The True Size of an AI Niche - Why Saturation is a Myth

hey everyone leam Watley here and today I've got a video walking you through the true size of an AI Niche and why this whole oh AI saturated it's too late or like it's going to be saturated within a few years is complete rubbish um and this is really going to make it clear to you if you're a beginner and you're on the fence and you think you might have been a bit too late for it you see myself and others and people in the community who making a lot of money from the stuff now and

you think you're too late well this is going to completely dispel that uh that belief um because it's just so the true size of these niches is gigantic and this video is really going to paint that clear for you oh by the way if you're new to the channel don't know who I am my name is leam Motley I've been building and selling AI Solutions businesses um through my own agency morning site AI um for the past nearly two years now and I teach other people how to do that as well on this channel and

through my programs and school Community Etc so if you want to make money and build a business in the AI space building AI solutions for businesses is by far the best way that I've found and if you're talking about Building Solutions you often need to Niche down to really start to get the full benefits of the agency model in a more niched form so if you're going to Niche down at some point you should watch this and I highly suggest all if you try to Niche down at some point as I have done with my

agency morning sidei recently so starting off we have this handy little diagram here that I've made to kind of visually represent the size of these niches and even if you get extremely niched down um later in this video you'll see just how large those even tiny niches are and how untapped they are at this point so we have this Global Market for AI solutions to businesses so this is the entire world all of the businesses and the the demand or or the market for AI solutions that can be sold to them so this is any

industry any solution any language as you'll see in a second um but in this case we're going to be taking an example of a AI automation agency that's niched down to webuild AI voice systems for small Dental practices in Germany so that's our our criteria up here right so from this Global Market we're going to Niche down to just the dental industry which is represented by this blue square here now the dental industry may be smaller um in the in the grand scheme of things it's obviously not going to take up what like maybe one

12th of the of the world of the total demand uh and the total Market but for the sake of Simplicity and being able to see it on this graph on this diagram we're going to keep it at the size and so This Global dental industry consists of at least from claude's maths 500,000 or more practices in the USA European Union UK Australia New Zealand and Canada so I couldn't get too granular on like the Zimbabwe dental practice data but um I think this is a by and large a good representation of of 500,000 or maybe

up to a million practices worldwide that you can sell these AI solutions to for Simplicity sake we could say that about a quarter of the demand or or potential for Solutions within that Global dental industry would be for AI voice agents so anything that's managing appointments bookings front of house stuff like you're going to see in a second we could say that about a quarter of the value that could be created or all the money that could be spent within the global dental industry would be in the voice agents space and then even further as

this example that we're using is selling within the German speaking world we are niched down then again from just AI voice agents in the dental industry to AI voice agents in the dental industry in the German language which is just like a whole another level of specialization and that if you think about it I can't with my agency I can't go in and start selling German voice agents I I couldn't tell you if it worked or not because I don't speak German so there's this whole level of specialization that um and localization that all of

you watching this in various different places around the world you have a massive Advantage because you can compete the stuff that we're building with AI is largely language based right so it's voice agents text Bas agents it's automations that are writing content if you don't speak the language you can't build and sell those Solutions so you have this moat where people like myself and these other guys who are targeting the US and and the UK Etc can't go into your localized market and compete because we don't speak your language so this is a a a

massive Advantage for those of you who wanted to be specializing in certain areas and saying hey I'm going to take this instead of trying to go for the USA like many people immediately jump to at some stage sooner or later in the next couple of years Dental practices within your local market in this case the German Market will be adopting these like AI reception Solutions which I'm going to show you an example of in a second but then if we take this one step further and say okay we sell this within the German Market to

dental practices that are less than 10 employees now we have this extremely small Niche and you'll be like oh that's way too small I'm not going to be able to make any money well if you look at the stats there are 33,000 of these small practices um single practices owned by a single owner so they're not like a chain in Germany so there's 33,000 of them keep that number in your mind cuz that's what we're going to be working off for the rest of this video so entire market and if we just keep niching down

to an industry in this case also into a solution category of voice agents and then into the language that we're building them in which is German and then to the size and specific kind of business that we want to sell them to so it's built around and specialized for these smaller Dental practices for a self-managed AI Solution that's that's good for this smaller team and it's not really meant for for the scale of larger um like chains of of dental practices Etc so now you understand that we're looking at if we were these guys selling

these these AI voice systems to dental practices we would have a market of roughly 33,000 people the can take this data and now run some calculations on what it would look like to actually set up a business or an AI automation agency selling these things within the space and the kind of saturation we' see your competition within this very small Market of 33,000 practices right so I've got a bit of a a story here to tell you and this is going to be taking the example of Sarah and Alex two tech savvy entrepreneurs who started

I'm not even going to try to pronounce that but it's basically a idental Solutions translated to German and AI automation Agency for D practices in Germany in January 2024 they watch one of my YouTube videos talking about these voice agents I'm actually filming one shortly so make sure you subscribe for that that's all about voice agents and what's selling successfully in the in the market right now um and they've checked out all the other channels like jannis Brendan Simon and Marx and and they've done their research on AI voice systems and they decide based off

