The 2 Agency Models are Kinda Cooked
You know which agencies are kinda cooked? Web design agencies. SEO shops. Sorry. And most of them don't even see it yet. I'm not trying to fear monger... but I call it like I see it and here's what I'm seeing in real time: Agencies who used to get paid $8,000 for a website... their clients are now using Wix AI, Framer, or Lovable to get something that's 95% as good. In an afternoon. Agencies who built their entire model on "we build beautiful websites" are having a harder time landing clients than ever before. Their MRR is trending down. And there's no obvious way to build it back up. Ouchy. SEO isn't much better. Google's algorithm has been AI-driven for a while now. And what that did was kill the bottom half of the market. The $1,500/month "we'll publish blogs and build links" agencies? AI does that now. Faster. Cheaper. And the local business owner who was buying it... He's tired of waiting 9 months to maybe rank on page one. He wants clients now. Not next year. (To be fair — high-end technical SEO still exists. It's just a shrinking, more competitive market that local businesses aren't really a part of.) The technical moat these agencies depended on? Going... going... gone. ... So what do you do? You go where AI can't follow. And right now, that place is paid ads. "Oh Sam, you're just saying that. I see people saying AI can do ads too." Those people have clearly never run lead gen for a local business. I'll explain. Running ads isn't just a technical skill. It's a trust game. Local business owners: The chiropractor The HVAC company The dentist All of them have been burned. Maybe they clicked "boost post." Their $100 went POOF. (Fun side story: A Facebook rep told me at a conference that they can't even get a local business to spend more than $50 total on boosted ads. That's how bad it is.) They've hired some kid who "does Facebook ads." They've signed with an agency that "guaranteed 30 booked appointments or it's free." And after all that... you think they're handing their budget over to an AI?