don't start an SMMA in 2024

Carson

24 May 202406:15

Summary

TLDRThe speaker, a former agency owner, advises against starting an agency in 2024 due to intense competition from established players and newcomers alike. They argue that new agencies struggle to deliver services and compete on ad spending. Instead, they recommend creating content online that is in-demand, authentic, and true to one's passions. By consistently posting for several months, one can build an audience and monetize through product sales. The speaker emphasizes that the only competition is oneself, and content creation is a scalable and authentic way to succeed online.

Takeaways

🚫 Starting an agency in 2024 is not recommended due to increased competition and challenges in service delivery.
💼 The speaker, a former agency owner, shut down their business due to difficulties in competing with established players and new entrants.
🤝 Agencies can be profitable, but success requires persistence, effective outreach, and a compelling offer to clients.
📈 Competition is fierce with veterans in the industry who have more resources and a proven track record, making it hard for newcomers to compete.
🛠 Learning service delivery is crucial and cannot be effectively acquired through free online courses alone.
❌ Avoid starting an agency without a proven ability to deliver results, and do not offer money-back guarantees if you lack confidence in your service.
🔗 The lack of scalability in an agency model is a significant drawback, limiting the number of clients one can effectively serve.
💡 Instead of starting an agency, the speaker suggests creating content online as a more authentic and scalable business model.
🎥 To succeed in content creation, one must produce in-demand content that is true to oneself and consistently post for several months to build an audience.
💰 Once an audience is established, selling products or services to them becomes feasible, providing a legitimate way to generate income online.
🌟 The speaker emphasizes the uniqueness of each individual and the potential for success in content creation, as the only real competition is oneself.

Q & A

Why does the speaker advise against starting an agency in 2024?
-The speaker advises against starting an agency in 2024 due to increased competition, difficulty in service delivery, and the inability to scale the business effectively.
What is the speaker's experience with running an agency?
-The speaker has run a profitable agency for multiple years, making five figures on the internet, but has recently shut it down due to various reasons.
What are the main competitors for a new agency according to the speaker?
-The main competitors for a new agency are both newbies who are just starting out and industry veterans who have been in the space for a decade or more, with more resources and better results.
Why does the speaker believe that offering a money-back guarantee is a bad idea for a new agency?
-Offering a money-back guarantee is a bad idea because if the agency can't deliver results, they will end up working for free and won't be able to attract clients who will pay for their services.
What is the speaker's view on the scalability of an agency business model?
-The speaker views the agency business model as having terrible leverage and poor scalability, as it can only help a limited number of clients at a time due to the time-consuming nature of service delivery.
What alternative business model does the speaker suggest instead of starting an agency?
-The speaker suggests creating and posting content on the internet as an alternative business model, which can lead to building an audience and selling products to them.
What type of content should one create according to the speaker?
-The speaker recommends creating content that is in demand, not already available, and true to one's own passions and interests.
How long should one consistently post content before seeing results, according to the speaker?
-The speaker suggests posting content consistently for roughly 3 to 6 months before starting to build an audience and see results.
What is the speaker's opinion on the authenticity of content creation as a business model?
-The speaker believes that content creation is an authentic business model that allows individuals to help others on the internet in a way that is true to themselves.
Why does the speaker argue that only competing with oneself is a good thing?
-Competing only with oneself is a good thing because it allows individuals to focus on their unique strengths and passions, rather than being hindered by external competition.
What is the key to success in content creation according to the speaker?
-The key to success in content creation, according to the speaker, is to make content that is in demand, unique, and authentic to oneself, and to be consistent in posting.

Outlines

00:00

🚫 Starting an Agency in 2024: A Cautionary Tale

The speaker, a former agency owner, advises against starting an agency in 2024 due to increased competition and the difficulty of standing out. Despite having run a profitable agency, they highlight the challenges of competing with established players and newcomers alike. The speaker emphasizes the importance of service delivery and the inability of free online courses to teach it effectively. They also warn against offering money-back guarantees without being able to deliver results, which could lead to working for free and failing to attract clients. Lastly, they point out the limited scalability of agencies due to the time-consuming nature of service delivery and client management.

