In short
The episode is about cutting AI/LLM costs, adapting pricing as companies shift to agentic workflows, and making brands “AI-readable.” The host describes reducing a ~$7,500/month Claude/AI token spend to near $0 by changing model hierarchy (CloudMax paid first, then OpenAI OAuth, then GPT-5.5, with an API fallback) and fixing an issue where the system kept calling an old API. They also discuss buying Mac minis vs DGX Sparks due to Apple memory availability limits, and using open-source models (Alibaba) as near-equivalents to Opus.
Key claims
70% of brands don’t show up for AI agents; Google’s design.md standard helps agents discover assets; Salesforce usage pricing rose 83% because AI agents drive API usage.
Notable examples
Salesforce spend up from ~$12k to ~$22k/year; Notion agents don’t need Notion; an AI consulting agency sold at 30+× EBITDA with ~40% AI-related revenue.
Guests
none explicitly named; the conversation is between the host and “Neil,” plus mentions of Jason Lemkin, Thomas (Samebox), Heath, and Eric.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Chapters
Tap a time to open that second in VOReducing AI Costs
0:45 to 1:42
Discussion on how to reduce AI token costs effectively.
“So anyway, my point is you can see the graph starting to go down.”
Hardware Insights: Mac Studios and Availability
1:42 to 3:00
Insights on the challenges of purchasing Mac Studios and their specifications.
“But I got this as low as, I got this to$20.”
AI Pricing Models and Their Impact
3:00 to 6:34
Exploration of how AI pricing models affect customer spending.
“That's why, because the Mac minis are out.”
Personal Anecdote: Parenting and Sleep
9:16 to 11:12
A personal story discussing parenting challenges affecting sleep.
“All right, so let's talk about this one over here.”
AI Agent Visibility and Google's New Standards
11:12 to 14:00
Discussion on AI branding challenges and Google's new design standards.
“When you don't get good sleep, you take 15, 20 grams, it locks you back in.”
The Importance of AI Readability for Marketers
14:00 to 14:48
Learn how AI readability can impact marketing effectiveness and revenue.
“And so I think this is very big for marketers.”
Agency Revenue and AI Consulting
14:49 to 16:39
Discover how AI consulting is boosting agency revenues and valuations.
“And there was some structure on the deal, but a large chunk of money.”
AI's Impact on Small Agencies
16:40 to 17:17
Explore how smaller agencies can leverage AI for rapid growth.
“30X multiple on 2 million is$60 million.”
The Speed of Change: From Horses to Pickup Trucks
17:18 to 18:42
Understand the significance of adapting quickly to AI advancements.
“And like, I've also said this too, in terms of AI fluency at my company, I push it so hard.”
Transcript
Automatic transcript. May contain errors.0:00Eric Siu:When a buyer asks AI for a solution like yours, does your business come up? Most companies have no idea. And by the time they find out, they've already lost the deal to someone who did. HubSpot AEO helps you show up in those moments with the right answers buyers are looking for. Before the first click, before the first form fill. That's the moment HubSpot AEO is built for. Check out HubSpot.com, the agentic customer platform for growing businesses. Here's how I decrease basically my$7 ,500 a month AI token spend to zero, where it's trending towards zero. So you can see this over here. So Neil, look at this.
0:36Eric Siu:So you can see this month to date so far,$6 ,700, right? You can see the graphs over here. It's like going up to like$400 a day or whatever. And I'm not saying I'm spending the most because some people hit me up on Instagram. I'm spending$30 ,000 a month. Congratulations. So anyway, my point is you can see the graph starting to go down. Okay. So what's the red versus the white? That's just the different models. so red would be Sonnet and then you have Opus over here as well and then you have Opus like 4.7 and all that so my point is Neil I got it down somehow something broke over here like yesterday it went up so I'm going to have to look into that but all I did Neil was I changed my model hierarchy and so what I mean by that is I have I paid $200 a month for CloudMax okay and then at the second level.
1:20Eric Siu:So what they're using first versus second versus third. Yes and then OpenAI OAuth is number two. Chapter GPT 5.5 is amazing. And then the last one is a fallback to the API. And I realized what happened. Yesterday, what happened with my OpenClaw is it kept screwing up. It kept calling the old API because it didn't realize that it had the CLI. So something's broken there. And so that was fixed as of this morning, actually. So that was fixed. So you do need to continue to monitor your costs. But I got this as low as, I got this to$20. So it was trending towards zero and I'm going to remove all the cron jobs.
