Nate Herk August 25, 2026 28m

The 3 AI Agency Mistakes Keeping You From $20K/Month Retainers

Name: The 3 AI Agency Mistakes Keeping You From $20K/Month Retainers
Uploaded: 2026-08-25T13:01:38+00:00
Duration: 28 min 35 s
Description: The main theme is avoiding common mistakes when offering AI services or implementing AI in business. Key subjects discussed are the importance of solving a client's constraint, defining KPIs, and proper pricing. The practical takeaway is to ensure AI solutions provide tangible value and are strategically aligned with business needs.

Read full transcript 23 segments

Let me start with a little story. So, Let me start with a little story. So, I'm I'm 23 years old at this point. I I'm I'm 23 years old at this point. I I'm I'm 23 years old at this point. I just quit my full-time job. I just just quit my full-time job. I just just quit my full-time job. I just closed this deal with a client and I closed this deal with a client and I closed this deal with a client and I deliver something and and he messages me deliver something and and he messages me deliver something and and he messages me on Slack and he's like, "Hey, can we get on Slack and he's like, "Hey, can we get on Slack and he's like, "Hey, can we get on a call?" And this is what he says to on a call?" And this is what he says to on a call?" And this is what he says to me as soon as I hop on the Zoom. He me as soon as I hop on the Zoom. He me as soon as I hop on the Zoom. He goes, "We are not getting the value that goes, "We are not getting the value that goes, "We are not getting the value that we paid for." But I made three big we paid for." But I made three big we paid for." But I made three big mistakes here. And that's pretty much mistakes here. And that's pretty much mistakes here. And that's pretty much what I want to talk about today are what I want to talk about today are what I want to talk about today are these three big mistakes. So the first these three big mistakes. So the first these three big mistakes. So the first one is that what I built for him, the one is that what I built for him, the one is that what I built for him, the personal assistant, was not the personal assistant, was not the personal assistant, was not the constraint in his business. The second constraint in his business. The second constraint in his business. The second one, I guess you guys saw the third one. one, I guess you guys saw the third one. one, I guess you guys saw the third one. The second one is that I didn't choose a The second one is that I didn't choose a The second one is that I didn't choose a KPI. KPI. KPI. And the third one is that I guessed on And the third one is that I guessed on And the third one is that I guessed on the price. So like I said, that's what I the price. So like I said, that's what I the price. So like I said, that's what I want to talk about today. So right now, I'm at this event in So right now, I'm at this event in Montenegro called Workless AI, and there Montenegro called Workless AI, and there Montenegro called Workless AI, and there are a bunch of AI content creators, AI are a bunch of AI content creators, AI are a bunch of AI content creators, AI experts, and a bunch of community experts, and a bunch of community experts, and a bunch of community members. And on the main day, I closed members. And on the main day, I closed members. And on the main day, I closed off the day with this presentation which off the day with this presentation which off the day with this presentation which I'm about to share with you guys. So, I'm about to share with you guys. So, I'm about to share with you guys. So, hope you guys enjoy. Hope you find it hope you guys enjoy. Hope you find it hope you guys enjoy. Hope you find it insightful. I'll see you guys in there. insightful. I'll see you guys in there. insightful. I'll see you guys in there. This is called Still Relevant Next Year. This is called Still Relevant Next Year. This is called Still Relevant Next Year. And it's actually kind of funny because And it's actually kind of funny because And it's actually kind of funny because last night I kind of switched up what I last night I kind of switched up what I last night I kind of switched up what I was going to talk about a little bit was going to talk about a little bit was going to talk about a little bit because yesterday in the VIP sections because yesterday in the VIP sections because yesterday in the VIP sections and I talked to so many of you guys and and I talked to so many of you guys and and I talked to so many of you guys and I just kind of had a feeling that this I just kind of had a feeling that this I just kind of had a feeling that this would resonate a bit more because would resonate a bit more because would resonate a bit more because whether you are I mean I think a lot of whether you are I mean I think a lot of whether you are I mean I think a lot of you guys are building kind of like an AI you guys are building kind of like an AI you guys are building kind of like an AI consultancy, an AI agency or working consultancy, an AI agency or working consultancy, an AI agency or working with clients. Um, but even if you're with clients. Um, but even if you're with clients. Um, but even if you're not, I think that this is the way that not, I think that this is the way that not, I think that this is the way that you should be thinking about using AI you should be thinking about using AI you should be thinking about using AI within your own business. And um, yeah.
within your own business. And um, yeah. within your own business. And um, yeah. So, let me just although also, um, I So, let me just although also, um, I So, let me just although also, um, I hope this picture that's Montenegro, hope this picture that's Montenegro, hope this picture that's Montenegro, right? Okay. That'd be awkward if it right? Okay. That'd be awkward if it right? Okay. That'd be awkward if it wasn't. I I wasn't sure. It was codeex wasn't. I I wasn't sure. It was codeex wasn't. I I wasn't sure. It was codeex threw it in there. So, good to know that threw it in there. So, good to know that threw it in there. So, good to know that that's Montenegro. Okay, cool. So, start that's Montenegro. Okay, cool. So, start that's Montenegro. Okay, cool. So, start with a little story. So, I'm I'm 23 with a little story. So, I'm I'm 23 with a little story. So, I'm I'm 23 years old at this point. I just quit my years old at this point. I just quit my years old at this point. I just quit my full-time job. I just closed this deal full-time job. I just closed this deal full-time job. I just closed this deal with a client and I deliver something with a client and I deliver something with a client and I deliver something and and he messages me on Slack and he's and and he messages me on Slack and he's and and he messages me on Slack and he's like, "Hey, can we get on a call?" And like, "Hey, can we get on a call?" And like, "Hey, can we get on a call?" And this is what he says to me as soon as I this is what he says to me as soon as I this is what he says to me as soon as I hop on the Zoom. He goes, "We are not hop on the Zoom. He goes, "We are not hop on the Zoom. He goes, "We are not getting the value that we paid for." And getting the value that we paid for." And getting the value that we paid for." And this really made me think because, this really made me think because, this really made me think because, you know, I started to question like, you know, I started to question like, you know, I started to question like, did I just make a huge mistake? Am I not did I just make a huge mistake? Am I not did I just make a huge mistake? Am I not actually able to build these solutions? actually able to build these solutions? actually able to build these solutions? Am I not going to turn this into a Am I not going to turn this into a Am I not going to turn this into a business? And so I realized that the business? And so I realized that the business? And so I realized that the reason that this happened was because, reason that this happened was because, reason that this happened was because, well, first of all, I made this video well, first of all, I made this video well, first of all, I made this video which went viral. It was like a personal which went viral. It was like a personal which went viral. It was like a personal assistant. And so he saw that. Lots of assistant. And so he saw that. Lots of assistant. And so he saw that. Lots of people saw that and they wanted this. people saw that and they wanted this. people saw that and they wanted this. But I made three big mistakes here. And But I made three big mistakes here. And But I made three big mistakes here. And that's pretty much what I want to talk that's pretty much what I want to talk that's pretty much what I want to talk about today are these three big about today are these three big about today are these three big mistakes. So the first one is mistakes. So the first one is mistakes. So the first one is that what I built for him, the personal that what I built for him, the personal that what I built for him, the personal assistant, was not the constraint in his assistant, was not the constraint in his assistant, was not the constraint in his business. The second one, I guess you business. The second one, I guess you business. The second one, I guess you guys saw the third one. The second one guys saw the third one. The second one guys saw the third one. The second one is that I didn't choose a KPI.
is that I didn't choose a KPI. is that I didn't choose a KPI. And the third one is that I guessed on And the third one is that I guessed on And the third one is that I guessed on the price. So like I said, that's what I the price. So like I said, that's what I the price. So like I said, that's what I want to talk about today. I had a big want to talk about today. I had a big want to talk about today. I had a big realization here before I started to realization here before I started to realization here before I started to scale my business and I was doing scale my business and I was doing scale my business and I was doing everything in the agency myself all the everything in the agency myself all the everything in the agency myself all the way from the lead genen all the way to way from the lead genen all the way to way from the lead genen all the way to the you know invoicing all of that kind the you know invoicing all of that kind the you know invoicing all of that kind of stuff. I realized that our job is to of stuff. I realized that our job is to of stuff. I realized that our job is to be the ones to diagnose and prove you be the ones to diagnose and prove you be the ones to diagnose and prove you know it's one thing to just be kind of know it's one thing to just be kind of know it's one thing to just be kind of like you take the ticket you develop like you take the ticket you develop like you take the ticket you develop whatever they're asking for. You kind of whatever they're asking for. You kind of whatever they're asking for. You kind of evolve from that and then you start to evolve from that and then you start to evolve from that and then you start to be the doctor and you start to diagnose be the doctor and you start to diagnose be the doctor and you start to diagnose the pain that they're feeling. But then the pain that they're feeling. But then the pain that they're feeling. But then you're still not done yet because you you're still not done yet because you you're still not done yet because you have to prove the value because if you have to prove the value because if you have to prove the value because if you don't prove the value then how are you don't prove the value then how are you don't prove the value then how are you going to win more business? And I've got going to win more business? And I've got going to win more business? And I've got another quick story to tell you guys another quick story to tell you guys another quick story to tell you guys about in just a sec. But first I wanted about in just a sec. But first I wanted about in just a sec. But first I wanted to start off with if you guys don't know to start off with if you guys don't know to start off with if you guys don't know me a little bit about my background. My me a little bit about my background. My me a little bit about my background. My name is Nate. Graduated from the name is Nate. Graduated from the name is Nate. Graduated from the University of Iowa in 2024 and I was University of Iowa in 2024 and I was University of Iowa in 2024 and I was studying business analytics and studying business analytics and studying business analytics and marketing. So don't come from a marketing. So don't come from a marketing. So don't come from a technical background although I did work technical background although I did work technical background although I did work with data quite a bit. So I've got a with data quite a bit. So I've got a with data quite a bit. So I've got a good understanding of data which was good understanding of data which was good understanding of data which was very helpful in automation. So can't lie very helpful in automation. So can't lie very helpful in automation. So can't lie about that. Um, from there I graduated about that. Um, from there I graduated about that. Um, from there I graduated and I was working at Goldman Sachs as an and I was working at Goldman Sachs as an and I was working at Goldman Sachs as an analyst and I was automating a lot of analyst and I was automating a lot of analyst and I was automating a lot of stuff. And what that helped me realize stuff. And what that helped me realize stuff. And what that helped me realize was that automation is not new at all.
