#55 · How to Pick a Niche for your AI Automation Agency in 2025

youtube ↗Niches

How do you choose a niche?

I understand wanting to work in a niche you have experience in, but I’ve succeeded in many niches where I had none. I look for high‑ROI opportunities and dive in using whatever means necessary. Following your heart doesn’t always lead to the highest ROI, so my strategy is simple: I test many niches based on intuition—knowing I’ll often be wrong—then I double down on the one that works. This might involve a month‑long test of sending cold emails with different offers to different groups, or simply getting as many deals as possible on a platform like Upwork to see which niche pays best. Once I see a winning niche, I focus on it.

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Related answers

youtube ↗Niches

I'm building an automation business in London, testing UK distributors and wholesalers as my niche with a speed-to-lead system that generates automated quotes from inbound email. I have Amazon experience in process improvement, analytics, and automation, and I'm ramping up cold email. Should I lean into this niche and offer based on my background, or is there a stronger service or market I should target?

You don't know what you don't know, so don't rely solely on your past experience to pick a niche. Instead, test multiple options in the market and let customers decide. Run several niches simultaneously, measure positive reply rates, booking rates, and revenue over time, then double down on the best performer. Treat this like a science experiment: avoid putting all your eggs in one basket too early; instead, try several, identify the easiest to succeed with, and then go all in.

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youtube ↗Niches

How can I confidently pick a niche for my agency?

Don’t try to fully master a niche before you start—use outreach and sales calls to learn its internal processes, pain points, and sales cycle. You can gather only high‑level insights from ChatGPT or YouTube, but real understanding comes from actual conversations. Leverage your own background as social proof: if you’ve worked in B2B LED manufacturing, you can confidently offer AI‑powered lead‑generation, cold‑email, and automation services to similar product‑based businesses, citing specific results you’ve delivered. This approach should be one of the three niches you pursue.

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youtube ↗Niches

Can you help me select a niche? I think the niches you recommend are saturated because everyone uses the same lead‑finding method.

The niches from my videos aren't necessarily saturated; even if many people use the same lead‑finding method, there are many variants of the niche you can try. You don’t have to target the exact same recruiting agency I mention—you could aim for executive recruiting agencies, or a specific sub‑vertical of SaaS companies instead of a broad SaaS target. If you feel stuck, it’s likely just fear of failure or of getting started. My advice is to look inward: ask why you’re hesitating, then pre‑commit to testing three niches for 14 days; if it works, keep going, otherwise move on. There are plenty of niches out there, and new ones appear daily. Check out my niche‑discovery exercise in Maker School (also offered as a lead magnet) to help you find something that works.

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