The Best AI Agency Niches That Print Money

So what's the best niche to go after with your AI agency? Well, in this video I'm going to be breaking it down, showing you how to pick a niche. And at the very end I'll show you 10 of the best, highest paying niches that you can capitalize on right now. Alright, let's dive in. So unlike the majority of people on YouTube that are teaching you how to do an AI agency, I'm actually doing this myself. As you can see, our business did around $500,000 in revenue last month in August. So this is something I'm actually doing is a business I'm really running. So anything I'm gonna be teaching you guys is for my actual own experience. Here's some more screenshots. This is from two separate payment processors just in the matter of one month. So what we're gonna be covering in this video is a what makes a niche good versus bad. I'm gonna show you guys how to pick a niche, whatever one is gonna be right for you. And then at the very end I'm gonna Show you guys 10 niches that are currently working right now. So let's jump right in, we're going to start this off and I want to basically explain to you guys how you should think through what niche to pick. I'm going to explain which one's good, which one's bad. Again, I'm going to give you guys some examples. But you need to understand the fundamentals of this business model first and foremost so that you can see why I'm saying certain niches are good versus bad. Okay, so what you're seeing right now, this is basically a graph that explains how you get paid when you run an AI agency or really any agency, or honestly any business in general, but especially when it comes to an agency. So this green line right here, this essentially represents a business's revenue. So before you come in, let's say that they're doing you know, like stable revenue. You come in here all of a sudden due to your efforts, certain automations you install or certain automations that, or certain marketing that you put in, you start to increase that business's revenue. Well, what you're gonna get paid on is the difference from the increase in revenue versus what they were doing before. Okay, so you are always gonna earn a percentage of the value that you provide that business. Alright, so here's an example. Let's say you come in and a business is currently doing $5,000 a month due to automations marketing, whatever it is that you're doing, you're able to increase the amount of revenue that business is doing to $10,000 a month. Well, that's an increase of $5,000. So you might be able to charge $500 a month right now here's where the niche that you actually pick is so important. Well, let's say you do the exact same thing, but this time you come into a business doing 500 grand a month, you help them increase their sales to a million dollars a month. Well, in this example, you might be able to charge that person $50,000 per month. So we're talking about 100x the price. And oftentimes this is actually the same amount of work helping a business go from 10k to 5k and helping a business go from 500k to a million dollars a month. Oftentimes you're doing the exact same service. It's just the business that you're doing it for. So one of the highest forms of leverage in this business in an agency is simply picking better customers and having the right niche. Now I'm going to explain something to you guys in just a moment that kind of like is a little different than what most people talk about because the niche you pick is important. But what I'm going to tell you guys in just a moment is actually more important than, than even the niche that you pick. Okay, so let me give you guys an example. This is something from within my own life. I have a friend who owns an email agency for E commerce businesses. So they would only exclusively work with E commerce businesses that already were established and then they would come in and add email automations into that business. So this is not necessarily an AI agency, but just to kind of give you guys an example and explain the concept so you guys can understand how big of a difference the niche that you pick can actually make. So he would charge $5,000 a month plus a percentage of profit that he was able to add to that business. Now this guy was making substantially more money than I was when I was doing lead gen sales training, automation, like literally every single thing that you can imagine for new insurance agents. Okay, so this is a perfect example of how the clientele and the niche, the customer that you pick can have such a big impact on the amount that you're making. This guy was making around, I think it was like 90 grand a month with very high margin. And I was doing around for the longest time. I think I was at like 50 grand a month with like decent margins. Right. And then when I made the switch and I started Targeting better clients, My entire business changed. So again, the quality of your customer is a massive lever to the amount of money that you make. All right, so what actually makes a good niche for an AI agency? Okay, well, there's three different things. The first thing is that that particular business is selling something that is high ticket and has a high profit margin. That's extremely important. Like we just spent the last couple of minutes talking about we are always going to be what I like to call downstream of our customers. We are downstream of our customers. So if their business is unpredictable, low profit, et cetera, right. Then we should expect our agency, our business to be the exact same. So if we're serving people that are barely making any money, they're, you know, constantly churning out of the business, like we're going to have a bad time. For example, it's like the difference of serving established e commerce brands versus drop shippers, right? There's extremely high turn with drop shippers. A lot of times their business is very unpredictable, low profit. And so then that flows downstream to you. Ask anyone that's run a dropshipping marketing agency how well that that went. Probably didn't go very well. Okay? So we want to basically serve niches that literally just print money. Okay? And so the way that I define this is we're talking about businesses that are selling things that are $5,000 or more. And those businesses, we want them to have high profit margin. So of that $5,000, I want a good percentage of that to be profit. And the reason why is because this basically, this is gonna sound bad, but you'll understand what I mean in a moment. This allows you to actually not be as good at your job or at the service that you're doing, but still make that business tons and tons of money. And I'll show you guys an example of how that works. Okay, so let's take one business here. So let's say that this is. We'll just use easy numbers. We'll say that this is like getting them to 50 grand a month. Okay? All of these little individual sales stack up on top of each other. So this is like with a business that's selling something relatively low ticket, let's say for, for example that this business is selling something for a thousand bucks, right? So we would need 50, 50 sales, 50 transactions for them to do $50,000 a month. Well, if we take another business and they're selling something that's, you know, $20,000.