was that automation is not new at all. was that automation is not new at all. It feels new because the word AI has It feels new because the word AI has It feels new because the word AI has been put in front of it. And that's what been put in front of it. And that's what been put in front of it. And that's what a lot of business owners are kind of a lot of business owners are kind of a lot of business owners are kind of waking up to. And it's funny because waking up to. And it's funny because waking up to. And it's funny because when I first started running my agency, when I first started running my agency, when I first started running my agency, I used to joke with my friends and you I used to joke with my friends and you I used to joke with my friends and you know some of my my partners when I know some of my my partners when I know some of my my partners when I started when I brought on some partners started when I brought on some partners started when I brought on some partners that we're not even an AI agency. We are that we're not even an AI agency. We are that we're not even an AI agency. We are a data infrastructure agency and then a data infrastructure agency and then a data infrastructure agency and then after that we're just a boring after that we're just a boring after that we're just a boring automation agency. And I think that's a automation agency. And I think that's a automation agency. And I think that's a really good realization to have because really good realization to have because really good realization to have because that that that the whole reframe of diagnosing the the whole reframe of diagnosing the the whole reframe of diagnosing the problem is that people might come to you problem is that people might come to you problem is that people might come to you and they want an AI agent because they and they want an AI agent because they and they want an AI agent because they saw a YouTube video that went viral or saw a YouTube video that went viral or saw a YouTube video that went viral or because they saw something on LinkedIn, because they saw something on LinkedIn, because they saw something on LinkedIn, but your job is to figure out what do but your job is to figure out what do but your job is to figure out what do they actually need. Um, they actually need. Um, they actually need. Um, and remember how I said the thing about and remember how I said the thing about and remember how I said the thing about you have to prove the value. I was you have to prove the value. I was you have to prove the value. I was building a lot of automations at Goldman building a lot of automations at Goldman building a lot of automations at Goldman and actually you know that's on the next and actually you know that's on the next and actually you know that's on the next slide I'll talk about that in a sec. um slide I'll talk about that in a sec. um slide I'll talk about that in a sec. um sold my agency for sold my agency once sold my agency for sold my agency once sold my agency for sold my agency once we scaled it past $100,000 a month. It we scaled it past $100,000 a month. It we scaled it past $100,000 a month. It was purely because I was way more was purely because I was way more was purely because I was way more passionate about education. Um but the passionate about education. Um but the passionate about education. Um but the reason we were able to get to $100,000 a reason we were able to get to $100,000 a reason we were able to get to $100,000 a month is because the minimum to work month is because the minimum to work month is because the minimum to work with us was a $20,000 a month retainer. with us was a $20,000 a month retainer. with us was a $20,000 a month retainer. And the only reason we were able to do And the only reason we were able to do And the only reason we were able to do those retainers is because of this exact those retainers is because of this exact those retainers is because of this exact kind of like three-step framework of kind of like three-step framework of kind of like three-step framework of working with clients. Um I've got a working with clients. Um I've got a working with clients. Um I've got a YouTube channel. It's pretty much the YouTube channel. It's pretty much the YouTube channel. It's pretty much the top of funnel. That's where I am doing a top of funnel. That's where I am doing a top of funnel. That's where I am doing a lot of the education. And then my free lot of the education. And then my free lot of the education. And then my free community called a automation society is community called a automation society is community called a automation society is where we try to get people into and try where we try to get people into and try where we try to get people into and try to build community. So real quick, I to build community. So real quick, I to build community. So real quick, I wanted to start off with like why did I wanted to start off with like why did I wanted to start off with like why did I bring up the Goldman thing? What did bring up the Goldman thing? What did bring up the Goldman thing? What did that teach me? Number one, like I said, that teach me? Number one, like I said, that teach me? Number one, like I said, boring is beautiful. Deterministic boring is beautiful. Deterministic boring is beautiful. Deterministic automations, they're easier to build.
automations, they're easier to build. automations, they're easier to build. They are easier to evaluate and they are They are easier to evaluate and they are They are easier to evaluate and they are less risky ultimately because they're less risky ultimately because they're less risky ultimately because they're deterministic. You know the inputs and deterministic. You know the inputs and deterministic. You know the inputs and you know the outputs. Two is that big you know the outputs. Two is that big you know the outputs. Two is that big companies I was, you know, hosting is companies I was, you know, hosting is companies I was, you know, hosting is doing a lot of stuff with AI which is doing a lot of stuff with AI which is doing a lot of stuff with AI which is which is awesome but typically when I've which is awesome but typically when I've which is awesome but typically when I've worked with companies and when I was at worked with companies and when I was at worked with companies and when I was at Goldman just kind of move slower they Goldman just kind of move slower they Goldman just kind of move slower they have a lot of change management issues have a lot of change management issues have a lot of change management issues and obviously in a or an institution and obviously in a or an institution and obviously in a or an institution like Goldman in that type of vertical like Goldman in that type of vertical like Goldman in that type of vertical there's a lot of regulation and then the there's a lot of regulation and then the there's a lot of regulation and then the third thing is that you need to third thing is that you need to third thing is that you need to spotlight your value. So quick story spotlight your value. So quick story spotlight your value. So quick story here I remember I was building a lot of here I remember I was building a lot of here I remember I was building a lot of automations like I said I built a few automations like I said I built a few automations like I said I built a few like weekly report things. I built a few like weekly report things. I built a few like weekly report things. I built a few dashboards and I was on a call with my dashboards and I was on a call with my dashboards and I was on a call with my entire team. So probably 20 25 people entire team. So probably 20 25 people entire team. So probably 20 25 people and I was showing them this automation, and I was showing them this automation, and I was showing them this automation, you know, on a Zoom call. So your name you know, on a Zoom call. So your name you know, on a Zoom call. So your name is right there under your face, right? is right there under your face, right? is right there under your face, right? And I get off the call. It was also my And I get off the call. It was also my And I get off the call. It was also my job to send out the meeting minutes, job to send out the meeting minutes, job to send out the meeting minutes, which obviously we know AI can do now. which obviously we know AI can do now. which obviously we know AI can do now. But I sent out the meeting minutes and I But I sent out the meeting minutes and I But I sent out the meeting minutes and I got a response from one of the managers got a response from one of the managers got a response from one of the managers that said, "Good job, Arthur." I'm like, that said, "Good job, Arthur." I'm like, that said, "Good job, Arthur." I'm like, "Who is Arthur? My name is right there "Who is Arthur? My name is right there "Who is Arthur? My name is right there and I sent you the meeting minutes." And and I sent you the meeting minutes." And and I sent you the meeting minutes." And that just made me realize that if you're that just made me realize that if you're that just made me realize that if you're not explaining to the business owner, to not explaining to the business owner, to not explaining to the business owner, to the stakeholder what your automation the stakeholder what your automation the stakeholder what your automation actually did, then it's hard to get actually did, then it's hard to get actually did, then it's hard to get credit for it. So you could potentially credit for it. So you could potentially credit for it. So you could potentially be in a situation where you're making be in a situation where you're making be in a situation where you're making the business tens of thousands of the business tens of thousands of the business tens of thousands of dollars, but they don't actually know dollars, but they don't actually know dollars, but they don't actually know that or acknowledge that because you that or acknowledge that because you that or acknowledge that because you didn't prove it. And it's not bragging, didn't prove it. And it's not bragging, didn't prove it. And it's not bragging, it's just proving what your systems it's just proving what your systems it's just proving what your systems actually did. So those are three big actually did. So those are three big actually did. So those are three big lessons that I had that I tried to carry lessons that I had that I tried to carry lessons that I had that I tried to carry with me through my AI automation agency with me through my AI automation agency with me through my AI automation agency journey.
