Yes, you read the title correct. You can actually make MORE money by marketing to fewer people. This is the premise behind narrowing your focus or niching.
Think about pain medication. Huge market. If you have a headache, are you going to buy the general pain medicine or the pain medicine specifically for headaches? The outside package for both OTCs is different, one niches and the other is a generalist trying to cover a broad market, and the actual products are identical.
Research shows marketing as a headache medicine produces tons more sales.
Humans like to be specific. We like to buy things that address our specific needs, not general “fix everything” type of approaches.
Just like fitness and exercise can be narrowed to fitness and exercise for women. You can narrow this further to fitness and exercise for women over the age of forty, and now you have a product that is “Fit Over Forty“. You will have more sales, thus more profit with this narrow focus than just marketing as a fitness and exercise expert.
There are several ways to define a niche. But your first step needs to come from within. Who do you want to spend your time working with? What kinds of people do you enjoy helping? What kinds of people do you care deeply about and want to help grow and prosper?
Remember, you’ll be building your business around your niche, so you don’t want to build it around a niche you don’t like. These next four questions to ask are key for assuring your niche is profitable – you can make a living.
|1. Does your niche group have a strong emotionally compelling problem or issue that you can help with?|
|2. Is your niche group looking for a solution to their problem – seeking help? It is much tougher to market a service or product for a problem the target market does not even know they need.|
|3. Will the help you provide either make your niche group feel much better or solve a big problem for them? I like to say you want your help to give them better sleep at night.|
|4. Lastly, is the niche group willing to pay for the benefits they will receive because they see the value to their life, business and/or happiness? What you are digging at here is whether the niche group ranks the solution to their problem high enough to pay for help.|
These questions are aiming to prevent you from setting up your business around a need a market is not seeking a solution for nor is willing to pay for These are tough challenges to overcome even with an outstanding brand and clever marketing campaign.
What this means is it is going to be super challenging to find a product or service to offer for the niche group women 30 – 40 years old that are successful, happy, have little stress and are practicing preventative care that they will pay for.
First, she doesn’t have an emotionally compelling problem. She feels good now. Second, there is no big difficulty to solve in order for her to feel the immediate benefits, even if she might feel a sense of peace knowing she was preventing problems.
Lastly, she might pay for this kind of preventative help as long as she had the extra money because she knows it is a good idea. However, it will likely be a lower priority which will take more effort on your part to prompt her to action.
Tweak to a Profitable Niche
With a little tweaking you could niche successfully to 30-40 year old women who get chronic debilitating headaches. The headaches zap her energy, wear her out, she is unable to be in a good mood around her children, she feels grumpy and isn’t enjoying life. She now has an emotionally compelling problem you can help with.
She wants to feel good, have the pain go away and have more energy and focus for her kids.
She is definitely willing to pay for this because she wants relief and feels desperate. Your help will change her life for the better.
Now you have a niche that allows you to work with your ideal client and make a living from helping them.
How a Niche Expands Your Reach
The hardest part of niching for business owners to understand is that by narrowing and solving your problem for your target market – over the top happy clients, you will begin to expand your reach outside of your narrow niche without having to market that broad.
So lets say you have seen 10 ideal clients and resolved their headaches and brought peace back into their life through a meditation focus. Now, your estatic clients will bring in their husband or their kids or their mom or friend because she knows you, likes you and feels a connection with you. Her enthusiastic recommendation for you attracts others to go to you for their problems, even non-headache problems.
Now your niche business is growing, even outside your niche. The key is to stay focused on your niche as the ‘headache healer.’ This narrow niching brings in more business in the long term. With this niche you solve an emotionally compelling problem for a narrow group of people that are willing to pay to gain the positive result you will bring.
Your approach (meditation focus in this example) while solving the problem and your achievement of the desired result can broaden your reach beyond your niche without having to market more.
Entrepreneurs that go too broad (are generalists) struggle with their marketing as they feel they need to include 5 or more different problems they solve in each of their marketing pieces. The trouble with this is none of their marketing pieces compel their ideal target market to act, to buy – in branding we say this is a weak marketing piece.
To build a successful business, you must find a way to compel people to buy. Lack of a narrow focus is a top reason businesses struggle to inspire their market to act, to buy.