AI avatars (separating the service into a separate business)

1. Overview

  • Client: AI content production agency
  • Industry: AI, PR, Digital Marketing
  • Services:  Consulting Services

2. Challenge

Agency-developed AI avatar side-project with only one steady client.

Very high per-client margins, but minimal scale or growth.

No formal go-to-market or segment focus (an “uninvestable” startup error).

Misaligned pricing and broad positioning led to missed deals.

Our aim was … .

3. Solution

Performed in-depth market research and GTM analysis.

Defined three priority segments (CEOs, EdTech/online schools, language institutes)

Created service packages with tiered pricing and pilot offers (a proven way to highlight distinct value).

Completed full launch roadmap and investor-ready narrative (crafting a clear investment story).

We understood that … .

4. Results

Within months, the AI avatar service was established as its own legal and commercial entity, sharpening focus and branding. Five new client prospects entered the sales pipeline, confirming that the clarified GTM approach was working.

We also delivered an investment-readiness package – including financials and a concise investor story – so the spin-off is fully prepared for fundraising. The business model was designed to scale via a hybrid revenue approach: small pilot projects lead into recurring subscription contracts.

Launched as a standalone legal entity with focused sales/marketing.

Five potential clients now in active pipeline.

Investment-readiness deliverables completed (financial model and pitch).

Scalable revenue model: initial pilot projects converting to subscriptions (subscriptions “can be more readily scaled” with growth).

Conclusion: Subscription models are highly scalable (growing infrastructure linearly with customers) and should be rolled out via controlled pilots to validate assumptions.