journey. journey. Now, think about it like this. So truly Now, think about it like this. So truly Now, think about it like this. So truly the only way for a business to scale is the only way for a business to scale is the only way for a business to scale is to remove constraints. And it's very to remove constraints. And it's very to remove constraints. And it's very simple at a high level. Obviously simple at a high level. Obviously simple at a high level. Obviously there's a lot of things that you know a there's a lot of things that you know a there's a lot of things that you know a lot of nuance once you get into the lot of nuance once you get into the lot of nuance once you get into the weeds of that but that's at the end of weeds of that but that's at the end of weeds of that but that's at the end of the day if you want a business to scale the day if you want a business to scale the day if you want a business to scale you have to remove constraints. you have to remove constraints. you have to remove constraints. You might get a lot of people coming to You might get a lot of people coming to You might get a lot of people coming to you like I did that says, "Hey, we need you like I did that says, "Hey, we need you like I did that says, "Hey, we need an AI agent that does X, Y, and Z an AI agent that does X, Y, and Z an AI agent that does X, Y, and Z because they saw a viral video because because they saw a viral video because because they saw a viral video because their board is putting pressure on them their board is putting pressure on them their board is putting pressure on them to have an AI strategy because their to have an AI strategy because their to have an AI strategy because their competitors are posting on LinkedIn competitors are posting on LinkedIn competitors are posting on LinkedIn saying, "Look at this AI agent that we saying, "Look at this AI agent that we saying, "Look at this AI agent that we built that's doing all this for us." And built that's doing all this for us." And built that's doing all this for us." And so that makes me feel like what they're so that makes me feel like what they're so that makes me feel like what they're doing is they're actually just buying doing is they're actually just buying doing is they're actually just buying relief. They're buying the ability to relief. They're buying the ability to relief. They're buying the ability to say, "Yeah, we work with an AI agency. say, "Yeah, we work with an AI agency. say, "Yeah, we work with an AI agency. Yeah, we have an AI strategy. We have Yeah, we have an AI strategy. We have Yeah, we have an AI strategy. We have this agent going to production. We have this agent going to production. We have this agent going to production. We have blah blah blah." But that's not really blah blah blah." But that's not really blah blah blah." But that's not really what you're trying to provide. You're what you're trying to provide. You're what you're trying to provide. You're not trying to provide relief. if you're not trying to provide relief. if you're not trying to provide relief. if you're trying to provide real business value. trying to provide real business value. trying to provide real business value. So, the whole idea is to reframe. I've So, the whole idea is to reframe. I've So, the whole idea is to reframe. I've done done done probably 300 or more discovery calls and probably 300 or more discovery calls and probably 300 or more discovery calls and what I've realized is that they come to what I've realized is that they come to what I've realized is that they come to you and they say something, but that's you and they say something, but that's you and they say something, but that's almost never what they want. And so, almost never what they want. And so, almost never what they want. And so, your job is to figure out why did they your job is to figure out why did they your job is to figure out why did they book in the call? Because they booked in book in the call? Because they booked in book in the call? Because they booked in for some reason, right? They had they're for some reason, right? They had they're for some reason, right? They had they're feeling pain or they're feeling feeling pain or they're feeling feeling pain or they're feeling pressure. And so, you have you have to pressure. And so, you have you have to pressure. And so, you have you have to figure out what is that actual pain. You figure out what is that actual pain. You figure out what is that actual pain. You kind of have to take a step back there.
kind of have to take a step back there. kind of have to take a step back there. There's pain somewhere and that is your There's pain somewhere and that is your There's pain somewhere and that is your job. You are paid to solve the pain and job. You are paid to solve the pain and job. You are paid to solve the pain and the more pain you can solve, the more the more pain you can solve, the more the more pain you can solve, the more money that your business will make. I think this might have might have died I think this might have might have died on me. Okay, so the reason I put this up on me. Okay, so the reason I put this up on me. Okay, so the reason I put this up there is because think about if you were there is because think about if you were there is because think about if you were to work with an agency that was going to to work with an agency that was going to to work with an agency that was going to help you run ads. It's super super help you run ads. It's super super help you run ads. It's super super clear. Like you know what is your budget clear. Like you know what is your budget clear. Like you know what is your budget for ads? $10,000 and you in a direct for ads? $10,000 and you in a direct for ads? $10,000 and you in a direct correlation because of you ran those correlation because of you ran those correlation because of you ran those ads, you made $50,000 in sales. That ads, you made $50,000 in sales. That ads, you made $50,000 in sales. That like the agency doesn't even have to like the agency doesn't even have to like the agency doesn't even have to prove that to you. It's very clear but prove that to you. It's very clear but prove that to you. It's very clear but it's not super clear when it comes to it's not super clear when it comes to it's not super clear when it comes to automation. So you have to make it automation. So you have to make it automation. So you have to make it clear. clear. clear. So those are the three things I want to So those are the three things I want to So those are the three things I want to talk about right constraints KPIs stands talk about right constraints KPIs stands talk about right constraints KPIs stands for key performance indicator and then for key performance indicator and then for key performance indicator and then how do you actually price this stuff so how do you actually price this stuff so how do you actually price this stuff so that you can clearly show this is how that you can clearly show this is how that you can clearly show this is how much you paid and this is how much much you paid and this is how much much you paid and this is how much you're going to make your business back. you're going to make your business back. you're going to make your business back. Okay. So starting off with a constraint. Okay. So starting off with a constraint. Okay. So starting off with a constraint. The only way for a business to scale is The only way for a business to scale is The only way for a business to scale is to remove constraints to directly attack to remove constraints to directly attack to remove constraints to directly attack them.
them. them. And at a very high level, your business And at a very high level, your business And at a very high level, your business is either going to be supply constrained is either going to be supply constrained is either going to be supply constrained or demand constrained. Meaning supply or demand constrained. Meaning supply or demand constrained. Meaning supply constrained, too many customers coming constrained, too many customers coming constrained, too many customers coming in and you cannot service them. Demand in and you cannot service them. Demand in and you cannot service them. Demand constrained, you need business. You have constrained, you need business. You have constrained, you need business. You have no people coming in. So I really like to no people coming in. So I really like to no people coming in. So I really like to think of this as a pipe. think of this as a pipe. think of this as a pipe. The water coming into your pipe is The water coming into your pipe is The water coming into your pipe is revenue. It's cash flow. And you revenue. It's cash flow. And you revenue. It's cash flow. And you obviously want that pipe to be clean, no obviously want that pipe to be clean, no obviously want that pipe to be clean, no leaks, and you want lots of water to go leaks, and you want lots of water to go leaks, and you want lots of water to go through. So the top image we see is a through. So the top image we see is a through. So the top image we see is a pipe that has a clog in the middle. And pipe that has a clog in the middle. And pipe that has a clog in the middle. And this is probably a supply constrained this is probably a supply constrained this is probably a supply constrained business because they're having a lot of business because they're having a lot of business because they're having a lot of water come through, but the water isn't water come through, but the water isn't water come through, but the water isn't making it all the way to the end. Maybe making it all the way to the end. Maybe making it all the way to the end. Maybe it's leaking out. It's not coming out it's leaking out. It's not coming out it's leaking out. It's not coming out the other end of the pipe. The bottom the other end of the pipe. The bottom the other end of the pipe. The bottom one is one where there's no water in the one is one where there's no water in the one is one where there's no water in the pipe. And right now there's no clogs. pipe. And right now there's no clogs. pipe. And right now there's no clogs. There probably are. There there always There probably are. There there always There probably are. There there always more clogs. But right now this this more clogs. But right now this this more clogs. But right now this this business on the bottom is demand business on the bottom is demand business on the bottom is demand constrained and they need more water constrained and they need more water constrained and they need more water inside their pipe. inside their pipe. inside their pipe. So let me tell you another quick story. So let me tell you another quick story. So let me tell you another quick story. I had a med spa owner that came to me I had a med spa owner that came to me I had a med spa owner that came to me and she wanted a lead generation AI and she wanted a lead generation AI and she wanted a lead generation AI agent. She wanted to make more money and agent. She wanted to make more money and agent. She wanted to make more money and I saw the stat the other day. Um, I saw the stat the other day. Um, I saw the stat the other day. Um, couldn't be outdated by now given how couldn't be outdated by now given how couldn't be outdated by now given how fast the space moves. But the stat was fast the space moves. But the stat was fast the space moves. But the stat was basically that over 50% of all AI basically that over 50% of all AI basically that over 50% of all AI automations are like lead genen or sales automations are like lead genen or sales automations are like lead genen or sales or marketing automations. And I think or marketing automations. And I think or marketing automations. And I think that makes sense because what is the that makes sense because what is the that makes sense because what is the pain a lot of us are feeling is that we pain a lot of us are feeling is that we pain a lot of us are feeling is that we want to scale our monthly recurring want to scale our monthly recurring want to scale our monthly recurring revenue. And usually the first thing you revenue. And usually the first thing you revenue. And usually the first thing you think is like oh more leads, more think is like oh more leads, more think is like oh more leads, more clients. But in this case, the med spa clients. But in this case, the med spa clients. But in this case, the med spa owner wanted more leads. And when I owner wanted more leads. And when I owner wanted more leads. And when I really tried to dig into the pain there really tried to dig into the pain there really tried to dig into the pain there and figure out where the constraint was, and figure out where the constraint was, and figure out where the constraint was, the constraint was, she ended up telling
