AI Automation Agency vs No Code SaaS | Which Should You Start?

AI automation agency or no code software these are two buzzwords that are going around right now and I want to talk about the distinctions between them because there's been some misconceptions that they're the same thing and so I want to talk about what both of them are and which one you should ultimately pursue I've done the research on both of these things so you don't have to so let me break them down for you in this video so that way you can make an educated decision by the end of this video so what is an AI automation agency well it's nothing new it's just you're still running the same traditional agency business model where you're selling a service and you're fulfilling it by you're basically selling some sort of implementation of AI so what's an example of that let's say you want to automate a customer's onboarding process by using an intake form whether it's like jotform and you want to then use zapier and then you want to connect it to chat gbt to send some type of Welcome message to a client that sounds like you but it's actually chat gbt so this is a process that you could automate using Ai and automation tools like make and zapier and you're selling that implementation you're setting that up for the client so you're still selling a service you're not selling a software you're more so just selling the implementation of these existing softwares out there in AI automation agency could also be something like implementing a customer support chat bot for an e-commerce brand you're kind of selling the implementation you're selling a service you're not actually creating a new software that you're selling to them that's actually fulfilling the labor you personally are still fulfilling the work there's human labor involved in delivering this service that's why it is still an agency so this is where you would use something like fine tuner.com to fine-tune some sort of model that you're going to implement into a business owner's business to help them automate some sort of process again whether it's like to make an intake formed onboard new clients whether it is to you know Implement chat Bots to do customer service you're basically selling implementation and you're still human labor involved in the Fulfillment of the process so what are the pros of an AI automation agency well one I would say is a lot of business owners are dropping the ball on the whole AI hype they're not using it to the best ability that they could and because of that they're either leaving money on the table or they're spending more time on tedious tasks that AI could be doing for them and so there's a lot of opportunity here because almost every single business could use some sort of AI implementation right now so it might be a little bit easier to get customers in this Niche than you know more played out marketing services like running Facebook ads as a service so it might be a little bit easier to get clients than other agency services and the other benefit of any agency really is they are great for cash flow so if you're watching this and I would call you like a a phase one entrepreneur where you just need enough cash flow to be able to pay your bills whether that's so you can leave your job or maybe so that way you can maybe drop out of school or you know Focus Less on school you just need to get to a point where you're financially stable and your income from your online business is able to pay your bills I would say an AI automation agency can be a great step to make here because again agencies are great for cash flow you know you can charge a couple 1000 bucks up front and then you only need you know one or two clients to really be able to actually cover your cost of living so what are the cons to an AI automation agency so it is still an agency model so you the person like I said you are still actually having to manually do the work now the other problem to any agency is again it's hard to keep clients you have to actually get very very good at these AI automations if you're going to succeed at it you can't just close a client and then not be good at actually building them these AI Solutions because then you're gonna have the same problem that I see so many agency owners have they can't keep their clients their clients are bugging them all the time you know their clients are just walking all over them and on top of that it's not a very sellable business model so if you're someone like me where you care about Enterprise Value where you want every dollar of profit your business makes to be able to be sold for five to ten X that amount then this isn't the business to get into it's not going to be a very sellable business model and if you do get it to a point where it can be sold you're probably only going to see a two to three x multiple on the annual profit so basically I would recommend you start an AI automation agency if you're just very new to the online business space and you know you just need cash flow to either pay your bills drop out of school leave your job whatever but I do think there's a better alternative so what is no code software so no code is a way to build web applications and even in some cases mobile apps without knowing how to code and the reason that you don't need to know how to code is because they're basically these pre-made blocks and templates you can kind of just piece together kind of like if you've ever built a website on Wix or webflow and it's a lot of just kind of like boxes that you get to drag and drop it's a little bit similar to that especially on platforms like software dot IO you can go to softer and you can go to templates and you can see all these pre-made things like crms and customer portals and inventory management trackers that are already like 80 90 done that all you have to do is click on that template customize it add your own branding you can add in new features you can connect it to open AI all