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Summary ⤵️
What AI Gurus don’t tell you: most “AI side hustles” fail due to poor economics, lack of real business foundations, and hype—here’s how to build a legit AI automation agency that actually works.
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Why watch?
If this is your first view—hi, I’m Nick! TLDR: I spent six years building automated businesses with Make.com (most notably 1SecondCopy, a content company that hit 7 figures). Today a lot of people talk about automation, but I’ve noticed that very few have practical, real world success making money with it. So this channel is me chiming in and showing you what *real* systems that make *real* revenue look like.
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Chapters
00:00 Introduction
00:45 Six main problems
06:09 Economics of AI side hustles
10:02 Business reality
14:22 How to build a legitimate ai automation business
20:29 Why automation succeeds where AI side hustles fail
22:05 Outro
Оглавление (7 сегментов)
Introduction
big problem in the AI automation industry right now is a lot of people are selling it as free and or easy when it's really anything but that. So, what I want to do in this video is I want to cover what AI gurus aren't telling you, but how to sell AI and then hopefully I want to give you guys an alternative which is a sustainable AI and automation business model that a lot of people, myself included, have used to scale up to $72,000 a month or beyond. Okay, so we're going to start by covering six main problems that I'm seeing. Then after that, I'm going to show you guys the business model that I'm talking about. And before anybody gets on my ass about being a guru myself. I understand that the bigger you are on YouTube, the more people tend to accuse you of this stuff, but up until very recently, I had significantly fewer subscribers. I understand why somebody would want to lock me in with the rest of them. But this is not a sell chat GBT for $500 a day sort of BS business model. You can make out that decision for yourself. Just know that there isn't just one path to success. There are many. Okay. So
Six main problems
first of all, anytime you see a make $500 a day with ChatGBT post or something like that, run away. $500 a day with Chat GBT is targeting a vulnerable audience of people that think ChatGBT is magic that prints money. They usually don't understand like market economics or anything. That's what we're going to be talking about in this video. So, that's one major issue that I've seen. In reality, mass adoption of any tactical model leads to quick market saturation. Now, in order for you to understand why this is so important, tactics are not strategy. A lot of people try and bundle them together, but they're not. Okay? Tactics are the lower level things that you do on a day-to-day business. That is like the exact wording of your pay-per-click ads. That is stuff scale script. That is stuff like the filters you use on Apollo and so on and so forth. Now, these things work, but they work for a ton. And when you have this perfect formula of tactics, you can make a lot of money. What ends up happening though is other people tend to determine what these tactics are and then everybody starts doing them. And the second that everybody starts doing them, the tactics themselves lose a lot of value. And so if all you do is you focus on tactics like the AI gurus will try and get you to do, then the second that the business model changes due to saturation, oh, and it does. Every business model on planet Earth has changed due to saturation, you're screwed. Now, contrast that with learning strategy. When you learn strategy, what you're learning is you're learning the psychological basis behind why paperclick ads work in the first place. You're learning things like market economics to be able to say tactics are not equivalent to strategy. You're learning various uh consumer behaviors that drive why you can find people through Apollo and Apify and LinkedIn sales nav and stuff like that. Now these are human factors. These do not change with markets. And so if you understand strategy instead of tactics, then when the tactics are inevitably BS and they end up being saturated, what you can do is you can just create new tactics. Okay? You can create a new pay-per-click ad script because you understand human psychology. You can create a new, I don't know, staffing model because you understand market economics. You can create a new sales script because you understand consumer behavior. Okay? So, gurus will exploit these technical buzzwords all about tactics without actual business implementation knowledge, which leads to these tactical clones. And tactical clones are by nature ephemeral. They're really short-lived. They're really transient. they only actually survive for maybe a couple of weeks or months at most. So, while it's entirely possible that you could have made $500 a day with Chat GBT at some point in time, I guarantee you that opportunity was probably open for like a brief couple of days, weeks, or months, this sort of thing is not longasting. Don't copy tactics. If you're going to copy something, copy strategy. Another big issue is I'm seeing a lot of these psychological hacks that are used like FOMO, fear of missing out, artificial scarcity, and misleading information. If somebody sells you something that's too good to be true, it probably is true. That's