Lecture Notes: AI Agencies vs. Social Media Marketing Agencies (SMMA)

Introduction

• SMMA Overview
  • Emerged in early to mid-2010s.
  • Young entrepreneurs capitalized on business owners' lack of social media knowledge.
  • Parallels drawn between SMMA emergence and current AI trends.
• Thesis of Lecture
  • AI agencies are the new SMMA.
  • Discussion on why AI agencies are superior.
  • Examination of pros and cons and FAQs for AI agencies.

Business Model Simplicity

• AI Agency Model
  • Simple but not easy.
  • Misconception that simplicity equates to ease.
  • Requires commitment and work despite perceived simplicity.

Comparison: AI Agencies vs. SMMA

• SMMA
  • Highly competitive with low-profit margins.
  • Considered a 'red ocean' market.
• AI Agencies (AIAS)
  • Less competition, more opportunities ('blue ocean' market).
  • Higher customer lifetime value (CLV).
  • Larger market size potential due to foundational nature of AI.

Economic and Market Trends

• AI Market Explosion
  • AI is experiencing growth similar to SMMA's rise.
  • High potential due to transformative nature and hype.
  • Large financial and technological investments in AI.
• Historical Patterns
  • Similar to website boom in 1995 and SMMA in 2014-2016.
  • AI is becoming foundational to businesses, unlike previous technology iterations.

Financial Opportunities

• Profit Potential
  • Higher project sizes and profit margins in AI.
  • AI solutions are reusable across clients, creating efficiencies.
  • High potential ROI on AI projects compared to traditional models.

Why Choose AI Now?

• First Mover Advantage
  • Early adopters can set market rates and establish niches.
  • Lower competition in AI compared to digital agencies.
• Educational Resources and Entry
  • Availability of no-code tools and resources makes entry easier.
  • Basic AI knowledge can significantly differentiate in the market.

Strategic Plan for Starting an AI Agency

• Blueprint for Success
  • Simple yet impactful 90-day plan for launching an AI agency.
  • Emphasis on consistency and daily accountability.
  • Steps include setting up infrastructure, lead generation, community engagement, and price adjustments.

Conclusion

• AI Agencies as the Future
  • AI is not just a trend, but a fundamental shift in business.
  • The AI agency model offers higher rewards with current lower competition.
• Call to Action
  • Encourage engagement with AI opportunities and leverage available resources.
  • Emphasize the need for strategic focus over tactics due to evolving market dynamics.