Sarah's background in the dental industry she knows that they can do better call handling and appointment setting and the systems that they have set up are quite clunky so they decided to build an AI receptionist system based off watching some of these guys videos for small Dental practices in Germany because because these agents must speak German properly they are one of the only Specialists for voice AI Solutions in Germany let alone the dental industry as a whole so their initial offer is their AI reception system which is €2,500 up front and a €750 per month

retainer just for management and also usage cost and stuff like that and so we are assuming that the customer churn is 5% per month here and this is all going to make sense in the end and tie back into how how big or small these the niches are why the saturation thing is a bunch of um but the customer churn we call it at 5% per say when they have a customer come on and be paying that retainer you can expect at the end of the month 5% of their customers would be churning and and

saying okay would like to no longer pay that retainer and we go to a different system but these things are very sticky cuz once you set it up for them hey look we've got this working AI receptionist that's answering calls around the clock and booking things automatically in it's extremely sticky because why would they change it why would they go unless they're going to try and like pay another $5,000 to someone else and then like get a lower retainer so they're going to save more money but it's just not worth the effort or the money

so if you're setting these systems up based off the work from from Mark and and these other guys have mentioned here they're telling me that it's very sticky once they've got it set up they are like they're not tuning at all because if it works it works and they don't want to bother with any of the setup with another system so 5% churn long story short and so starting off in January this is like the hypothetical 12 months of this business and how it grows over time we have Sarah and Alex beginning their C email

Outreach booking 10 calls per week and closing 10% of those um so you can see the numbers here I'll let you pause but basically in January they set up their cold email systems and got them dialed in and and generating bookings for them in February they continue to do the cold email while they also expand their development team and tighten their delivery process and also the client Management Systems so they just making steady progress here in March they set up a referral program where they're adding one call per week to the calendar with a 50%

close rate so their past clients are referring them new clients with a quite higher close rate making €25,000 in this month they've got 13 on that retainer offer cuz it's summer churning and the total clients that have' signed is 14 in April she starts working on her LinkedIn knowing that she needs to expand Beyond just cold email she positioned herself as an expert of AI solutions for dental practices in the German Market but sees no immediate results and monthly Revenue here is about €30,000 20 clients signed in total in May s LinkedIn efforts start to

pay off generating five more bookings per week they also launched an AI powered lead generation system as a €3,000 upsell with 30% of new clients opting into that offer and the close rate overall just getting more experience and understanding dialing in the offer making it more attractive getting better at at selling and and improving the sales process has improved the close rate from 10 to 15% which is what you should be able to do over time with your agency if you're selling the same thing you get better at selling it right and you also get

more data from past clients um so then they have the monthly Revenue at 51,000 here with that jump from the uh the upsells and also closing at a high percentage so the LinkedIn starting to produce results in may they have improved the sales process and their close rate overall and they've expanded their offer to increase the lifetime value with this upsell these are all the kind of steps you should be thinking about as you go through building the these kind of offers then in June they just keep doing what they're doing um LinkedIn and called

email and upselling to that 3,000 offer July same thing again just increasing steadily um monthly Revenue up to 62,000 in July with 47 clients signed in total and 41 on retainer in August Alex sets up a partnership with a dental equipment supplier getting them four more bookings per week so they're looking for Partnerships now to diversify their lead sources and they're up to 80,000 for the month of August they've got this partnership kicking in September they just keep going as is October now that they've got that offer really dialed in they're really familiar with it

they they've got the Delivery Systems all all laid out and very systemized so that they can have hand a lot of scale they going to set up a CO calling team adding 20 more bookings per week to the calendar so they've hired a whole team and they're just dialing up every single one of those small Dental practices throughout Germany and that's leading to another 20 bookings per week and this is really where things jump up for them and they start going to 126,000 for the month November they continue to grow these retainers keep stacking and

in December they do €150,000 um and 109 clients still on that €750 per month retainer which is bringing in $82,000 of their of their revenue for the month um and note here that 105 active retainer clients you'll either need some really bulletproof Management Systems um or a really solid product that causes basically no issues or you need to shift to a SAS model that makes it easier to manage cuz managing 100 clients and they want little modifications or they've got a problem with it is is completely unmanageable so this is with the caveat of you

need to have over the past year built up some really solid Management systems or switched to a more stus model and so the whole point of me telling you that big long story is that now if you look at this Market saturation breakdown of we had 33,000 single practices in Germany right so we have these single practices and group practices total we want these single ones cuz we're dealing with our Niche is German Dental practices less than 10 employees so really small businesses and You' think there'd be not not many of them that you could

serve in your market right 33,000 in total and we can assume that 90 90% of these have less than 10 so there might be some of these practices that have more than 10 people but let's say 90% of these have less than 10 people which is our our target market our our ICP so the total potential clients within this Market is 30,000 practices and the the results of Alex and Sierra over the past 12 months is 1,000 bookings so they've taken 1,000 calls they've signed 131 clients in total some of those have turned off so

you've got the 109 clients on retainer at the end paying the €750 per month and then when you do the math it's 3.4% of businesses within this entire Market that they've actually talked to and had a call with and there's 0.43% of them that they've actually signed and have worked with so even when you take this Market of okay let's Niche down to the dental industry okay let's Niche down to only selling AI voice agents and we're just going to help them with this AI receptionist offer and I'm only going to do it in the