why it's called So, if you find like the hairs on the back of your neck stand up when you hear this business model that people are pitching you, you should be at least a little bit skeptical, maybe a little bit more wary of whether or not they're selling strategy or tactics. And obviously, you should prioritize the former. Okay? And what ends up happening is anytime you're selling tactics, thousands of people try the easy side hustle. The second that hustle, it's no longer easy. Okay? This leads to market saturation. This leads to consumers being numb. And then one big thing that's specific to an automation whereas I think the rest of the stuff is more just how gurus work in general is um in a automation they try and make it seem like the tool that you're using is the important thing when it's not the important thing. The thing that's important are the business outcomes that you deliver and how those business outcomes change with tools. So tools are important but tools are just a means to an end. Tools are not the actual end themselves. Focus on people that avoid that sort of talk. Obviously I think that I focus more on strategy over tactics. So, not to toot my own horn here, but there are a lot of other people that do. I think you can pretty easily and quickly spot and call out BS when you see it. So, here's sort of like what happens. A guru, usually somebody with like many millions of subscribers, will jump on some sort of AI trend. Then they'll make some sort of course. They'll promote it as super easy money. Thousands of people will buy the same course. Everybody will try the exact same tactics, ultimately fail. The market quickly saturates, and then it's a race to the bottom. What that means is that costs from the tactic might start at $1,000 a pop and then two weeks later be $500 you won't be able to sell the same thing for more than $100 a pop simply because of those aforementioned market economics supply and demand. All right. Now, saturation of tactics happens very quickly. So, if you don't have any strategic knowledge, then you won't necessarily be able to maintain a business model for more than a little while. Early adopters of course are going to profit briefly before thousands of copycats arrive. And thousands of copycats are arriving as we speak in AI and automation. But these side hustles quickly become oversaturated because you know if it actually works and in our case AI and automation and the specific tactics a lot of people are talking about they do work. So basically you need to look for opportunities where the person that is selling you the idea or the information or the knowledge when their incentives are aligned with yours, not ones where you're fundamentally misaligned. Like if the course seller profits regardless of whether you succeed, then obviously speaking their incentives are not going to be in making you succeed. that's their first kind of primary directive. The first primary directive is going to be making the business model seem as easy as humanly possible so that they can flood as many people in there. Incentives are a really big important mental model and that's a good example of strategy as opposed to tactics. So if you understand incentives, you should understand that core sellers don't really have an incentive to help you. They only themselves. Anyway, by the time something's widely promoted, the window is already closed. Some economics of AI
Economics of AI side hustles
side hustles. The cost of market entry decreases weekly as tools become more accessible and easier to use. So if this is like the cost of something and I'm just going to draw a little graph here, then this is time. You know, every week there are third parties that make getting into a business model easier and easier, right? This may seem great and fantastic. And I think in many cases it is if you have strong strategic knowledge, but if you're like a tactical clone, well, you know that every time that the cost decreases by 10%, that just means that there's on the order of at least 10% more people that are coming into the business, right? Which actually means that your competition has just gone up by 10%. Which means that assuming a fixed market size, which isn't always accurate, the difficulty with which you have to get clients goes up by 10%. Meaning this is more or less completely and utterly pointless, right? So profits tend to follow a predictable boom bus cycle. They last two to four months until a new tactic is born. On the upswing, this is uh the person that you know has used the tactic themselves and they've made a ton of money. And then if this is like saturation, bunch of people obviously jump on the business model alongside them. Then there's some sort of peak. This is almost like peak oil. If you guys know about that concept or something, then basically everything after that goes down. It's very difficult to make any sort of like return on investment after this kind of midpoint period. But then you know what happens then? The person that's in charge of building this sort of stuff, they tend to know the strategy. That's how they invented the tactic to begin with. So they do they invent some other tactic and then they just profit over and over and over again. But think about what happens to all these people. Okay? the people that join after you know that market opportunity goes bust? It's not necessarily that they're not going to profit and make money, right? I mean, like if this