Boom, $20,000, boom,. $20,000. So they only need to make three sales to make more money than this other business that's selling something low ticket. So you could say that, like, I mean, you, you could plug in what, every number. But let's just say, like, if this first business was like a barber shop, think about how many haircuts, how many clients you would actually need to get them in order for them to make, like, really good money. Okay, now let's say that this other business here, let's say that we're selling to like.

Let'S say we're selling to like home service contractors. One deal could make them 20 grand. Okay. And when you have a business like that, if you're able to literally just get them one extra client, you've more than paid for your service. So that's what we're looking for, is we're looking for, like, worst case scenario. If we can just get them a couple extra clients, we still want our service to be wildly profitable for them so that they don't cancel it. And then you could look at a different example here. You know, let's say that we're helping people get clients that pay them like, you know, 60 grand or more. You know, a win for them could be having a pipeline full of qualified leads, which means we're not getting judged as hard as an AI agency. Right. And I can talk in just a moment as well about the types of services that you should actually sell to these businesses. And that's. I have a full video that breaks that down super in depth. But this should just kind of explain the concept of, you know, this is one sale, this is three sales, this is like 50 sales. Okay. And the closer that we can get to, like, they literally just have to make a couple sales and they, they're wildly profitable with our business, the better. Right? Because the thing that you got to realize too is if they're selling something for higher ticket, oftentimes it's just as easy for them to sell something for $60 at as it is for like a gym to get a new trial sign up. Okay, cool. Now the next thing we want to look for is boring businesses. So the reason why is these boring businesses are slow moving, they're outdated, and this actually allows us to deliver the most value. Okay. I always use the analogy of, like, you essentially want to be the person that's bringing fire to cavemen. Okay? You want that, you want to be like, you show them zapier and they think you're a wizard. That's what you're looking for because it allows you to, like, especially if that business makes a ton of money, they're stuck in the past and you show them something that's relatively basic to you, but to them is just game changing. It applies so much leverage and allows you to have your business be very simple, doesn't have to be super complex. You don't have to be doing all this custom work. You can basically implement the same automation over and over to these high profit businesses. They make a ton of money and you get a percentage of it. Okay, so for example, some bad examples of boring businesses would be like E commerce. I know I use that as an example before, but I would say E commerce would actually be a pretty bad niche to be in just because it's so competitive and they're very developed and very advanced in E commerce. It's a very technologically advanced business and industry. Same thing with SaaS, same thing with coaching and consulting. These are all extremely competitive businesses where like if you come in, even if you're really, really good at what you do, you're still just middle of the road compared to everyone else. Versus if I'm like serving orthodontists and I am in any way good at automation and marketing, I'm just going to blow everybody else out of the water. Okay? So something that's very important to remember is you watching this video, you are not that smart, to be honest with you, right? Like relative to a marketplace, there are people in the world that are extremely, extremely intelligent. Okay? And I'm not talking about like, you know, like you don't have to be intelligent to make money. But even if you are smart, you want to go into an industry where you are going to have a competitive advantage against everyone else. And unless you're like some extremely skilled coder or you know, you just have this skill set that's like ridiculously refined, I would stay away from all of these industries because they're going to be way more competitive and you're going to be competing against the smartest people to understand this technology. So for example, if we go to a law firm and their technology is currently at a two and I'm able to bring them to an eight, a law, like law firms print money, right? They make millions and millions of dollars a year. If I'm able to do simple stuff, give them better automations and take them from a 2 to an 8, you know, that's an increase of, of 6, right? Versus if I'm going to a SaaS company and their technology is already at an 8, you know, the, the level of my skill set to take them to a 10. I'll move my face here so you guys can see the level of my skill set that I have to be at. To take them to a 10 from an 8 is extremely high. And I'm also delivering less value, right, because I'm only increasing it by a 2. So this is kind of like a, you know, the, the score is, is a little bit arbitrary. But this is just to demonstrate a point of like when you go to a business that's less technologically advanced, even if you show them simple things, it's still giving them tons of value versus if you're going to, you know, an E commerce company and they already have all these automations built out and then you're, you know, creating some AI, you're