Establish a marketing agency that charges clients based on tangible performance metrics (e.g., per lead, per customer acquisition) rather than traditional fixed retainers. The agency should strategically target industries characterized by high CPAs, leveraging paid advertising, expert copywriting, and robust strategy to deliver measurable results.
Opportunity7.3
Why now
The rise of AI and data empowers marketers to better underwrite performance risk. Clients increasingly demand performance-based pricing due to risk aversion. Low capital expenditure makes it accessible, and there's a growing demand from industries like crypto for such models.
Market gap
Many marketers are unwilling to embrace the risk inherent in performance-based compensation. This creates an opportunity for those who can deliver results and effectively underwrite the risk.
Business fit
Type
Marketing Agency
Target
Companies in high CPA industries such as finance, crypto exchanges, telecoms, and hotels. Primarily targeting clients who are risk-averse or seek clear ROI.
Revenue
Multi-million to multi-billion dollar potential (examples given are $80M/year and over $1B/year)
Founder
Skilled marketer with strong copywriting and strategy expertise. A technical co-founder is a plus for building 'interesting things'.
Scores
Problem
8.0
Feasibility
7.0
Why now
9.0
Go-to-market
8.0
Confidence
10.0
Proof signals
A friend's pay-for-performance agency does $80M/year with $30M profit and 30 employees, focusing on one industry with paid ads, copywriting, and strategy.
Another pay-for-performance agency in telecoms is doing over $1B in revenue, starting with Google Ads and later acquiring call centers to 'gift wrap' customers for large companies (AT&T, Verizon, T-Mobile).
Many crypto companies and major exchanges are actively seeking pay-for-performance models.
The ability for marketers in an 'AI and data world' to 'underwrite' opportunities and 'bet on this particular opportunity' suggests a timely advantage.
Low capital expenditures required to set up the business.
Keyword demand
Keyword
Volume
Growth
Performance Marketing
5,400/mo
-46% YoY
Pay-per-performance agency
10/mo
0% YoY
High CPA industries
no data
no data
Niche marketing
1,000/mo
-32% YoY
US English Google Ads volume from DataForSEO; growth uses returned monthly search history.
Source episode
Why this is the best marketing agency to start in 2024 [CLIP]Episode source
if you're a good marketer you would charge on performance right but most people aren't willing to take the risk this pay per performance agency why why is that a business idea that's exciting you right now