Y Combinator is BEGGING entrepreneurs to start THIS business

Okay, not the usual setup here. We are in Arizona. However, Y Combinator just released a tweet and we'll throw the tweet up here on the screen. They released a tweet this last week saying, "Hey, we are investing in agencies. " Now, if you've been following this channel, if you've been watching what we've been doing for the last year plus, we were early to this. We saw this coming already and now venture capital is as well. So, what I'm going to show you in this video is a couple of things. one, why Y Combinator and really, really big smart money is deciding to go after the agency model and what the new agency model is. Now, software is traditionally what Y Combinator invests in. I run a software company myself. It's where we've learned a lot of our AI learnings. However, the agency model essentially is I sell a service, I get paid for that service. It's the same software. The only difference is in the past software automates the work. So, it's one fixed delivery. You buy it, I build it once, you keep selling it. Kind of like info. Well, the problem with the agency model was it was custom and you had to do all this work manual and it took a lot of time and so you couldn't scale. It was an unscalable business. However, now like info, like software, because of AI, AI native agencies are able to scale crazy because your delivery again is really productized. You're leaning into that sort of a software model. Now, we've been teaching this for the last two years. Like I said, we have students currently in our group doing $100,000 a month to a million dollar a month profit from doing exactly this. So, let's dive into this video and by the end of this, you're going to know exactly what's going on, why Y Combinator is talking about this, and really what I think is the best business model on earth right now for people. For context, what is the old agency model? Well, you probably know this. Your onetoone headcount. So, if I have x amount of clients, yeah, you get away with a little bit, but I typically have to hire more people for delivery because it's done manual. If you're selling hours, you're not really selling outcomes. And even if you are, your fulfillment is based on outcomes. It's hard to scale. It's low margin. You're going to get burned out and the business itself will burn out. Okay? You can't achieve software margins with service delivery because you always have big overhead because it's manual. Well, the new version of this is again the best business model I think for anyone to make the first 100k million dollars even a month if you want is the new AI native agency. Now, we call this AI operating or AI freelancing. However, growth is not tied to headcount because you have leverage in the form of software, AI, in the form of all of these tools that are commoditized for like 20 bucks, 100 bucks, 200 bucks. Claude Max is $200 a month and I can literally replace like five software devs with it. That's a crazy amount of leverage. Okay, I can sell finished products or outcomes, not hours. It's easy to scale with AI because again, there's no limit there. And I have software-like margins because it's repeatable. because we can do the same thing at scale and we have sustainable delivery meaning we can do more work and more importantly our work is quality we do good work which is very important the breakthrough here is you're combining high-end services with proprietary AI whether you build your own or you just use consumer and you get 100 times efficiency now why does Y cominator want this well this is on their website they released this about AI native agencies guys of course Y cominator is smart money they have LPs uh if you don't know how VC works basically They have LPs which are lending partners. These are like funds or hedge funds or um like pensions and big money. Okay. They give that money to venture capital or private equity. They invest that money to get X return to beat typically the market and give it back to their investors or their lenders. Okay. Y Combinator is now saying, "Hey, agencies have always been crazy hard to scale like we've been saying, but AI changes this. So instead of selling software, you can build an agency, which is freaking crazy. Okay? And we were early to this by two years. Go watch this channel back when we started posting. So in short, instead of selling ours to help customers like software, there's a new breed of businesses that are able to sell AI, use AI, and sell the finished product at 100x efficiency. This is exactly what we do at Kindo. We do a lot of agency sort of stuff in the back end, but it's done with AI. So it's product types, it's efficient, it's leveraged. Okay. So, examples here are going to be don't sell AI copyrightiting service. Sell a completed VSSL that converts at 20%. Now, I know 20% is crazy, but whatever. Don't sell AI video production. Sell 12 high converting ad creatives a month. So, the key here, repeatable productized service because you can actually deliver a good one with the tools because you have the context profiles, you have the prompts, you have the system that makes that output happen. Okay? So, this is the AI operator model. It's what we're calling it. Now, I think a lot of people have tried to copy us uh lately in the last year since doing this, but we still have a lot of secret sauce that we do that a lot of people don't and kind of a contrarian output on this. So, an operator is simply someone who uses AI to deliver high value services to businesses. Okay? You get paid on results, meaning your upside is a lot higher, not hours worked, not an AI consultant where you give advice, not an

