It's Over for the Average Agency

Table of Contents

• Introduction
• Your $500 Fiverr Gig Just Became a $20 AI Prompt
• The $1000 MVP is Now a $5 Reality
• "Sorry, UX/UI Designer, AI Does Your Job Now"
• Your $5000 Strategy Session Just Got Replaced
• Google Ads Made Simple
• Who Will Survive?
• Conclusion

Introduction

I came across a tweet the other day that got me thinking 🤔:

"It's SO OVER for the average man. GPT-4o is quietly replacing entire $20,000/mo agency teams overnight.”

At first, I thought this was just another dramatic hot take. But the more I considered it, the more I realized that this person is probably right. The average marketing and software development agencies are in serious trouble. The AI revolution isn't coming—it's already here, and it's bulldozing business models that have been reliable cash cows for decades.

Your $500 Fiverr Gig Just Became a $20 AI Prompt

Just a short while ago, getting a decent website mockup or landing page meant spending hundreds or even thousands of dollars on Fiverr or Upwork. Those days are over.

With ChatGPT-4o and Google's Gemini 2.5 Pro, you can now create stunning wireframes and website designs that would have cost you $500-1000 on freelancing platforms. After many years of using Fiverr, I learned some of those freelancers were just using templates anyway.

The quality gap between AI-generated designs and human-created ones is closing fast. For basic to intermediate projects, it's already hard to tell the difference. Why wait 2-4 weeks and pay premium prices when you can get similar results in minutes?

The $1000 MVP is Now a $5 Reality

Perhaps even more shocking is what's happening in the app development space. Using platforms like Replit combined with AI assistance, you can now build basic web applications and MVPs for around $5 that would have previously cost you $1000 or more through an agency.

Small business owners and entrepreneurs who were priced out of the custom software market can now bring their ideas to life for the cost of a coffee.

"Sorry, UX/UI Designer, AI Does Your Job Now"

In the pre-AI era, a dedicated UX/UI designer was the only way to make your product look professional. That specialized role is becoming less necessary by the day.

With the right prompts, AI tools can generate complete user interface designs, user flows, and even interactive prototypes. What used to require a dedicated professional with years of training can now be accomplished through conversation with an AI.

"But what about the human touch?" You might be wondering. For unique, groundbreaking products, human designers still have an edge. But for the 90% of standard business websites, e-commerce stores, and basic apps? AI is already good enough—and getting better every month.

Your $5000 Strategy Session Just Got Replaced

Marketing agencies have long charged premium fees for consultation and campaign planning. Some of these agencies bill $5000+ just to help you figure out your marketing strategy.

Now you can use ChatGPT and similar tools to help you create comprehensive marketing campaigns, complete with:

• Target audience analysis
• Competitive positioning
• Content calendars
• Ad copy variations
• Channel strategy recommendations

Is it exactly the same as having a team of experienced marketers? Not quite. But it's 80% as good for 1% of the price—and that math makes sense for most small and medium businesses.

Google Ads Made Simple

The era of paying specialists $1,000+ monthly to run Google Ads campaigns is quickly becoming outdated.

You can take screenshots of the Google Ads dashboard, upload them to ChatGPT, and get step-by-step guidance on how to fill out every field for your specific campaign goals. The AI can explain bidding strategies, keyword selection, and even help troubleshoot poor performance.

Now you can simply tell ChatGPT, "Help me create a Google Ads campaign for my local bakery" and receive step-by-step guidance tailored to your business. The AI will help you:

• Choose the right campaign type
• Identify effective keywords
• Write compelling ad copy
• Set appropriate budgets
• Even troubleshoot when results aren't meeting expectations

Who Will Survive?

It's not all doom and gloom for agencies. The truly exceptional ones—those that deliver genuine strategic insight and creative direction that AI can't match—will continue to thrive.

Agencies that prioritize authentic client relationships and focus on delivering real business outcomes will weather this storm. These are the firms that see beyond the immediate project to the client's long-term success. They ask the right questions, challenge assumptions, and sometimes even tell clients what they don't want to hear but need to know.

On the other hand, agencies that just push clients through their sales funnels like items on an assembly line are in trouble. If you treat clients like walking wallets and only care about getting paid, AI will replace you soon. When all you do is follow the same steps for every client, you're basically doing what AI can already do.

The winners in this new world will be:

1. Agencies that use AI to help them work better and faster.
2. Experts who can solve hard problems that AI still can't handle.
3. Advisors who help businesses use AI tools effectively.
4. Teams that build real, trusting relationships with their clients.

The losers will be the average agencies charging high prices for work that AI can now do just as well.

Conclusion

If you run an agency that's getting by on minimal effort and innovation while charging premium prices, consider this your wake-up call. The AI revolution isn't going to put you out of business tomorrow, but the clock is ticking.

And if you're a business owner who's been hesitant to invest in marketing, design, or development because of the costs, it's time to reconsider. The tools available today make it possible to accomplish what once required entire teams—all for a fraction of the price.