05:01

🎥 Embracing Content Creation as an Alternative to Agencies

The speaker suggests that instead of starting an agency, aspiring entrepreneurs should consider content creation as a viable online business model. They argue that by producing in-demand, unique, and authentic content, creators can build an audience and eventually monetize it through product sales. The speaker emphasizes the importance of consistency and aligning the content with one's passions to ensure long-term success. They also mention that content creation allows for greater personal expression and competition only with oneself, rather than with a crowded market of agencies. The speaker encourages viewers to learn from their experience and to explore content creation as a potentially more rewarding and scalable business opportunity.

Mindmap

Keywords

💡Agency

An 'agency' in the context of this video refers to a business entity that provides services to clients, often in areas such as marketing, advertising, or digital services. The speaker used to run a profitable agency but eventually shut it down due to increased competition and other challenges. The term is central to the video's theme, which revolves around the difficulties of starting and maintaining an agency in the current business climate.

💡Competitive Space

The term 'competitive space' describes a market environment where there is a high level of competition among businesses. In the video, the speaker argues that starting an agency in 2024 is not a good idea because the space has become overly competitive with established players and newcomers alike, making it difficult for a new agency to succeed.

💡Service Delivery

'Service delivery' pertains to the process of providing services to clients. The speaker emphasizes that knowing how to effectively deliver services is crucial for an agency's success. The video suggests that without expertise in service delivery, it's challenging to meet client expectations and achieve business growth.

💡Money-Back Guarantee

A 'money-back guarantee' is a promise made by a business to refund the money if the customer is not satisfied with the product or service. The speaker warns against offering such guarantees without the ability to deliver on promised results, as it can lead to working for free and failing to attract clients who are willing to pay for services.

💡Leverage

In a business context, 'leverage' refers to the ability to increase potential business value or returns through the use of various means such as capital, assets, or strategies. The video argues that an agency model has limited leverage because it can only serve a certain number of clients at a time, which restricts scalability and growth potential.

💡Content Creation

'Content creation' involves the process of producing various forms of content such as videos, articles, or podcasts. The speaker suggests that instead of starting an agency, individuals should focus on content creation as a viable way to make money online. This is because creating content allows one to reach a broad audience and potentially monetize it through various means.

💡Authenticity

'Authenticity' in the video refers to the quality of being genuine and true to oneself. The speaker encourages creating content that is authentic to the creator's passions and interests, as this is more likely to resonate with an audience and lead to success in the long term.

💡Info Products

'Info products' are informational products such as e-books, courses, or guides that are sold online. The video mentions that creating and selling info products to an audience can be a lucrative business model, as exemplified by successful online figures like Eman who have amassed wealth through this approach.

💡Scalability

'Scalability' refers to the ability of a business to increase its size, output, or scope. The speaker argues that an agency model lacks scalability due to the time-consuming nature of service delivery and client management, which limits the number of clients one can effectively work with.

💡Audience Building

'Audience building' is the process of attracting and growing a following of people who are interested in one's content or brand. The video emphasizes the importance of consistently posting content to build an audience, which then becomes the foundation for monetization through product sales or other means.

💡Monetization

'Monetization' is the process of generating revenue from a business, product, or service. In the context of the video, monetization is achieved by selling products to an audience that has been built through content creation, providing a more scalable and potentially profitable business model than an agency.

Highlights

Starting an agency in 2024 may not be a good idea due to increased competition and challenges in service delivery.

Agencies can be profitable, but the speaker's own experience led to shutting down their agency for several reasons.

Competing with established players in the industry who have more resources and experience can be difficult for newcomers.

Free online courses may not be sufficient to learn the intricacies of service delivery in an agency.

Offering money-back guarantees without being able to deliver results can lead to working for free and losing clients.

Agencies have limited leverage due to the time-consuming nature of service delivery and client management.

The speaker suggests that starting an agency may not be the best path to success in the current market.

Instead of starting an agency, the speaker recommends creating and posting content online as a viable alternative.

Content creation should focus on in-demand topics that are not already saturated with similar material.

Authenticity and passion are key to creating content that will attract and retain an audience.

Consistency in posting content is crucial for building an audience and establishing a successful online presence.

Once an audience is established, selling products or services to them becomes more feasible and profitable.

The speaker emphasizes the importance of being true to oneself and leveraging unique qualities in content creation.

Competing with oneself is the main challenge in content creation, rather than external competitors.

Learning from the mistakes of others, such as the speaker's own experience, can help avoid pitfalls in business decisions.

Content creation is presented as a more accessible and scalable business model compared to running an agency.

The speaker encourages viewers to consider content creation as a means to achieve financial success and freedom.