1:49Eric Siu:and so now it's a good deal that's a great deal here's something that i saw interesting the other
1:56Neil Patel:day because i was talking to heath and we're talking about max studios because he has quite a few of them yeah he has like 15 right i don't know he has a lot so you know what happened
2:04Eric Siu:top remember thomas from same box so they they interviewed him for his uh his podcast and he's like yeah he has 15 mac minis how many do you have i was like i have one so so he's been buying
2:14Neil Patel:like max studios as well not just minis yeah and i didn't know this he was breaking down to me He's just like, dude, he's like, yeah, it costs a lot for memory. You can't even get any of these computers anytime soon. I'm like, what are you talking about? So I go to the Apple website. Oh, nothing's available. Nothing's available. And the memory storage is way lower than what you actually need.
2:36Eric Siu:I was trying to buy the 512, and then two weeks later, it was only down to 256. Now I can only get the 96. Is the 96 even available for the memory?
2:44Neil Patel:96, right? you can get 96 or 256, but your delivery time is nowhere near soon and they don't offer 512 anymore. Yeah.
2:54Eric Siu:So I use, so my plan is to wait for the new ones. They're going to sell out quickly, but I want to buy like two of the new ones, but I bought two of the DGX Sparks. That's why, because the Mac minis are out. And so Neil, to your point, the Quinn model, I think Alibaba, their open source model, almost equivalent to Opus 4.6. Opus 4.7 is out right now, but it's really good. It's really solid. and so what we talked about earlier in this podcast, my Camry fleet has to run on these DGX Sparks and then we're also going to have open source as well. So I might just eliminate the API at least from my personal, but I think for my company, you're still going to have to keep paying for API because you want them to have the best models.
3:31Neil Patel:Yep.
3:31Eric Siu:Just like you want your kids to have the best food, the best schooling and all these things. Yes, that is true.
3:38Neil Patel:It all ends up adding up to being a lot of money. But yeah, dude, these computers, Like I was going on the checkout. Like these things are expensive. I don't realize how expensive these computers.
3:48Eric Siu:It's like 16 grand for a fully loaded one.
3:49Neil Patel:I was like, this is like a car almost. Yeah, but it's worth it.
3:54Eric Siu:This is a productive car. Way more productive than a car. Yes. Yeah. Okay. So while Neil's looking for something right now, I'm going to go for the next one. Okay. So Salesforce just admitted it. Switching from per seat to usage pricing made customer spend go up 83 % Neil, 83%. So earlier we just talked about how Salesforce is going all in on APIs, CLIs, all these things, right? So Jason Lemkin, the Saster or the EchoSign guy, okay? He said they reduced their seats from 10 plus to two human seats and one API seat. And yet we now pay$22 ,000 a year, 83 % up from 12 grand. Why? Our 20-plus AI agents use Salesforce 100 times more than we did a year ago.
4:44Eric Siu:So they now have an AI VP of marketing, AI VP customer success, and run four third-party AI GTM agents, including AgentForce. Is their pricing model still by seat, but it's for AI? Is that what they switched it to? API. The API cost. Oh, the API usage is going up instead of the seat.
4:59Neil Patel:So they're spending less on the seats, but they're spending way more on the API.
5:02Eric Siu:Yeah, which you can try to optimize as much as you can. It's still going to keep going up. It's just about dampening the cost. So he's spending more money. Yeah, you're spending more money. So 83 % up on 12 grand to 22 grand, right? And so I think we're going to continue to see this. Now, here's the flip side of that, Neil. Notion. Do you use Notion? You pay for Notion? We probably pay in our company, but I don't use it. I don't use it either, right? So here's the thing. Notion, they're all over AI, right? They're like, okay, they've been accelerating their AI adoption, all this stuff. They just realized they hadn't used Notion in months, even with the strong AI product enhancements, because their agents don't need Notion, right?
5:40Eric Siu:They do need Salesforce. What do the agents need? They need.md files. That's what they need. You're okay just using Obsidian for that. Wait, is this Notion realizing
5:47Neil Patel:or this is Jason Limpkin?
5:48Eric Siu:Jason Limpkin realizing he doesn't need Notion.
5:50Neil Patel:I thought you were like, Notion realized they don't need Notion. Yeah, they just shut their company down. I'm like, wow, I don't know who runs marketing there, but I would fire that person.
5:59Eric Siu:Yeah, so I think that's really interesting. Percy versus Usha's base. I think we're going to continue to see this change because even the API for SEO stuff, the way we're planning to do it now is, Okay, freemium, you get some access, and then you'd have to pay on usage. I'm sure you're thinking about that for your SaaS products too.
6:12Neil Patel:Yes, and then a lot of companies, if you look at FIN, it is for ticket resolved, which people just want... I can go both ways. I know a lot of people want to pay for outcomes. It's hard to measure too. It's hard to measure. I personally, as a business owner, prefer monthly costs that are fixed.
