The Most Profitable AI Business Isn’t Software

Brett Malinowski· 19 min· 4,317 words· 20 min read· English ·Watch on YouTube

This is the full transcript of The Most Profitable AI Business Isn’t Software, published on YouTube by Brett Malinowski. Every paragraph carries the moment it was spoken, so you can click any line to jump straight to that point in the video, search the whole thing for a word, or copy it out.

0:00What I'm about to show you feels unfair. And what I mean by that is it's going to give you an unfair advantage in business in the next 12 months. So, I keep seeing these TikToks of these kids calling local businesses and pitching them a new website. And then saying, "I actually already made it for you." And then they send over an AI-generated website. The

0:19business owner reviews it. They like it. They will then pay an installation fee. And this really caught my eye because the AI essentially automated the entire fulfillment of the service upfront. So, naturally, I decided to test this with one of our creators and on his third call, he was able to get a barbershop to pay him $850 for an AI-generated website

0:40that he made in 2 minutes. And like I said, I'm a website builder and I actually already built you guys a pre-made website. If you guys are interested, maybe we could set up a time sometime next week so you can check it out. Oh, yeah. That would be great. And let me let me look at my calendar, huh? That is insane to think about. Now, you might be wondering, why does the business owner not just make it

1:01themselves? And I mean, think about it. They're really busy. If you own a local restaurant, you're responsible for hiring, managing the kitchen, keeping ingredients stocked, handling payroll and accounting, running promotions, and you have to deal with customers every day. The last thing you want to do is spend your night building a new AI website. Business owners will still gladly pay for someone to solve a problem for them regardless of how it gets done. And that's why AI services have quietly become one of the most interesting businesses on the internet right now. In fact, some of the biggest investors in AI are making a very interesting argument. They're saying the

1:36most defensible businesses may not be the companies actually selling the software tool. They may be the ones using the tool to actually do the work. Because if you only sell software, you're essentially just competing with the next AI model update. But if you just sell the outcome as a service, every AI update just makes your business better. In fact, Sequoia just came out with a new article saying services are the new software and they make the argument that for every $1 spent on a software tool, $6 are spent on the service delivering the exact same outcome. And that is where this new arbitrage appears. Opportunity arbitrage

2:10is when a new technology changes the way work gets done, but the market hasn't fully priced in that change yet. So, for a short window of time, you can use the new tool to create a disproportionate amount of value and have an edge over the competition. What used to take weeks now takes minutes. What used to take a

2:26full team now can be done by one person. This means you can deliver faster, serve more clients, and increase your profit margin. That is the arbitrage and that gives new people entering the market a window of opportunity. But the key with any arbitrage is that it does not last forever. The people who move early benefit the most and the people who wait usually miss it. So, in this video, I'm going to show you how to automate this

2:47entire AI service business step-by-step. How to find the leads, how to build the websites, how to send the outreach, and how to book sales calls. So, instead of doing everything manually, you can spend more time closing deals and delivering client results. So, let's get started. To do this, I'm going to be using the Claude desktop app and the Claude Chrome extension and I'm going to be on the max

3:08plan, but pro should work just as well. Now, the first thing we need to do is actually go ahead and decide who we're going to target and start prospecting leads. You can pick local service businesses like roofers, HVAC companies, barber shops, cleaning companies, medspas, you name it. If you are unfamiliar, just ask Claude to give you a list of 100 different local service business models. Now, for this example, I'm going to choose a local restaurant in Kansas City because it's where I grew up and they are notorious for having bad websites. So, the first thing we need to do is actually go to the top left here

3:37in Claude Co-work and hit create new project. Now, we're just going to go ahead and name our project and we're going to tell it our goal and the instructions. Now, we're going to hit create. Here we are, we're inside the project. Now, I need to give it my first task, which is basically me telling Claude my objective. The first task is basically going to tell Claude that I want to sell website services to local restaurants in Kansas City. My goal is to automate the prospecting, website generation, and outreach. I want to literally send them an outreach message with a link to the website I built for

4:03them with AI. The AI should scan their current website social media profiles to gather their branding, menu, and other relevant info. Then we should automatically build them a new website. So first, let's create a skill to automate the prospecting of local restaurants. We should come up with a simple scoring system. The ideal target

4:17has a bad website or no website at all. probably avoid large chains because they don't need our service. Let's create a prospecting skill and a lead list spreadsheet first. So, we're telling Claude our objective so it knows what we're trying to achieve and we're installing that context out the gate. Then it's going to create a prospecting lead list so we have a sheet with all of our leads. And it's going to create the skill so we actually know who we should be targeting. So, I'm going to leave a link to every single one of these prompts right below this video. And now, I will just hit enter. So, it's really