AI developer where you're building the AI tool, and not an automation agency where you're a commodity. These are all stupid. Okay? Instead, you're an operator who happens to use AI as leverage. You're still just a business guy. Like marketing, sales, systems. It's the three pillars that we teach. Like I say, like literally right here, the three core pillars. It doesn't matter what tech exists. This is always the core. And so, we just leverage the best tool available to do this. So, for example, sales, converting prospects into high-paying customers. So, sales system, sales process, sales teams, closing deals, marketing, right? content creation, ad campaigns, funnels, copyrightiting, lead genen, and then back-end systems. AI doesn't change these. It just makes them more efficient and makes it easier for you to deliver the service. So, the wrong approach here is like I sell AI automation. It's commodity. I can replace you with somebody off of Upwork and probably even just giving it to Cloud Code and saying go build this automation, right? Now, the right approach is outcome based. It's value based. It's results based. So, hey, I increase your close rate by X%. I cut your lead genen cost in half. You know, I automate 20 hours a week. whatever. I build a VSSL like that. Now, how do you build that VSSL? Well, that's the beauty. If I have the right context profile, the right instructions, and a little bit of copyrightiting knowledge, just as an example, I can spit out really good VSSLs. Maybe not the best in the world, but really good VSSLs every single day. I could do five of them a day, to be honest. Now, let's say you run ads to a VSSL offer. As long as your cost per acquisition of customer and you can do outreach, but let's say your cost per acquisition is like 500 bucks. If I sell that VSSL for a couple thousand dollar, I have a money printer and I don't have a cap on the delivery that I can do because it's automated. The AI does it. That example should make this click for you guys. This is what we're doing here. Okay. So, how do you start this? Well, uh and again, this is not a course pitch or anything. I'm going to genuinely tell you. So, number one, pick your niche. They got to spend a lot a year. They don't want to work with broke people. they can generate more money with better systems. And I say systems not as like backend systems, but just better stuff, okay? Whether it's marketing, sales, whatever. Now, the best niches that I found for this are info, ecom brands, SAS companies, agencies, online businesses, don't do local businesses. Work with people that you can reach to the decision maker. It's pretty simple. Next is your service. You got to pick a pillar. So sales or marketing or systems. Now, obviously things will overlap a little bit, but we want to try to stay siloed as best as we can, at least to start. So sales for example, sales team management, sales process optimization which is a lot of stuff. Proposal generation, CRM buildouts, all these can be done with AI other than the human sales reps for now. You can use something like Kindo to manage them. Uh marketing services, copywriting, content, funnels, etc. systems. So the rule here guys is pick one and become world class and really figure out how to get the best output from that from AI. Don't be a jack of all trades. Be the guy that is like bing bing bing. I'm literally nailing this every time I click this button to build this whatever I'm building to give to my client. You want it to be repeatable. Okay, that's how you grow. Number three, craft your offer. Now, the formula for this kind of like the hormosy thing, but I don't like you guys saying this is for you mentally. I fix X problem for X business type using X mechanism for X outcome, right? So, hey, I fix underperforming VSSLs for online coaches using a psychologydriven VSSL rebuild system which increases revenue by 30 to 60% without more ad spend. Now, is that true? Yes. Is it doable? Yes. Is it repeatable? Yes. Is it productized? Yes. That's a good service. Bing bing. If you can do that for anything, you know, you're good. So, why this works? The problem underperforming VSSLs. All these coaches have underperforming VSSLs. even software companies target online coaches or SAS or something like that, right? Mechanism psychologydriven VSSL. Now, that's actually a good unique mechanism, but it's also real. It's like, hey, I'm going to really, really deep dive into the psychology of your ICP, and we're going to write a proper VSSL, not one of these coaching like guruy VSSLs, you know, I'm going to hit their pain points. Now, could you raise the revenue by 30 to 60% if they drive all the revenue to a VSSL? Absolutely. You know, so it's good service. Now, pricing. There's a