6:36Eric Siu:Yeah, because it's more predictable.
6:37Neil Patel:very much more predictable yeah now if we use it a lot more and all right i get you you may have charging just like with emails like you know how your emails is fixed but if they uh if you send out x amount more emails you have x more contacts you go into a higher band yeah the reason i personally like that and you you nailed it is i like predictability in our cash flow and our accounting our business what we're going to generate each quarter like i don't like this ambiguity of, oh, you just pay for whatever you use. Well, if you just get spammed and a lot of you know, Finn fixes a lot of support tickets that were just spam or bullcrap, like what?
7:15Neil Patel:You just ended up spending thousands of extra dollars for something that wasn't needed?
7:19Eric Siu:It's tough. I think it's a tough job for CFOs in the next few years because you're an enterprise company before you're trying to protect as much. But now it's like you have to pay on usage for the best cloud tokens, the best open AI tokens. I do think, you know, the agents that we're selling right now for the revenue agent side, we're basically going to charge like a base fee. There's a management fee, but also there's token overages too. And we're probably just going to mark up whatever it is that they're spending because we don't want to hold them back. If you're getting this intelligence that could do more for you, you probably want to pay more for it.
7:48Eric Siu:And so unless you don't want to grow as fast, so like what are you supposed to do? Yeah. Yeah. But speaking of Finn, by the way, they launched a sales agent. Do you see that?
7:56Neil Patel:I did not see that.
7:57Eric Siu:They launched a sales agent. They're baiting it right now, but I think they're trying to charge people based on like a per lead basis. So we'll see how that goes.
8:03Neil Patel:And it just goes out there and tries to get you leads.
8:05Eric Siu:I think, I think it's more of an inbound. So, uh, it comes to your website and then they take on those leads.
8:13Neil Patel:So, so they take on leads that I've already taken on myself and then they'll do the sales for you. Yeah. And then they charge you a percentage.
8:20Eric Siu:I think they'll charge you just more than$1. I think they'll make, maybe they'll save for like, I don't know, 500 bucks, 100 bucks, 50 bucks or something like that. So, but they'll help you close the deal. Yeah. Yeah. And maybe they'll say, well, just help you with self-serve. So I don't know all the details. Yeah. I don't see it working for enterprise, but for self-serve, it could potentially help. Quick break. If you're doing AI SEO or content marketing in general, you know what the problem is. The problem is you're spending hours writing yourself or you're paying agencies lots and lots of money.
8:50Eric Siu:and you're getting AI slop that sounds just like everyone else. That's why we built ClickFlow. ClickFlow creates production-grade content that actually sounds like you. Plus, it helps you with other areas such as building internal links, creating FAQs, and more. One customer even reported saving 90-plus hours a month just by using ClickFlow. You can get a 14-day free trial just by going to clickflow.com. No more AI slop, just production-grade content that drives traffic and conversions. Back to the show. Yep. All right, so let's talk about this one over here. So Neil's tired already. Wait, before we get into the next one, you want to know why we're tired?
9:24Eric Siu:Why?
9:25Neil Patel:Dude, my son comes, he says, three o 'clock in the morning. I usually wake up like at four something, five at the latest. But he's like, check in on me. So my kids have this thing where like they want you to check in on them. So I'll put them to bed. And I usually do the nighttime routine. Then I surprise check in on them within like five minutes of putting them to bed so they know that I'm watching. We have cameras in their room, not in a creepy way. But like the nanny cams to make sure they're okay. You know, they don't just try to roam out the front door. It notifies us because you don't want your kids just trying to like leave the house or do something that they're not supposed to.
9:59Neil Patel:Or if they cry, it notifies us like something could be wrong. And my son, like at 3am, he's like, check up on me. So I go to his room like, hey, everything okay? And he's just like, I had a nightmare. I was so scared. And he's like shaking. So then he's like, would you lay with me, daddy? Please. I'm so scared. So I just lay in his bed. Is he in his own room? He's in his own room, yeah. So then I'm laying with him, and I'm just trying to fall asleep. And he's grabbing me tight. Oh, so you don't have sleep. So I didn't have much sleep. And then he's like, are you going to leave in the morning to go to the gym?
Read the full transcript
10:32Neil Patel:And I'm like, yeah. But I'm like, you'll be okay. You'll be sleeping by then. He's like, but then I won't know if you're leaving. And then the monster can come in. Like, there's no monster. He's like, can we go lay in your room instead? So I'm like, all right. So we go lay in my room. Because he's like, at least mommy will be there in the morning while you go to the gym. Yeah. And then he's just excited to sleep in her bed because he doesn't do it. So he can't fall asleep. And he's waking up my wife. Then she's not going to get sleep. I'm like, let's go back into your room. So then I didn't get any sleep after pretty much 3 a.m.