German speaking market and I'm only going to do it for small Dental practices that are less than 10 employees you have a market size of 30,000 businesses and even after all this work and they're making €150,000 per month again these numbers are are representative they're not it's not exactly you probably change your offer along the way here if I'm honest like you wouldn't be banging out $2,500 offers in just a small retainer you'd want to try and increase and make have a more valuable offer on the whole so you don't have to deal with as

many clients on an ongoing basis or if you're really smart you would just build it and leave and not bother with the retainer but the retainer in this case is bringing in 82,000 a month so you got you'd have to decide and do the mths yourself on what you want to get out of the business but the point is even with making this amount of money per month they only have 109 out of 30,000 practices in the entire Market on their offer so this whole like this is 12 months of of Rapid progress in this

business and the the amount of people who are serving AI voice agent Solutions within the dental industry in the German speaking Market is probably zero right now and if you if if you're thinking this is like saturated or you've missed a boat or anything there is still so much potential even in these tiny little niches where you've gone down very specific to a small area of business that you want to be working in that's really the whole point of this video is to point out that you can be making a ton of money in a

very small niche and have only worked with a tiny fraction of them or even contacted a tiny fraction of them and still have so much more room to grow so if you've trying to say this is saturated and you've missed a boat or anything then that's a load of rubbish and you're really sabotaging yourself from getting into this stuff and making a lot of money from it in the next few years because you're going to look back in 3 5 years and start to one day you're going to call the dentist and you're going to

talk to them and it'll be an AI receptionist you'll remember this video you say damn I should have got it I could have solved that system to them you have that opportunity right now to get into this start building new systems and be able to sell these and take advantage of this empty they're empty no one's selling the stuff and it's all going to move that way sooner or later so to finish off the video when it comes to niching down there are multiple different ways and angles and attributes to your to your niching or

your ICP that you're trying to Target so you can Niche down by industry say I just do AI solutions for the real estate industry or you can go a little bit further than that of a specific business type or Niche EG real estate agencies versus a real estate agent they're going to have different needs of course then you can Niche down by solution category in this case like we did to AI voice agents say look we're not a specific type of AI voice agent actually I mean in the example we've given they just do AI

receptionist but they do AI voice agents for um for their gime which is the dental industry in this case then you can go by the specific solution type EG we AI cold callers for real estate agencies um and you can nich down by the business location EG like we help um real estate agencies in Florida do this with AI C calling systems and then we have the language which is one of the main things I want to point out to you in this video is that because these are language based Solutions it's it's voice you're

talking on the phone you're chatting way to a chatbot you have such an advantage in your home country to be selling these things because you are going to escape the competition stop trying to always go internationally and and try to sell these to english- speaking businesses you have an advantage by playing the field at home because I can't come and compete with you and there's yes you might get paid less locally but go and find bigger businesses the bigger the business the more value they get out of these systems because the more volume the AI

can handle so go for the bigger businesses over time you have to work up there through the through the smaller ones of course and the last two is niching down by business size like we did in this case of a a 50 person business will have different needs than say a less than 10 like if you got a very small team you need different kind of assistants or AI systems that can help them than a bigger company right it's going to be much different and finally also the Tex STX you could go even further even

more niched in this and figure out what the main types of software that these single practices are are using say there's one type of dental CRM or or appointment booking software that they use and maybe a third of the market is is using that system you can Niche down even further and put like another I didn't even think I could make it this small on figma but we could go even smaller than this and say okay what's a third of the market if there's this Dental CRM that oneir of these small practices are using you

can specialize Your solution even further and say we help the specific type of small dental practice who uses this software with our system we can plug it in super easy and it's probably going to help you manage that scale a lot more I've had having like a hundred of these people on on a retainer so that's the true size of an AI Niche and why this whole saturation thing is a bunch of it is so untapped in this case I'd be willing to put money on it that there is not more than a handful of

dental practices in the German speaking Market that have ai receptionist on them so completely untapped we are still early to this and there's no reason why you guys can't start right now even if you know nothing watch some YouTube videos get started because there is so much money to be made even in the smallest niches like this that it's just stupid if you don't take action on this now and be one of the first people to serve those niches so that's all for the video forget the saturation rubbish we are still so early to this

opportunity if you want to watch another video from me explaining how you can get into and giving you some ideas for starting to sell AI solutions to businesses I'll put one up there one of my favorites but aside from that guys thank you so much for watching and I will see you in the next one