Y Combinator just ended AI agencies. See, 99% of AI agencies are building receptionist, email agents, or some sort of custom dashboard using Cloud Code. But now there's a new AI business model that YC is backing more than ever and that nobody on YouTube is talking about. It's not a SaaS, does not require monthly retainers, no Apollo, no Cloud Outreach, no dozens of emails. In this video, I want you to break down what's killing the current AI agency model, what the new one actually is, and how you can launch your own in 2026 even if you don't have a single client yet. For context, my name is Ritesh Roma, and I've made over $1,000,000 through multiple AI businesses. And now I've helped 200 plus people build, scale, and launch their own AI business from scratch. So I know exactly what it takes for you to be ahead of the curve. So the AI agency trap is that right now, there's a saturated menu of what's being served. So you have the voice AI receptionist, the email automation agent, and custom dashboards. And there's several other solutions that you've probably sold or you know another AI business owner who has sold,
but these are very common now. I mean, how many dental voice AI receptionists have you seen? Or a lot of beginners, maybe you yourself when you first got into the industry, you probably were also deciding to sell voice AI receptionists. But the thing is that the market is confused.
These dental offices can no longer tell who's a better buyer. I've literally been on live sales calls with HVAC companies. These HVAC companies are comparing five or six different AI agencies that are offering the exact same voice chat solution for HVAC companies. And now they're so confused and they just decide to go with the cheapest option because they really you know, your your standard business owner doesn't really understand
what makes a voice AI better than the other. I mean, they might look at the sound, but nowadays, everyone uses retail and 11 labs, so everyone's voice AI sounds the same. So at this point, the only differentiator is price. And when that happens, you are basically racing to the bottom.
Okay? In any business, if it's always who is cheaper,
now that means every business is gonna get less payments per client.
So eventually, your lifetime value per client is gonna go down. And as a result, I mean, like like I said, your LTV per client
is going to go down. So maybe if you're making
1 k per client, right,
now you're making maybe $200
per client.
And that's just gonna get less and less and less if you're trying to sell these very saturated solutions.
So what is the fix? Well, before we get into the fix, I don't want you to completely crush your dreams because you might have AI agency right now that's doing kind of well. Right? And you're like, oh my god. Does this mean I have to completely abolish
my agency? No. That's not the case. See, I have worked with 200 plus different people from around the world who are building their own AI agencies.
And one of my students very recently on May 8, and today is about May 19,
they sold a email support agent for a chain of hotels
for €3,000.
Okay? So these email agents, while the market is saturated in terms of a lot of AI agencies are offering this, there's still a lot of clients who are looking for email automation agents that don't have them. The problem is it's about can you get to that client first before everyone else in your space. And I mean, 3 k euros is a great is a great deal. This is one of his first clients ever, and of course, we congratulate him because every we celebrate everyone's win no matter how big or small.
So
what did YC announce? Right? How is that Y Combinator mentioned that I talked about the start of the video even relate to all this? So right now, everyone's competing in the software market. You got your voice AI, you have your AI b to b SaaS, something that, you know, these are the things that everyone is selling right now. But AI is gonna eat this next.
Services
market.
The biggest AI opportunity is replacing full on services.
You right now, you might use a SaaS to accomplish one mini task, but what if you could replace an entire department of a company
through some sort of AI tool or AI service? Right? That is where the main money is.
Now, what does this mean? Well, the software market is is is big. I mean, don't don't get me wrong, but the services market is even bigger. More companies are selling services than they are software. I mean, look at your local massage, your local barbershop, or your doctor, your dentist. These are all services. These aren't softwares being sold to you. You can't A barber is not gonna sell you software, let's be honest. So YC, Y Combinator, which is known to fund, you know, thousands of tens of thousands of startups,
they are looking for people who can replace services
and not just building more software. And this is a huge opportunity for anyone who's in this space.
See, right now, if you look at an AI agency versus the AI delivery business,
this is the difference between the two. And for those who don't know, the new model that I'm talking about, if you have not guessed already is an AI delivery business. Essentially,
you don't have to be selling AI.
You can be selling
a service and use AI to accomplish that service.
And we will I'll give you a strong example that some of my, uh, clients I work with personally are doing already, so you can see what's working. But let me give you more of a breakdown what an AI delivery business and AI agency how they compete.
So an AI agency, selling a tool. Right? Receptionist,
email agent, custom dashboard. AI delivery business, you're selling the outcome.
When you're placing a full on service, you are essentially replacing human employees or full on departments. Meaning, you can charge very big retainers. With the AI agency, your voice receptionist, I mean, you're probably looking at 200 to $500 a month retainers.
Correct? I mean, you might have that one time setup fee like 2 k or 1,500,
which is by all means great. But if you have an AI delivery business and you're placing a service, you can charge the the equivalent of other service based businesses. So this is usually thousands of dollars in retainer.
Right? In an AI agency, you might have the client plug in the solution, like you might integrate their voice AI into that client's workflows.
In the AI delivery business, you're handling everything. You're doing operations a to z for them, and while it might seem like a lot, remember, you're using AI tools, Claude skills, Claude code to finish all the work that would take a regular service based business in this niche,
maybe five x a time because you're good at AI, you can do things so much faster.
In AI agency, you're selling software and ad delivery business. The client might not even know you're using AI. I mean, a a quick example, this isn't the one I'm gonna show you later in the video, but a quick example is imagine you
emails for a startup.
Okay?
That client might not know you have a cloud skill that is trained on that client's business and is able to write hyper personalized emails.