is, I don't know, MRR or something like that on average, and this is, I don't know, $10,000, a lot of people can make 10 grand, 9 grand, 8 grand, 7 grand, 6 grand, whatever. But the size of the perceived market opportunity, and the money they're going to make is like way up here, right? So, there ends up being like very big discord between expectations and reality. And that ultimately just results in a lot of anguish, suffering, and then also can result in like some destroyed lives where people invest money in things that don't necessarily deliver that return. So this is sort of like the trend. You know, everybody's into Ray Dallio's cycles. So maybe we could talk about cycles. A bunch of other words for this, but new AI model or method or tool or implementation detail will emerge. Early adopters will make good money. They'll have a bunch of success stories. Some of these will be fake. Thousands will rush to copy that method. Then supply will drastically exceed demand. And then the method becomes unprofitable. And then we see that dip. All right. So, now that I've shown you guys sort of like how all of these business models work, whether it's social media marketing agencies, the web design craze of like the early 2000s, the dotcom bubble and nburst, um, hell, like drop shipping. Here's how things actually work. Specifically in regards to AI and automation, your ability to use a tool doesn't actually equal your ability to make money from it. Okay? You just need a sufficient level of technical capability. And once you reach that sufficient level of technical capability, which anybody can do realistically in like 3 to 4 weeks, I would say of dedicated consistent learning, you're good. You basically don't never need to work on that again. All you need to do from this point is you just need to learn how businesses work, specifically the niche or the business archetype that you are going to serve. Okay? Businesses pay for solutions to problems. They don't pay for AI. The reality is everybody has access to chatbt now. Grandmas and grandpas are using chatbt and they're doing it, you know, pretty reasonably well. You knowing how to use this technology is not actually like the main alpha here. It's you knowing how to use the technology in a specific business vertical andor niche. Whereas you used to be able to make $500 a day with chat GBT when nobody knew what ChatGBT was. I actually did this. Funnily enough, I used to run an AI content marketing company where we used models like GPT3, GPT3. 5, and later GPT4 in order to like create and pre-draft large portions of content for people. The entire way the business worked is we just knew about the tool before everybody else did. Well, I'll tell you what, that doesn't work anymore cuz everybody knows about the tool. Okay? Everybody on planet Earth knows how AI works. You can't make money at the bottom anymore. What you have to do is you have to go up several layers to things like strategic implementation of a specific tool in a specific niche. Anyway, clients rarely
Business reality
understand what they actually need versus what they ask for. The benefit here is that means that there's a ton of value for people that can unear what the client actually needs as opposed to what they're asking for. Whereas builders that just take clients at face value, they can't make very much money at all. And then decision makers care about return on investment, not technical specs, shiny tools, or latest LLMs. If you really want to implement something, well, you need some sort of business process understanding. Okay, so what does all of this mean? It means that if you really want to crush it with AI and automation, you shouldn't actually focus on AI automation. we should focus on is you should focus on learning how business works, how money changes hands in today's economy, how to use, you know, digital forensic tools, let's say, to like learn a niche really quickly, learn the pain points, learn the customer needs, how to get up and running to talk to real customers to figure out what their business pipeline looks like, and then ultimately be able to press on those pain points, and then position this tool as a solution to them. But the value is not the tool. The value is that process that you just took to get to the point where you can pitch the tool. All right, so that's how things actually work. If you want to make money with AI automation, that's where you start. Believe it or not, you worry about AI automation at the very end of the business model when you're doing the fulfillment. So 80% of successful a implementation solve very mundane problems. We're talking like, you know, inbound uh system where you're generating ads, but then the average response time to somebody that fills out the ad is like 15 minutes or something. What AI automation does is it just enables you to respond in one minute instead. That's response time. That's a very mundane problem. Well, guess what? That system in and of itself can literally quadruple the top line of a business. Not to say anything about the bottom line. The simplest solutions often deliver the highest measurable ROI, but it's simple once you understand how to unearth it. If you don't know obviously understand how to unearth it, you can't get to the point where you can call it simple. But yeah, once you know how, the simple solutions often deliver the highest measurable ROI. So if you actually want to get up and running with this