The Problem with Niches

Mary called me and cried, "I need to find my niche!"

She had been told over and over again that she needed to find a narrow niche for her Life Coaching business so that she could be more noticeable among the pack of Life Coaches marketing to business professionals and managers.

But she had also been told that using words like "meaning" and "purpose" to describe what clients were looking for was over-used; all life coaches were using those terms and they had lost their power when it came to writing marketing text.

Here is my reply to Mary in regards to identifying her niche and writing her marketing text towards that niche:

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Remember, WITHIN the coaching industry, words like "soul," "meaning," and "fulfillment" are used constantly and we're used to them and don't think they're special.

But, OUTSIDE the coaching industry, people are just awakening to these words. They love these words. And people ARE looking for meaning and fulfillment in their lives. (Just because you are used to seeing those words everyday doesn't automatically make them powerless or boring.)

If you want to know if people are interested in these words, go to the Google Keyword Tool or the WordTracker Keyword tool and type them in. You'll see for yourself how popular they really are.

As a life coach, saying you don't want to market yourself using the words "fulfillment" and "meaning," is like saying you’re a dentist, but you don't want to have the niche of "filling cavities" because every dentist does that.

Sometimes your niche isn't just what topics you talk about with clients; sometimes your niche is the combination of what topics you talk about AND the people/groups you talk to.

The whole purpose of choosing a niche is so you can find a central place that potential clients congregate -- so that you can get in front of them to introduce your business via your marketing techniques. You can find "professionals" or "mid-level managers" or "upper level executives" in specific industry associations, magazines, websites, newspapers, peer groups, etc.

But say you want your niche to be "Hyper Ambitious Stress Coaching." There is no industry association for Hyper Ambitious people…how will you locate them?

Do you really want to be known as the "Hyper Ambitious Stress Coach?" (Do people really type in "hyper ambitious stress coach" into Google when they're looking for help?) It implies that you work with only people who are hyper-ambitious, and only stressed ones at that. There are plenty of "non-hyper-ambitious" professionals who are want to achieve great things and be successful (and are stressed), they just don't go overboard into "hyper" behaviors that create unbalance.

One caveat: being the "Hyper Ambitious Stress Coach" is great for PR. The news media loves a specialist. But clients may not be looking for a Hyper Ambitious Stress Coach; they're just looking for help with stress, over-scheduling, high demands, etc. So unless you're going to get all your prospective clients via news media interviews, you might want to re-think that narrow niche.

Choosing a niche is not an exercise in finding a place where you have no competition. It's okay if you have competition in your niche: it shows there's a thriving market there.

If you're simply looking to differentiate yourself from your competition, then that's not done by choosing a niche market. Differentiation and Niche are two separate marketing steps. You can differentiate yourself based on

• your personality
• your processes
• your techniques
• your background
• your experience
• your skill set
• your availability
• your fees
• your style

Differentiation asks, "Why would they buy from ME versus my competition?"

Niche asks, "Where will I find THEM so I can introduce myself?"

This entry in Wikipedia may help:

http://en.wikipedia.org/wiki/Niche_market

I'm not saying, "Don't go in that niche direction." What I am saying is this: if you define your niche too narrowly, you'll have a hard time getting in front of them with your marketing techniques. And along the way, you might not be following your own soul purpose.

US Postage Stamp Increase

US postage and stamp prices will increase as of May 12. Many self-employed people are feeling the pinch, especially those who use the mail for direct-marketing purposes or to send products to customers.

Here are some tips for dealing with the US postage and stamp increase:

1. Buy the "Forever" Stamp. As the USPS says, "The stamp will be good for mailing one-ounce First-Class letters anytime in the future — regardless of price changes." So if you buy it before May 12, it will cost you $0.41, and you will be able to use it to mail letters forever. If you have a hard time getting them at your local post office, purchase them online at www.usps.com

2. Consider converting your books and audio programs to downloadable e-products (PDF files for ebooks, MP3 files for audio programs). With the US postage and stamp price increase, your shipping costs will increase also, and you'll have to decide whether you'll pass those shipping costs on to your customers. (If you use UPS or FedEx you'll see their rates increase as well, as gasoline prices soar in the USA.) With downloadable products, you save on shipping, you save on production costs, you save on fulfillment costs, and you give your customers instant gratification.

