
THE MARKETING MISFITS NEWSLETTER
Issue #034 | Oct 28th, 2026
BUILDING AI PRODUCTS AND AGENTS
ONE QUESTION. NO GOOGLING.
According to Andrew Erickson, roughly how much does it cost per month to run an AI agent on a basic VPS, and how much RAM does a single Hermes agent typically need?
Answer at bottom of email
HOT OFF THE PRESS! [ YESTERDAY ]
What do you do when your e-commerce business gets crushed by Amazon sellers, COVID shutdowns, and skyrocketing overhead?
You completely rewrite the rules of your industry.
In this episode of Marketing Misfits, Norm Farrar and Kevin King sit down with Simon Booth, the founder of Kiddimoto, a company that single-handedly invented the wooden balance bike market 23 years ago. Simon shares his wild journey from hand-building 120 bikes in his backyard workshop to surviving a brutal grilling on BBC's Dragons' Den (the UK's Shark Tank).
Discover how a massive surge in TV publicity led to a nightmare of big-box retail demands and ruthless Amazon knockoffs, and the ultimate "epiphany" that saved his brand: ditching direct-to-consumer e-commerce entirely to secure exclusive licensing deals with Ducati, Honda, and Kawasaki.

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MISFIT STORY of the WEEK
From Beer Cap Maps to Building Apps in Minutes
Andrew Erickson's first real business had nothing to do with software. He built a hobby brand selling beer cap maps, decorative wall art made from bottle caps arranged into the shape of a state or country, sold mostly through Etsy to hobbyists and craft beer fans. It sounds small because it was small, at least at the start.
But Andrew treated that hobby brand the way an engineer treats a system to be optimized. A former Qualcomm employee by training, he approached the beer cap map business with the same rigor he might have applied to a chip design problem, hacking together production processes using maker-space equipment most competitors never considered.
That approach eventually turned a niche Etsy hobby into a seven-figure exit in the years that followed, a wildly outsized outcome for a product category most people would dismiss instantly as too small to matter.
He did not stop there. Andrew built a second brand around Montessori-style educational toys, applying the same systems-thinking approach, and sold that business as well. Two exits from two categories that had nothing to do with his engineering background on paper, but everything to do with it underneath the surface.
Andrew's lesson from three very different businesses:
The size of the market matters far less than how rigorously you approach building and optimizing whatever you build inside it.
His current focus channels that same instinct into a new frontier: teaching entrepreneurs to build tiny, single-purpose AI applications, what he calls "logic lead magnets," tools that solve one specific problem for a user in under 60 seconds.
A bath-bomb brand building a bedtime story generator. A fishing gear brand building a zip-code-based gear recommendation tool. Small, focused, and genuinely useful, built not by a development team over months, but by a founder over a weekend.
THE CHALKBOARD
You Do Not Need a Dev Team to Build an AI Product Anymore

This week pairs Andrew Erickson's practical framework for building tiny AI applications in minutes with William DeVito's argument that most business owners already have everything they need to work confidently with AI agents, they just have not organized it yet. Both conversations point toward the same shift: building genuinely useful AI tools is no longer gated behind large engineering budgets or specialized technical teams.
Andrew's "logic lead magnet" concept reframes what a lead magnet even needs to be. Instead of another downloadable PDF nobody reads, a tiny AI-built app that solves one real problem in under a minute creates genuine engagement and a reason for a prospect to remember your brand.
William's framework goes a layer deeper into infrastructure, arguing that every business needs five core AI-readiness documents before any agent can actually represent the brand accurately.
Marketer's Notepad:
Kevin King's own case study is worth studying closely: he used MCP-connected tooling on his Beehiiv newsletter to segment by IP address, finding 220 engaged Austin-area subscribers and achieving a 62 percent open rate, in place of what would have been a multi-thousand-dollar, week-long custom development project.
The five core documents every business needs before deploying AI agents: a business knowledge base, a brand expert voice document, a style guide, customer personas, and marketing pillars.
What is your ratio of humans to AI agents right now? William suggests a rough rule of one human managing up to ten agents as a reasonable starting benchmark.
Andrew's "AI test" ritual is simple but powerful: retest every core business process every three to six months, since the tools and their capabilities change faster than most operators realize.
Andrew runs his agents on inexpensive virtual private servers, roughly ten dollars a month, with each individual agent typically needing just two to four gigabytes of RAM to operate.
Building a shared "employee handbook" file that multiple AI agents reference keeps their outputs consistent, the same way a real employee handbook keeps a human team aligned on tone and process.
William's tool stack (Pinecone for retrieval, Google Drive as underlying storage) shows that the plumbing behind a genuinely useful AI agent does not require exotic infrastructure most businesses cannot access.
Watch These Misfits Episodes to Dive Deeper:
How to Build AI Apps in Minutes (Andrew Erickson)
You're Closer to AI Mastery Than You Think (William DeVito)
MARKETING TRENDS & FACTS