trying to beat the marketing they already have. You know, that's, that's a much tougher thing than like going to a law firm where their form of lead gen is like sending out mailers to people. You see what I'm saying? So that's essentially kind of what we're looking for. I'll give you an example. So the biggest hack that you can do is find a niche that's super behind technologically and then you essentially look at the niches that are ahead of the game. The fastest developing niche niches like SaaS, E commerce, again, coaching, consulting, you know, like new softwares that aren't necessarily SaaS but software. And you look at what these, these fast, fast moving industries are doing and then you take those lessons and you take it to these older industries. That is by far one of the most profitable arbitrage is that you can do that will just make you tons and tons of money. So for example, Uber was like the first company that essentially did, you know, taxis through an app, right? That's basically what Uber is, is it's like a democratized taxi service through an app. So what happened? Well, all of these other countries, all of these other entrepreneurs, they saw Uber, they saw the success of it and they just started replicating it in their own market. So Didi did this in China, Git did this in Israel, Grab did this in Thailand and Southeast Asia, Ola did this in India and like it just keeps on going. Kareem did this in here. Let me move my face. This company, like most of these companies you've probably never heard of, I didn't hear of, have heard, had, I had not heard of them before I made this video. But all of these companies are essentially doing the exact same thing that Uber's doing, but they're just doing it in their own market and that's exactly what you essentially want to do whenever you are going to a niche, right? So another example, there's basically these three guys and their entire business model is they just copy whatever is working in America and they replicate it in Germany. And they're literally billionaires. So for example, they did this with Airbnb, they created a clone of Airbnb called Wimdo, they created a clone of Groupon called City Deal, and they created a clone of Amazon called Zalando. And these guys are again literally billionaires because they take what's already working in one market and just move it to another one. Right? And so again, if you can find a slow moving, boring business and then just look at these other industries that move fast and then take, take from the fast moving industries and then teach it to the slow moving industries, you can earn tons of cash. Especially if you're doing slow moving industries. They just make a shit ton of money for lack of a better term. Okay, now the other thing you want to look for are businesses with recurring revenue. And again, stick around to the end. I'm going to show you guys some examples of these businesses. So recurring revenue basically gives businesses stability. And whenever you're looking for clients, you want people to have stable revenue that can pay you for the long term. When you have a business like an AI agency, it's all about LTV of a customer. You want people where you sign one client and they're going to pay you for the next like five years. People that have and businesses that have recurring revenue like subscriptions, retainers, memberships, etc. They have predictable cash flow, which means they can afford to continue paying you every single month. Also, this is something I can speak to from my own personal experience is when you're selling to people that don't already have recurring revenue coming in, they are going to put a lot more pressure onto you and your business. So for example, if you sign a client and they're not already making money month after month after month after month, they've just paid you and now they're under the gun to make sales, to not only continue to pay for you, pay the ad spend and then make a profit on top of it, versus if you're working with a business like let's say the business is already making, you know, 50 grand a month, like right out of the gate, you come in, you charge them $5,000. They don't even have to make a profit on you in the first month. Right. It can take three months. And then if they make one big sale, then it's an extremely profitable venture and they're going to continue to work for you. So I know this kind of sound like, this might sound like a unicorn business, but I'm telling you, there are tons of these out there. And I'm going to show you guys examples in a moment. But again, to recap, we're looking for high profit, high ticket businesses that are slow moving so that we can basically be the ones that bring fire to cavemen and that have recurring stable revenue. Cool. So let's look at some examples. Number one, you have law firms. All right, why law firms? Well, the average law firm, like on a case, they can make anywhere from 25 to $50,000 on certain cases. They can also get clients that pay them on retainer. So law firms are high ticket. They're extremely slow moving with their marketing and their systems and everything else. And, and on top of that, they have a recurring customer base and they have recurring revenue. The next one, this is actually a really, really good niche, is accountants or tax advisory firms more specifically. So tax advisory firms, these are basically businesses that work with successful wealthy rich people and they help them save money on taxes. So usually they're gonna, they're gonna like, their clients are gonna pay them like $2,000 a month plus retainers to manage their taxes.