4:44important to give your AI a goal at the start. So that way it knows how to anchor all of its advice moving forward. And now we have the output. And if we read the skill, you can actually see it filled in all the blanks for us. And this skill.md file is very thorough. Now, I'm just going to give it a quick read through and refine the skill. The more effort you put into your skill.md

5:01files, the better your outputs will be. If 100 people are using AI for the exact same task, one person's outputs will be better than the other 99's even if they're using the same model simply because that person put more blood, sweat, and tears into crafting their skill.md file. Now, let's just actually look at the prospecting sheet to make

5:18sure it has every column that I want. So, there we go. It has the name of the restaurant and we have their Instagram handle which is important because that's where we're going to reach out to them. So, it looks good. I'm going to go ahead and save the skill. And now we have a clearly defined prospecting strategy, aka the AI will find us leads. So, now let's actually automate the process so Claude will find us leads every single day without us having to be at the computer prompting it. To automate my prospecting, all I have to do is say, "Now, please create a schedule task where every morning at 7:00 a.m. you use

5:48the prospecting skill and add 25 new leads to the lead prospecting sheet. I'm going to reach out to them in Instagram, so please add their Instagram handle, phone number, and email on the sheet if possible. And I'll hit enter, and just like that it generates the scheduled task, and I will add that to my project. So, now every morning at 7:00 a.m. the AI will go out, search the internet, find me 25 local restaurants with bad websites, and put their contact info on a spreadsheet. And let's go ahead and hit test run now, so we can test if it's working. And voila, they are neatly organized in our tracking sheet with

6:19their Instagram handles included. So, we fully automated our prospecting. That's nothing new, but now let's actually go ahead and automate the actual service delivery and build these websites. And yes, we will be 100% automating this process as well. So, let me show you how. So, to do this we will need the AI to do three things. First, we're going to define the style of website we want to make. Then, second, we're going to scrape local restaurants menus, photos, and branding so the websites are actually custom to each client. And then we're going to host each website so we can send a shareable link in our outreach message. So, Claude makes this

6:49very easy. Now, I'm going to prompt Claude this. I'm not going to read through this one, but you can pause and read through it if you want. And I'm just going to go ahead and hit enter. Now, I'll just simply review the dot md skill file. So, essentially what this is doing is building a skill file that is laying out how we want to build the websites. And we're just making sure that it's including the menu, real photos, and only real information for the restaurant and trying to match their existing branding so it feels like it was built custom for them. So, I'm going to go ahead and review the dot md skill

7:16file to make sure that's there. I'm going to go ahead and probably refine it real quick. I went back and forth, I made a few changes, but now that skill is made, and it actually now time to build the first site to see what it comes up with. So, to do this I'm just going to say, "Now, build my first site for the first client on the prospect

7:31sheet and give me a local host link."

7:40Okay, and voila. Now, I have a link and I can now see what the auto-generated websites will look like on my browser. So, the first one we did was for a restaurant called Kitty's in Kansas City, and I do really like this design. It does match Kitty's brand, but if you want to hack to make very well-designed websites in Cloud Code, you should just start using brand kits from Canva. All you need to do is just go to Canva, go to their template section, type in brand guidelines, and then just find one that matches your client's style, hit

8:08customize, and then save it as a PDF. Now just take that PDF and tell Claude to design the site using the brand guidelines, and now your site is going to look like it was made by a professional designer in minutes. Just look at the difference that it gives us here. Yeah, this one is next-level, and literally all I did was upload a PDF

8:26saying to follow this brand guideline. So, super useful hack. If you do have a client on the phone you want to go above and beyond for them, this is the best way to do it. Just find a brand guideline that makes sense for them. Now, I do want to say, I know I've kind of made it sound like this requires no work at all, but it does. And I really just want you to understand that this video is made to really spark your imagination and show you what's possible. Obviously, this is going to take a good amount of effort, and you want to get better at your craft. At the

8:49end of the day, the number one skill in the AI world is taste. AI just negates the 3 years it takes to physically learn how to use these old website building tools. AKA, your creativity is no longer limited by your ability to memorize the WordPress UI. But, to succeed with this business model, you still need to have a good eye for design, and intuitively understand what makes a good website that actually converts. So, yes, AI builds your entire website for you, but it's not perfect, and you should deeply care about the quality of your work that you're delivering your clients, and making sure you're actually getting them

