TT#046 - The 3 revenue killers that stop you from niching down...
I’ve worked with hundreds of solopreneurs.
And more often than not, the ‘unlock’ that helps their business take off is to narrow their target market.
But:
It’s easier said than done. And solopreneurs can be reluctant to do it.
Time and again, 3 objections come up. And they sound pretty reasonable.
But.. unlocking the lifestyle of your dreams - whatever that looks like - inevitably requires niching down.
So in this newsletter, I’ll outline the 3 objections that stop solopreneurs narrowing their target market, and share my response.
If you needed a sign to get clear on your target market, this is it 😉
The ‘Limited Opportunity’ Objection
‘If I make my target market as narrow as you’re suggesting, won't I limit my opportunities?’
The Limited Opportunity Objection says:
“Hang on, Ray - don’t I want as many people as possible to come to my website and say ‘woah, that applies to me’?”
We want more clients. And making our target market smaller might feel like a step in the wrong direction.
Aren’t we - in essence - turning away potential clients?
Yes.
And here’s why that is a good thing:
When you try to position your service for everyone, or as wide a market as possible, you end up diluting the message.
Here’s what I mean:
Imagine trying to personalize a message so that it resonates at a deep, personal level to your best friend. How easy would that be? You know his or her preferences, quirks, pet peeves, and triggers.
Now imagine trying to personalize that same message so that it resonates with everyone in an NFL football stadium. Not as easy.
When it comes to marketing, you can go wide or you can go deep. And deep converts dramatically better than the alternative.
The ‘Wrong Market’ Objection
‘Isn’t narrowing my market risky? If I choose the wrong segment, ALL my revenue will be at risk’.
The Wrong Market Objection worries that narrowing our target market is kinda like putting all our eggs in one basket.
If we decide to focus on one small part of the market - and it’s the wrong one - we won’t have anybody to sell to.
But here’s the thing:
You don’t have to marry your audience. You can start with dating it.
Constantly pivoting won’t bring long-term success, but 6 months in, you can always adjust your market if there’s another one that’s more aligned.
And if you’ve selected it sensibly, the market you’ve chosen isn’t likely to be ‘wrong.’
More often than not, it’s that your messaging isn’t dialed in.
This is good news?
The more clearly you’ve defined your target market, the more easily and quickly you can dial in your messaging to resonate.
The ‘Multiple Markets’ Objection
‘Can’t I just specialize in multiple markets and audiences? That way, I get all the benefits of having a narrow target market AND the benefits of having a broad audience’
The Multiple Markets Objection asks why we can’t choose a few target markets to specialize in at the same time.
And, eventually, you can.
But initially, you’re far better off thinking about ‘stacking’ audiences than ‘straddling’ them.
Here’s the difference:
I was one of Uber’s first clients. They specifically targeted upper-income business travelers in San Francisco who wanted a more reliable, easier, convenient way to get a premium Town Car service to the airport.
As they began dominated one market, they’d ‘stack’ a new market onto their business - new cities, new car services, new services entirely.
But here’s the thing.
If you want to ‘stack’ audiences, you have to first select and tackle a SINGLE market really well. It’s what enables you to move down or across markets.
When you’re ‘straddling,’ you’re attacking multiple markets at the same time. That leads to watering down the impact of virtually everything you’re doing.
Who do you build the offer for? Who do you structure your sales pitch for? Who do you write your email newsletter for?
Stacking audiences requires building and executing for a specific avatar. Then strategically adding new markets as you build momentum.
2023 is the year to get clear on your target market.