MISFIT MARKETING STRATEGY
The Logic Lead Magnet

The logic lead magnet strategy reframes what a lead magnet needs to be in an era where AI tools make building small, functional software genuinely accessible. Instead of another downloadable guide or checklist, which most prospects download and never open, a logic lead magnet is a tiny, single-purpose AI-powered tool that solves one real, specific problem for a visitor in under a minute.
Why this works: a functional tool creates an active experience rather than a passive download. A prospect who types their zip code into a tool and receives a genuinely useful, personalized recommendation has just had a direct, memorable interaction with your brand, something a static PDF simply cannot replicate. That interaction also naturally captures data (an email address, a zip code, a stated preference) that a generic lead magnet form rarely gets as willingly.
How to build a logic lead magnet in practice:
Identify one narrow, specific problem your target customer faces that has a clear, calculable or generative answer, not something requiring deep personalization beyond what a simple tool can handle.
Sketch the exact input and output. What does the user type or select, and what does the tool give back in return.
Use an AI-assisted development tool to build the core functionality, focusing on solving the one problem well rather than adding unnecessary features.
Keep the interface extremely simple. A logic lead magnet succeeds because it delivers value in under a minute, not because it demonstrates every capability you could theoretically build in.
Capture an email address as part of the value exchange, positioned naturally rather than as a hard gate before any value is delivered.
Test the tool with a small group of real target customers before promoting it broadly, watching specifically for where they get confused or drop off.
The payoff is a lead magnet that actually gets used and remembered, rather than downloaded once and
forgotten. In a landscape where every brand offers some version of a free guide or checklist, a genuinely useful tiny tool stands out simply by being different, and by actually working.
AEO (ANSWER ENGINE OPTIMIZATION) TIP
As logic lead magnets and other small AI-built tools become more common, a new discovery challenge emerges: making sure AI agents and answer engines can actually find and correctly describe what your tool does, not just human visitors browsing your website directly.
Structure your tool's landing page with extremely clear, plain-language descriptions of exactly what problem it solves and what inputs and outputs it requires. AI agents and answer engines parsing your page need explicit, unambiguous language, not clever marketing copy that requires inference to understand the tool's actual function.
Add structured data markup describing your tool as a specific type of application or service, following schema.org conventions where applicable. This gives AI systems a machine-readable signal about what your tool does, separate from the human-facing marketing copy on the same page.
Consider whether your tool should expose an MCP-compatible interface, allowing AI agents to actually interact with and use the tool directly on behalf of a user, rather than only being described to a user who then has to visit your page manually. This is an emerging discovery layer that early adopters are already building toward.
Document your tool clearly in any developer or API documentation you publish, since AI systems increasingly reference technical documentation directly when determining whether and how to recommend a tool to a user asking a related question.
For help with email marketing for your brand, contact dragon.fish
Growth loops compound systems where the output of one cycle becomes the input of the next.
THE ONE-MINUTE CASE STUDY