11:06Eric Siu:Oh, you should have done this. Okay, here's how you solve it. Creatine, 15 to 20 grams of creatine, you're locked back in. Me? Yeah. When you don't get good sleep, you take 15, 20 grams, it locks you back in. It's like as if you had good sleep.
11:18Neil Patel:But does it help you get good sleep when someone's pulling on your arm and not sleeping?
11:22Eric Siu:You feel like poo-poo right now, right? If you have 15, 20 grams of creatine, you'll feel good. Oh, you're saying right now? Yeah, right now. Not when he's waking me up like at 3am. No, you just deal with that.
11:30Neil Patel:Yeah. Yeah, yeah. I'm like, I don't know if that'll solve it. But yeah, so if I put 15 to 20 grams, you're saying I can take a quick nap.
11:36Eric Siu:You don't even need a nap. You'll bring, like I've had nights where I had bad sleep. There's nights where I didn't sleep at all. And like, zero sleep. And I took the 15, 20 grams. I was good. I made it through the day.
11:47Neil Patel:Oh, because it's like caffeine, right?
11:48Eric Siu:It's not caffeine. No, it's just, I forgot what it is exactly, but what I've, so what people have been talking about recently with creatine is not just good for building your muscles. It's good for cognitive benefits, but because your body eats the five grams so quickly in other areas, if you want the brain benefits, 15 to 20 grams, that's what you do. I know they'll cancel out the bad sleep.
12:07Neil Patel:So I've been using it for brain benefits for a long time. I take it daily. I take 10 grams. I don't do 15 to 20, but I always do 15 to 20. I don't know. It's 15 to 20.
12:17Eric Siu:Look at Dr. Rhonda Patrick. She talks about it all the time. There's enough studies on this already. And is it 15 all at once or you space it out? I just do it all at once. That's why I have to pee so much when I come here. Oh, because you drink a lot of water because it's doing it. No, no, no. I take a lot of supplements in the morning and that 15, 20 grams plus maybe I take all the other supplements. Maybe I'm taking like 50 to 60 grams of stuff. So it's a lot.
12:39Neil Patel:And a side note, Eric and I are not giving you creatine or medical or health advice.
12:44Eric Siu:We're just talking to each other as friends. Okay, next one. Disclaimers in this podcast. Next one. All right. So 70 % of brands don't show up when an AI agent goes shopping. Yours probably doesn't either. Okay. So if we look at this over here, so I think this is a game changer, Neil. Google's design.md file is the 50X brand scaling system. So not enough people are talking about this right now. So Google just came out with, they released this. They're trying to have a new standard. Just as there's an agents.md file that agents will use. There's like these standard.md files.
13:14Neil Patel:Just like they use for everyone listening.
13:16Eric Siu:Everyone remember their old AMP framework, AMP. This is a new framework that they're trying to standardize for everyone to use. That's why they open sourced this format. But the example that I just gave a little earlier, where I showed you my landing page, right? That was used using... Here, I'm going to pull this back up again. So this is using design.md. And all I did, Neil, was I took their design.md... I went to GitHub, okay? I took their repo for this. And I said, hey, I want you to make a design.md for ClickFlow, for single grain, for single brain, and for carrot. And it has a design.md for each one.
13:53Eric Siu:And this does look like the ClickFlow website. And so my whole thing is this. If you and I as marketers, we want to spin up ads, we want to spin up carousels, we want to spin up landing pages, whatever it is that we want to do now, this makes it even faster, which is why I, and by the way, when you have a design.md, it also helps agents discover it as well, right? And so I think this is very big for marketers. And I don't think many people are talking about. So I think most brands are going to be behind because they aren't AI readable yet. I think this part of it will help change that.
14:22Neil Patel:So for anyone who's listening, that's an agency. This could actually be very useful to you. And here's why, not just what Eric's talking about. But there was an agency recently who had around 40 % of their revenue from AI consulting and integrating all these new types of protocols. they just sold for a 30 plus times multiple of EBITDA. 30 plus times? I think it was 32 or 33 or something 30 plus times. Only 40 % of their revenue was coming from this kind of stuff. And there was some structure on the deal, but a large chunk of money. How much structure? Well, majority of the money was up front. Okay.
14:58Neil Patel:That's a great structure. This is what I was at least told.
