Get Rich in the NEW A.I. Revolution (2025)
In this episode of the Growth Stacking Show, Dan Martell explores opportunities in the emerging AI business landscape. He identifies five industries primed for AI disruption—including supply chain, administrative work, and legal services—and outlines four business models with high profit margins, ranging from AI services to digital products.
Martell shares strategies for finding and selling to wealthy customers within specific niches, including methods for customer outreach and pricing optimization. The episode covers practical aspects of AI business development, from using no-code tools for MVP creation to automating key business processes, and presents a three-pronged approach to building lasting value through AI ventures: selling, scaling, and stacking multiple AI companies into a portfolio.
This is a preview of the Shortform summary of the May 15, 2025 episode of the Growth Stacking Show with Dan Martell
Sign up for Shortform to access the whole episode summary along with additional materials like counterarguments and context.
1-Page Summary
Identifying the Right Industries and Models For AI
The host identifies five key industries particularly suited for AI disruption: supply chain, administrative work, home services, legal services, and team training. These "boring" industries, characterized by routine and systematic operations, present significant opportunities for AI integration and optimization.
Maximizing Profits Through AI Business Models
According to Dan Martell, pairing AI with high-margin business models creates a strong competitive advantage. He outlines four profitable business models with impressive gross margins: AI Services (70%), AI Consulting (80%), AI Software (90%), and AI Digital Products (95%). These high margins, Martell explains, create a protective "moat" that provides business stability unlike traditional low-margin industries.
Strategies For Finding and Selling To Customers
The host emphasizes targeting wealthy, influential customers within specific niches, suggesting five key strategies: participating in industry events, crafting personalized emails, hosting podcasts to interview millionaires, organizing virtual roundtables, and creating themed events. For pricing strategy, Martell recommends implementing anchor pricing, scarcity tactics, valuable bonuses, and volume discounts. He also advocates for "selling before building" by pre-selling AI solutions to early adopters.
Developing and Delivering AI Products
Martell recommends using no-code tools like Gumloop and Go High Level, along with AI coding platforms such as Replit and Cursor, for efficient MVP development. He emphasizes automating key business processes—purchasing, account setup, onboarding, and support—using tools like Stripe, Webflow, and Typeform to ensure efficient operation and customer experience.
Scaling and Growing an AI-based Business
Instead of pursuing quick profits, Martell promotes a "long-term greedy" approach through three strategies: Selling (immediate financial return), Scaling (growing a profitable AI business), and Stacking (building a portfolio of AI companies). Through his experience with Martell Ventures, he demonstrates how this approach can create diverse AI solutions benefiting small businesses while building lasting value through learning and experience.
1-Page Summary
Additional Materials
Counterarguments
- While AI has the potential to disrupt many industries, the impact on job displacement should be considered, and strategies for workforce retraining and transition need to be developed.
- High-margin business models in AI may not be sustainable as competition increases and the cost of AI technology decreases over time.
- The profitability of AI business models may be overestimated if they do not account for the hidden costs of data acquisition, cleaning, and processing, as well as ongoing model maintenance and updates.
- Targeting wealthy, influential customers may not be a viable strategy for all AI businesses, especially those that aim to address social issues or serve a broader customer base.
- The strategies for finding and selling to customers may not be effective for all types of AI products or services, and could require adaptation to fit different market segments or industries.
- Pre-selling AI solutions before building them can lead to customer dissatisfaction if the final product does not meet the expectations set during the sales process.
- No-code tools and AI coding platforms may not be suitable for all types of AI product development, especially for complex or highly specialized applications.
- Automating key business processes can lead to a loss of personal touch and customer service quality, which can be a differentiating factor for some businesses.
- The "long-term greedy" approach may not align with the goals of all stakeholders, such as investors looking for short-term returns or customers seeking immediate solutions.
- The strategies for scaling and growing an AI-based business may not take into account the unique challenges of different markets or the potential for regulatory changes that could impact the AI industry.
Actionables
- You can explore AI's potential in your current job by identifying repetitive tasks and researching simple AI tools that could automate them, thus demonstrating the value of AI to your employer and potentially carving out a niche for yourself as an AI facilitator within your organization.
- For example, if you work in supply chain management, look for AI tools that can help with inventory forecasting or demand planning. By introducing these tools to your workplace, you can not only improve efficiency but also position yourself as someone who is forward-thinking and capable of driving innovation.
- If you're a consumer, consider how AI can enhance your home services experience by seeking out and using startups that offer AI-driven solutions for home maintenance or improvement.
- For instance, you might find a new app that uses AI to diagnose issues with home appliances or a service that employs AI to optimize home energy usage. By becoming an early adopter, you contribute to the growth of AI in these sectors and encourage further innovation.