The Brand: Vessi, the waterproof knit sneaker brand, built its early growth almost entirely on a single, highly demonstrable product claim: shoes made from a knit material that could stay completely dry even when submerged or exposed to heavy rain. Rather than relying on abstract lifestyle branding common in the footwear category, Vessi built its marketing around direct, visual proof of that one specific claim.
The Strategy: The strategy worked because the product's core benefit was inherently demonstrable on video, a shoe getting soaked in a bucket of water and coming out completely dry on the inside is immediately convincing in a way that abstract comfort or style claims are not.
This gave the brand an enormous advantage in short-form video advertising, where a clear, visual proof point outperforms a subjective style claim almost every time.
The Result: Vessi grew from a crowdfunded startup into a brand generating tens of millions in annual revenue within a few years of launch, driven substantially by paid social campaigns built entirely around demonstrating that one core waterproof claim repeatedly across different scenarios and use cases.
The Lesson: If your product has one genuinely demonstrable, visual claim, build your entire early marketing strategy around proving that single claim as clearly and repeatedly as possible before diversifying into broader brand messaging.
FROM NORM & KEVIN’S HUMIDOR

The soil a tobacco plant grows in shapes its flavor as much as anything a roller does afterward, and few regions demonstrate this more clearly than the Estelí valley in Nicaragua. The volcanic soil found throughout the region carries a mineral density that many growers and blenders credit for the bold, peppery character found in Nicaraguan tobacco compared to leaf grown in other countries.
Estelí sits in a valley surrounded by mountains that create a distinct microclimate, with enough consistent rainfall and sun exposure to support multiple tobacco varietals within a relatively compact growing region.
Many of the world's most recognized cigar blending families source at least part of their filler and binder tobacco from this exact area, treating the specific plot of land almost the way a winemaker treats a single vineyard.
A cigar blender working with Estelí tobacco is not just choosing a flavor profile, they are choosing a specific patch of volcanic earth that cannot be replicated anywhere else on the planet, which is exactly why so many premium blends proudly print the growing region right on the box.
The next Collective Minds Society Cigar & Whisky trip is Feb 18-22, 2027
THE MISFITS AI MARKETING TIP
How to Build a Codex Agent for E-Commerce Dashboards
Use an AI coding agent to build a simple, custom dashboard that pulls together scattered e-commerce metrics into one view, without needing a dedicated developer.
List the specific metrics you currently check across multiple separate tools, such as ad spend, email revenue, and inventory levels.
Describe your desired dashboard layout and data sources clearly to an AI coding agent like Codex, including which platforms hold each metric.
Ask the agent to build a simple script or lightweight application that pulls this data via available APIs into one consolidated view.
Test the output against your actual current numbers to confirm accuracy before relying on it for decisions.
Ask the agent to add automated alerts for specific thresholds, such as ad spend exceeding a daily budget or inventory dropping below a reorder point.
Schedule the dashboard to refresh automatically and review it weekly to catch problems earlier than a manual check across five different tools would allow.
Sample Prompt: "Build a simple dashboard that pulls daily ad spend, email revenue, and inventory levels from these three platforms into one view, with an alert if inventory drops below 100 units."
A custom dashboard built in an afternoon beats checking five different login screens every single morning.
MARKETING LISTS

THE FAQ (HOW’D YOU DO?)
Q: What is a "logic lead magnet"?
Andrew Erickson describes it as a tiny, single-purpose AI-built app that solves one specific problem for a user in under 60 seconds, replacing the traditional downloadable PDF lead magnet.
Q: What are the five core documents William DeVito says every business needs before deploying AI agents?
A business knowledge base, a brand expert voice document, a style guide, customer personas, and marketing pillars.
Q: How much does it cost to run a basic AI agent infrastructure?
Andrew Erickson notes a basic virtual private server runs roughly ten dollars a month, with each agent typically needing only two to four gigabytes of RAM to operate effectively.
Q: When should I use Claude's Sonnet model versus Opus?
William DeVito suggests Sonnet handles tasks completing in under an hour well, while Opus is better suited for longer, more complex tasks that take over an hour to complete.
THE ANSWER YOU’RE LOOKING FOR
A basic VPS to run an AI agent costs roughly ten dollars a month, and a single Hermes agent typically needs two to four gigabytes of RAM.
Andrew Erickson made the point that the infrastructure cost of running genuinely useful AI tools has become negligible for even a solo founder.
Watch the full conversation

Hope you enjoyed this week’s issue. We’ll see you next week!
Norm and Kevin
P.S.
Don’t forget to checkout the podcast too!
If you’d like to be a guest, or make a guest recommendation, please let us know!
P.S.S.
If you are looking to ramp up your email or AEO game, talk to us at DragonFish