something fascinating is happening with agencies and AI in 2025.
Silicon Valley has always written them off. 'Lifestyle businesses.' 'Bad margins.' 'Can't scale.' I heard this for years.
I get it. Running an agency is brutal. You're LUCKY to hit 15% margins after paying employees, rent etc.
Most agency founders spend their Sundays dreading Monday's personnel issues.
but I'm watching something fascinating emerge in 2025 and i wanted to share it with you.
AI agents aren't perfect yet. but the writing is on the wall: what currently takes 50 people will soon be done by 2 people orchestrating 50 AI workers.
same revenue, but margins jump from 20% to 80%. no overhead, no drama, pure profit. clients pay less, get faster work.
on the outside, nothing will change. same agency, same deliverables. but on the inside, pure sweet software margins. yum.
i wouldnt be surprised if suddenly silicon valley liked the agency business. just a way to learn a workflow, automate, build a cash-machine and invest that into tech that makes the whole machine work smoother.
me and my holdco (we've got a few agencies) will invest millions of dollars into this. putting our money where our mouth is.
turns out agencies were just one letter off - they're becoming agent-cies.
this wave is coming fast.
After my last meeting (who wanted to meet to get some intros and advice) turned up 20 mins late with no apology or explanation, I thought I'd make this simple chart to express the relationship between lateness and likelihood of receiving help. 🙄