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In Choosing A Client Niche, Forget Averages

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




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