- Engage with AI in your personal finances by using AI-powered financial tools to manage and optimize your investments, savings, or budgeting, which can give you firsthand experience with the practical benefits of AI.
- You could use an AI-based investment app that tailors your portfolio to market trends or a budgeting app that predicts your spending patterns and suggests savings strategies. This personal application of AI not only benefits your financial health but also gives you a deeper understanding of AI's capabilities and limitations.
Get access to the context and additional materials
Identifying the Right Industries and Models For Ai
The podcast's host sheds light on industries well-suited for AI disruption and the various business models to pair with AI for maximum profitability.
Podcast Host Highlights Five Industries Ripe for Ai Disruption
The host points to specific sectors where AI can revolutionize operations and services.
Boring Industries Offer Top Ai Money-Making Opportunities
Several industries are identified as prime candidates for AI integration due to their routine and systematic operations:
- Supply Chain: AI applications can dramatically improve forecasting and route optimization for deliveries, aiding in overall supply chain management.
- Admin: Administrative processes such as billing, scheduling, filing, and sorting can be streamlined using AI, particularly within information systems like Dropbox or CRM tools like HubSpot.
- Home Services: Trades like roofing, HVAC, and plumbing stand to benefit from AI through the automation of various processes.
- Legal Services: The legal sector can use AI for more efficient contract analysis and draft creation, with tools already beginning to leave a mark.
- Team Training: AI can enhance employee onboarding, access to SOPs, and provide real-time assistance during conference calls like Zoom, effectively serving as an in-house AI assistant.
Key Characteristics Making Industries Suited For Ai Solutions
The indicated characteristics make these industries particularly suited for AI because of their operational structures that AI can optimize or automate.
Maximize Profits By Pairing AI With High-Margin Models: AI Services, Consulting, Software, Digital Products
Dan Martell delves into the lucrative margins attainable through AI-oriented business models and how they create a competitive advantage.
Margins Create a Protective "Moat" Unlike Low-margin Industries
Martell emphasizes that high margins act as a protective barrier for businesses, providing stability and security compared to low-margin industries such as restaurants or retail, which traditionally operate with 20%-30% margins.
Potential Gross Margins For AI Business Models: 70% ...
Here’s what you’ll find in our full summary
Identifying the Right Industries and Models For Ai
Additional Materials
Counterarguments
- While AI can improve efficiency in the supply chain, it may not account for the human element in decision-making and could lead to job displacement.
- AI's ability to streamline admin tasks could potentially overlook the nuances of human judgment and personal touch that are often valued in customer service.
- The automation of home services through AI might face resistance from skilled tradespeople who value traditional methods and customer relationships.
- In legal services, AI may struggle with the complexity and subtlety of legal reasoning and the interpretation of laws that require human expertise.
- AI-enhanced team training could potentially miss the personalized coaching and mentoring that can only come from human interaction.
- High-margin AI business models might not be sustainable if they lead to market saturation or if the AI fails to deliver the promised value.
- The protective barrier of high margins in AI businesses could be undermined by rapid technological change or by compe ...
Actionables
- You can explore AI tools that assist with personal budgeting and scheduling to get a feel for how AI streamlines administrative tasks. Start by using AI-powered personal finance apps that predict your spending and savings, or calendar apps that suggest optimal scheduling of your tasks based on your habits and commitments. This hands-on experience will give you insights into the efficiency gains AI can bring, similar to those in the admin sector.
- If you're a homeowner, consider investing in smart home devices that use AI to manage energy consumption and maintenance schedules. Devices like smart thermostats can learn your preferences and optimize heating and cooling for efficiency, while AI-driven security systems can adapt to your routines and alert you to unusual activity, giving you a practical understanding of how AI automation can apply to home services.
- For those interested in the potential financial benefits of AI, simulate an AI business model using a spreadsheet to projec ...
Get access to the context and additional materials
Strategies For Finding and Selling To Customers
Entrepreneurs looking to succeed in the AI market are advised to target wealthy, influential customers within their specific niche. An array of "hacks" for making these high-value connections can build relationships and lead to long-term partnerships.
Host Suggests Selling To Wealthy, Influential Customers in Target Industries to Succeed In Ai Market
Five "Hacks" For Connecting With High-Value Customers
To connect with high-value customers, consider these five strategic moves:
- Participate in industry-specific events or contribute to their creation to expand networking opportunities.
- Craft highly personalized emails that resonate on a personal level with the recipients, fostering an immediate connection.
- Use a podcast to interview top millionaires in the industry; this platform is a gateway to knowledge and network building.
- Organize straightforward virtual gatherings such as round tables on Zoom to drive industry engagement.