stuff really quickly, what you do is you focus on business problems. You understand the processes and the pain points that lead to them. You identify the measurable value opportunity which is not necessarily automation although a lot of the times it includes automation. Then you design a simple effective solution. The solution may include automation but it also might just include you doing some process optimization or whatever and then you implement measure the results and demonstrate a clear ROI. So the real opportunity is not in charging for tools. It's just knowing how to apply the tools to real business problems and getting clients to the point where they can actually explain that to you. So that is the whole opportunity. So the real value here is not necessarily in anything to do with AI automation. Hopefully that's clear. The real value is just becoming basically like a high quality consultant. Because once you're a high quality consultant, then even if the tactics change, even if market demand for a specific technology or tool changes, guess what? You can apply the same thing that you just did for a automation to literally anything else. You could use the same logic and the same business knowledge to convince somebody to buy drop shipping or help somebody do something maybe in the physical world. Convince a real estate developer that they need to invest in a particular place and then profit wildly off of that. There's a million in one reasons basically why you should learn business skills over technical skills. But hopefully it's abundantly clear that the most successful A and automation businesses are not people that see an ad saying make $500 a day with chatbt and then copy and paste the same prompt to generate some BS thing that they then try and sell on Etsy. The people that really crush it here understand how business works and they see a automation as merely one of the many possible paths that they can go down to solve a customer's problem. All right. So yeah, we solve real business problems that exist. We focus on business value creation, not selling AI itself. There are many bigger and better and brighter companies than any of ours will ever be that are doing this right now. Look at Open AI. Look at Anthropic. They're selling AI to multi-billion trillion dollar businesses. Okay? There's no way that we can compete. Our goal is to find small to midsize business problems and then sell our ability to solve problems, not necessarily the AI model. So, what does that mean now that I've just talked off a cliff essentially? Well, that means that the high demand areas for you to figure out are lead genen, customer response, data processing, consulting. Okay, it's like some sort of like digital business forensics, understanding how businesses work. It's some sort of pipeline knowledge. It's process optimization. You know, it's how to manage clients. So where automation succeeds where these AI side hustles fail are when you have business process understanding when you can deliver tangible measurable outcomes when you focus on ongoing client relationships and then when you deploy useful and helpful workflows for businesses not just a bunch of content writing GPTs that a lot of people are doing. Now that
How to build a legitimate ai automation business
I've hopefully convinced you that the real skill here is in building a business not in doing AI and automation. Here's how to actually take AI and automation and then use it to build a successful business. So there are a bunch of no code tools over here like make and non. You've probably seen all of these, but the way that they work are they allow you to solve business problems much faster than you used to be able to, which makes the value of understanding business problems even higher. What you do is you get that business understanding. Once you have that business understanding, then you apply it to a real business using one of these tools. This one here is nadn. This one's your make. com. There are, of course, a couple of other tools as well. Zapier, Lindy, Gum Loop, there are hundreds if not thousands of these now. But the point is you focus on the business problems first, then the technical implementation. Then the way that you price is based off value delivered, not hours worked. When you position yourself as a builder, you tend to just be like another software code monkey. And you know, you're not really doing software or code here. You're using no code. But clients will see you the same way. But if you price yourself based on the value that you delivered, basically you do a little SOP here. If we uncover the problem, which we just did, we just spent a lot of time and energy convincing you that was the way to do it. You identify the cost of the problem. So this might be the opportunity cost, the amount of money that a business could make if they solve the problem. It could also be like direct expenses, how much money a business is currently bleeding to this problem. What you do is you just take the opportunity cost plus the expense. And then you multiply this by something like 0. 