the
space. And at one point, that is true.
Building an AI agency the last couple of
years has been really, really easy
compared to many other business models.
And the reason for that is that AI has
so much hype correlated to it. Everyone
wants to be using AI. People are hearing
the news that the US is investing
something crazy like 500 billion into
AI. And every business owner is think
like, okay, I get I got to get to this
AI thing. I got to use chat GBT. It's
going to speed my process up. So behind
AI right now, there is a bunch of hype
which also I must admit these business
models right here used to have a lot of
hype as well when they just came out.
But will AI then end up like NFTTS right
now and dip like crazy? Let's find out.
Because if you start cold calling a
bunch of local businesses and you start
pitching them voice agents and you start
pitching them automations, what you will
hear is that a lot of local businesses
has actually been pitched AI services
already. So in some ways the market is
getting more saturated every day and of
course if they are getting pitched AI
services some of the AI agencies also
succeeding in closing and making deals.
So what's happening is that AI is being
implemented into local and big
businesses. That's just the reality of
it. I'm completely transparent that
people are crushing it in the AI space
right now. And when a lot of people are
crushing it in one space, the space
becomes saturated. What we got to figure
out though is that saturated, even
though it has a very negative tone to
it, it's actually not that bad of a
thing. Let me explain why. When a market
is saturated and there's a lot of
players in the market, it also means
there's a lot of money to be made. It
means that AI agencies are closing
clients and that there's a demand for
AI. So, what you see on Instagram
comments that people say this is already
too late. This business model is already
dead. It's not really the case. There
are so many people closing crazy deals
right now in the AI space. I saw one in
our school group, his name is Reno. He
closed a $4,000 upfront deal and then
$500 a month in retainer from his first
ever client. And the only reason that he
could do this is because there's a
demand for it. And when there's a demand
for it, the market will also start to
get saturated. That's just how business
works. So we need to stop looking at
this word saturated as a bad thing. It
literally just means that people are
making money in the space and people see
that and then they flock to that same
space. So, how do you stand out? What's
also going to happen in a saturated
market is that the greatest players, the
ones that understand marketing and
understands the selling of AI agents,
they're going to get a very large piece
of the pie where the ones that don't
understand this one thing, they're going
to end up with way less. So, what do
these people understand that these
people don't? Well, from what I've seen,
and I have a school community with over
100,000 members that's completely free.
I speak to a lot of AI agency owners on
the daily. The one thing I see in
everyone that is successful is that they
understand how to sell it. What most AI
agencies do is that they focus way too
much on the tech. They explain to the
client, "Oh, we're using the newest
model. Oh, we're using the newest
tools." But if you think about it, a
local business like a hair salon, if you
explain to them that you're using the
newest model, they they don't really
care. They don't care about the tech.
They don't read about the newest
updates. They don't watch YouTube like
you do about this stuff. What they care
about is the results. And that's what
the people that are crushing it right
now are focusing on. They focus on how
the voice agent is better, the new
things that it can do for them. They
focus on the benefits rather than the
features. The features are things such
as the model or the tools. To be honest,
they don't really care about that stuff.
What they care about is how the AI
behaves to their customers or the time
it's going to save them setting up an
automation or the money it's going to
save them when they can fire their
accountant because now they have an
automation that does this. You need to
focus on what actually matters. And then
when you sell it and market it, you need
to focus on these things, what it
actually does for them. Because what
these AI agencies in red get wrong is
that when they go out and get clients,
they do cold email, they run ads, and
then they explain about these things.
Imagine imagine a local business getting
an email about the newest model. They
don't really care. What they care about
is what that new model can do for them.
And that's not only in the marketing and
the sales part. It also comes down to
what they actually spend time on. This
part spends way too much time watching
YouTube about the tech, about the new
model when they should be focusing on
the sales and marketing part of things
cuz that is really what this part
understands. They understand how to sell
and market AI services the right way.
Sometimes you have to understand what
business you are actually in because you
are not in the automation and tech
business. What you in when you're just
starting out is the sales and marketing
business. The hardest part is not just
following a YouTube video on how to set
up that automation. The hardest part is
going out, running the right ads,
selling it the right way, and acquiring
clients. That is the business you're in.
And you need to understand this in order
to win and to be prepared for the
future. I've also heard a lot of people
talk about the AI bubble. Oh no, because
there's so much hype and so much focus
around AI right now that it at some
point will come crashing down. At the
same time, you hear about companies like
Google, Meta, OpenAI investing billions
of dollars into new data centers and
into new technology. Here's why that's a
good thing. All this hype actually
benefits you like crazy. Because when we
get all of these investments into the AI
space as an AI agency owner, the
technology will start to move fast. We
get what we call fast technology. And we
have been able to see this. If you look
at what chat GBT felt like 2 years ago,
you would hate using it because the
technology is getting getting so much
better so quickly. And that's just
that's just to show how fast the
technology actually moves. And here
comes the crazy thing that not that many
people actually understand. The way that
this technology moves is that it's
compounding. So this is how good tech is
and this is time. What is happening is
that more and more money is coming into
the space and the technology is starting
to compound on each other. We even see
AI start to do a lot of the coding which
means that the technology will just move
even faster and that will result in a
compounding effect that kind of looks
like this. Right now we are maybe right
here. What's going to happen is that the
technology is going to start to move
faster and faster. AI is going to start
to do a lot of the coding and and when
that happens, it's really going to go
like this in terms of what AI is capable
of. What does that mean for us? Well, it
depends on how you position your AI
agency. What is important is that when
the tech becomes better, your products
inside of your AI AI agency also goes
up. Sam Alman himself actually talked
about this. He said that you can do two
things. You can either bet on the
technology is getting better or you can
bet on the technology already reaching
its limits and that's up to you if you
think the technology has reached its
point. I think that by positioning your
AI agency so it gets better when the
models gets better is by far the best
way of doing so. But what's going to
happen with our AI agencies when the
tech gets better? Many people think that
oh then AI agencies won't exist anymore.
