Can you explain your agency structure and how many employees you have for running a $2 million business?
I run the agency with zero employees. I prefer contractors over employees because with contractors I just give them the work and a deadline, without managing their hours or schedule. Employees require a set schedule, clock‑in/out, and more regulations. Contractors have more flexibility, fewer legal constraints, and I can hire fantastic people who have their own systems. I give them a deliverable request, like “I need this done in two days, I’ll pay X amount,” and they deliver. Currently I have a YouTube editor, a strategist, a community manager, an agency partner who gets a percentage of projects, and previously a VA. This lean contractor model lets me move faster and focus on high‑margin direct work rather than scaling the agency.
The biggest one-time contract I sold was mid $220,000 for a project I called 'Uber for lumpers'—a system connecting companies needing lumpers (people who load/unload ships) with lumper workers. My business partner and I built it, but it was a total pain and not worth the time; it was one of the first projects we sold, so I took on custom work, but I don't recommend doing custom projects more than a couple times early on because there's little ROI on your time—my hourly rate is about $50. After that, I did a proposal generator system project that paid $1,500 and took only about 5–10 minutes to fulfill (plus ~30 minutes selling and a 30‑minute kickoff call). That gave a huge return on investment and unlocked the leverage idea: I could either make $225,000 in month‑one revenue from a big custom project, or I could create templates and sell the need, then spend five minutes copying a template I already built. Regarding agency requests, I get about 10 genuine agency inquiries per month; most want to invest $15K–$20K and work with me on a three‑month subscription at $5,900/month ($17,700 up front). I haven’t finalized my agency dynamics yet. The businesses that reach out most are high‑earning industries: fintech, software, financing/investing (e.g., underwriting firms that need automated financial data and email replies), and companies installing power grids that take a cut of hundred‑million‑dollar projects. My agency currently makes about $25,000 a month; from the $128,000 profit I mentioned, that’s roughly 20% of my income. Monthly profit isn’t the only metric—enterprise value matters. Info products are hard to sell because they’re tied to me; agencies have low multiples, whereas a SaaS product can achieve much higher multiples. I’m therefore building templates and done‑for‑you services, continuing to scale the agency for enterprise value and to stay connected to what I teach, because in coaching, when a system works, people often abandon it to teach it, which makes it outdated. I want to avoid that.
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Cool man, I know you already have a full-time job, which is fantastic. You're probably working 6 to 8 hours on that job and then spending time on lead generation, client calls, and fulfillment. You're doing a lot, and it's natural to wonder if it's time to bring on help. Here's what I'd do: first, set a near‑term realistic income goal—for example, $25,000 a month. Add up your salary, income from custom projects, and any other income. See how far you are from that goal. Then calculate your current internal hourly rate (maybe around $100/hour). If you need an extra $10,000 to reach $25k, that's about 100 additional hours. Ask yourself if you have 100 hours in your schedule. If not, you don't necessarily need to hire; you could raise your prices or pursue higher‑paying clients. Doubling your rates would double your income for the same time, getting you a large share of the way there. You could also increase lead volume—more leads give you more opportunities to pick the best‑performing projects instead of settling for low‑rate work out of scarcity. My decision‑making mindset is based on expected value: I evaluate the expected value of taking on a client or making a decision and choose the option with the highest expected value at that moment. Regarding hiring, my experience shows it's not easy to post a job, review candidates, interview, and hire quickly; you add a daily management time sync. The equation for effective hiring is whether the daily management time plus the cost of paying someone is less than the value they create by doing the work. Early in a hire, you're often not profitable until they're onboarded, trained, and up to speed. So, unless you have a much higher goal—say $50k, $100k, or $200k a month—you probably don't need to hire right now. As for scaling an agency model, I do think it gets harder to scale beyond a certain point. It was harder for me at $72k/month than at $25k/month. After a certain point you're no longer just an automation agency; you become a niche‑specific service or system‑providing agency. For example, one community member scaled to $80k/month by pivoting from automation services to selling cold‑email systems—a lead‑generation focus. If you start as an automation agency but find a super‑high‑ROI CRM project, you'll quickly shift toward being a recruitment‑agency‑style CRM provider. If you stick with the pure AI‑automation‑agency idea, you'll likely plateau around a $1M annual run‑rate, because that's when you need to hire managers to manage people, which is tricky.
After hiring around 40-50 people for my agency, I've realized I prefer to hire last. The common advice to delegate everything comes from a time when technology couldn't handle much of the work, but today technology gives us leverage, so you can realistically wait until you're making around $50k/month before your first hire instead of $15-20k. Hiring early is often just a band-aid for deeper problems—if you're under $25k/month the issue is usually your systems, not a lack of manpower. Focus on building systems that reduce the work needed to fulfill: automate repetitive tasks like onboarding emails, scheduling calls, and problem-solving via email; design productized offers that take half the effort to deliver (e.g., a form that auto-generates a campaign, scrapes leads, and follows up); create scalable sales flows (a discovery/closing call batched together, a proposal, and automated follow-ups that stop when a deal isn't worth the effort). Make client management discrete—set a daily 8 a.m. five-minute template update instead of letting clients interrupt you on WhatsApp all day. Hiring early means giving up a large share of profit (e.g., a $5k salary is half of your profit at 50% margins) plus management costs and risk; it's better to wait until revenue is higher so the hire is a smaller fraction of margin. I pay a flat salary plus a clear, trackable bonus—staff log it themselves and add it to their invoice—avoiding profit-share or rev-share because they misalign incentives and add overhead. Finally, I only care about deliverables: if someone is intelligent and ambitious they can build their own systems to finish work in fewer hours, and as long as the output is good I don't track hours.
I don't actually receive anywhere near 70 inbound leads a week — more like one qualified, interested party per business day, so roughly 20-30 a month. But to the real question: yes, I am leaving some money on the table, but it's a time allocation issue. The real question isn't 'aren't you leaving money on the table,' it's whether the money I'd make scaling agency services is more than what I'd make spending that same time and energy on content instead. Agencies are great, but there's a gap in money-per-unit-time between running an agency and producing an info product. I do enjoy service implementation and fulfillment, but it's a lot more delicate and fragile as a revenue stream — every new project is a fresh opportunity to screw something up, and you have to maintain quality on every retainer. Content, by contrast, is something I can consistently produce and that just exists afterward, compounding without needing ongoing maintenance the way agency service quality does.