I am a man of many passions, but I know that the key to financial success is to stick to one niche until it is profitable. I would love to sell kayaks or paddleboards. In fact, I would love anything that brought more water toys into my life. That doesn't mean it's the right business move. Passion is just one element of success.
Geometric Growth when you Stick to One Niche
When you have a single product in a space, every single sale is a brand new customer. You have to find and acquire new customers continuously, or the machine dies. When you have multiple products in the same space, each client goes up in value. The customer that was worth two dollars is worth three, then six and then ten. Your business can skyrocket as you develop powerful relationships with long term customers.
Avoid dead niches
It's possible to end up in a dead niche. Anytime you have to create or educate your market, you have to work ten times harder for every penny. The way to avoid dead niches is with proper research in advance. Today I was looking at the Tinnitus niche on Amazon. There are many books on this topic, and most of them have bad reviews. If I can create a solid product with modern science, I can beat all of them.
Should I tackle this niche? A little more research showed me that the best book on this topic is making about $5 a week. Do you think I want to invest weeks of work for a possible payoff that small? I would be working for pennies an hour. Research in advance avoids dead niches.
Most of the time we give up too soon because we think a niche is dead or too crowded, but we're wrong. If you are unsure, email me.
The Business Pyramid
Your full business should be shaped like a pyramid. The large bottom has your free products, like podcasts and blog posts. As people move further up the pyramid, they get more access to you, and the products become more expensive. The coaching student who buys your thousand dollar course will get more attention than the one who bought your ten-dollar one.
Jack of all Trades
When you diversify too soon, you become good at many things. But you will be great at nothing. It's far better to completely dominate one space than to be at the bottom of a dozen. Do not try and diversify before it's time.
- We give up niches and change ideas too quickly
- Most niches take more time to grow
- You will make a lot more money controlling one niche
Send in your questions to podcast [at] servenomaster [dot] com