Niche markets Archives - The Sales Evangelist

Category Archives for Niche markets

Aaron Ross, The Sales Evangelist, Entrepreneur

TSE 1204: “Impossible to Inevitable”

Aaron Ross, The Sales Evangelist, Entrepreneur

How can salespeople turn the impossible to inevitable

Aaron Ross is the author of the book Predictable Revenue and a proud father to nine children. The book Predictable Revenue is called the sales bible of Silicon Valley. It changed how the fastest-growing sales teams are designed. The book talked about outbound prospecting which can be a very predictable way to drive appointments and if you have predictable appointments, you can create predictable revenue. It also talks about sales specialization instead of letting the sales reps do the prospecting. Managers must break the sales team into specialized groups to assess where they excel. 

Impossible to inevitable  

His new book called From the Impossible to Inevitable is the growth bible. It’s more for C-levels: the managers, executives, and the leaders who understand the few key reasons why a company gets stuck and won’t grow. The book answers three questions:

  • Why aren’t you growing as fast as you can?
  • How can you grow faster?
  • How do you keep it up?

This book touches on sales models and expands to lead generation. From Impossible to Inevitable will teach you the ways of the fastest-growing companies in the world such as SalesForce and Twilio. The first section of the book is called Nail a Niche as it addresses the hard truth that most companies are not ready to grow and that’s the reason why they don’t grow as much as they want. 

You can’t paddle downstream if you’re not even in the stream. 

Nailing the niche

When beginning a business, there’s the tendency of selling everything to everyone. But that doesn’t work. What it does to you is that you either have no customer or you have a bunch of customers who are a little bit of this and a little bit of that. An entrepreneur may sit back and ask which of the customers are easiest to close, or who is the audience that really needs me? It is important to define who needs you. 

Aaron was part of Salesforce, where he built an internal sales program. He left the team in 2006 and did what he wanted to do, like going into adventures and other things. Aaron also worked in a venture firm, then on a thing called Unique Genius, then on CEO Flow. 

He needed to focus on a niche and figure out where his expertise lies so that he could deliver the most value for his customers. He then thought of outbound prospecting. I wasn’t the general sales consulting.

For us salespeople, this can take a lot of testing, talking, and experimentation with companies to get the right package and the right pricing programs before you nail your niche and start to grow faster. Sometimes it can take a long time because we have all these unrealistic expectations on how fast it should happen. 

Do it as Twilio does it

Twilio is a platform company that provides a bunch of technologies. Twilio is used by many companies that build software or iPhone apps to power their message alerts and phone calls. For example, Uber uses Twilio to make an Uber phone call and text because it’s difficult and time-consuming to build it themselves. 

Simply put, Twilio is a platform that companies can use to do many things. The challenge when you are marketing something like Twilio is that it’s difficult to pinpoint the exact help it can offer to a company or a client. 

A salesperson must paint a specific picture for people to get it. Twilio researched to get into the minds of their customers, to understand and build empathy with their customers. 

The common corporate value which is to walk in the shoes of your customer is something that Twilio really lives by. The company put much effort into walking in their customers’ shoes to know what they want and what they are looking for. 

Salespeople need to remember this value at all times, whether you’re writing an email or making a call. You need to know what they need to get your message across. Another secret of Twilio’s success is to let all their employees have a taste of what it’s like being the customer. 

Specific targeting

Turning the impossible to inevitable is also a result of specific targeting. You need to be more specific in choosing your audience. It’s important to talk to fewer people that are relevant to your products or services. 

Having fewer people to talk to doesn’t decrease your number of opportunities. Your goal is to become the big fish in the small pond and specific targeting is the perfect way to do that. It’s harder to change your products and services but you can do the easier part: you change your targeting instead. 

Types of leads

Lead generation is the main driver for your growing business. There are three kinds of lead generation: seeds, nets, and spears. The seeds are relationship-driven leads, these include referrals, word of mouth, and friends/families. Since these are relationship-based leads, they are faster to close and with a higher rate. The downside is that it’s more difficult to generate. Word of mouth is hard to grow. 

The second type is the nets. These are marketing. You are casting a wide net which means you’re broadcasting one too many. These leads include a podcast, billboards, or online marketing. You get more leads in terms of quantity than in quality. 

The last type is spears which are prospecting. It’s when you have typically a targeted list. It’s smaller in number but you get better opportunities out of it. 

