Selecting the right niche is crucial to building a successful digital marketing business that you can run from anywhere in the world.
It’s one of the things we focus in the early stages when students come to work with James Hopkins Coaching.
We cover the “niche” topic extensively because we always get questions about them and it’s crucial to bring clarity around this and answer them appropriately.
So we put together 3 Tricks To Remember When Choosing a Niche and here they are…
The first trick to remember is that the niche needs to be service-based. This means that the industry you work with should provide a service, rather than sell a product.
This one is key because it affects everything you do in how you provide service – building campaigns, funnels, ads, and the overall effectiveness of your marketing strategy.
Want to know why you should focus exclusively on service-based businesses?
It’s because they’re “easier”. Now I didn’t say it’s easy, but it’s actually easier to market.
Service-based businesses are proven businesses that deliver a real, tangible service.
The process of obtaining a client for a service based business involves getting in touch with a lead and turning them into a client over the phone.
Generally, the process is “easier” because the business already has systems in place to land the sale, whether that’s through the owner doing it or sales reps.
Let’s contrast this to a product-based business model.
In this model, you have to run your whole marketing strategy to deliver a sale of a product which is much harder to sell.
There is so much competition online to directly sell a product that it requires a much larger advertising strategy with far less margins.
Running marketing campaigns for products is much harder and costlier because it requires so many more intricate deals that must be done right.
This brings me to the next trick you need to pay attention to and it’s been really significant for all of our students at James Hopkins Coaching.
The second trick to remember is that the service should have a high price point.
What’s a high price point for a service?
This is anything where the service is from $1000+ per client. Think about what industries where this applies: real estate, financial services, mortgage brokers, construction, lawyers, dentists, chiropractors, etc.
But it doesn’t always have to be $1000+ per “sale”. There is something called Lifetime Value of the customer which is equally as important.
Just like a lawyer might have a repeat client paying them tens of thousands over the course of a few years, you also have businesses where the client can pay $1000 over the course of a short period of time.
Think about gyms, personal trainers, wellness centres, spas, yoga studios, hairdressers, etc.
While these types of businesses might charge less per transaction for a customer, they will have those customers who come in repeatedly over the course of a year which makes them worth a high value to the business.
One thing to remember is that these businesses are operating at volume. This means they are bringing in multiple customers at a time and not just relying on one customer for all of their revenue for the month.
Whereas a lawyer might have a couple of clients in a few days, a personal trainer can have 20 clients in that same period of time.
So remember this the next time you go after clients who charge a lot versus the ones who charge less but operate at volume.
The last thing you should remember is that you can always change your niche later.
Our best advice to students who come to James Hopkins Coaching is that you must pick a niche now, but don’t worry if it’s not perfect because you can always switch niches later.
This doesn’t mean you should select a niche and then change 3 days from now.
No, give it time by having some conversations and getting on calls. After a few months, if you find you’re not making the traction you want, you can explore looking at a different niche and start having conversations there.
So stick to these 3 tricks when starting your digital advertising business so you never have to worry about which niche to select. Once you pick one, take action immediately and get results!