3 or something. If the opportunity cost of them not having a lead generation system set up is $10,000 a month and the current expense of their crappy lead generation system is, let's say, $5,000 a month, well, when you multiply that by 30%, you end up with something like $4,500 a month. Then you just charge them a percentage of the value that you provide. This is B2B sales. This gets you out of that hourly trap, which is a big problem for a lot of people. Once you've done that, then you focus on simpler solutions because they consistently outperform complex ones. Then you just sell that to people that you have just determined the problem for and then you just scale it and you just sell it to other businesses that are similar and you just template it out. So you sell the same sorts of things to businesses at scale. Meaning you can optimize your lead genen to put yourself in front of those same sorts of businesses and so on and so forth. So if you really want to scale a sustainable automation business, you focus on high volume repetitive processes with clear metrics. You also create solutions that clients can understand and explain to others in their team. You don't focus on like really complicated solutions. You focus on things like that AI autoresponder email thing that I mentioned a moment ago. When somebody comes in through an inbound funnel, you respond very quickly. You focus on things like, oh, when a client pays us, we send them a quick thank you email. onboarding packet to get them up and running quickly. And then you develop reusable templates that can be customized per industry. Here's the SOP. You learn some basic no code tools, identify some client pain points just like a consultant. You calculate the potential value. Design a simple solution. Hopefully, you have templates that allow you to do this quicker at this point, but you might not. Then you implement and track the results. You offer it for free. And then ultimately, you know, you move to paid work after you've done maybe one of these. You also don't have to offer anything for free, by the way. Like this is a completely optional step, but this is probably the quickest and simplest and easiest way to get up and running if you're a total beginner. And then once you do paid work, what you can do is you can just loop this over and over again. Okay, this is the money. After you're done with one client, well, identify more pain points either from that client or other ones. Do the same thing. Just rinse and repeat over and over again until you make money. Okay, so if you want to contrast these business models, on the left hand side we have these AI side hustles where you know make $500 a day with chat GBT. Then over on the right you have like a legitimate AI automation business aka a consultancy that's highly leveraged and that is basically powered by AI and automation. Just check out a couple examples. A lot of people used to sell AI art on Etsy, myself included, believe it or not. But that collapsed from $30 to $50 a piece to $2 to $5 a piece and now probably like 0. 01 01 a piece because thousands of identical offerings flooded platforms. What does that mean? That means that saturation went way the hell up. Buried entry down. Uh cost of entry, I should say, went way the hell up. That means the average cost of the product also went way the hell down. And then yeah, you know, now you can't really sell AR on Etsy anymore. Interestingly enough, the demand is back to human generated pieces. I also think that there's some like platform rules and regulations around that. Let me give you more relevant examples. one click chatbot businesses plummeted and you used to be able to sell these for 1,500 to 2,000 bucks a pop. Now you sell them for $100 to $200 because now there's just a bunch of these drag and drop interfaces that essentially just allow business owners to do the same thing. You can obviously still sell uh oneclick chatbot to a business for $1,500. But it's a lot harder to when basically every business has the ability to do so themselves. Like when everybody can do the thing, the thing itself becomes less valuable, right? So just to be abundantly clear here, focus not on what the end output of the thing is. focus on the knowledge necessary to get you to the point where you can create the thing or uh identify why the thing is valuable in the first place. There also tons of these agency in a box templates and there's content writing GPTs and then there's all this sort of stuff and you can't sell these. They fail cuz thousands use identical approaches with the same clients and then very quickly this just stops being sustainable to begin with. So if you want to be a legit AI automation business, you deliver sustained value while AI side hustles are just going to follow these predictable boom and bust cycles. You want to look at, let's say, I mean, even as a quick example, the revenue of my information products over time. They've basically been like this. Okay? In the meantime, there have been tons of businesses that started from scratch and they blew way the hell up and they made way more money than I'll ever make. But you know what happens? The next month comes by and they're at nothing. Then there's another one that comes in. But if you want to look at like just my information product revenue, not even talking about my agency revenue over time, it has been slow and steady and wins the race. Now I'm the number one community and the number one platform on planet earth for these information products by revenue. Slow and steady wins the race. Focus more on delivering sustained value. Focus more on identifying client problems. These are not sexy but the sexy solutions aren't the ones that last. And ultimately you don't just want to be making a business for 5 minutes. You the next 5 years. Okay.
