Drop Servicing | Best Niche Selection Process by Dylan Sigley
Blog
Are you wondering what the very best process is for selecting a niche? Well, you’re in the right place because I’m going to explain the very best process that I found after years of doing this and hundreds of thousands of dollars invested across multiple online businesses. So, you can literally take this process for free and implement it in your own business to find the best markets. They have the highest ROI return on investment and more markets so you can scale massively. Let’s get into it
When it comes to picking a niche, there are many variables to consider, and it’s very important that you don’t consider the wrong variables and focus on the correct ones. The list of variables we take into account and the more important those variables are, the easier it’s going to be for us to test and find the best niche because we’re having to keep track of list things. Now, in online business, there’s a massive fascination with picking the right niche, and it’s really because it’s something that’s harped on about by all of the biggest names out there and online marketing. But at the end of the day, it doesn’t matter so much who you’re putting that message in front of. What’s more important, the offer to the people that you’re showing that offer, too? Now, as long as the people you’re showing that offer to have the money to spend on what you’ve got to offer and then also want what you’ve got to offer, it doesn’t matter so much what group they’re a part of.
I’m going to break those down for you so you can understand a little bit more depth. The niche they select has money and they want what you’ve got. Then, it all comes down to the messaging. If we can construct our messaging in a way that resonates more with a particular niche based on our knowledge of them and what kind of messaging would work with them, then we’re going to get better results. And that’s just the logical way to consider it. And it’s also just based on the data. In that way, picking the right niche does matter when it comes to writing your message. But on the other hand, it doesn’t matter so much because if you have the best offer in the market, no matter what segment of the market you’re providing the offer to, you’re going to get better results because people want a good deal. Having the best offer and the best price in the market is going to move the needle in terms of revenue a lot more than picking the specific correct niche.
So, your offer is really key, and putting that offer in front of the right people. For example, if you’re a Facebook advertising agency and you’re trying to decide between the computer software niche or the health and fitness industry and those were the two niche selection criteria, then maybe it doesn’t matter as much as your offer itself because both of these groups are going to need what you’ve got to offer. It’s more whether you can cater your messaging to both groups and different marketing channels. In some ways, your market, media, and message must match the audience that you’re targeting, needs to be on the media that you’re putting that message in front of them and the need to resonate with their message, and it needs to make them want to buy. If it doesn’t trigger them to buy now, then the messaging isn’t really crafted in a way that’s going to convert with any audience anyway. So, picking a niche does matter as we need to know who that market is before we craft a message for them, right? Because if our message hasn’t been crafted for a specific group of people, we’re going to be off the mark when we’re trying to communicate the value of our offer to them.
So, the easiest way we can figure out what a particular market wants and how to craft the message for them is to talk to that market. Talk to people in your local community. Reach out to your competitors and ask them who their customers are so you can talk to their customers. Find a way of talking to your target audience, whether it be in person, over the phone, over email, whatever it may be. Because that way you’re going to figure out what makes them tick and what makes them buy. More importantly, which is going to allow you to craft a message that makes them by now positioning ourselves as experts on a particular market also allows us to command higher prices. So, in that way, it is a good idea to pick a niche. This is another argument for niche selection, right? So, for example, general practitioners or the general doctor that you go see when you have a cold or flu, earn less on average than, for example, a neurosurgeon or a cardiothoracic surgeon because they’re less specialized. Because of that, there’s a smaller number of them, smaller supply. Higher demand means they can command a higher price. It’s basic economics but picking a niche also doesn’t make sense in other ways. For example, it can constrict you to a smaller market. So, our messaging or our offer may resonate with a much larger market, but because we’ve decided to only communicate this offer to a very particular segment of the market, we’re missing out on that greater volume of sales and we’re really just constricting ourselves and keeping ourselves small by only focusing on a smaller segment of the market when in reality, we’re not even sure if we’ll still convert at the same rate for other parts of the market.
So, to get over this, you should be constructing different messages for different parts of the market and then targeting them using different campaigns on Facebook. For example, if we were going to be targeting cat lovers and dog lovers for our pet toys, for cats and dogs, we would set up different audiences or different ad sets on Facebook and then target those ad sets to those different owners with different messages based on what toys, right? So, the audience might be dog owners. And then we would target them with dog toy ads, and then the other audience will be cat lovers or cat owners, and we’ll target them with cat toy ads and may be a little bit more work in terms of creating messaging for both markets. But it’s going to allow you to scale a lot more and not box yourself and so much when it comes to only offering your deal to a very specific segment of the market.
We don’t know whether the niche that we’ve selected is truly the best one for us, right? Because we haven’t tested all of the other markets out there. So, if we start our business picking a very specific niche, we’re not going to know if this is the niche that is going to pay us more for God’s offer. If this is an issue that is going to like what we’ve got to offer and come back to us again and again and again, or if this is the niche that is going to be annoying and not buy from us as much as others, maybe that’s niche even is great, and that makes us think that no others would be great. But we can’t know without testing. We can’t know without trying. Choosing something before you have tested many different versions of it doesn’t make sense because you don’t have enough data or experience to draw upon and making that decision. So you should really go about the process of gathering that data before making a decision. So you can probably get a feel that there’s some positives in each selection and some negatives as well, right? But in reality, we want to get the best of both worlds, and there is a very easy way that we can do that. And that is the process. I’m about to reveal to you how you can find your best niche by starting broad and figuring out what is best over time.