couple ways to do this. So, you can do a onetime setup. This is for project based work. You can do a monthly retainer. This is for ongoing work. Or when you get really good, you can do a revenue share, which is resultsbased work. This is where you're going to make the most money. Our guys that do 100k a month right now, they have a couple clients that they get a percentage of, and this is how they do it. Okay? My brother, all my students, all of my friends, they eat off of this. And this is the best. Now, I do a combination even for Kindo. We do a setup fee to do the custom work which they need. It makes our product better. And then we charge seat pricing. So we do both. We're not a percentage because we're software. We're not an agency but um it's the same concept. Okay. So we do the exact same thing. Then how to land your client. I'm just going to breeze past this. This should be the easiest part. It's not rocket science. It's more of a want to thing and an output and a volume thing. And

then finally deliver with AI. So this is a whole other thing. Go watch all the videos on this channel. Claude for copy. Gemini for research, brainstorming, Sora V3, cleaning for videogen, uh, NAN for automations or cloud code if you're semi-technical. Now, the process here is you want AI to do 90% of the work. You provide the strategy and the quality control. The client gets X result that they want. You don't work that much. There you go. Five clients at 10K a month. You're 50K a month. Is that achievable? Absolutely. Can you do that pretty easily? I think so. Uh, that's why we're teaching this and spending so much time making these videos. So, here are the tips for you guys for competitive advantage to really win. Speed is king in AI, guys. It's January. Well, it's February now. It was just my birthday. It's February. January went by like that. In January, we got Remotion, Claude Code, Claudebot, which is now OpenClaw. Uh, we got new models. We got Opus 4. 6. We got a new Gemini model. codeex from or from OpenAI. And I'm probably missing like 18. Cling, Cadream, Cling 3, Cream 4, or Runway 4. 5. Like, see how many new things happened. It's fast. You got to be fast. We ship product features at Kindo like fast, fast. You have to be fast. Now that it's like un unnegotiable. Okay. Quality. Now, this is important. In the age of AI, there's a lot of slop. people doing just like spamming crap. Okay? You don't want to do that. You want to be the one using AI that makes really good stuff. Now, how do you do that? Prompt engineering, proper context. At Kendo right now, that's what we're working on is we're doing what's called multi-threading or multi-ree context injection. So, we have a system prompt and then in that prompt, there are brackets where we inject context from another prompt which also has a chain of prompts. It's called chain of thought. So, it gets really complex. And now, it might be intimidating as a beginner, but that's how you get really good. It's really not that hard, guys. It's like a mind map basically. But that's the input and the really the detail you got to do to get a good result. Now scale. You add clients without adding team members. You can have a couple humans. It's fine. But you should be doing as much as you can with AI. That's the point. Your margins should be like 70 to 90%. Because AI is doing a lot of this. And you should be learning from every client. Every time you have something you have to do manually or that you like hit something or oh, we got to change this. Fix the prompt permanently. fix X system permanently fix X thing. You know, that's how you get better. And then positioning. You're not selling outcomes or you're not selling hours, excuse me. You're selling outcomes. Okay. Results. Results. We're past this age of excuse the airplane in the background. But we're past this age of like monthly retainer for what? Like don't do that. Like sell results. If you can't get results, get better at what you do or just don't do this business, you know? Uh guys, this is pretty comprehensive. There's a lot of videos on this channel. I highly recommend you go watch them and we're going to be putting out a lot of stuff. But I'm telling you, we were early. We're often early to a lot of things. Um, we were a year early to this and now Y Cominator and the biggest money and the biggest capital in the world realistically is now diving into this. So, is it going to get saturated eventually? Yes. Is it right now? No. You are extremely early. And if you want our help on how to do this and you want coaching from me who is actually running a real AI business that's worth a couple million dollars already valued not by me but by VCs like Y cominator then click the link in the bio book a call with us. It's not for everybody but we do have a low ticket program coming uh I think this month actually. So if you've been priced out of uh insiders which is expensive then we do have that coming as well. But either way book a call learn a little bit about what we're doing. Um and we'd love to help you guys. This is literally the coolest thing ever. This is the new revolution. Um, so yeah, like, comment, let me know your thoughts, and I'll see you guys on the next video.