Why automation succeeds where AI side hustles fail
business for the next 5 years. Okay. Okay, so just to sum up all this stuff, automation agencies in this business model, success is all about solving unique business problems that require custom understanding. AI side hustles on the other hand are built on these templated approaches anyone can copy because they're essentially just tactics. They're not strategy. When you have a side hustle and you have a tactical explosion of volume, people tend to compete on price, which is a race to the bottom. Whereas sustainable automation businesses compete on value, and this is a race to the top. If you want to be a real automation business, you'll deliver $10,000 a month of value. You're going to make a ton of money because you'll be able to charge, as I mentioned, somewhere between 30 to 50% of this, probably at least $3,000 a month. These $5 digital product side hustles where you have chat GBT create some templates and sell them on some freelance platform or whatever, these are inherently commoditized and they tend to struggle to survive. Then finally, any sort of trend hustle product, it's going to lack business value beyond the novelty factor. We don't really care about the novelty factor here, right? We care about sustainable value to businesses over time. Okay, so this is sort of like the approach that you have. If you focus on the new trendy AI products and you're on Instagram following like 500 different people that are like, "Oh, new tool today. There's another tool over here. Oh my god, look, another cool tool. This one wipes your ass. " You're never going to be able to make it anywhere. Okay? Only the first movers are going to make any sort of money with the ass wiping GPT. The market's quickly going to saturate when everybody else starts jumping on it. Prices are going to collapse and you know, you're either going to fail or you're going to have to pivot. Where are you going to pivot? right back here to sustainable business problem solving. You're going to build client relationships, deliver measurable ROI, and then expand services, do referrals, do everything that like an AI and automation agency is composed of. All right, hopefully by this point I've
Outro
convinced you guys that the vast majority of people out there that are trying to sell AI as the opportunity are wrong. It is not AI that is the opportunity. The opportunity is becoming a skilled business person first. And once you're first, then you can sell things like AI or AI's ability to solve specific business needs second. Okay? So, focus on the business understanding first, which you get by watching channels like mine. There are a couple of other channels out there that I could certainly recommend though I don't want to name any names. And then after that, and only after that's done do you actually get on the tool train, if that makes sense. Okay. So, where would I start? I would start with this video here, how to build a profitable AI business in 2025 for beginners. I'll make sure to link it. From there, you can focus on 80% of AI automation basics in just 29 minutes. These two should give you some reasonable understanding of the opportunity, how exactly to create a consulting business that is highly leveraged. Then once you have all of that, then you can actually focus on the tools and you can do something like my 6-hour a automation course to get up and running. But don't put the cart before the horse. Don't focus on the tools before you actually learn the business knowledge. Hopefully I'm not beating a dead horse at this point, but if you want sustainable business growth, you need a sustainable strategic approach. Focus on strategy over tactics. Awesome. Hopefully you guys appreciated that video. If you guys want to get up and running with an actual AI and automation business roadmap, check out Maker School. It's my zero to 90day accountability dayby-day playbyplay system where I'll actually guarantee you your first AI and automation agency client by the end of that 90 days or you get all of your money back. most recent win that I want to point out is Eugene, who just landed his first paying client, $1,500 worth in just five days after joining this community. He closed the CEO of a small to mid-size enterprise in the finance industry in Milan. You can do this sort of stuff, too. It's not actually extraordinarily hard. What made Eugene and all the other people that post these daily wins work is they focused on like business process understanding, not necessarily the technical stuff. Okay, so that's what I wanted to run you guys through in this video. If you guys have any questions about this, let me know. Don't fall for another $500 a day chatbt business hype boom. These things just don't work and they don't have a sustainable value. Hopefully I've said my peace. Have a lovely rest of the day and I'll catch you all tomorrow.