What’s best could mean a range of things they may convert better for your offer. They may have a higher lifetime customer value. They may just like you more and be less annoying to deal with. It’s likely a combination of things that make it the best. You can simply adjust your messaging as you’re going into different markets. Figure out what makes each market tick. And then once you figure out their market, you’re going to be making sales in it. Then you can move on to the next and you can keep expanding from one niche to the other while still keeping all of the benefits of niching down, which really comes down to the messaging and knowing how to speak to a particular niche. But you don’t want to box yourself in as well, so you can then expand into other niches. Finding out what works best in terms of the messaging by interviewing doing some research on a particular niche and then testing out different things in terms of the messaging in your copywriting. And that’s how you’re going to both expand into multiple niches, but also niche down in terms of the messaging so you can get the highest conversion rates possible. Maximizing your return on investment as a whole. Your business is very general, right? You’re offering a particular service to many different markets, but at the top level, at the beginning of your funnel, you’re unleashing down very particularly into the messaging that you’re presenting through different marketing channels, so your niching down very deep into your marketing messages
But as you go deeper down into the actual delivery of the service, it’s very general and you’re able to learn a lot more from delivering the service to more clients over a longer period of time. You’re going to have a higher volume of learning lessons and get better and better at it. You want to start big and close on the best ones. You can start off targeting many niches if you have the larger budget for marketing, and then you can start targeting down into the niches that you’re finding are working best simply by adjusting how much you’re spending on each niche. So step one is to start broad with your market. Break down the market into segments based on the industry company size, job titles, demographics, behaviors, interests The more segments you can break your industry down into, the easier it’s going to be when it comes to crafting your message for a specific niche and the faster you’re going to be able to test these specific niches. Now, of course, you can only choose so many niches to target in the beginning based on your marketing budget and how much time you have to invest in it. But by segmenting the overall market down into all of these specific niches, you’re going to be able to craft messaging that resonates with all of these specific niches.
Now, once you’ve segmented all of your markets. Step two is to niche down your messaging and media. Now that you know all of the different segments of the market you have to play with, you need to craft messaging that resonates with each of those segments. Of course, you don’t need to have all of the segments right away. Just do it for the segments that you want to test, to begin with, so you’ll create specific messaging. For one thing, your test out there, then you move on to the next, and so on and so forth, depending on how much budget you have to spend. And in terms of niching down the media, we want to determine where our audience is hanging out. Are they on Facebook, LinkedIn, Instagram, whatever it may be. We want to test these different media forms specifically so we can figure out where we’re resonating the most. Then step three is to discover your best and worst markets. You’re going to look at the best markets in terms of what is getting the highest click-through rates, cost per click cost per thousand impressions, and then also conversion rates. What percentage of those impressions clicks leads that are turning into clients? How much are these clients worth to you? How long does it take to close those clients and what types of clients are they? Are they the types of clients you want? And by answering those questions, you’re going to figure out which of these niches you like the best, which are the best ones? So in step four, you’re going to maximize your best niches or best markets.
You’re going to scale up how much you’re spending in terms of time and money on those markets. Focus more on those markets so you can maximize the ROI you’re getting from them. Then in step five, you’re going to unlock your worst markets by testing more ways of resonating with them in different places using different media, so you can figure out how they actually make these markets work. The more markets you have working, the larger you’re going to scale, and over time you’re going to need more markets to scale up. So, in the end, finding a niche isn’t the answer, but having the best offer in the market and putting it in front of the most qualified prospects possible is. We can deliver the different messages to different niches by creating multiple funnels for different media, having different landing pages, different ads targeting specific niches. That’s going to allow us to target multiple niches while still being very targeted in what we’re saying and how we’re communicating with a particular niche
But at the same time, scaling and expanding the markets that we’re getting into, being able to make this message more targeted is very easy for us as digital marketers. Because of complete market segmentation and message segmentation, we can show the right message to the right market at the right time on the right piece of media. We have all of the data and the ability to segment the market into pieces. So, we no longer need our overall business as a whole to target a specific niche. The only thing that’s going to determine how many niches we target is based on how much money we have to spend on marketing. The more money we have to spend, the more niches we can target and the more we can spend on each niche. Using the process described in this video, you’re going to be able to go much deeper and maximizing your conversion rates, in particular markets, by getting your messaging highly catered to the audience that you’re talking to while simultaneously expanding to multiple markets. This is how you scale, but also be very targeted in what you’ve got to say to maximize your conversion rates as you scale. It’s very essential. Recommend using it.
Related Articles:
Dylan Sigley’s Top 4 Business Mistakes
How To Get Drop Servicing Clients For Free
Dylan Sigley Social Media Accounts: