Pros:

1. No Offer Needed: You don't need to identify a specific offer or problem to solve. Clients will come to you and tell you what they need.
2. Larger Total Addressable Market (TAM): You can sell to a wider range of clients across different industries.
3. Taste Different Niches: By working with various clients, you get to experience how AI can be applied in different industries, which can help you build a better understanding.
4. Nimble and Adaptable: Without a specific focus, you can easily change and update your services as new technologies or opportunities arise.
5. Can Niche Down Later: If you identify a promising niche, you can always narrow down your agency's focus later on.

Cons:

1. Lower Perceived Value: As a generalist, your services may be seen as less valuable compared to a specialized agency.
2. Low Reusability and Lower Profits: You'll need to build custom solutions from scratch for each client, leading to lower profitability.
3. Harder to Market: Without a clear offer, it can be challenging to effectively market your services.
4. Higher Complexity and Issue Rate: Building custom solutions for each client increases the complexity and likelihood of issues.
5. Less Compounded Credibility: Your diverse project history across different industries may not be as compelling as a specialized track record.
6. Need for More Expensive Developers: Handling custom projects requires more experienced and capable developers, which increases costs.
7. Less Bang for the Buck for Clients: Clients may end up paying more for a custom solution compared to a pre-built, specialized product.

Pros:

1. You are seen as a specialist, which increases the perceived value of your services.
2. You have higher reusability and therefore higher profits, as you can sell the same solution repeatedly with minor tweaks.
3. You have a clear offer, making it easier to market your services and target the right clients.
4. You have lower complexity and a lower issue rate during delivery, as you're not building from scratch every time.
5. You gain more compounded credibility by consistently delivering the same solution to multiple clients.
6. You can use less expensive developers for the delivery work, as they don't need to reinvent the wheel.

Cons:

1. It's harder to start, as you need to identify a problem to solve and build a solution for it.
2. You have a smaller total addressable market by focusing on a specific niche.
3. You are less nimble and adaptable, as changes in the industry or technology can have a bigger impact on your specialized offering.
4. It's difficult to generalize and step back once you've niched down your agency.
5. Creating a good product that solves a real problem and achieves product-market fit can be challenging.

When it comes to choosing between a general or niche AI automation agency, there are several key factors to consider:

General Agency Pros:

• Easier to start as you don't need a specific offer
• Larger total addressable market (TAM)
• Opportunity to work across different industries and gain diverse experience
• More nimble and adaptable to changes

General Agency Cons:

• Perceived as less of a specialist, leading to lower value perception
• Lower reusability and profit margins due to custom work for each client
• Harder to market without a specific offer
• Higher complexity and issue rate with custom projects
• Less compounded credibility across clients
• Need to hire more expensive developers

Niche Agency Pros:

• Seen as a specialist, leading to higher perceived value
• Higher reusability and profit margins with a core product
• Clear offer makes marketing and sales easier
• Lower complexity and issue rate after initial product development
• More compounded credibility by serving the same target market
• Can use less expensive developers for delivery

Niche Agency Cons:

• Harder to start as you need to identify and solve a real problem
• Smaller total addressable market (TAM)
• Less nimble and adaptable to changes in the industry
• Difficult to generalize and step back from the niche once established

Ultimately, the decision comes down to your existing experience, connections, and access to capital. If you have industry expertise and a strong network, a niche agency may be the better fit. If you're new to the space, a general agency can be an easier starting point to learn the skills and build your client base.

1. Start a Personal Brand: Begin building your personal brand on platforms like YouTube, LinkedIn, or Twitter. This will help establish your expertise and attract potential clients.

2. Tinker with AI Solutions: Familiarize yourself with the AI tools and platforms discussed in your videos. Gain a fundamental understanding of the value you can create with these technologies.

3. Share Your Learnings: Consistently share your AI-related builds and learnings on your personal brand platform. This will help build your authority and grow your audience.

4. Offer Free Consulting Calls: Offer free consulting calls to businesses interested in leveraging AI. Use this as an opportunity to understand their pain points and how you can help. Simultaneously, reach out to your network to find potential clients.

5. Work for Free: Use your newfound skills to start working with real businesses, even if it's for free initially. This will help you gain practical experience and build your portfolio.

6. Increase Prices and Hire: Once you've established a rhythm and gained confidence, start increasing your prices and hire your first developer to scale your agency.

1. Identify a Problem to Solve: Based on your experience or connections, identify a specific problem that you can solve with AI within a particular industry or niche.

2. Create a Prototype: Either by tinkering with the tools yourself or by hiring a developer (e.g., through the school community), create a working prototype of the solution you want to offer.

3. Show the Prototype to Warm Connections: Reach out to your warm connections and show them the prototype. Aim to find your first client who is willing to test and implement the solution.

4. Continuously Improve the Product: Work closely with your first client to refine and improve the product until they are fully satisfied. Invest the necessary time and resources to make the product exceptional.

5. Find More Clients Like the First One: Use strategies like warm outreach, content creation, and even cold outreach to find more clients similar to your first one and get them to try your solution.

6. Increase Prices and Improve the Product: As you gain more clients and feedback, continue to improve the product and gradually increase your prices to reflect the value you provide.

As an AI automation agency, you have two main options: a general agency or a niched agency. Each approach has its own pros and cons that you must carefully consider for your unique situation.

A general agency offers the benefits of an easier start, a larger total addressable market, and the opportunity to gain diverse experience. However, it also faces challenges such as lower perceived value, lower reusability and profits, and higher complexity.

On the other hand, a niched agency is seen as a specialist, enjoys higher reusability and profits, and has a clearer offer for marketing. The downsides include the need to solve a real problem, a smaller total addressable market, and the difficulty of generalizing once you've niched down.

Ultimately, the choice between a general or niched agency depends on your industry experience, connections, and available capital. If you lack clear industry experience and connections, a general agency may be the better starting point. If you have the necessary industry knowledge and connections, a niched agency could be the more viable option.

Regardless of your choice, the key is to develop a clear plan and execute it effectively. By understanding the differences between the two models and choosing the one that best fits your situation, you can increase your chances of building a successful AI automation agency.