Like, you know, manage their taxes. And then also like, usually they'll do bookkeeping and different things like that and then look for ways to save the money on their, on their taxes. So one client could be $24,000 a year or more. So if you imagine that, and you know, if you're running ads for them, let's say you charge them five grand a month, you spend $3,000 a month on ads for them, and then you're building them automations, you know, they're spending like eight grand. But if they get two or three clients, they've more than paid for your services. Okay, Next thing is wealth management. So this is gonna be like financial advisors or people that help people in retirement.

The cool thing about this is they earn 1% of the assets that they manage. So for example, let's say a, a financial advisory firm is managing a million dollars. They're going to get $10,000 every single year from that client. So this is a business. And then they can also sell different products. Will they get a big lump sum up front? So with these guys, like, because they're just printing cash, they make so much money and they're so far stuck in the past. Like a lot of the way that these guys gets clock get clients is like through mailers and seminars. That's what you'll find with a lot of these different businesses that are just so far removed from, from what we do nowadays. Another one is plastic surgeons. Don't really need to say too much here. These guys, I mean, to get like a nose job is tens of thousands of dollars.

My fiance's mom just got a facelift and it was like 50 grand, right? So as you can imagine, these guys make a lot of money. And then people will continue to come back and get more and more and more procedures done as they age to prevent aging. So if you're able to get them clients and automate and make their business more efficient, they will, they will stay with you forever. Same thing with dentists and orthodontists.

You know, high ticket recurring revenue specialty clinics like fertility, you know, if you're able to help, like a testosterone clinic or a hormone treatment clinic. I mean, those, those businesses just make tons of money. And somebody that's on testosterone or on hormones, like, they're never going to cancel, meaning their client base is more stable so they can pay you as well. Roofing companies, this one's not as much with recurring revenue, but it is extremely high ticket and high margin with roofers, home builders, private schools, tutoring companies, and insurance agencies. All right, so with that being said, now that I've gone through some of these niches, the next question that you need to be answering is, what do you actually sell to these people? Well, I put together a video that breaks down how to start your agency, exactly what to sell, who to sell it to, and how to structure it. So if you want to see what to sell to these businesses and what I believe is the best model for an AI agency, again from someone that's doing $500,000 a month. Just click right here to check out that video and I'll see you there.