But that is really not the case. And
here's why. Because when the tech gets
better, our products as an AI agency is
also going to get even better. This is
going to be things that like how good
our chatbots are at responding. This is
going to be how good our voice agents
are or it's going to be how good our AI
agent coders for our softwares are going
to be. So just understand that when the
tech gets better, our products will
automatically get better as well. And
why is that a good thing? Well, for two
reasons. Number one, our products will
instantly be more valuable. You'll be
able to sell it for more because it'll
be able to do more of the jobs that it
otherwise couldn't do. So, you'll be
able to sell it for more and you'll have
more demand for the product. A better
product means more demand means more
money. And the second reason is tackling
this issue right here with a lot of
local businesses already getting AI
implemented. If the tech is getting a
lot better, it means that the previous
tech that was implemented before the new
updates, those are going to be outdated.
And who do you think business owners are
going to come to when their tech is
outdated? Well, they can do two things.
Tech is outdated. Well, they're going to
pay more money to get it updated.
Sometimes I also hear this argument that
it's going to get so easy that they can
do it themselves. And the people that
say this are usually total beginners.
And let me explain why. This is both
right and wrong to some degree because
yes, the way that things are moving
right now is that it becomes easier and
easier to implement AI agents. For 5
years ago, you would have to only do
code. Now you have no code platforms
like Nadin, like build my agent, like
chat GBT that can help with a lot of
these things. So things are definitely
becoming easier and easier. Where they
are in the wrong though is what business
priorities are at the moment. a
hairdresser, they don't think about AI.
They don't see AI in their newsfeed all
the time. And the last thing that they
would do is go find a YouTube video on
how to set up an AI agent for
themselves. A lot of companies would
much rather pay someone else to do it
because running a small business is a
lot of work and trust me, they have a
lot on their plate already. So the
statement that we at some point will
reach a point where no one is going to
need AI services is completely wrong
because small business owners will
always have a lot on their plate. You
can take websites for example. Websites
used to be really hard. You needed to be
able to code back in the day in order to
set up a website. Now you have tools
like Shopify that makes it easy. But
even today, you still see web agencies
help with setting up websites and AI
agencies are going to be the exact same
thing. And how long was it since the
start of the internet? Over 20 years. So
even after 20 years, web agencies has
still survived. So saying that we're
going to reach a point soon where local
businesses don't need AI services
anymore is completely BS. Like I
mentioned, a lot of people compare AI to
things like NFTs, drop shipping, SMA,
and crypto. What I compare it to is the
internet. The internet absolutely
changed everything for a bunch of
industries. All of a sudden, newspapers
didn't sell anymore because people could
find that information on the internet.
Netflix went all in on this new internet
thing, which resulted in companies such
as Blockbuster going bankrupt. A lot of
experts are saying that AI is the
biggest invention that we have ever had.
And if you think that the business model
that helps implement the biggest
technology since the internet, that
that's not going to be a valuable
business model to run, then I'm sorry
for you because the exact same thing is
going to happen. Every company is going
to have to implement this new technology
or they're going to end up like
Blockbuster. they're going to go
bankrupt because they simply won't be
able to compete with what AI can do
right now, but even more what AI can do
in the future. So being that bridge
between companies and their technology
will be a massive opportunity and you
can see right here on the curve where I
think we are right now. I still think we
are extremely early in what AI can do.
What you have to do is that you need to
make a decision yourself. Do you think
that the technology is going to stagnate
like it is now or do you think the
technology is going to get better?
Because if it's going to get better,
then companies are going to need to
implement or they're going to die. And
for the record, what I think is that the
technology will go like this. I think
we'll reach a point where we get to some
level of AGI where AI literally starts
solving its own problems. And when AI
starts to solve it its own problems, we
can't even track it on this curve
anymore for how fast things will change.
Being on the forefront of that
technology is probably the biggest
opportunity that any of us are going to
get in our lifetime. But now it's up to
you to make that bet. Do you think that
technology is going to stagnate? The
models are already as good as they're
going to get. They're not going to get
any better. Or do you think the curve is
going to keep going up and compound even
more? If you want to be 100% sure that
there's a place for you in the future,
then look at it like this. I think
there's two things that will guarantee
that. The first one is like we talked
about AI. If you're the one replacing
instead of being replaced and you always
know the new stuff that's going on in
AI, you will be very very valuable to
society. And the second thing is
content. It's the reason that I'm making
this video for you right now. I think
people on social media are gonna keep
wanting to see people even though that
AI slob is going to get so good that you
might even might not even know the
difference. I think we're going to see
platforms where people still appreciate
real people on the platform. So, if
there's two things that you can spend
your time on right now, I would say that
it's AI and building a personal brand or
at least knowing how to get attention
from real people. Let me know in the
comments if you agree with this and what
you are doing in order to fit in to the
future. If you want to know how me and
everyone else in our school group is
preparing for the future, then make sure
to join our completely free group.
There's a link in the description. I'll
see you inside. It's completely free.
Have a good one. Peace out.
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