---
id: "concept-4-market-criteria"
type: "concept"
source_timestamps: ["00:03:15", "00:03:54"]
tags: ["market-research", "b2b", "niche-selection"]
related: ["action-day-1-market-selection", "entity-product-claude", "framework-4-market-criteria"]
definition: "A four-pillar framework for validating a B2B niche: Proof of Concept, TAM > 10k, High Ticket ($500+), and a Growing Market."
---
# The 4 Market Selection Criteria

## Definition
A four-pillar framework for validating a B2B niche: Proof of Concept, TAM > 10k, High Ticket ($500+), and a Growing Market.

## Body
Not all markets are equal; some print money while others waste time. A viable market for an AI agency must meet four non-negotiable criteria:

1. **Proof of Concept** — Other agencies must already be making money in this space. Avoid being a pioneer; pioneers make the most mistakes.
2. **Total Addressable Market (TAM)** — There must be greater than **10,000** potential prospects/businesses in the market.
3. **High Ticket** — The businesses must sell a service worth at least **$500 per transaction**, or have high recurring revenue, ensuring they have the margins to pay an agency.
4. **Growing Market** — The industry must be expanding, not declining or stagnant.

## Example Markets
Med Spas, HVAC, Dental Offices, fitness franchises (the niche behind [[entity-org-gymmembersnow]]).

## How It's Executed
See [[action-day-1-market-selection]] for the prompt sequence used with [[entity-product-claude]] to validate a niche, and [[framework-4-market-criteria]] for the formal checklist.

## Expert Nuance
The four criteria mirror **standard niche selection wisdom** found in Lean Startup, Jobs-to-Be-Done, and SaaS playbooks. The specific thresholds (TAM > 10k, ticket ≥ $500) are heuristic, not canon — they are reasonable starting filters but should be adjusted based on agency capacity, retainer level, and geographic scope.