- Create themed events like AI Founders Dinners in targeted locations to mingle with industry leaders.
Building Relationships and Providing Value Lead to Long-Term Partnerships
Committing to these practices helps forge valuable relationships with affluent clients, setting the foundation for future partnerships.
Customer Offer: Create a High-Cashflow Model With Anchor Pricing, Scarcity, Bonuses, and Volume Discounts
Structuring the Offer Ensures Entrepreneurs Have Cash Flow to Fund Ai Solutions' Growth, Not Finance Customers' Problems
Dan Martell emphasizes creating offers that ensure robust cash flow, underscoring that entrepreneurs should not act as banks for their clients. Instead, emphasize reinvestment into the business’ growth and vitality.
Entrepreneurs Should "Sell Before They Build" By Pre-selling Ai Solutions to Early Adopters, Using Their Feedback to Guide Product Development
Martell advises on pre-selling AI solutions as a strategic move for funding development and validating market demand. This involves prototyping with tools, identifying risk-taking early adopters, asking for advice rather than outright selling, and using a single conversion tool effectively for sales. ...
Here’s what you’ll find in our full summary
Strategies For Finding and Selling To Customers
Additional Materials
Counterarguments
- Targeting only wealthy, influential customers may not be sustainable or ethical for all business models, as it could lead to neglecting a broader customer base that could benefit from AI solutions.
- Networking at industry-specific events can be costly and time-consuming, and there's no guarantee of return on investment.
- Personalized emails require significant research and effort, which may not always result in a successful connection or may be seen as intrusive if not done correctly.
- Podcasts can be an effective tool, but they require a lot of resources to produce and may not reach the intended high-value customers if they don't already have an interest in the medium.
- Virtual gatherings and themed events can be effective, but they also risk being exclusive and may not appeal to all potential high-value customers.
- Building relationships with affluent clients might lead to long-term partnerships, but it could also create dependency on a small client base and increase vulnerability to market changes.
- High-cashflow models with anchor pricing might alienate customers who feel manipulated by pricing strategies or who cannot afford the top-tier services.
- Scarcity tactics can create artificial demand, which may frustrate customers and potentially damage the brand's reputation if perceived as a sales gimmick.
- Bonuses are attractive but can sometimes distract from the core value proposition of the product or s ...
Actionables
- You can leverage social media platforms to create a high-value content series that showcases your expertise in AI, attracting the attention of affluent clients. Start by identifying the most pressing issues in the AI industry and create content such as infographics, short videos, or insightful posts that address these challenges. Share these on platforms where your target niche is active, like LinkedIn for professionals or Twitter for tech enthusiasts. Engage with comments and direct messages to foster relationships and demonstrate your value.
- Consider offering a referral program that incentivizes your current network to connect you with potential affluent clients. Develop a simple referral system where your contacts can easily introduce you to their wealthy acquaintances who might benefit from your AI solutions. Offer rewards that are both appealing and relevant to your referrers, such as exclusive insights into AI trends, access to beta features of your product, or even a commission for successful introductions that lead to sales.
- Develop a content ...
Related Shortform Content
Get access to the context and additional materials
Developing and Delivering AI Products and Services
Dan Martell outlines strategies for developing and delivering AI products and services efficiently and cost-effectively.
Host Suggests Using No-code Tools, AI Coding Platforms, and Expert AI Developers for Efficient MVP Development
Martell emphasizes using no-code platforms, AI coding tools, and hiring skilled developers as critical steps to create a Minimal Viable Product (MVP) in AI.
Host Warns Against Overspending With Tale of an Entrepreneur Who Spent $3 Million on Unwanted Software Product
While Martell doesn't mention a specific entrepreneur, he implicitly warns against overspending in the development process by highlighting the importance of cost-effective tools and hiring practices.
Recommendations For Using No-code Tools, AI Coding Platforms, and Hiring AI Developers, Emphasizing Skills Testing and Cultural Fit
Martell lists no-code platforms like Gumloop, Go High Level, Make, and N8N as effective tools for building AI solutions without extensive coding. For more advanced AI projects, he suggests using "vibe coding" platforms such as Replit, Bolt, Cursor, and refers to Chat GPT for assistance in writing code. Additionally, Martell recommends hiring an AI developer by first conducting a test project to assess their skills and cultural fit. He suggests communicating working styles and providing the developer with pre-sold wireframes and solutions to build on.
Automate Business Functions For Efficient AI Product and Service Delivery
Martell discusses the significance of automating key business processes to allow entrepreneurs to concentrate on high-value tasks and ensure a smooth customer experience.
