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#127 · AI Agency Pricing Models: Flat vs. Revenue Share

youtube ↗Pricing

Do you think that there's a difference between the US market and other locations like Italy? I mainly afford a legion called average how business owners approach automation. Thanks so much for the incredible value delivered daily.

Most definitely. The United States is by far the strongest country in the world by labor productivity. That means you can typically charge people more money because they have more money, they're used to paying more for things, they're more productive with their time, and they also expect higher productivity with their time per dollar. So there are definitely differences, primarily in pricing. There are also anecdotal cultural differences. I don't mean to say this to offend my European friends—my family's from Bulgaria, Eastern Europe, and I go back there often. I've been in Belgium, and culturally speaking, there's less of an emphasis on America being the birthplace of capitalism, right? Adam Smith, Wealth of Nations. There's less of an inherent or intrinsic desire to spend money to solve problems, and people are just a little bit less problem aware and solution aware. So typically you're fighting slightly more of an uphill battle to get it done. Now, what am I not saying? I'm not saying that's an excuse to sit on your ass and do nothing, or an excuse for you thinking selling to a European audience makes everything much harder. No, everything is possible regardless of where you're selling in the world. These are just trends specific to regions—depending where in Italy, obviously—but I wouldn't consider Italy the economic superpower of Europe right now. If I wanted to sell my systems, I'd look at places like Switzerland, Luxembourg, Germany, which tend to have more money. So don't worry too much about this.

us-vs-italypricinglabor-productivitycultural-differences

Related answers

youtube ↗Client Acquisition

What are your thoughts on scaling primarily targeting the US market from an overseas company? I have a tech sales/business development background managing enterprise accounts, but I've never made more than $10-20K/month working remotely overseas. My company is registered outside the US for tax reasons. Any tips for scaling past that, especially since I'm considering adding automations as a service on top of my BD work?

You're in the best spot ever — you get to arbitrage your local cost of living against the best economy on the planet. US labor productivity is about 1.5x that of Canada and most EU countries, so if a service costs $1,000 in France, it'll go for $1,500+ in America. If you're selling a service, why sell it for $1,000 when you could sell it for $1,500 to a US client? The buying-power gap is even bigger for people in places like Bangladesh or India — it comes down to how many loaves of bread or months of rent that $100 buys locally versus in the US. Being Western and working with Western companies also gives you an edge you might not have — you're less likely to be seen as outsourced/delegated talent and more as a business on relatively equal footing. The arbitrage opportunity here is genuinely huge; you'll run into normal friction like time zones, but it's a really good position to be in.

overseas arbitrageus marketremote work
youtube ↗Niches

Is targeting the local Tunisian market worth it compared to going after US/EU markets given lower friction but lower earnings?

He explains that the decision comes down to weighing reduced earnings against reduced friction. He ranks markets: US first, British Commonwealth second, EU third, with Luxembourg and Switzerland similar to British Commonwealth. Selling locally yields lower income because of lower earning power, but also less friction if you share the local language and culture. The mental calculus is simple: if the reduction in friction outweighs the reduction in money, it’s worthwhile. For example, earning half as much but finding it three times easier to close deals gives you 1.5× the effective return compared to a high‑ticket, competitive market. He adds that when starting out, high‑ticket coaching beats low‑ticket offers because you need cash flow and proof; personal brand isn’t the real moat—distribution is. Systems beat motivation; clients who have a system stay, those who rely on motivation don’t. To teach money‑making you must be in the top 1% of earners yourself; otherwise you’re wasting time. He advises becoming a specialist rather than a generalist, as the market seems smaller but more focused.

market selectiongeographypricing
youtube ↗Niches

Is niche-specific knowledge required to start in automation, and which country is currently best for entrepreneurship, especially for someone in a third‑world country with no prior experience?

No, you don’t need to have knowledge of a specific niche or market to get into automation. I do have experience in some of the niches I show in my videos, but for others I don’t. What I do is go into a bunch of communities, read through all the pain points and problems people are talking about, and then use those pain points to formulate my offers. The process takes me a couple of hours, and anybody can do it—you don’t need to understand too much. As for the best country for entrepreneurship, hands down it’s the United States. Labor productivity there is about 1.5 × that of most of the developed world, let alone the undeveloped world. That means if you could sell a $10,000 project in Canada, you could sell the same project for $15,000 in the US. The reason is that people in the US work more and have systems that enable them to be more productive with their time, plus regulations that are very business‑forward. That’s also one of the reasons why the US is one of the hardest countries in the world to immigrate to. I’m bullish on the US; even if the age of American imperialism is coming to an end, the numbers show it won’t be anytime soon.

niche knowledgeautomationentrepreneurshipunited states
youtube ↗Client Acquisition

I'm living in England — should I stick to calling and emailing potential English clients compared to potential clients in the US? As an Englishman, would US businesses be open to buying my services?

Absolutely. Businesses in the United States would be open to buying your services if you're somebody in England or really anywhere else in the British Commonwealth. You have a significantly higher probability of selling to an American audience than people not in the Commonwealth simply because you share a lot of cultural norms. Even minor aesthetic things like having a British accent will be seen as quite positive and cool by a lot of the people you pitch to. I bet British guys with cool accents are probably closing 5-10% more deals simply by virtue of the fact that they sound more sophisticated. When you sell in a market that is not your own, there are pros and cons. The first pro is you get to arbitrage costs and revenue — cost of living in Bangladesh is much lower than in America, so you can make 10x the money while paying the same cost of living, which is why everybody loves doing this. The downside is you're usually facing a cultural uphill battle — people often stereotype you based on where you're from, and that effect is exaggerated with very culturally diverse audiences. You're going to be fighting that battle no matter what, plus the time zone battle. It's about chalking these up against each other and deciding to move ahead anyway if it makes sense for you, or targeting your local audience if that makes more sense. If you're an Englishman selling to Americans, you're fighting a time zone difference, but your cultural difference is a lot lower, meaning the cost of living difference might make more sense. However, if you live in Central London, good luck, because cost of living there is probably as high if not higher than a lot of places in the United States. Ask me how I know.

market selectionukusarbitrage