9:21results. Also, please, please, please make sure the AI is actually using your real client's information. AI is extremely good at lying to you. So, cross-check your first few websites with real menus before you start sending stuff out. My first output for the first website we just built only put five menu items on the website. So, I need to go into the skill.md file and strictly state that we cannot make shortcuts and

9:45we must use the real menu completely. Okay, so now that we have the website building skill refined, the next thing we need to do is turn this into a shareable link. So, the preview link that you just saw is actually only local to your computer, hence why it's called localhost. So, what I'm going to do is actually start using a hosting service to host our websites. So, to do this, I'm going to use Vercel uh because it's free and extremely easy. It's going to take about 20 seconds. So, I'm going to go ahead and copy and paste this prompt that I have prepared. Basically, it's going to say, "Now we need to host the

10:12site. Help me set up a Vercel." So, I just follow the steps it gives me. I'm going to make my Vercel account. I'm going to hit this link and create a new token, and then I'm going to paste that token code back into Claude. Cool. And voilà, I now have a shareable link I can send to each client so they can view the website. It's just their restaurant name. vercel.app. So, we have the skill down. We have the websites being built, and we have a way to actually share them with our clients. Now, the last step is to then automate this process with another scheduled tasks. So, I'm going

10:42to just copy and paste this prompt that says, "Please create a scheduled task that views the lead sheet every morning at 8:00 a.m., identifies the new leads, and builds a website for each of them following the website building skill, then host them on Vercel, and then finally add the Vercel link to the lead sheet." Now, this skill and automated process is going to build the websites

11:02and put them on the lead sheet for us. But, just like that, we've essentially automated our entire service delivery with AI, which again is insane to think about. But, we're not done yet. So, we need to actually start reaching out to clients and sending messages. And yes, we will be automating this with AI. But, before I show you exactly how to do that, I would like to invite you to join Academy. Academy is a community of entrepreneurs who are building AI service businesses right now. Inside, I have a full step-by-step course on how to start selling online services with AI, including the seven most in-demand services that you can start selling

11:38right now. I walk you through exactly how to pick a skill, define your customer, automate your outreach, build your own website with AI, and then actually start booking sales calls on your calendar. We also host weekly live sessions where we bring in guest speakers who are running successful AI service businesses. During those sessions, you can come up, you can ask questions, and get direct feedback on your business from the guest and from me. You'll also be surrounded by a group of people who are learning the same skills, taking the same steps, and working towards the same goal. So, you'll be in an environment that holds you accountable and will make action way

12:09more likely. So, if you want support, feedback, and a clear path, join WAP Academy. And by the way, if you have a .edu email, it is completely free for you to join. The link is below. And again, if you just want all the prompts that I'm using today, those are linked below for free as well. So, now to automating your outreach. So, this is actually very simple, and to do this, we'll be using the Claude Chrome extension. So, this will actually enable the AI to see what's on our screen, take control of our browser, start clicking

12:34around, and taking action on our behalf. So, the reason I use this over something like OpenClaw is primarily for two reasons. The first one is that it's just way more user-friendly for non-technical people like me. And secondly, I don't actually have to give it access to any private data, login information, or credit cards. So, since Instagram's already open on my browser, it can just see what's on my screen and actually just start sending messages on top of it. Now, one thing I do want to note here is that the rules around using AI for outreach are unclear, and they vary by platform. So, do not spam hundreds of

13:05messages per day, or you may risk getting your account banned. So, just a quick disclaimer to proceed at your own risk. Now, let's set this up. So, I'm just going to follow the same process as before, and I'm just going to ask Claude to help me automate my outreach, and then I'm going to paste in this prompt. I'm now going to create a skill for our outreach messaging. So, this way the AI knows who we're targeting and how I actually want to word my outreach message. It's also going to know to actually send the link to the website to the client. So, we're going to send that

13:32Vercel link in the DM. And then I'm actually going to send a follow-up message. So, it's going to send two messages. And the follow-up message will actually have a link to book a call on my calendar. So, that way I can wake up to sales calls. So, in theory, this can run while I'm sleeping. And then I just wake up and there's people that have booked time on my calendar to get their website installed for a fee. So, this is very interesting. Now, these videos on TikTok, they're all actually doing cold calling. And that's way more effective if you have the balls to do it. But, I