the constraint was, she ended up telling the constraint was, she ended up telling me that they had lots of leads coming in me that they had lots of leads coming in me that they had lots of leads coming in consistently, but what happened was they consistently, but what happened was they consistently, but what happened was they weren't showing up to their weren't showing up to their weren't showing up to their appointments. And then all of the people appointments. And then all of the people appointments. And then all of the people that had showed up to an appointment, that had showed up to an appointment, that had showed up to an appointment, there was no follow-up. So the LTV was there was no follow-up. So the LTV was there was no follow-up. So the LTV was extremely low, meaning there was a extremely low, meaning there was a extremely low, meaning there was a decent amount of water coming in the decent amount of water coming in the decent amount of water coming in the pipe, but it was just leaking out before pipe, but it was just leaking out before pipe, but it was just leaking out before it ever made it to the end. And so we it ever made it to the end. And so we it ever made it to the end. And so we realized together on this call that it realized together on this call that it realized together on this call that it would be much more valuable to the would be much more valuable to the would be much more valuable to the business to build reactivation systems, business to build reactivation systems, business to build reactivation systems, to build follow-up reminders on their to build follow-up reminders on their to build follow-up reminders on their appointments so that people actually appointments so that people actually appointments so that people actually started to show up more. And that's just started to show up more. And that's just started to show up more. And that's just a perfect example of the reframe that a perfect example of the reframe that a perfect example of the reframe that you have to do in order to really you have to do in order to really you have to do in order to really diagnose what the true pain is. And diagnose what the true pain is. And diagnose what the true pain is. And something interesting here is I think something interesting here is I think something interesting here is I think about a slide that says this later too. about a slide that says this later too. about a slide that says this later too. There's just a lot of power in silence. There's just a lot of power in silence. There's just a lot of power in silence. So when I asked her the question of like So when I asked her the question of like So when I asked her the question of like why did you book in this call? Like what why did you book in this call? Like what why did you book in this call? Like what is truly the pain that you're feeling is truly the pain that you're feeling is truly the pain that you're feeling here? here? here? I stopped talking. She thought for a I stopped talking. She thought for a I stopped talking. She thought for a couple seconds, responded, and then I couple seconds, responded, and then I couple seconds, responded, and then I didn't respond yet because I I had a didn't respond yet because I I had a didn't respond yet because I I had a feeling that that wasn't true. And when feeling that that wasn't true. And when feeling that that wasn't true. And when you have that silent pause, they think you have that silent pause, they think you have that silent pause, they think and they feel like they need to talk and they feel like they need to talk and they feel like they need to talk more. And I'm not big into like the more. And I'm not big into like the more. And I'm not big into like the sales tactics, right? Like I I don't sales tactics, right? Like I I don't sales tactics, right? Like I I don't have the sales background, but that was have the sales background, but that was have the sales background, but that was super powerful. I would pause and they super powerful. I would pause and they super powerful. I would pause and they would just keep talking. And your job on would just keep talking. And your job on would just keep talking. And your job on the discovery calls is to talk as much the discovery calls is to talk as much the discovery calls is to talk as much as least as possible. Your job is to sit as least as possible. Your job is to sit as least as possible. Your job is to sit there and listen. And that's how you're there and listen. And that's how you're there and listen. And that's how you're able to diagnose. So that's one quick able to diagnose. So that's one quick able to diagnose. So that's one quick example, right? But that happened all example, right? But that happened all example, right? But that happened all the time. Now, if you guys were here the time. Now, if you guys were here the time. Now, if you guys were here yesterday on the VIP VIP sessions and I yesterday on the VIP VIP sessions and I yesterday on the VIP VIP sessions and I came around to the table, some of us dug came around to the table, some of us dug came around to the table, some of us dug into this, some of us didn't, but there into this, some of us didn't, but there into this, some of us didn't, but there are two questions that I love to ask are two questions that I love to ask are two questions that I love to ask business owners or even your own business owners or even your own business owners or even your own business, right? Like if you're trying business, right? Like if you're trying business, right? Like if you're trying to help automate your own business and to help automate your own business and to help automate your own business and remove constraints, that [snorts] works remove constraints, that [snorts] works remove constraints, that [snorts] works super super well, especially when you super super well, especially when you super super well, especially when you pair it with silence. So, the first one
pair it with silence. So, the first one pair it with silence. So, the first one is if a business is is if a business is is if a business is supply constraint, if you had 10x the supply constraint, if you had 10x the supply constraint, if you had 10x the business tomorrow, what would break business tomorrow, what would break business tomorrow, what would break first? You ask them that and then you first? You ask them that and then you first? You ask them that and then you just be quiet because they'll think just be quiet because they'll think just be quiet because they'll think about the flow in chronological order about the flow in chronological order about the flow in chronological order from start to finish. And the key word from start to finish. And the key word from start to finish. And the key word there that I put in all caps is first there that I put in all caps is first there that I put in all caps is first because whatever breaks first is the because whatever breaks first is the because whatever breaks first is the first clog. Now, whenever you diagnose first clog. Now, whenever you diagnose first clog. Now, whenever you diagnose and you fix that first clog, there's and you fix that first clog, there's and you fix that first clog, there's going to be another one. There always going to be another one. There always going to be another one. There always is. And that's the beauty of it and is. And that's the beauty of it and is. And that's the beauty of it and that's how you get on a retainer because that's how you get on a retainer because that's how you get on a retainer because you just keep solving constraints and you just keep solving constraints and you just keep solving constraints and you keep scaling the business. So that's you keep scaling the business. So that's you keep scaling the business. So that's really good. If there's supply really good. If there's supply really good. If there's supply constraint, if they're demand constraint, if they're demand constraint, if they're demand constraint, you basically just flip it. constraint, you basically just flip it. constraint, you basically just flip it. You say, "What would you do to 10x the You say, "What would you do to 10x the You say, "What would you do to 10x the business coming in tomorrow? How do you business coming in tomorrow? How do you business coming in tomorrow? How do you get 10x the amount of water into your get 10x the amount of water into your get 10x the amount of water into your pipe tomorrow?" So, whatever they're pipe tomorrow?" So, whatever they're pipe tomorrow?" So, whatever they're already doing to get leads or maybe already doing to get leads or maybe already doing to get leads or maybe they're not doing anything to get leads, they're not doing anything to get leads, they're not doing anything to get leads, building systems to support that building systems to support that building systems to support that initiative. And initiative. And initiative. And that doesn't sometimes what you'll that doesn't sometimes what you'll that doesn't sometimes what you'll realize is as an AI consultant is what realize is as an AI consultant is what realize is as an AI consultant is what like a lot of us are calling it right like a lot of us are calling it right like a lot of us are calling it right now. Your job is just as much to tell now. Your job is just as much to tell now. Your job is just as much to tell them, hey, this is the problem that I'm them, hey, this is the problem that I'm them, hey, this is the problem that I'm seeing and we can solve this with no AI.
seeing and we can solve this with no AI. seeing and we can solve this with no AI. So, sometimes the problem could be it's So, sometimes the problem could be it's So, sometimes the problem could be it's a very service-based business. they're a very service-based business. they're a very service-based business. they're supply constrained and so the key is to supply constrained and so the key is to supply constrained and so the key is to just hire more people. Now, yeah, maybe just hire more people. Now, yeah, maybe just hire more people. Now, yeah, maybe you could come in here and say, you know you could come in here and say, you know you could come in here and say, you know what, let's build you some recruiting what, let's build you some recruiting what, let's build you some recruiting agents and some screening agents. That agents and some screening agents. That agents and some screening agents. That helps the hiring process. That removes helps the hiring process. That removes helps the hiring process. That removes that constraint. But that's a really that constraint. But that's a really that constraint. But that's a really great way to think about it as well is great way to think about it as well is great way to think about it as well is that an AI consultant or someone that's that an AI consultant or someone that's that an AI consultant or someone that's AI native, it doesn't mean that you use AI native, it doesn't mean that you use AI native, it doesn't mean that you use AI for everything. It means that you AI for everything. It means that you AI for everything. It means that you know just as well when not to use AI know just as well when not to use AI know just as well when not to use AI because that perspective is even more because that perspective is even more because that perspective is even more valuable in a world where AI is being valuable in a world where AI is being valuable in a world where AI is being shoved down everyone's throats shoved down everyone's throats shoved down everyone's throats and then you just be silent. and then you just be silent. and then you just be silent. Okay. So, moving on to the second one Okay. So, moving on to the second one Okay. So, moving on to the second one here, we've got the KPI. here, we've got the KPI. here, we've got the KPI. So, the whole idea here is that you So, the whole idea here is that you So, the whole idea here is that you before you accept any payment, you want before you accept any payment, you want before you accept any payment, you want to choose one number that you're trying to choose one number that you're trying to choose one number that you're trying to move and you're not choosing this to move and you're not choosing this to move and you're not choosing this number, you're choosing it with the number, you're choosing it with the number, you're choosing it with the stakeholder. stakeholder. stakeholder. If you think back to that example If you think back to that example If you think back to that example earlier where the business owner said to earlier where the business owner said to earlier where the business owner said to me, "Hey, we're not getting the value we me, "Hey, we're not getting the value we me, "Hey, we're not getting the value we paid for. It's because we didn't do well paid for. It's because we didn't do well paid for. It's because we didn't do well all of these things but this one very all of these things but this one very all of these things but this one very specifically because I had no way to specifically because I had no way to specifically because I had no way to prove that a personal assistant was prove that a personal assistant was prove that a personal assistant was helping his business. He came to me his helping his business. He came to me his helping his business. He came to me his pain was I feel busy. What is the pain was I feel busy. What is the pain was I feel busy. What is the solution in my mind? A personal solution in my mind? A personal solution in my mind? A personal assistant. When we really dug into it, assistant. When we really dug into it, assistant. When we really dug into it, the reason he was so busy is because he the reason he was so busy is because he the reason he was so busy is because he was handwriting all his proposals. So was handwriting all his proposals. So was handwriting all his proposals. So the better automation there would have the better automation there would have the better automation there would have been for me to help him build an AI been for me to help him build an AI been for me to help him build an AI agent that would automate the proposals agent that would automate the proposals agent that would automate the proposals or at least get them 90% of the way or at least get them 90% of the way or at least get them 90% of the way there. He checks it, he approves it. If there. He checks it, he approves it. If there. He checks it, he approves it. If we would have aligned on a number we would have aligned on a number we would have aligned on a number beforehand, then I know what I'm working beforehand, then I know what I'm working beforehand, then I know what I'm working towards. I know the result that I'm towards. I know the result that I'm towards. I know the result that I'm trying to drive for the business trying to drive for the business trying to drive for the business because productivity is really because productivity is really because productivity is really interesting.
