If you're starting an AI services business with $0 and no portfolio, don't pick a niche until you read this
most people picking a niche just go with whatever their guru told them or whatever looked cool on twitter. wrong approach entirely
here's how I actually rank a niche before touching it:
the 4 filters that matter:
- seasonality - does revenue die for 3 months a year
- recession resilience - do people still buy this when money's tight
- accessibility - can you actually get the owner on the phone
- ticket size - is there enough margin to sustain a retainer
run every niche through this before you pitch a single person
what I'd actually avoid (despite what gurus push):
- real estate - top 5% of agents take 80% of the commission, everyone else avoids retainers because it eats their cut
- roofers - every roofer in the US has been cold-called 500+ times since 2022, the market's burned out
- personal trainers / social media agencies - low ticket, no budget, or they'll just reverse-engineer what you sell them and cut you out
what I'd actually start with:
- HVAC - recession-proof, seasonal peaks in BOTH summer and winter, $5K-15K installs, this is the one I'd pick with zero experience and zero portfolio
- landscaping - recurring revenue built in, easy to find on the street, easy to cold call
- electricians - miss constant calls, recession-proof, just harder to find ones with real volume
the pricing formula that removes all the guesswork:
cost per lead ÷ response rate = what they're already paying per appointment
then undercut that by 20-30% for reactivated leads, 30-50% for fresh ones
this way you're never guessing, you're pricing off numbers they already have
the part people skip: close with a proof-of-concept demo and a full refund if it doesn't convert. zero risk for them = no reason to say no
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