Greg IsenbergLearnAsk
Video7:09–9:18

AI-native service firms can unlock 60%+ net margins vs. human agencies

By Greg Isenberg

An AI-native creative firm keeps the same inbound channels — word-of-mouth and organic social — but adds a sales channel that was previously out of reach: freelance marketplaces like Upwork and Fiverr. Instead of human staff, the work is orchestrated by tools like Astra (for workflow and task coordination) and Higgsfield (a single API accessing all creative models). A small number of people — sometimes just one — handle approval and oversight. Because the marginal cost of output is so low, gross margins on individual projects can reach 70%, 80%, 90%, or even 95%. Net margins above 60% are realistic. That's not a rounding error; it's a structural shift driven by replacing expensive, attrition-prone labor with AI-orchestrated execution.

Go deeper with Greg Isenberg

Ask anything about this, and Greg Isenberg answers from everything they've shared.