interesting. interesting. Productivity is actually moving the Productivity is actually moving the Productivity is actually moving the needle. And you can't move the needle if needle. And you can't move the needle if needle. And you can't move the needle if you don't know what you're trying to you don't know what you're trying to you don't know what you're trying to move it towards. Because a lot of us move it towards. Because a lot of us move it towards. Because a lot of us feel like you might have had a day where feel like you might have had a day where feel like you might have had a day where you sat down on your at your desk all you sat down on your at your desk all you sat down on your at your desk all day, eight hours straight, let's say. day, eight hours straight, let's say. day, eight hours straight, let's say. But maybe you watch a lot of YouTube But maybe you watch a lot of YouTube But maybe you watch a lot of YouTube tutorials. Maybe you played around with tutorials. Maybe you played around with tutorials. Maybe you played around with image generation for an hour and you image generation for an hour and you image generation for an hour and you felt productive because you know you you felt productive because you know you you felt productive because you know you you clock off and you you sat there for clock off and you you sat there for clock off and you you sat there for eight hours. But how many of those hours eight hours. But how many of those hours eight hours. But how many of those hours were you actually doing? What you need were you actually doing? What you need were you actually doing? What you need to do to move that number forward? And to do to move that number forward? And to do to move that number forward? And for us, you know, a lot of us, you know, for us, you know, a lot of us, you know, for us, you know, a lot of us, you know, it's a business, so there's a lot of it's a business, so there's a lot of it's a business, so there's a lot of different north stars. But knowing what different north stars. But knowing what different north stars. But knowing what you're building towards that quarter or you're building towards that quarter or you're building towards that quarter or that day or whatever it is helps you that day or whatever it is helps you that day or whatever it is helps you actually be a lot more productive. And actually be a lot more productive. And actually be a lot more productive. And if your agents know your goals, then if your agents know your goals, then if your agents know your goals, then they can help you plan your days better they can help you plan your days better they can help you plan your days better to be more productive. So something that to be more productive. So something that to be more productive. So something that I would like to ask is, okay, let's say I would like to ask is, okay, let's say I would like to ask is, okay, let's say we've scoped it down. We've we we've scoped it down. We've we we've scoped it down. We've we understand the constraint and I forget understand the constraint and I forget understand the constraint and I forget the example I use. Um, the example I use. Um, the example I use. Um, anyways, let's say we we've scoped it anyways, let's say we we've scoped it anyways, let's say we we've scoped it down to a certain automation, then I down to a certain automation, then I down to a certain automation, then I could ask, "In a perfect world, what could ask, "In a perfect world, what could ask, "In a perfect world, what does this look like for your business? does this look like for your business? does this look like for your business? If we push this into production and it's If we push this into production and it's If we push this into production and it's working perfectly, what do you want to working perfectly, what do you want to working perfectly, what do you want to see?" And from there, you try to drill see?" And from there, you try to drill see?" And from there, you try to drill into one certain metric. So maybe it is into one certain metric. So maybe it is into one certain metric. So maybe it is an AI agent that sets appointments.
an AI agent that sets appointments. an AI agent that sets appointments. [clears throat] Maybe they say, "Okay, [clears throat] Maybe they say, "Okay, [clears throat] Maybe they say, "Okay, yeah, I mean, right now we're getting yeah, I mean, right now we're getting yeah, I mean, right now we're getting like five appointments a week from our like five appointments a week from our like five appointments a week from our manual setters." In a perfect world, our manual setters." In a perfect world, our manual setters." In a perfect world, our manual setters have those 10 hours a manual setters have those 10 hours a manual setters have those 10 hours a week back to do other things and we're week back to do other things and we're week back to do other things and we're booking in like 10 appointments a week. booking in like 10 appointments a week. booking in like 10 appointments a week. And so now I know exactly what is a And so now I know exactly what is a And so now I know exactly what is a success to them. So there's that's success to them. So there's that's success to them. So there's that's completely objective. I can go work completely objective. I can go work completely objective. I can go work towards that and I can prove that. So if towards that and I can prove that. So if towards that and I can prove that. So if someone says to me, "Hey, we're not someone says to me, "Hey, we're not someone says to me, "Hey, we're not getting the value we paid for. Look at getting the value we paid for. Look at getting the value we paid for. Look at the scope. This is what we agreed on. the scope. This is what we agreed on. the scope. This is what we agreed on. This you said that you wanted 10 This you said that you wanted 10 This you said that you wanted 10 appointments a week from this automation appointments a week from this automation appointments a week from this automation and I objectively delivered that to and I objectively delivered that to and I objectively delivered that to you." I probably would say a little bit you." I probably would say a little bit you." I probably would say a little bit nicer though. Okay. So that's a nicer though. Okay. So that's a nicer though. Okay. So that's a trackable and objective metric because a trackable and objective metric because a trackable and objective metric because a lot of this stuff is very subjective. I lot of this stuff is very subjective. I lot of this stuff is very subjective. I want a personal AI assistant so I can want a personal AI assistant so I can want a personal AI assistant so I can feel more productive, so I feel less feel more productive, so I feel less feel more productive, so I feel less busy. There's no way that I can actually busy. There's no way that I can actually busy. There's no way that I can actually prove that. There's no way I can prove prove that. There's no way I can prove prove that. There's no way I can prove to the business owner that he is now to the business owner that he is now to the business owner that he is now less busy because of what I built. So, less busy because of what I built. So, less busy because of what I built. So, they can't be subjective. So, like I they can't be subjective. So, like I they can't be subjective. So, like I said, you have a baseline like five said, you have a baseline like five said, you have a baseline like five weekly appointments. You've got a target weekly appointments. You've got a target weekly appointments. You've got a target like 12 weekly appointments. And now you like 12 weekly appointments. And now you like 12 weekly appointments. And now you know what you're working towards. Of know what you're working towards. Of know what you're working towards. Of course, you're going to have to leverage course, you're going to have to leverage course, you're going to have to leverage some of their expertise because if you some of their expertise because if you some of their expertise because if you know not much about the process and you know not much about the process and you know not much about the process and you try to set a baseline target of like, try to set a baseline target of like, try to set a baseline target of like, you know, 35 appointments a week, that's you know, 35 appointments a week, that's you know, 35 appointments a week, that's very tough and now you're not going to very tough and now you're not going to very tough and now you're not going to be able to prove that.
be able to prove that. be able to prove that. But the idea is that each automation is But the idea is that each automation is But the idea is that each automation is having something to work towards. And having something to work towards. And having something to work towards. And like I said, if this is not you working like I said, if this is not you working like I said, if this is not you working with a client, before you go out and with a client, before you go out and with a client, before you go out and decide to dedicate some some of your own decide to dedicate some some of your own decide to dedicate some some of your own internal resources or budget to a internal resources or budget to a internal resources or budget to a project, you should probably figure out project, you should probably figure out project, you should probably figure out what is that one metric you want to what is that one metric you want to what is that one metric you want to move. A lot of times there are, you move. A lot of times there are, you move. A lot of times there are, you know, it it drips into other metrics know, it it drips into other metrics know, it it drips into other metrics too, but if you can choose one, it makes too, but if you can choose one, it makes too, but if you can choose one, it makes the decision a lot easier. And then you the decision a lot easier. And then you the decision a lot easier. And then you can figure out how is that actually can figure out how is that actually can figure out how is that actually impacting the bottom line of the impacting the bottom line of the impacting the bottom line of the business. business. business. And that's how you prove, like I said, And that's how you prove, like I said, And that's how you prove, like I said, that your automation helped. that your automation helped. that your automation helped. Okay. Okay, the third piece now is on Okay. Okay, the third piece now is on Okay. Okay, the third piece now is on the pricing side. Now, this is really the pricing side. Now, this is really the pricing side. Now, this is really interesting. interesting. interesting. I really don't think there's like a I really don't think there's like a I really don't think there's like a standard universal right way to price. standard universal right way to price. standard universal right way to price. Everyone's doing it a bit differently. Everyone's doing it a bit differently. Everyone's doing it a bit differently. Even the big firms are changing up their Even the big firms are changing up their Even the big firms are changing up their pricing. I've tried almost everything pricing. I've tried almost everything pricing. I've tried almost everything that you could think of. I've tried that you could think of. I've tried that you could think of. I've tried performance-based. I've t hourly. I've performance-based. I've t hourly. I've performance-based. I've t hourly. I've tried retainers on hourly. I've tried tried retainers on hourly. I've tried tried retainers on hourly. I've tried value based. I've tried just lots of value based. I've tried just lots of value based. I've tried just lots of stuff. stuff. stuff. Um the way I feel is that you should not Um the way I feel is that you should not Um the way I feel is that you should not be charging hourly. I think that a lot be charging hourly. I think that a lot be charging hourly. I think that a lot of people when they're getting started, of people when they're getting started, of people when they're getting started, I hear, you know, I keep getting nos to I hear, you know, I keep getting nos to I hear, you know, I keep getting nos to my price. I hear that there's imposter my price. I hear that there's imposter my price. I hear that there's imposter syndrome. And so, I think hourly to syndrome. And so, I think hourly to syndrome. And so, I think hourly to start is a really good way to get your start is a really good way to get your start is a really good way to get your foot in the door and win some trust or foot in the door and win some trust or foot in the door and win some trust or even start free. I think it's a really even start free. I think it's a really even start free. I think it's a really good way to start, but I don't think you good way to start, but I don't think you good way to start, but I don't think you should be building a business around should be building a business around should be building a business around your hourly pricing. And it's it's your hourly pricing. And it's it's your hourly pricing. And it's it's really simple and especially if you really simple and especially if you really simple and especially if you start to think about the way that AI is start to think about the way that AI is start to think about the way that AI is supposed to make us do more in less supposed to make us do more in less supposed to make us do more in less time. So, it's all about the incentives.
