The Bigger Market Trap
There’s a simple lesson about niching that most Entrepreneurs miss.
Everyone thinks the bigger the market, the bigger the opportunity.
A lot of times, it’s the reverse.
Think about a company with salespeople assigned to different territories.
They have a zip code area they can go sell in.
They do face-to-face sales.
A lot of it is cold calls. Walking into businesses. Going to the dry cleaner, the clothing store, the office, or whatever business is in their territory, and asking, “Do you need this?”
And every time the company hires a new salesperson, they have to shrink the territory.
Let’s say there are six territories.
Every time they hire someone new, the salespeople go crazy.
They say, “You’re taking away territory for me to go sell.”
But every time they shrink the territories, everyone’s income goes up.
Why?
Because they’re forced to drive less distance.
They’re forced to be more concentrated.
They’re forced to go deeper with the people who are actually in their territory.
That’s why niching is so important.
That’s why specificity is so important.
Everyone thinks a bigger market means a bigger opportunity.
But the bigger you try to target everything, the less you focus on what exactly you’re trying to solve, who exactly you’re trying to solve it for, and who actually has the money to pay for it.
So the question is:
Out of all the things you could address…
Out of all the problems you could solve…
Out of all the people you could serve…
What are the things people are already looking to solve, haven’t solved yet, and are willing to pay money for?
And are you targeting the people who actually have the money to pay for it?
That’s where focus happens.
That’s where depth happens.
That’s where income happens.
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