Why Niches aren’t just Smaller Markets – Podcast Episode

A piece of advice every new entrepreneur get’s to hear is to
focus on a niche. And, while this can be good advice, you need to
understand that a niche is not just a smaller market.

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In this episode, we will discuss

  • Why entrepreneurs are always given the advice to focus on a
    niche
  • Why this is only good advice when you understand what a niche
    is
  • Why a niche is not just a smaller market.

More Information about Niches

Blogging Success
in a Crowded Niche?! – Podcast Episode


Creative Content Marketing in a Boring Niche? Yes, Please.

For a complete marketing step-by-step guide to free traffic,
leads, and sales, check The Social
Traffic Code.

Episode Transcript

Below is the full transcript of this episode of Marketing in
Minutes.

Why Niches aren’t Small Markets

One piece of advice almost any entrepreneur hears when starting
out is that you should focus on a niche. Most people giving that
advice don’t even understand what that means.

I’m Jonathan Gebauer and this is Marketing in Minutes.

Welcome back to Marketing in Minutes by The Social Ms – the
podcast that gives you everything you need to know about one
marketing topic per episode in just a couple of minutes.

I’m Jonathan Gebauer and today, let’s talk about what a
niche is – and why it’s not just a small market.

Before we start – if you like this podcast, and you’re
listening to this on Apple Podcasts, then you can help me out:
Leave a review. It really helps bringing new listeners my way.

But now, let’s dive into today’s topic.

***

I’ve been running online businesses since 2010 -and when I
started out, I wanted to get as much advice as I could.

One piece of advice I got was that I should focus on a niche.
Let’s make it clear, this isn’t bad advice, but a niche, at
least in this sentence, is not what most people think it is.

Let’s talk a bit more about the advice I got in my early
entrepreneurial years…

God, saying it this way makes me feel old.

The advice I got that was correct but wrong…

Back then I was running a content marketing platform allowing
people to publish for free. This was around 2011 or 12, the content
marketing hype was strong and we were trying to ride the wave.

Until then we had only worked with a prototype that we had
developed for the German market. And it was only mildly successful
– we had to do something so we went international and translated
the platform to English.

And while we were preparing to do that, everyone seemed to tell
us that we were making a mistake.

“You have to focus on a narrower market, a niche, if you
can’t make it work in Germany you won’t make it at all.”

That’s what other entrepreneurs, investors and tech people in
general said. And they were wrong.

Our niche was the international content marketing community and
narrowing our focus group down to the local German market meant
that we diluted the benefit we could give them and reduced our
potential audience to a point where our business wouldn’t be
work,

It wasn’t easy to ignore those people – after all, we were
relatively new to this and we went against advice from people that
we thought knew more than us. But in the end it was the only thing
we could do – and it lead to a lot of growth.

***

The problem was that these people heard that advice themselves
but didn’t fully understand it. And that is true for most
people.

But the idea is not to build a small business before you can
build a big business – that’s often a side-effect of this piece
of advice, but that’s not the essence of it.

The idea behind focusing on a niche is to focus on a
well-defined target audience with a specific problem.

And when you’re doing that, sometimes your business becomes
much more competitive in the larger market as well.

How ConvertKit managed to turn things around…

I’m a user of ConvertKit – which today is one of the most
popular email marketing toolkits out there – others include
Mailchimp, Drip, and stuff like InfusionSoft.

But when ConvertKit was started, they struggled. Nathan Barry
had started the service with the idea to grow it to 5000 Dollars in
monthly recurring revenues within 6 months, but in the end it took
him over two years to get there.

During that time he had to pay for running a tool that didn’t
make enough money.

Now, ConvertKit was always a tool that focused on Blogger’s
and their specific email marketing needs. But it wasn’t marketed
thisway back then – their focus was on everyone who happened to
need email marketing.

Back in 2014, Nathan Barry was running out of money and made a
decision that only true entrepreneurs can fully understand: He
invested more money and work into the failing product. Instead of
just shutting it down he said “Now or never!”

He changed the messaging to focus specifically on bloggers. He
got in direct contact with potential customers from that group and
found out that they loved the product but feared the work involved
with switching services, and so he decided to offer free migration
services.

Before he had tried to focus on everyone, and that resulted in
him not reaching anyone at all. Now, he focused on the fastest
growing segment within his original market and that allowed him to
solve their problems.

Today, ConvertKit is running comfortably with over a million in
monthly recurring revenues.

All through the power of identifying the right niche.

***

What this example should tell you is that finding your niche
isn’t about just making your target audience smaller – the size
of that audience doesn’t matter.

It’s about being able to clearly define your target audience
and their specific problem you want to solve.

If you can do that, you’ve made a big step towards the success
of your business.

Outro

This was another episode of Marketing in Minutes – I hope you
enjoyed it and learned something. If you did, please subscribe and
return for the next episode.

And please don’t forget to leave a review on Apple Podcasts
– you would really help us out a lot!

More information and links about today’s topics can be found
in the show notes at blog.thesocialms.com/MiM-41. That’s
blog.thesocialms.com/MiM-41.

And for a step-by-step marketing guide giving you free traffic,
leads and sales, check out our book, The Social Traffic Code.

I’m Jonathan Gebauer and this was Marketing in Minutes.

That’s it for today, take care! Bye.

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Niches aren’t just Smaller Markets – Podcast Episode

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Why Niches aren’t just Smaller Markets – Podcast Episode