time. So, it's all about the incentives. time. So, it's all about the incentives. All right, real quick, guys. I mentioned All right, real quick, guys. I mentioned All right, real quick, guys. I mentioned this at the end of the presentation, but this at the end of the presentation, but this at the end of the presentation, but I attached this completely free PDF, I attached this completely free PDF, I attached this completely free PDF, which is like a 30-page resource on which is like a 30-page resource on which is like a 30-page resource on pricing your AI solutions, which you can pricing your AI solutions, which you can pricing your AI solutions, which you can access for completely free inside of my access for completely free inside of my access for completely free inside of my free school community. The link for that free school community. The link for that free school community. The link for that is down in the description. You just hop is down in the description. You just hop is down in the description. You just hop in there, you'll click on all YouTube in there, you'll click on all YouTube in there, you'll click on all YouTube resources, and you'll find that pricing resources, and you'll find that pricing resources, and you'll find that pricing masterclass guide in there. So, if you masterclass guide in there. So, if you masterclass guide in there. So, if you want it, it's there. Let's get back to want it, it's there. Let's get back to want it, it's there. Let's get back to the video. Let's say you've got two the video. Let's say you've got two the video. Let's say you've got two developers on your team and you're developers on your team and you're developers on your team and you're providing services to businesses. You've providing services to businesses. You've providing services to businesses. You've got one developer named Sarah and she's got one developer named Sarah and she's got one developer named Sarah and she's a killer. She gets something done in 1 a killer. She gets something done in 1 a killer. She gets something done in 1 hour and you've got another developer hour and you've got another developer hour and you've got another developer named Dan. He's good but he's a little named Dan. He's good but he's a little named Dan. He's good but he's a little slower, three hours. And let's say for slower, three hours. And let's say for slower, three hours. And let's say for the sake of the example, they produce the sake of the example, they produce the sake of the example, they produce the exact same quality of solution. You the exact same quality of solution. You the exact same quality of solution. You would then bill for Sarah's work, your would then bill for Sarah's work, your would then bill for Sarah's work, your better developer, you would bill $150 to better developer, you would bill $150 to better developer, you would bill $150 to the client or I don't know, however you the client or I don't know, however you the client or I don't know, however you want to you get the point, right? $150. want to you get the point, right? $150. want to you get the point, right? $150. And now Dan, because he took three And now Dan, because he took three And now Dan, because he took three hours, you get more money. And those hours, you get more money. And those hours, you get more money. And those incentives are completely backwards. Why incentives are completely backwards. Why incentives are completely backwards. Why would you make more money for moving would you make more money for moving would you make more money for moving slower and on a worse developer? Right?
slower and on a worse developer? Right? slower and on a worse developer? Right? It's all about incentives. It's all It's all about incentives. It's all It's all about incentives. It's all about value based pricing. That this is about value based pricing. That this is about value based pricing. That this is where we got to and this is what I where we got to and this is what I where we got to and this is what I believe at the moment is the best way to believe at the moment is the best way to believe at the moment is the best way to be doing this. And what that means is be doing this. And what that means is be doing this. And what that means is yes, yes, yes, the same automation could be different the same automation could be different the same automation could be different amounts of valuable to different amounts of valuable to different amounts of valuable to different businesses. businesses. businesses. So you have to kind of take that into So you have to kind of take that into So you have to kind of take that into account at least when you're going very account at least when you're going very account at least when you're going very custom and you're consulting. custom and you're consulting. custom and you're consulting. This is the way we did it, right? Oops. This is the way we did it, right? Oops. This is the way we did it, right? Oops. A client should understand how they will A client should understand how they will A client should understand how they will receive 10x their investment. That's receive 10x their investment. That's receive 10x their investment. That's kind of the golden rule that I like to kind of the golden rule that I like to kind of the golden rule that I like to to give, right? Because if you can walk to give, right? Because if you can walk to give, right? Because if you can walk the stakeholder through the math, the stakeholder through the math, the stakeholder through the math, whether that is a business you're trying whether that is a business you're trying whether that is a business you're trying to help or whether that's you internally to help or whether that's you internally to help or whether that's you internally trying to win a budget because you're trying to win a budget because you're trying to win a budget because you're trying to, you know, build AI projects trying to, you know, build AI projects trying to, you know, build AI projects in house, [snorts] you need to prove in house, [snorts] you need to prove in house, [snorts] you need to prove that this investment of their money will that this investment of their money will that this investment of their money will get them a 10x on it because that makes get them a 10x on it because that makes get them a 10x on it because that makes it a really hard offer to say no to. So it a really hard offer to say no to. So it a really hard offer to say no to. So the way that we would do this is the way that we would do this is the way that we would do this is basically take 10% of the projected basically take 10% of the projected basically take 10% of the projected annualized value of the price of the the annualized value of the price of the the annualized value of the price of the the automation and that's a gear price. So automation and that's a gear price. So automation and that's a gear price. So an example here, let's say you're an example here, let's say you're an example here, let's say you're building a customer support agent and building a customer support agent and building a customer support agent and the manual rep, the human rep spends the manual rep, the human rep spends the manual rep, the human rep spends about 10 hours a week responding to about 10 hours a week responding to about 10 hours a week responding to these tickets and this person is paid 40 these tickets and this person is paid 40 these tickets and this person is paid 40 bucks an hour. So the cost of the bucks an hour. So the cost of the bucks an hour. So the cost of the business 40 bucks an hour for customer business 40 bucks an hour for customer business 40 bucks an hour for customer support. 40 bucks an hour and the rep is support. 40 bucks an hour and the rep is support. 40 bucks an hour and the rep is does this about 10 hours a week. That's does this about 10 hours a week. That's does this about 10 hours a week. That's 400 bucks a week. And if you annualize 400 bucks a week. And if you annualize 400 bucks a week. And if you annualize that, that's about $2,100 over the that, that's about $2,100 over the that, that's about $2,100 over the course of the year, the first year course of the year, the first year course of the year, the first year projected annualized revenue.
projected annualized revenue. projected annualized revenue. And you take 10% of that. Now, 10% 20%, And you take 10% of that. Now, 10% 20%, And you take 10% of that. Now, 10% 20%, I play with it a little bit, but let's I play with it a little bit, but let's I play with it a little bit, but let's just say 10% for the sake of example. just say 10% for the sake of example. just say 10% for the sake of example. That's $2,80 That's $2,80 That's $2,80 here. Because what you have to assume, here. Because what you have to assume, here. Because what you have to assume, they don't always, they don't always, they don't always, but you have to assume that they're but you have to assume that they're but you have to assume that they're going to ask you, going to ask you, going to ask you, can you please tell me how you got to can you please tell me how you got to can you please tell me how you got to that number? Because a lot of people that number? Because a lot of people that number? Because a lot of people will come in and they're kind of like will come in and they're kind of like will come in and they're kind of like maybe they're shopping around, they're maybe they're shopping around, they're maybe they're shopping around, they're trying to get a quote, they don't even trying to get a quote, they don't even trying to get a quote, they don't even know how much to allocate a budget know how much to allocate a budget know how much to allocate a budget towards. So if you assume that they're towards. So if you assume that they're towards. So if you assume that they're going to ask you how did you get to that going to ask you how did you get to that going to ask you how did you get to that number and you can confidently walk them number and you can confidently walk them number and you can confidently walk them through the math and then you just be through the math and then you just be through the math and then you just be silent and you don't devalue your work. silent and you don't devalue your work. silent and you don't devalue your work. I'm kind of jumping ahead. I know I got I'm kind of jumping ahead. I know I got I'm kind of jumping ahead. I know I got some slides here that cover this, but some slides here that cover this, but some slides here that cover this, but anyways, you have to figure out what anyways, you have to figure out what anyways, you have to figure out what does the manual process cost the does the manual process cost the does the manual process cost the business. And so in this example, right, business. And so in this example, right, business. And so in this example, right, I I was able to understand, okay, this I I was able to understand, okay, this I I was able to understand, okay, this rep cost the business 40 bucks an hour. rep cost the business 40 bucks an hour. rep cost the business 40 bucks an hour. They're not always going to tell you They're not always going to tell you They're not always going to tell you salary. They're not always going to tell salary. They're not always going to tell salary. They're not always going to tell you the hourly weight rate, but there's you the hourly weight rate, but there's you the hourly weight rate, but there's other ways to figure out what does the other ways to figure out what does the other ways to figure out what does the manual process cost the business. It manual process cost the business. It manual process cost the business. It could be opportunity cost. Maybe they've could be opportunity cost. Maybe they've could be opportunity cost. Maybe they've been having a different funnel or been having a different funnel or been having a different funnel or tripwire that they've wanted to push out tripwire that they've wanted to push out tripwire that they've wanted to push out for two quarters, but they haven't for two quarters, but they haven't for two quarters, but they haven't because they are too busy, right?