Businesses almost always start with the word of mouth but as you start to grow, you will want to venture into content marketing and prospecting. As a company, you need to know the kind of leads that bring in clients. Figure where you excel and put more effort into that first before you move on into other types of leads. 

Pick the one that’s right for you at first and do more of it. Do not do all the three leads at once unless you’re a huge company with millions of funding. It might take years for you to figure out what works best, it might take years for your sales design team to come up with a plan that works, but it’s all worth it in the end. 

One section in the book Impossible to Inevitable is a lesson from Mark Roberge, the CRO of HubSpot. He has hired hundreds of people and the number one thing they look for when hiring is coachability. It’s an individual’s ability and desire to learn and their ability to connect, change, and adapt. 

Companies who are expanding and hiring people should look at the coachability of a person. Aside from that, as a company, you also need to know the kind of roles you need. 

Small steps

If you are a startup business, start with the basics. The CEO starts selling, then he hires a junior person to do prospecting and appointment setting. After a few months, you can promote that person to closing or you hire a closer. You look at your company and you see that there are now two people selling, the CEO and the newly hired close. You also have the junior person to do the lead generation. 

Think of smaller steps instead of going too quickly and hiring the wrong individuals in the process. 

The social media is always surrounded by stories of fast success but the reality in sales and in business is that it takes years before you get to the top. 

Everyone is struggling especially entrepreneurs because it’s your job to struggle and solve problems. So the next time you are discouraged, just remember that many others are in the same boat. #Entrepreneur

“Impossible to Inevitable” episode resources

Connect with Aaron Ross on LinkedIn and check out his website Predictable Revenue. 

You can also reach out to Donald for your sales concerns and interesting stories via LinkedIn, Instagram, Twitter, and Facebook

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Donald Kelly, Ryan Levesque , ASK Method, Market Sharem

TSE 1118: 5 Things to Look For When Choosing Your Market

Donald Kelly, Ryan Levesque , ASK Method, Market Sharem

In order to succeed in business long-term, choose a market with room to grow, and consider these 5 things to look for when choosing your market.

Ryan Levesque recently landed on Inc.’s list of 500 fastest growing companies, and his company just passed the $10 million mark for annual revenue. He admits that he has made a lot of mistakes along the way and learned a lot as well. 

Finding a niche

Ryan said many business owners and entrepreneurs make the common mistake of following conventional wisdom in the early days of the venture. They focus on what they will sell or create rather than focusing on who they will serve. Who is your market? Who is your niche?

He has engaged in more than 23 niche markets, from making jewelry out of Scrabble tiles to weight loss and satellite television. Through the process, he has learned the importance of focusing on people rather than things. He points to choosing the right market as the most important factor of all.

You can be the most charismatic salesperson with the best closer, but if you have chosen a bad market, none of that will matter.

Wrong product and people

I’ve personally made the mistake of trying to sell the wrong product to the wrong people. I discovered a product that I liked and I thought other people would like it, too. But it didn’t make money because it wasn’t a good fit. There wasn’t a market for it.

Ryan outlines the indicators you should look for in his book, Choose. He said though, that writing a book invites communication from two different camps: those who love what they read and those who claim it didn’t work. He said it leaves you wondering whether you gave bad information.

Niche markets

In his first book, Ask, Ryan revealed the methodology he used to successfully enter niche markets. They figured out how to warm up prospects and how to determine what people want. It includes a specific set of questions designed to help you understand your audience at a deep emotional level so you can better sell and serve.

In an online environment, you ask questions on your website so you can funnel people into different “buckets” based on their situations.

Ryan focused on uncovering commonalities. For example, what did the people who didn’t succeed have in common? What were they doing wrong? He discovered that he didn’t teach people how he chose the 23 markets he engaged with. Of the millions of niche markets a business could engage with, what did these 23 have in common?

He engaged in what he called the biggest research project of his life. He sought to figure out why the 23 markets had succeeded where others had not. Then he looked at his most successful clients and tried to figure out what separates the successful ones from the unsuccessful ones. He uncovered seven factors that will make or break your business’ success.

The seven factors that Ryan uncovered are universal, foundational pieces that will help you find green markets, or those markets that are a “go” versus yellow which aren’t quite ready and red, which you should stay away from.

Evergreen markets

Consider the following study in contrasts on the topic of evergreen markets, which are relevant now and will still be relevant 20 years from now.

