This video challenges the prevalent hype surrounding AI automation agencies, offering a reality check for aspiring entrepreneurs. Tom Craw, an automation expert with eight years of experience, argues that while the industry is full of opportunity, the standard advice given to beginners is setting them up for failure. He outlines five critical truths regarding market saturation, sales strategy, and service delivery that are essential for building a sustainable business.
1. The Market is Saturated with Low Quality
While it may seem like everyone is selling AI automation, the market is primarily saturated with low-quality service providers who overpromise and underdeliver. Consequently, there is a massive, untapped demand for high-quality professionals. The competition is not for being first, but for being good. There are over 1.7 million medium-sized businesses in the US alone that need genuine help with automation.
2. Business Owners Buy Outcomes, Not Workflows
Clients do not care about the technical details, such as how many nodes are in a workflow or which AI model is used. They care about three specific outcomes: Time, Money, and Focus. To be successful, you must transition from selling features (workflows) to selling consultancy and diagnosis. If your service saves a client 20 hours a month, the value is in that result, not the two hours it took you to build the solution.
3. Small Businesses Are the Wrong Targets
Contrary to popular advice, small businesses are often the most difficult clients. They typically lack budgets, have no existing systems to optimize, and operate in high-stress survival modes. Instead, you should target medium-sized companies (earning $500k to $10M annually) that have established budgets and processes. Alternatively, use your automation skills to offer a service (like content creation) rather than selling the workflow itself.
4. Pricing Requires Social Proof
New agencies are often told to charge $5,000 to $10,000 immediately, but without a track record, high prices are hard to justify. It is normal to start with lower fees ($500–$2,000) to build a portfolio of case studies and results. Once you have social proof, you can raise prices by selling complete business systems and transformations rather than one-off tools.
5. Delivery is Harder Than the Demo
A workflow that functions perfectly in a demo often breaks when applied to a business’s real, messy data. To mitigate the difficulty of delivery and maintenance, you must pick a specific niche (e.g., roofing contractors). By focusing on one industry, you can reuse up to 90% of your work for future clients, allowing you to scale your expertise and delivery speed effectively.
Conclusion
The opportunity in AI automation is significant for those willing to look past the “get rich quick” hype. By focusing on medium-sized businesses, solving actual problems regarding time and money, and niching down to streamline delivery, entrepreneurs can build highly profitable, long-term businesses.
Mentoring question
Are you currently trying to sell the technical features of your service, or are you clearly articulating how your solution returns time, money, or focus to the business owner?
Source: https://youtube.com/watch?v=HMo8ixMd4ts&is=ohmMz3xFSnIp7EtY