3. Ask the clerk at the post office counter for other options when shipping. Sometimes Media Mail will get to your destination in approximately the same time (depends on the destination) and for lots less money.

4. Use the Priority Mail Flat Rate boxes for shipping items. These all-you-can-fit-in-it boxes are a fixed cost, and may be less expensive than sending something weighed Priority Mail.

5. Pay your bills online instead of sending checks.

6. Send correspondence to customers, including agreements and contracts, via fax or email. For instance, I send coaching and consulting contracts to clients in PDF format via email, they sign it, and fax it back to me. No postage on either side of the equation.

While this US postage stamp increase won't affect everyone, for those who use the mails regularly, it will be a growing business expense. Best to think ahead, because the US Postal Service says that prices will probably increase each year from now on.

Click here for further information on all the US postage and stamp increases schedule for May 12.

U.S. Stamp Costs to Increase on May 12

Sorry to rain on your parade, but have you heard the news?

The United States Postal Service announced that the cost of a first class stamp will increase to .42 on May 12. No, it's not deja vu. You are correct in your remembering that postage rates were just increased in May of 2007. Inside sources tell us that we can expect to see postage rate increases every year.

The increase includes not just first class stamps, but postcards and packages as well.

This affects your e-commerce and marketing in a big way:

• Now is the time to re-think your own information product pricing and delivery structure. Ebooks and downloadable audio files might be the way to go to reduce your costs. Yes, there are always security and theft concerns with selling e-products, but you have to weight those concerns against the rising cost of producing and shipping physical products.


• E-commerce shoppers love "free shipping." But what will that cost you in the future? Will you have to raise the price of your products to offset the new shipping costs?


• It may also be time to re-think your physical mailing campaigns versus email campaigns.

For those who think, "I'll just use FedEx or UPS," remember that those costs will continue to rise as well.

Open Your Mouth and Build Your Business Next Week

A few weeks ago, we had a special guest on our monthly teleclass, Darren LaCroix. Darren is the Toastmaster's World Champion of Public Speaking, competing against 25,000 others for that title.

If face to face is the best way to persuade people why are you only speaking to one face at a time? If your goods and services are so good, and people need them, why aren't you tapping into THE BEST for of marketing in the world...speaking.

It is a revenue stream that funnels leads into your business like a fire hose!

Darren did not start out that way though. He started his business doing a speech in front 12 people and made $99 in his first 30 minute talk. Now he earns hundreds of thousands of dollars and continues to feed his business from in front of an audience. Give him 60 minutes and he'll change the way you look at marketing for small businesses forever!

The audio recording of that teleclass is now available:

http://www.passionforbusiness.com/teleclass/darren-lacroix.htm

Marketing Widsom for 2007

Once again, Marketing Sherpa has released it's annual "Marketing Wisdom" guide, and you can get it for free here:

http://wisdom.marketingsherpa.com/wisdom.html

The Myth of Written Messages

Wandering down the street in New York City early one morning, I noticed a group of people standing in front of the doors to Macy's department store. Since it was 9:00 a.m., I assumed they were waiting for the store to open.

But as I walked by I noticed a sign in every door that clearly said: Store Hours 10AM – 9PM. So why were they standing there an hour before the store opened? Was some sort of special event going on?

As I walked closer to the huddled group, one of the women motioned to the Macy's security guard and asked, "What time does the store open?"

I am not kidding. She actually asked that, even though she was just six feet away from the Store Hours sign. She had been standing and staring at the door for at least three minutes. The store hours sign is in every door at eye-level. Yet she still preferred to ask another person to verify the truth of the sign.

What does this mean to the small business owner?

• Just because you put something in a conspicuous place doesn't mean they'll see it.
• Just because you write something in your marketing brochure doesn't mean people will read it.
• Just because you have Frequently Asked Questions on your website doesn't mean people will read it, or believe that it applies to them.
• Just because you write about the benefits of your product or service doesn't mean people will never have a question about whether those benefits apply in their particular situation.

We work so hard to craft good written messages, but for many people, the written message is only half of the picture. So what are creative solutions? Use graphics and images to also portray the message. Use audio so they can hear you as well as see you. Repeat the message often and be prepared to answer questions in a gracious and courteous manner...even if you've answered those same questions a thousand times before.

