| I'm all in favor of researching a niche | | | | people who are willing to accept those |
| and using what you find out to | | | | conditions. |
| intelligently select a client niche. | | | | Third, can you cost-effectively find |
| However, if you sell time-intensive | | | | that number of clients in the niche you |
| services or complex, high-priced | | | | are considering? Perhaps only giving it |
| products, research could cause you to | | | | a try can answer this question |
| overlook a perfectly viable niche. A key | | | | definitively, but be sure to examine a |
| point that might come up in your | | | | wide variety of marketing options for |
| research is what the average member of | | | | attracting clients. Are there magazines |
| the niche can afford or would pay. | | | | that reach, let's say, aspiring rock |
| Ignore that average! Here are the | | | | musicians holding down well-paying |
| numbers to think about instead, and why. | | | | corporate jobs? Then advertising and |
| First, how many clients would you have | | | | publicity in those publications can put |
| per year if you were as busy as you | | | | you in front of the right people. Can |
| wanted to be? In some industries, this | | | | other professionals refer to you |
| number is extremely low. A direct-mail | | | | individuals who have more than $2 |
| writer told me that her schedule is | | | | million in assets or serious issues |
| completely full with just six clients | | | | getting over childhood abuse? Are there |
| per year, since she gets repeat business | | | | lists of second-home owners within 30 |
| from each, and each project might take a | | | | miles of you or owners of pre-1990 |
| month or six weeks to complete. If we | | | | Mustangs that you can rent for promoting |
| look at professions where clients tend | | | | yourself as a caretaker or auto |
| to have weekly appointments for 45 | | | | restorer? |
| minutes to an hour, like music | | | | Finally, let me illustrate this |
| instruction or psychotherapy, there | | | | three-step mode of thinking with a niche |
| might be no more than 35-40 clients a | | | | that you might be tempted to dismiss as |
| year when factoring in attrition. | | | | obviously impossible to make a living |
| According to Donald Mitchell, author of | | | | from - artists. Everyone knows the |
| The 2,000 Percent Squared Solution, the | | | | stereotype of the "starving artist." |
| typical business-to-business company has | | | | Well, that's a stereotype, not a |
| only 30 clients. And according to | | | | universal truth. |
| Registered Rep, a magazine for | | | | Recently I read an article documenting |
| investment professionals, wealth | | | | that a surprising number of Baby Boomers |
| managers tend to have a full practice | | | | who have paid their dues in high-paying |
| with 70 or so clients. Until you | | | | corporate jobs are taking early |
| actually figure this out, you probably | | | | retirement to finally fulfill their |
| imagine the number of clients you need | | | | artistic leanings. These people have |
| as way higher than is warranted. | | | | plenty of money to spend on artistic |
| Second, determine whether or not there | | | | coaches, mentors, workshops, etc. and |
| are enough people or companies in the | | | | the mindset to spend it. The biggest |
| niche you're thinking of who are willing | | | | issue in targeting them as a niche would |
| to pay what you want to charge. And at | | | | therefore be whether or not you could |
| this point you can see why averages are | | | | cost-effectively find or attract 20-30 |
| irrelevant. If the direct-mail writer | | | | clients who fall into this category. |
| needs just six clients a year, then | | | | It remains true that most artists do not |
| whether or not the average company in | | | | have much money to spend on their |
| the field of, for instance, organic | | | | career. But it is also true that a |
| supplements is willing to pay her rates | | | | number of them do. So long as you can |
| doesn't matter. She needs only six. | | | | identify and attract the ones who do, |
| Likewise, the psychotherapist who wants | | | | you can turn that into a viable niche. |
| to make $150 an hour without accepting | | | | Averages, smaverages! |
| insurance needs to attract just 35 | | | | |