Founder's Journal Agencies are wildly underrated
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May 12, 2025 Agencies are often seen as unsexy compared to software businesses, but that's about to change. The discussion dives into their underappreciated potential, especially in the age of AI. With revenue predictability and strategic AI integration, agencies can enhance efficiency and profitability. AI-generated workflows are revolutionizing how agencies operate, offering competitive advantages and new opportunities for innovation. This insightful conversation challenges misconceptions and highlights why agencies deserve more recognition.
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Why Agencies Are Underrated
- Agency businesses have been undervalued due to hiring needs, lower margins, and less predictable revenue.
- These factors cause agencies to trade at much lower multiples than software companies.
AI Boosts Agency Leverage
- AI reduces the need for large teams in agencies by handling tasks software couldn't before.
- This will increase margins and leverage for agency businesses, making them more like software companies.
StoryArb's AI Content Workflow
- StoryArb uses AI to draft content from expert interviews, reducing junior writer load.
- This workflow saves hiring needs and lets senior staff focus on high-value editing and creativity.