because they are too busy, right? because they are too busy, right? There's there's other types of cost There's there's other types of cost There's there's other types of cost besides just like the hourly cost. Maybe besides just like the hourly cost. Maybe besides just like the hourly cost. Maybe you're building a voice appointment, uh, you're building a voice appointment, uh, you're building a voice appointment, uh, a voice agent because the business a voice agent because the business a voice agent because the business misses calls all the time. And every misses calls all the time. And every misses calls all the time. And every missed call could potentially be, um, a missed call could potentially be, um, a missed call could potentially be, um, a driveway, right? A driveway. And that driveway, right? A driveway. And that driveway, right? A driveway. And that driveway could win the business $10,000. driveway could win the business $10,000. driveway could win the business $10,000. So, there's other ways to figure out So, there's other ways to figure out So, there's other ways to figure out what is the cost of the manual process. what is the cost of the manual process. what is the cost of the manual process. You just have to ask good questions and You just have to ask good questions and You just have to ask good questions and then be silent and listen, then be silent and listen, then be silent and listen, like I said. like I said. like I said. So, the key thing to remember here is So, the key thing to remember here is So, the key thing to remember here is that cost doesn't justify price. that cost doesn't justify price. that cost doesn't justify price. value justifies price. And value justifies price. And value justifies price. And this was kind of tough for me to wrap my this was kind of tough for me to wrap my this was kind of tough for me to wrap my head around at first because the first head around at first because the first head around at first because the first thing I thought of as a very new thing I thought of as a very new thing I thought of as a very new business owner was I need to protect my business owner was I need to protect my business owner was I need to protect my margins here. I need to make sure that margins here. I need to make sure that margins here. I need to make sure that I'm making this much money or this I'm making this much money or this I'm making this much money or this percent of the deal and I'm keeping that percent of the deal and I'm keeping that percent of the deal and I'm keeping that much to account for taxes to account much to account for taxes to account much to account for taxes to account for, you know, what I have to pay my for, you know, what I have to pay my for, you know, what I have to pay my employees to account for our API cost or employees to account for our API cost or employees to account for our API cost or our service, whatever it is. I was our service, whatever it is. I was our service, whatever it is. I was thinking about the margins. But I think thinking about the margins. But I think thinking about the margins. But I think that obviously you still have to think that obviously you still have to think that obviously you still have to think about the margins so you're not running about the margins so you're not running about the margins so you're not running your business in the ground, but the your business in the ground, but the your business in the ground, but the cost doesn't justify the price. And a cost doesn't justify the price. And a cost doesn't justify the price. And a really good example that I heard from really good example that I heard from really good example that I heard from Jonathan Stark who spoke at our event a Jonathan Stark who spoke at our event a Jonathan Stark who spoke at our event a couple weeks ago, he was saying like couple weeks ago, he was saying like couple weeks ago, he was saying like let's say you're paying someone to do let's say you're paying someone to do let's say you're paying someone to do your lawn and you pay them a hundred your lawn and you pay them a hundred your lawn and you pay them a hundred bucks for the lawn and he's been come, bucks for the lawn and he's been come, bucks for the lawn and he's been come, you know, he's been coming to you for you know, he's been coming to you for you know, he's been coming to you for for years. All of a sudden he buys a new for years. All of a sudden he buys a new for years. All of a sudden he buys a new pickup truck and that's an expense to pickup truck and that's an expense to pickup truck and that's an expense to his business. So he has higher costs on his business. So he has higher costs on his business. So he has higher costs on his end and then he comes to you and his end and then he comes to you and his end and then he comes to you and wants to charge you 200 for the exact wants to charge you 200 for the exact wants to charge you 200 for the exact same job for the exact same lawn. That's same job for the exact same lawn. That's same job for the exact same lawn. That's not something that people will typically not something that people will typically not something that people will typically agree to because the cost doesn't agree to because the cost doesn't agree to because the cost doesn't justify the price. The value justifies justify the price. The value justifies justify the price. The value justifies the price.
the price. the price. So, like I said, you have to pretend and So, like I said, you have to pretend and So, like I said, you have to pretend and you have to assume that as soon as you you have to assume that as soon as you you have to assume that as soon as you say the price, they're going to come say the price, they're going to come say the price, they're going to come back to you and ask, "How did you get back to you and ask, "How did you get back to you and ask, "How did you get that number?" And then you just have to that number?" And then you just have to that number?" And then you just have to walk them through the math. Now, what's walk them through the math. Now, what's walk them through the math. Now, what's really important there is you don't want really important there is you don't want really important there is you don't want to devalue your work. So, let's say to devalue your work. So, let's say to devalue your work. So, let's say someone comes to you, you scope out the someone comes to you, you scope out the someone comes to you, you scope out the right constraint, you figure out the right constraint, you figure out the right constraint, you figure out the cost of the business, and you give them cost of the business, and you give them cost of the business, and you give them a 10% number. Let's say it just comes a 10% number. Let's say it just comes a 10% number. Let's say it just comes out to 15,000. And they were basically out to 15,000. And they were basically out to 15,000. And they were basically planning$7,000 planning$7,000 planning$7,000 to be the maximum they were going to to be the maximum they were going to to be the maximum they were going to spend on AI this quarter. spend on AI this quarter. spend on AI this quarter. You don't want to get into this You don't want to get into this You don't want to get into this negotiation of devaluing your work and negotiation of devaluing your work and negotiation of devaluing your work and saying, "Ah, you know, this would be saying, "Ah, you know, this would be saying, "Ah, you know, this would be 15K, but for you, we'll do it for 7K." 15K, but for you, we'll do it for 7K." 15K, but for you, we'll do it for 7K." You know, if you're really trying to get You know, if you're really trying to get You know, if you're really trying to get your first client and you can get that, your first client and you can get that, your first client and you can get that, then I would say do it reps over cash then I would say do it reps over cash then I would say do it reps over cash upfront when you're getting started. But upfront when you're getting started. But upfront when you're getting started. But you don't want to devalue your work. you don't want to devalue your work. you don't want to devalue your work. What I would do in this situation is I What I would do in this situation is I What I would do in this situation is I would say, "Okay, would say, "Okay, would say, "Okay, this build, this solution is $15,000 this build, this solution is $15,000 this build, this solution is $15,000 worth of value to the business and you worth of value to the business and you worth of value to the business and you have a $7,000 budget. Let's just drill have a $7,000 budget. Let's just drill have a $7,000 budget. Let's just drill down the functionality a little bit and down the functionality a little bit and down the functionality a little bit and treat this as a V1. we'll give you the treat this as a V1. we'll give you the treat this as a V1. we'll give you the $7,000 worth of this automation and then $7,000 worth of this automation and then $7,000 worth of this automation and then you know next quarter when you've got you know next quarter when you've got you know next quarter when you've got the budget or once this automation's in the budget or once this automation's in the budget or once this automation's in production and we're actively earning production and we're actively earning production and we're actively earning you back time and money, then we'll look you back time and money, then we'll look you back time and money, then we'll look at the next one. Because I think if you at the next one. Because I think if you at the next one. Because I think if you if you set the impression right away if you set the impression right away if you set the impression right away that you're willing to bump down your that you're willing to bump down your that you're willing to bump down your price as soon as they push back, then price as soon as they push back, then price as soon as they push back, then they're just going to keep doing that they're just going to keep doing that they're just going to keep doing that and you don't want to devalue your work.