So all the client sees is the emails. What they don't see is your AI that you're using to write these emails.
A regular email delivery business,
that's like a service based email delivery business might charge $2,000
a month for this. And there might be manually doing it and because you have the advantage, you understand how to use AI properly,
you can use AI to do the same exact work that email delivery business is doing, but with a fraction of the time. So you can onboard more clients, which means more revenue.
And AI agencies are competing on price, AI delivery business is competing on results. The better the results, the higher the retainer you can you can charge. So like, if this goes up, this goes up. I I know AI delivery businesses are charging like $8,000 a month per client.
$8,000 a month. That is equivalent of like,
what, 16 of these. Right?
Imagine that.
And great example of one of my students, Tessa.
She had a strategy call with a nationally distributed food brand, and she's using AI and automation systems to handle a lot of the core services that this company needs. So this includes CRM pipelines and and car automations,
TikTok growth strategy, SEO preservation,
and she is also selling AI systems. It's not like she's completely abandoning the AI the AI side of things. Like, she is also selling AI and automation systems and using AI automation systems for the regular services like, you know, TikTok growth or SEO, uh, preservation.
So this is kinda like a hybrid model where you're kinda doing AI, agency, and AI delivery. Right? You're only selling tools, but you're also using the tools to, you know, accomplish x service.
So that is a key distinction between the two. Okay?
Now
here is a great example.
The LinkedIn ghostwriting.
LinkedIn ghostwriting is one of the biggest emerging industries right now. Uh, I'm literally working like several clients on helping them build their own LinkedIn ghostwriting business,
and this is this is like the the difference. Right? The old way is you have a a human that writes every single post for that creator or LinkedIn influencer or business,
and they might charge four posts a week per client,
and they can only do four or five clients because, you know, when you're writing I mean, if you have, let's say,
let's say you have
five clients. Right? So five clients,
four post a week per client,
that's 20 posts a week per yeah. 20 posts a week right now. Right? That's a lot of work, especially doing it solo. Now you can still make about $10,000 a month. I mean, you know, if your goal is 10 k a month, that's great, but it's gonna be really hard to break past this. You will not be you probably won't be able to break past this. To break past it, however, is you did use a new way, which is you and AI pipeline.
So going back to what we talked about earlier. Imagine you're able to scrape the old posts of that LinkedIn creator.
You train their voice in Claude. You pull trend angles. You generate 20 drafts. You're fine in post. So Claude is the one that's doing all the work. Right? So right here,
you have AI.
So Claude, and you can just read a Claude skill, for example, that's doing all of the post generation. All you have to do is minor edits. This might take you like if this takes you, let's say
let's say ten hours a week. Right? Ten hours. This should take you probably three hours.
So you're saving almost triple the time.
And as a result, you can get nearly triple the clients. So now imagine you have 12 clients.
Right?
And you're charging
24 k a month. So you're charging 2.4
x
that original cost or the original, like, um,
revenue. You're making 2.4 x that by switching to a you plus AI pipeline.
Okay? Instead of the solo human.
Alright? This is a key difference. This is a great example of a business that you can literally start today if you wanted to. Yes, you might be lacking the execution and guidance, which is why if you wanna work with someone who has that execution and pipeline already figured out for you, you can click the first link in the description. I'll be more than happy to help you. I've helped so many students like Yusav Bouchal, you know, get their own clients and start their own AI delivery businesses.
Now with all that being said, right, here's how you can go ahead and get started today because a lot of you are probably gonna watch this video and then watch the next video that comes after this. No. Don't do that. After this video, I want you to focus
and do these exact five steps. Alright? So first,
you're going to just pick one service,
and AI should do 80% of that service. So ghostwriting,
create AI videos, like, you know, using Higgs field or email.
You wanna build a small AI system that can do the core
work, like 80% of the work for you. Alright? You can use Cloud or any of them if you want to.
You just wanna find one person. All you gotta do is get one LinkedIn person or one Reddit creator, one person who who uses who has a newsletter, you wanna write emails for them. Just find one person, send them a voice memo DM, not 5,000 emails. Right?
Just just a voice memo DM. Okay? Just make it hyper personalized. You send fifteen, twenty of these and should get some good responses.
Then when you do get that client, you wanna deliver insanely well and you wanna make them a case study.
K? You have to make them a case study because that will allow you to get more clients. You also ask for referrals and you also post their case study on social media to get more inbound clients. Alright? And remember, founders know founders. So if you do a good job with one founder, there's a high chance that that founder will bring more founders to you. Right? So that founder might bring one founder right here, one founder right here, one founder right here. These founders might bring more founders
and you're able to grow your business like tenfold very quickly. So you have to do a good job. Right? And this is a five step pipeline. If you wish to do this part on Monday, this can be like Tuesday.
This part can be like Wednesday
to
Friday.
Saturday, Sunday, you can write the first 20 posts and show it to a client. They'll be amazed,
and then you get the referral by Sunday slash Monday. Now, the AI agency model is not dead, but there's so much better that you can do. You can literally use your current skills and turn it into an AI business and deliver faster than anyone else in your niche can. And if you add a personal brand like my YouTube channel or Instagram on top of that, you can get clients in your sleep. So if you want to build and scale a successful AI business with a strong personal brand that will bring inbound clients to you while you're sleeping, then click the first thing in the description below, and let's work one on one for sixteen weeks straight. I mean, I'm literally the best mentor in town. To learn more about building one person AI business, watch this video next.