these different things and you can build your own software that way without needing to have a tech background and knowing how to code so this gives you a little bit more freedom in my opinion because now you can actually go and build anything that you want so whatever Niche it is that you are in or whatever problems that you've discovered and maybe your own personal life or in your business or you've heard you know your buddy's business having some problem you can go out and you can build whatever software solution you want to solve that problem and you have a lot of flexibility in what you can build based off of the no code Builder that you use so like I said software is probably the easiest one to use but it's going to have a little bit more limited functionality but then you have like two or three really good ones that you have bubble dot IO you have flutter flow and you have live code.com they're all much more complex and I have a little bit more of a steep learning curve but you can really build anything that you want and they can actually scale and you're not going to have to switch off of these platforms and ever have to go to native code so who should start in no code software so the people that should start a no code software are the people that understand longevity and delaying gratification you understand that you're not going to see significant results in three to six months right it's a long-term play my last company that I sold the majority of in March closified I spent two years building that up before I exited it so while it may be a little bit slower to cash flow because you might not be charging thousands of dollars up front like you would with an agency however you're getting now Enterprise Value so every single dollar of profit a software company makes can often be sold for 5 to 10x that one dollar in profit so if you have a software company that makes a hundred thousand dollars a year profit that can be sold for about five hundred thousand dollars pretty conservatively so if the only thing that you need is cash flow and you just need to be able to pay your bills as quickly as possible starting in software might not be the best option for you however I do think there's even a better alternative than even going to AI automation Agency Route and that is becoming a freelance no code developer and learning how to build on these platforms like Live code like bubble like flutter flow like software and building projects for people as a freelancer selling your time to get some cash flow but then once you have enough cash flow to where you're ready to build your own software you already know how to build it yourself and you don't have to go out and a no code developer because you just taught yourself how to do it then once you have cash flow unlocked you can take the more long-term approach and you can build something Brick by Brick over the course of years that one day you'll sell for a large sum of money that is going to help you become financially free so to recap what are the pros and cons of no code software so the pros are is the software actually does the Fulfillment so you're no longer a person actually fulfilling the service you no longer have clients that are pestering you and walking all over you and demanding ridiculous things from you you have a higher exit multiple so you're gonna be able to sell this business for like 5x annual profit all the way up to 10x annual profit and again you're actually solving a real problem and you have more variety in the different types of things that you can build where there's kind of only a few AI implementations that I'm seeing are really popular that people are selling so what are the cons of no code software you definitely need some money to start it you don't need a ton of money but I would recommend you have at least a couple thousand bucks tucked away if you want to get into software to do it properly there is a little bit of a learning curve in past we need to learn how to build on one of these platforms if you're not going to go and pay a developer or a NOCO developer out of the gate so basically there's a little bit more of a learning curve I would say and you might need a little bit more money up front but the upside is so much greater so after watching this video I hope you can distinguish the differences between an AI automation agency and no code software I would say if your sole purpose is capital right now either look into an agency service or become a no code developer but if you already have some form of cash flow and you're ready for a long-term play that's going to actually make you financially free then I would look into doing no code software and watching my other videos on that about how to get ideas how to Market it Etc so if you do want to learn more about no code software and really do a deep dive on it go watch my other videos that I said about marketing and getting ideas and things of that nature I also have a free newsletter where I send what's working for my software companies I'm actively running every single day for free to your inbox every single day I'll put the link in the description and if you have a software idea that you want my team to actually build for you and me a consult on your go to market strategy I'll also put the link in the description to book a call with my team I'll see you guys in the next video

Channel: Alex Heiden

Views: 15,407

Keywords: no code saas, no code saas ideas, no code saas builder, no code saas idea, how to start no code saas, no code saas business, no code, software as a service, saas business ideas, saas business, saas, no code saas tutorial, ai automation, ai automation agency, how to start an ai automation agency, ai agency, how to start an ai business, how to make money with ai, automation agency, how to make money with chatgpt, no code tools, saas no code, make money online, softr

Id: WPthDgMAO4s

Length: 9min 6sec (546 seconds)

Published: Tue Sep 12 2023