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