15:00Eric Siu:I would assume around 70 % of it up front. Yeah. That's great. That's a great structure, guys. Even if 60 % was up front, it's such a good deal. You know, it's funny. I was, so we're, we're close to hiring this person right now. And then he's like, yeah, the, the, the current company that they're at, they don't, the private equity firm doesn't believe in AI, right? So he's the one that's trying to push AI fluency. And yet at the same time, you have these multiples that are floating around. So look, I'll just put it to you this way. The classic playbook now is you, you basically take your ad variants, all the landing pages, you feed it into this design.md, you have an agent take care of it.
15:33Eric Siu:They can make, You go from one asset to 500 assets. The key thing, Neil, with this is whenever you're making this stuff, like these slides, you want consistency. And there hasn't been the ability to have good consistency, at least for me, until now, right? Yes.
15:49Neil Patel:But dude, this is something that's interesting for you, going back to the agency part, because your agency, I don't mean this in a bad way, I mean it in a positive way, because you have less headcount, And because you have a smaller revenue total than larger agencies, it's easier for you to get your percentage up to like 40, 50 % to some of this kind of stuff. 40, 50X. No, 40, 50 % being AI related. Oh, yeah, yeah, yeah, yeah. And then, right? Because percentage wise, it should be easier for you. And if your contracts state that and you're actually doing that work, you can go to market. I'm not going to give Eric's numbers.
16:30Neil Patel:I don't know them, but let's just use simple numbers. And I'm just going to use clean, easy numbers. If he's doing 10 million in revenue, two in profit, and I'm not saying that's the numbers, I'm just using round numbers. 30X multiple on 2 million is$60 million. And on the 60, even if they give you 40 up front or 30 up front, that's such an amazing deal.
16:53Eric Siu:This podcast is going to make everyone into an AI agency. Yes. That's what you're doing right now, Neil. But no, Neil's not wrong. And here's the thing. I actually think there's an advantage to being really like for startups right now, for example, or even smaller companies, because you can make the changes more swiftly. Now, that being said, there's tradeoffs to it. Right. But I will just say that I have said internally in my company, I was like, what a good time to be alive right now. Right. What a good time to be exactly where we are right now, because we can do what we want. And like, I've also said this too, in terms of AI fluency at my company, I push it so hard.
17:26Eric Siu:There's an AI fluency stand up every day. I'm in that stand up every day. Right. And I'm just like, guys, if you become better, great. If you quit, great. I will take both outcomes. And so I'm like, the train has left, guys. It's left many, many, many, many times. And the analogy I also use, Neil, is like, if you and I were riding horses, do you know how long it would take for us to get to New York from LA? New York to LA on horses? Horseback. You and I were riding a horse together. Two months? Three months? Exactly three months. Okay. 90 days. Okay. now if you and i got in a truck a pickup truck how long does it take for us to go from la to new york
18:03Neil Patel:uh train la to new york one week truck oh truck you're saying like non-stop yeah uh we might have
18:11Eric Siu:to stop for pee and food and all that three days four days exactly yes four days okay so 22.5 times faster so the analogy i give people now because a lot of people talk about how they work in in like 2025 clock speed, right? I say, look, man, you might've been in a horse last year and you might have, you know, really strong strategic thinking and all that, but you're still on a horse right now. Now, if you get in a pickup truck, not only can you drive way faster, your capacity is a lot more. You can carry a much bigger load now, right? And so that's my analogy for everyone. I'm like, right, guys, let's all come along, right?
18:46Eric Siu:Let's all come along. And I want everyone to get better. and then if you quit, also quit. Yeah. So guys, that is it for today. Please let us know what you think about this new format, new-ish format and we'll see you tomorrow.
From the publisher
Eric and Neil break down how Eric cut his AI token spend from around $7,500 a month to nearly $0 by changing his model hierarchy, fixing fallback issues, and reducing unnecessary API usage.
They also get into why usage-based AI pricing is changing software, why some tools become more valuable in an agent-driven world, and what founders, marketers, and agencies need to understand as AI costs shift from seat-based pricing to usage-based pricing.
Key takeaways
◾ You can dramatically reduce AI token spend by fixing model hierarchy and fallback logic.
◾ AI costs need to be actively monitored because broken workflows can quietly burn cash.
◾ Usage-based pricing is becoming a bigger part of software economics.
◾ Some tools get more valuable in an agent-first world, while others matter less.
◾ Agencies that help companies become AI-readable may have a major opportunity.
Chapters
(00:00) How Eric cut his $7,500 AI token spend
(03:25) Why usage-based AI pricing is going up
(05:08) Why some software matters less in an agent world
(08:11) ClickFlow ad break
(12:29) Why AI-readable brands matter more
(17:19) What this means for agencies and founders
