People want to work with people who "get” them. Positioning yourself as a niche market specialist to solve someone’s selfish need is why they come to you! Be aware of what people really want, and then tailor the perfect solution formula for your target market. People expect to pay more for a service or product that is customized to their individual needs. In other words, people will always pay more for a specialist than a generalist.
This concept is the first secret to niche market profitability and is called the ‘Perceived value of your service,’ which is defined as the value of a service in the mind of the consumer. Their perceived value of the service you offer dramatically affects the price that you can charge. They will pay more for a Broadway show than a local community theatre show, they will pay more to watch professional rather than amateur sports, and they understand that a surgeon makes more money than a family doctor. This value is already programmed into consumers’ minds, so take advantage of the psychology and offer customized solutions for your niche market consumers.
The second secret to niche market profitability is to become a highly visible celebrity specialist in your niche. You may begin by writing an article or blog directed at your niche market—perhaps you create a ‘How to avoid these top-10 mistakes’ report pertaining to your niche—or by conducting monthly seminars for your target market. Being in front of your niche all the time means they can never forget you. Find out where your “perfect fit” customer consumes information: Instagram, Pinterest, Periscope, Facebook, blogs, websites, direct mail, video, or podcasts. Offer them free content that they can easily digest and that fits into their lifestyle. Step out of your comfort zone, and shine! Become the trusted expert on your niche market, and watch in amazement as you grow a tribe of loyal followers.
You will discover that your marketing will become more targeted and less expensive. This is the third secret to highly profitable niche markets: your marketing expenses decrease dramatically. People start coming to you instead of you chasing them. The magic of doing business in a high-interest, low-competition environment is that people actually want to consume what you’re offering. Your conversion rates will be very high, so you’ll waste very little time dealing with clients who fit imperfectly. These three simple secrets to niche market profitability are very simple to follow, if done the right way. This “right way” includes positioning yourself as the trusted resource, so you are coming from a place of contribution, caring, drive, and dedication. This is not the get-rich-quick scheme that your realtor competition is trying to follow. In my book, The McQueenie Method-Own Your Niche, Own Your Market, I focus on targeting a defined market, using your natural strengths, story, and personality, and increasing your knowledge, expertise, and visibility to become the celebrity niche market specialist. In order to build your business around a specific niche, you will first want to look at the specific needs and criteria of that group.
The first step is to ask yourself, “Who do I want to be a hero to?” Then do a ‘SWOT’ analysis, from their point of view. What does their world look like to them? What is keeping them awake at night?
If you understand what their world looks like from their point of view, you can build a system to solve their problems. Don’t pay attention to what your competitors are doing; instead, focus all of your attention on your one perfect customer type. Mentally build an avatar based on their needs and their profile.
Here is the equation: the smaller the niche = the bigger the market = income goes UP = time goes down = effort goes down.
Three Rules for Entering a Niche Market:
- Meet a unique need by providing a unique solution.
- Speak to your prospects’ “hot buttons” by saying the right things.
- Test the market; dip in your toe before diving in
I will talk more about this in my next column.