Ryan engaged in the Scrabble tile jewelry market about the time Etsy was coming online. Jewelry combining Scrabble tiles and origami paper was extremely popular at the same time he and his family were living in Asia.

They discovered a woman who was teaching people how to make the jewelry on Etsy and making about $10,000 a month selling the tutorials. There was no overhead, and her homemade version of a tutorial was selling like crazy.

Ryan and his wife decided to make a go of it, so she learned to make the jewelry while he worked on selling it. They built a better mousetrap, and before they knew it they were picking up steam. Before they knew it they were making $10,000 a month.

The ending wasn’t a happy one. The jewelry was completely a fad so sales dropped off almost overnight. Ryan had quit his job and his wife was in grad school so she wasn’t making any money. Avoid fad markets as you’re choosing your niche.

Ryan then engaged in the oldest hobby in America: gardening. He researched niches within the gardening market and he discovered orchid care. He started a business teaching people how to care for orchids and they took the business from zero to $25,000 a month. The tiny little niche business still pays their mortgage and living expenses.

Consider the example of fidget spinners and bitcoin as a study in evergreen markets.

Enthusiast market

The enthusiast market is in contrast with a problem solution market. The problem solution market involves solving problems for the people around you. Once you’ve solved the problem, people move on with their lives. Consider the example of flood removal. If your basement floods, once the water is removed, you never engage with them again. You won’t sign up for newsletters or Facebook groups.

If you own a dog, you will be a consumer in that market for years and years. Look for a market where you can generate a customer once and then sell to that customer over and over again. Chasing after new customers constantly is the hardest thing in the world to do.

Urgent problem

Those two markets aren’t enough on their own. You must have an urgent problem in the context of the enthusiast market. Many people will consider selling dog coffee mugs or Christmas ornaments. But none of those items address an urgent problem.

Urgent problems are those that keep people up at night. People talk about a $1,000 problem, but a $10,000 problem is 10 times bigger than that. An example from the dog market is the issue of peeing and pooping on the carpet. The issue becomes a $10,000 problem when you’re planning to travel across the company with a dog that still pees and poops everywhere. Now the problem is urgent. Now you’re not shopping around to find a 10 percent discount off a potty training solution.  

You’re looking for the urgent problem within the enthusiast, evergreen market.

Imagine you come to me with that problem and I help you solve it. Now, I’ve become your trusted advisor in the market. So now, when you have the next big problem, you’ll come back to me. Whether it’s biting or barking or pulling on the leash, you’ll trust me to help you with it.

Future problems

Seek a market in which, after you’ve solved the initial problem, the success of solving that problem leads to another problem. Imagine helping people negotiate a better salary. If you help your customer negotiate a $10,000 raise, you’ve created a new problem. Now he doesn’t know what to do with the extra money.

You’ve created a new problem for your customer.

Begin by choosing the right market for you. Once you’ve chosen, figure out what your market wants by asking. The next problem might be that they need to hire a first employee. Then the customer might need to establish processes and systems.

This gives you the opportunity to serve that customer for years and years.  

Players with money

Don’t sell to broke people. If someone can’t put a roof over their head or food on their table, it doesn’t matter how good your product or service is. They just can’t afford it.

Make sure you’re in a market that has a high concentration of players with money. The term comes from Gary Halbert, one of the all-time great direct response copywriters. It means that you don’t necessarily need millionaires or billionaires, but people who spend a disproportionate amount of money in that area of their lives.

We all know people who have a crazy hobby or obsession or some part of life where they spend a lot of money. Dog owners are a perfect example because of all the crazy stuff they spend money on, like pet insurance and operations and vacations.

On the other hand, Ryan launched a business in the memory improvement market, but because it targeted students who didn’t have a lot of money, he learned the lesson about people with money the hard way. He learned that you can’t build a big business around broke people.

Whatever you’re pursuing, the business doesn’t have to be perfect. It just needs to start. Don’t allow perfection paralysis take you over. Better to execute at a B+ level today and then improve moving forward.

“How to ‘Warm Up’ Your Prospects With Trust Before You Pitch” episode resources

Ryan is offering TSE listeners a free hard copy of his new book, Choose. All you have to do is pay a few dollars in shipping and handling. In addition, he’s providing $200 in free bonuses, including the audiobook. He has mindset training about some of the topics addressed here. Visit choosethebook.com/tse to take advantage of the offer.

Connect with me at donald@thesalesevangelist.com.

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