The security guard at Macy's was a gentleman and a customer service expert. He said in a genuinely pleasant and smiling manner, "Oh, yes, ma'am, the store opens at 10:00 a.m. and I hope you'll have a wonderful shopping experience here at Macy's."

Smart cookie.

What Is "Cream of Tartar??"

I was in the grocery store the other day, standing near the customer service counter. A woman in her late 30s came up to the counter and asked, "Where can I find Cream of Tartar? My son needs it for a science project."

The customer service person (who was in her early 20s) looked lost. She didn't know what Cream of Tartar was either. I piped up and told her it was in the baking aisle, and that it was a white powder in a bottle.

Cream of Tartar, for those who are curious, is used for baking. It's been around for nearly 200 years (or possibly more). Baking powder is made up of baking soda plus cream of tartar. I can remember my grandmother and mother using it, and every Christmas I dutifully buy a bottle of it to bake Christmas cookies.

So why didn't this woman know what it was? And why didn't the grocery store employee know what it was? Because, according to an article I read recently, this current generation is the first generation of people who don't know how to cook or bake. They use pre-packaged foods and microwave them (or order out). Their mothers and fathers didn't cook, so they never learned how.

Lesson For The Business Owner: Just because you sell something doesn't mean that people:

• Know what it is
• Know what it's used for
• Know where to find it
• Know how to use it in their daily life

The key here isn't to bash the generation of people who don't know how to cook. It's to understand that you, as the small business owner, have to pay attention to your customers' needs, and educate them if necessary.

The moral of the story is:

1. Know what your customers need (instead of guessing)
2. Educate them on your products and services so they undertand why and how they can use them.
3. If they aren't going to use your products in the originally-intended fashion, figure out other creative uses for them (like a science project) or dump the services and products and find new ones that fulfill a need

And next time you go into the baking aisle, take a look around. It just might be a whole new world for you and a strong reminder of generational changes affecting a whole industry!

The Tiny Shoes Story (And Why You Need To Know It)

I heard a good metaphor from Fred Gleeck that I want to share with you. There is a clear distinction between using the "info guru" marketing technique and having little shoes shaken out of your head. Read on:

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Many years ago I used to tell a story when I did consulting seminars. To illustrate an important point, I'd like to share it with you.

Let's assume that for the last 20 years you've bought your shoes at Thom Mccann. Let's say that tomorrow you go into one of their retail stores, pick out a couple of pairs of shoes and bring them up to the cashier. You place them on the counter and when the clerk looks up at you, you say:

"Since I've been buying shoes here at Thom Mccann for the last 20 years I think I deserve these two pairs of shoes for FREE today . . . what do you think?"

If this were a New York City store the cashier would look at you and say: "You can put your shoes rightoverhere!"

No dice!

When you are an expert in your field, people will try and "extract" information from you for free. When someone contacts you by email, over the phone, or when they meet you in person, people will make their best effort to get FREE STUFF from you.

Inside your head there are racks with lots of tiny little shoes - your inventory.

Just like Thom Mccann, you sell something. You sell your knowledge and expertise. That's your inventory. Giving away your inventory on a regular basis will land you in bankruptcy court. It may be prudent to occasionally give away a pair of shoes in hopes of getting a large order. But you must be VERY careful when and how often you choose to do that.

So WHEN this happens to you I want to imagine that the person who tries to do it to you has grabbed you by the lapels and is shaking you. While they are shaking you, they have their hands open under your ears as they wait for the tiny shoes (your inventory) to fall out of your ears and into their hands.

They are looking to STEAL your inventory!

Don't let them do it.

If your knowledge and expertise is what you sell, don't let people steal your inventory. It's how you make your living. Instead, answer people very directly when you get this kind of routine.

Tell people that you know what they're doing. Bust them. Say something like: "I would love to give you the answers to some of those questions and will be happy to do so once you are a paying client . . . . how would you like to pay for my services? Would a check work or would Paypal be better for you?"

Stop giving your services away for free.

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Fred Gleeck is an expert in the field of Information Marketing and Seminar Marketing. He's the author of 10+ books and is an accomplished coach and consultant. Fred is known as the "King of Content" and "The Product Guru"; to receive his regular INSIGHTS via email, send a blank email to tips@seminarexpert.com; http://www.fredgleeck.com/; www.TheProductGuru.com

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