So that's pretty much what I wanted to So that's pretty much what I wanted to run through today. Um, obviously those run through today. Um, obviously those run through today. Um, obviously those kind of three main things, there's a lot kind of three main things, there's a lot kind of three main things, there's a lot more nuance to get into, which if you more nuance to get into, which if you more nuance to get into, which if you guys want to chat more, I'd love to to guys want to chat more, I'd love to to guys want to chat more, I'd love to to chat more. But think about this with chat more. But think about this with chat more. But think about this with your own business. Um, actually, let's your own business. Um, actually, let's your own business. Um, actually, let's just take let's just take one volunteer just take let's just take one volunteer just take let's just take one volunteer real quick. Someone that Yeah. Um, is it real quick. Someone that Yeah. Um, is it real quick. Someone that Yeah. Um, is it Allejo? Allejo? Allejo? >> There we go. Tell us >> There we go. Tell us >> There we go. Tell us in your business, you know what you're in your business, you know what you're in your business, you know what you're driving towards, right? driving towards, right? driving towards, right? >> Yeah. >> Yeah. >> Yeah. >> At the highest level, are you supply >> At the highest level, are you supply >> At the highest level, are you supply constrained or demand constrained? constrained or demand constrained? constrained or demand constrained? >> Demand constraint. We [clears throat] >> Demand constraint. We [clears throat] >> Demand constraint. We [clears throat] need more clients. need more clients. need more clients. >> You need more clients. And how are you >> You need more clients. And how are you >> You need more clients. And how are you currently getting those clients? currently getting those clients? currently getting those clients? >> Uh content on YouTube. Uh it's not quite >> Uh content on YouTube. Uh it's not quite >> Uh content on YouTube. Uh it's not quite converting. I'm doing webinars and out converting. I'm doing webinars and out converting. I'm doing webinars and out of 20 people that have assisted webinars of 20 people that have assisted webinars of 20 people that have assisted webinars over two months, over two months, over two months, >> uh we've gotten zero appointment set. >> uh we've gotten zero appointment set. >> uh we've gotten zero appointment set. >> Okay. So, >> Okay. So, >> Okay. So, if you wanted to have 10x the amount of if you wanted to have 10x the amount of if you wanted to have 10x the amount of business tomorrow, what would you have business tomorrow, what would you have business tomorrow, what would you have to do? to do? to do? >> Uh probably 10x the content. >> Uh probably 10x the content. >> Uh probably 10x the content. >> Mhm. 10x the content. uh seems crazy but >> Mhm. 10x the content. uh seems crazy but >> Mhm. 10x the content. uh seems crazy but the methods that I see today very the methods that I see today very the methods that I see today very helpful.
helpful. helpful. >> Yeah, volume negates luck, right? But >> Yeah, volume negates luck, right? But >> Yeah, volume negates luck, right? But you want to 10x the content without you want to 10x the content without you want to 10x the content without decreasing the the quality of course. So decreasing the the quality of course. So decreasing the the quality of course. So in this case, in this case, in this case, obviously there's a lot more to dive obviously there's a lot more to dive obviously there's a lot more to dive into here, but you know the way that into here, but you know the way that into here, but you know the way that you're kind of you know your top of you're kind of you know your top of you're kind of you know your top of funnel. What does it seem like you funnel. What does it seem like you funnel. What does it seem like you should be focusing on automating when should be focusing on automating when should be focusing on automating when you get home in a couple days or next you get home in a couple days or next you get home in a couple days or next week? week? week? Um the problems that I have heard on the Um the problems that I have heard on the Um the problems that I have heard on the sales calls uh turning those into a sales calls uh turning those into a sales calls uh turning those into a video. video. video. >> Okay. >> Okay. >> Okay. >> Uh that one is huge is I like forget >> Uh that one is huge is I like forget >> Uh that one is huge is I like forget what we talked about what we talked about what we talked about >> and maybe focus on something in the >> and maybe focus on something in the >> and maybe focus on something in the sales call but I miss something else sales call but I miss something else sales call but I miss something else that they said that is an actual problem that they said that is an actual problem that they said that is an actual problem with their business. with their business. with their business. >> Totally. And do you know how you could >> Totally. And do you know how you could >> Totally. And do you know how you could automate that? automate that? automate that? >> Now I do. >> Now I do. >> Now I do. >> There we go. Um now something I saw I >> There we go. Um now something I saw I >> There we go. Um now something I saw I remember talking to you about was the remember talking to you about was the remember talking to you about was the grill me skill, right? Yeah, grill me skill, right? Yeah, grill me skill, right? Yeah, >> if you guys don't know the grill me >> if you guys don't know the grill me >> if you guys don't know the grill me skill, I mean, it's a very simple skill, I mean, it's a very simple skill, I mean, it's a very simple prompt. Essentially, just at the end of prompt. Essentially, just at the end of prompt. Essentially, just at the end of of questions, ask the AI to interview of questions, ask the AI to interview of questions, ask the AI to interview you relentlessly about this topic you relentlessly about this topic you relentlessly about this topic because what that does is it gets all of because what that does is it gets all of because what that does is it gets all of the subject matter expertise in your the subject matter expertise in your the subject matter expertise in your head into the AIOS that you're building.
head into the AIOS that you're building. head into the AIOS that you're building. Because once you give it all of that Because once you give it all of that Because once you give it all of that nuance, it's able to build an automation nuance, it's able to build an automation nuance, it's able to build an automation out of that so much better because the out of that so much better because the out of that so much better because the way that you would kind of create these way that you would kind of create these way that you would kind of create these AI agents to to uh, you know, AI agents to to uh, you know, AI agents to to uh, you know, operationalize that process is different operationalize that process is different operationalize that process is different than someone else might. So, than someone else might. So, than someone else might. So, Obviously, that was a really quick Obviously, that was a really quick Obviously, that was a really quick example. Thank you, Aljo. I appreciate example. Thank you, Aljo. I appreciate example. Thank you, Aljo. I appreciate the the participation there. But just the the participation there. But just the the participation there. But just constantly be asking yourself like what constantly be asking yourself like what constantly be asking yourself like what is the actual constraint? You know, how is the actual constraint? You know, how is the actual constraint? You know, how do we 10x the business? How do we do we 10x the business? How do we do we 10x the business? How do we actually look through the flow of the actually look through the flow of the actually look through the flow of the pipe and the water and figure out where pipe and the water and figure out where pipe and the water and figure out where the clog is or where the leak is and the clog is or where the leak is and the clog is or where the leak is and then just directly attack that? And so, then just directly attack that? And so, then just directly attack that? And so, like I said earlier, like I said earlier, like I said earlier, when we were working with businesses, we when we were working with businesses, we when we were working with businesses, we would always start with our foot in the would always start with our foot in the would always start with our foot in the door with one project on a value based door with one project on a value based door with one project on a value based uh project fee. And from there, we uh project fee. And from there, we uh project fee. And from there, we started to explain to them, started to explain to them, started to explain to them, we are seeing all of these other clogs we are seeing all of these other clogs we are seeing all of these other clogs because once we've removed this because once we've removed this because once we've removed this constraint, there's another one. And constraint, there's another one. And constraint, there's another one. And that's a good thing because still you're that's a good thing because still you're that's a good thing because still you're getting more water through. And that's getting more water through. And that's getting more water through. And that's how you're able to get on the retainer how you're able to get on the retainer how you're able to get on the retainer because not only did you because not only did you because not only did you find the right constraint, you also find the right constraint, you also find the right constraint, you also chose a number beforehand so you can chose a number beforehand so you can chose a number beforehand so you can objectively prove to them the automation objectively prove to them the automation objectively prove to them the automation helped their business. And then you helped their business. And then you helped their business. And then you price it in a way where it was a price it in a way where it was a price it in a way where it was a no-brainer for them to say yes. And then no-brainer for them to say yes. And then no-brainer for them to say yes. And then guess what? after you push it into guess what? after you push it into guess what? after you push it into production, you come back one month, two production, you come back one month, two production, you come back one month, two months, 3 months later and you show them months, 3 months later and you show them months, 3 months later and you show them that number and now you're able to that number and now you're able to that number and now you're able to justify asking for that retainer and to justify asking for that retainer and to justify asking for that retainer and to just say, "Hey, you know, we can move a just say, "Hey, you know, we can move a just say, "Hey, you know, we can move a lot quicker if we're not always doing lot quicker if we're not always doing lot quicker if we're not always doing the scoping and we're not always the scoping and we're not always the scoping and we're not always figuring out pricing, if we can just figuring out pricing, if we can just figuring out pricing, if we can just work more and just keep attacking those work more and just keep attacking those work more and just keep attacking those constraints." And that's the only way constraints." And that's the only way constraints." And that's the only way that the business is truly going to that the business is truly going to that the business is truly going to grow. So, that's pretty much what I want grow. So, that's pretty much what I want grow. So, that's pretty much what I want to talk to you guys about today. I have to talk to you guys about today. I have to talk to you guys about today. I have a full pricing guide. This is like a 29
a full pricing guide. This is like a 29 a full pricing guide. This is like a 29 30 page doc um kind of just like about 30 page doc um kind of just like about 30 page doc um kind of just like about what I talked about today on the what I talked about today on the what I talked about today on the valuebased pricing and some stuff like valuebased pricing and some stuff like valuebased pricing and some stuff like that. Um so go ahead and scan that and that. Um so go ahead and scan that and that. Um so go ahead and scan that and grab that doc. I'm sure we can include grab that doc. I'm sure we can include grab that doc. I'm sure we can include it in the the resources later as well if it in the the resources later as well if it in the the resources later as well if you miss it. But yeah, thank you guys so you miss it. But yeah, thank you guys so you miss it. But yeah, thank you guys so much. It's been an awesome day and yeah, much. It's been an awesome day and yeah, much. It's been an awesome day and yeah, let's let's have some dinner. let's let's have some dinner. let's let's have some dinner. >> [applause]

Summary

The main theme is avoiding common mistakes when offering AI services or implementing AI in business. Key subjects discussed are the importance of solving a client's constraint, defining KPIs, and proper pricing. The practical takeaway is to ensure AI solutions provide tangible value and are strategically aligned with business needs.

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