Aaron Epstein: Make Your Agency a High Margin Software Business

Published on
2.1K
52
23.9K views

ycombinator Agencies have always been hard to scale. AI flips this model by letting firms use software...

In the reel, a solo speaker in a plain black shirt sits at a simple wooden table against a bold, geometric red wall. The whole frame screams: low distraction, high leverage. That is exactly the shift AI gives agencies. Instead of throwing more people at client work, you build quiet, behind-the-scenes software that does the heavy lifting and lets a small team ship like a giant firm.

Read the Frame Like a Business Model

Notice what is not in the shot: no buzzing office, no fifteen strategists huddled over laptops, no wall of Post-its. Just one person, a calm setup, and the promise that the real action is happening off-screen in software. That is your new pitch: clients see a tight, senior-facing crew while AI and automations backstage produce 80 percent of the deliverable before a human ever touches it.

Turn Your Agency Into a High-Margin Software Machine

  • Productize your core offer into repeatable workflows, then codify them into internal tools or scripts instead of custom-building every project from scratch.
  • Have AI draft, analyze, or generate the first version of deliverables, and reposition your team as editors, strategists, and relationship managers.
  • Track time-to-delivery and gross margin per service, then aggressively double down on offers where software can replace manual work by 50 percent or more.

Agencies Quietly Going “Software-First”

DesignJoy logo

DesignJoy turns a traditional design agency into a productized subscription, using tight systems and automation to deliver unlimited design with software-like margins.

Brainlabs logo

Brainlabs builds proprietary PPC and analytics tools that let a lean team manage huge ad budgets, effectively acting like a software platform wrapped in agency service.

DEPT logo

DEPT creates AI accelerators and internal platforms so their creative and marketing teams can ship campaigns faster and keep more margin per project.

Analyzed by Swipebot

Loading analysis...

Command Palette

Search for a command to run...