13:59just wanted to, for demonstration purposes, show you how to automate this entire thing and get leads to book time on your calendar, which I think is really cool. So, I hit enter and I'm going to go ahead and review the skill file. So, again, you want to be very thorough on the skill file cuz this is literally going to be the message that is sent from your account. So, make sure that you are very particular in the way that it is wording stuff. And it's not really cringey AI LLM slop. But, let's go ahead and hit save cuz I like where this is at. And now, you guessed it. It

14:25is time to actually automate this with our final scheduled task. So, I'm going to use this prompt that basically creates a scheduled task that identifies 25 new leads from the sheet. It copies the Vercel website link from the sheet. And then finds the user on Instagram and sends a personalized outreach message using the outreach skill every day at 9:00 a.m. Now, the last piece of this is there are no approvals needed. Fully automate this. Just update the status of the lead list prospecting sheet after you send the lead message. So, again, this is really important. The reason I am staggering 7:00 a.m., 8:00 a.m., and 9:00 a.m. is cuz it does take the AI a

15:00little bit of time to execute that. So, an hour for each step is pretty helpful. Second, I want to make sure this is fully automated and I don't have my Claude code sitting there waiting for me to hit allow. So, I'm going to tell it to fully automate that. There's a setting that you can set in your project for that. Here we go. Let's go ahead and check the lead list and see if it's made websites. And we can see that there are four websites that are already built and deployed to Vercel. So, let's go ahead and test this out. Let me go ahead and

15:24review these sites real quick. Okay. Okay, that one looks good. This one's a little blank. Let's look at the Jones barbecue one. Wow, the Jones barbecue one is really good. I really like that one. Okay. Overall, I like these. If I was doing this for real, I would hold a very high bar for the quality to make sure everything's accurate, but for the most part these look really good. So, I'm happy with the websites. Let's go ahead and actually automate our cold outreach. So, to do that, I'm just going to go ahead and manually run the outreach schedule task. And ladies and gentlemen, we are in the future. So, my

15:50hands are up. You can see that this is just fully taking over my Instagram browser, searching up each lead, and sending them the website that I built for them, pitching my service. I could imagine having this while I was in college. I remember spending like 2 hours every morning building lead lists manually for my video business. And then I have to go in and write every message myself by hand. So, that was like literally half of my work day. This is absolute magic. All right. So, now that we know how to automate finding leads, building the websites, and sending outreach messages, really the last piece of this is hopping on a sales call and

16:19accepting payments. And so, to do that, we're going to be using Wha. Wha makes it extremely easy to create checkout links or invoices to basically send to your clients so you can get paid for the work you just did. So, I'm just going to go to wha.com. I'm going to hit start a business, and I'm just going to name it website services, and then we're going to go to our dashboard, and I'm going to hit create checkout link. So, let's say a client agrees to pay us $1,000 for a website. So, I'm going to go to this checkout link. I'm going to give it a name, and then I'm going to give it a

16:43quick description. Let's say it's Jones barbecue. I got a good feeling about them. All right. So, website services for Jones barbecue. And then I'm just going to go ahead and input my price, one time, $1,000. And there we go. I'm just going to hit create checkout link. Now, let's go over here. I hit copy this link, and I will send that link directly to my clients. And so, as you can see, they can just enter their credit card details right here. They can pay via bank transfer or like cash app or financing options if they wanted to spread their payments out in monthly installments. I literally just set up my

17:14business and was able to accept a payment from a client in under 60 seconds and Wapp has no subscriptions. So, it's pretty cool. Makes it very, very easy. So, now let's imagine they paid. Really, the last thing you need to do to deliver your service, since you already built the site, is just really connect their domain. So, you would just need to talk to them, see what domain service they're currently using, and then get login access or have them add you to that account. Now, one thing to note here is you could charge literally anywhere from $500 to $3,000 for this service alone right now. And if they're

17:41happy, there are plenty of other services that you could then upsell them on. Like Google reviews, SEO, or even setting up online ordering like if they want to be on DoorDash or something. So, that's the beauty of these AI services. You're really just using them to get your foot in the door. You solve that first problem really quickly, and you build the relationship. This is going to set you up for a long-term working relationship where they could potentially pay you a monthly retainer, and they'll probably happily refer you to other people who need a website. And they will most likely send you referrals if you ask. That way, one client could

18:11turn into three, and your business starts growing on autopilot. I hope you guys got value from today's video. I really think this is one of the most exciting times ever to be an entrepreneur. And if you're on the fence if you can really do this, the answer is yes. You just have to start. I genuinely believe in you. But if you are new and you want guided help on how to start, I would love to have you inside the Wapp Academy. Other than that, have a great

18:35day, and I'll see you in the next one.

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