Automating Key Business Processes Lets Entrepreneurs Focus On High-Value, Revenue-Generating Work and Ensure a Seamless Customer Experience
He describes four essential business areas for automation: ...
Here’s what you’ll find in our full summary
Developing and Delivering AI Products and Services
Additional Materials
Counterarguments
- No-code tools and AI platforms may not offer the same level of customization and scalability as custom-coded solutions, potentially limiting the growth and adaptability of the MVP in the long term.
- While hiring expert AI developers is beneficial, it can be costly and may not be feasible for all startups or small businesses with limited budgets.
- Skills testing and cultural fit are important, but they may not fully capture a candidate's potential, adaptability, and problem-solving abilities, which are also crucial for a successful AI project.
- Overemphasis on cost-effectiveness could lead to underinvestment in critical areas of development, potentially compromising the quality and innovation of the AI product or service.
- Automation is valuable, but over-automation can lead to a lack of personal touch in customer service, which may be detrimental to customer satisfaction and ...
Actionables
- You can streamline your MVP's user feedback loop by setting up a simple chatbot on your website to collect user impressions and issues. Instead of relying solely on AI developers or no-code tools for feedback mechanisms, use a chatbot service like Chatfuel or ManyChat to create a basic bot that asks users about their experience and logs responses for you to review. This direct line of communication can help you iterate on your MVP based on real user data without significant investment.
- Explore alternative freelancing platforms to find emerging AI talent for short-term projects. While hiring AI developers is crucial, you can look beyond the usual job boards and tap into niche online communities like GitHub, Stack Overflow, or even Reddit's r/forhire subreddit. By posting your project requirements there, you might connect with up-and-coming developers who offer competitive rates and fresh perspectives.
- Create a simple, manual version of a business pro ...
Get access to the context and additional materials
Scaling and Growing an AI-based Business
Martell offers a strategic approach to building wealth with artificial intelligence (AI), focusing on long-term gains rather than short-term profits.
Host Promotes "Long-Term Greedy" Over "Short-Term Greedy" Wealth Building With AI: Selling, Scaling, Stacking Strategies
Martell criticizes the "short-term greedy" mindset, which he connects with selling an AI business too early for quick profit. He believes that such a move limits the value a company can create as it deprives owners of the valuable learning and experience that comes from nurturing a business over time.
Selling too Soon Limits Value; Focus On Scaling Profitable AI or Stacking Multiple AI Businesses
Instead, Martell puts forth a threefold strategy for creating and amassing AI wealth in the market known as Selling, Scaling, and Stacking:
Sell offers immediate financial return but only limited learning and experience. Martell sees this as a wasted opportunity for those who could have grown their business.
Scale focuses on growing a profitable AI business. Martell cites an example of a friend who decided to scale his company rather than sell it, allowing the business to increase its worth and his experience.
Stack is the approach Martell Ventures endorses, in which a portfolio of AI companies is built, providing a diversified range of solutions for small businesses.
Host Highlights Learning and Experien ...
Here’s what you’ll find in our full summary
Scaling and Growing an AI-based Business
Additional Materials
Counterarguments
- While long-term strategies can lead to greater learning and experience, they also come with increased risk and uncertainty, especially in the rapidly evolving field of AI.
- Short-term gains can be strategically reinvested into other ventures with potentially higher returns or to fund innovation, which is also a valuable approach to wealth building.
- Selling an AI business early can be the right decision if the market conditions are changing or if the founder lacks the resources or expertise to scale effectively.
- Scaling a business requires significant resources and management skills, and not all entrepreneurs may be equipped or interested in taking on these challenges.
- Stacking multiple AI businesses could lead to dilution of focus and resources, making it harder to achieve success in any single venture.
- Diversification through stacking is not always the best strategy, as it may prevent deep specialization and the development of a strong competitive advantage in a specific niche.
- The assumption that long-term involvement with an AI business always leads to valuable learning and experience may not hold true if the business fails to adapt to market changes.
- A portfolio ap ...
Actionables
- You can start a virtual AI investment club with friends to learn and share insights about AI businesses. By pooling resources, you can collectively invest in AI startups or stocks, allowing you to benefit from the scaling and stacking approach without needing significant individual capital. This club could meet monthly to discuss progress, new opportunities, and lessons learned, fostering a community of growth and shared experience.
- Consider creating a simple blog or vlog documenting your journey of understanding AI and its business implications. This can be a platform where you share your learnings, challenges, and successes, which not only solidifies your own knowledge but also helps others who are on a similar path. Over time, this could become a valuable resource for those interested in sustainable AI business growth.
- Engage in micro-projects by using AI tools av ...
Get access to the context and additional materials
Create Summaries for anything on the web
Download the Shortform Chrome extension for your browser
