Project Diary Part 2: Finding The Perfect Target Market Nick James

This is my second article in the Project Diary series detailing the exact steps I’m currently taking in order to define, create and market a brand new profitable Internet based product. This is my guide to finding a well defined and qualified target market of customers eager to purchase the products you develop.
Before you think about the kind of product you are going to develop and sell, the price to charge, or how to market it, you should define who you want to sell products to and more importantly those you don’t.
Knowing the markets you don’t want to sell into is actually more important than you probably realise. Because trying to sell into the wrong market can pretty much mean failure is guaranteed even before you start.

If you didn’t know this already I’m not surprised many people set off in completely the wrong direction the first couple of times round.
So which type of markets should you stay well clear of? Well I have short listed four of them for you… The first three I’m sure you will completely understand… the fourth may be a little hard to understand, especially coming from me.
There are four markets you should never even think about selling into. These are:
1. Have Anything to do with a product the offers health advice: Or worse, selling any device or supplements with health claims. Even if you are a qualified doctor with a ton of letters after your name. This is still a dangerous area. Even if you believe you are completely protected because you are just an ‘agent’ for some giant network marketing company. Do you want to open yourself of to being sued by some over zealous customer? Is it worth the risk?

2. Have anything to do with a product that offers financial advice: Giving people advice about pensions and investments or stocks and shares. If you try to pose as a professional passing on information and you have not passed your exams as an Independent Financial Advisor you could land you in deep trouble. The professionals have studied this business for years and know the moment the market changes. They also have taken out millions of pounds worth of professional indemnity insurance. Best leave it to them then heh! So don’t do it!

3. Have anything to do with a product that offers legal advice: Same as above, except when you give legal advice and you are not an qualified solicitor, there’ll be plenty of real solicitors and barristers waiting round the corner just to tear you apart. So don’t give legal advice either.

4. Have anything to do with the business opportunity market: This used to be a really good market to get into a few years back. But these days you’ll need a good few thousand pounds in start up capital to be seen as a professional. Because the industry has become so overrun with con artists and get-rich-quick scams. This market is full of people with years of marketing experience and deep pockets, and this puts you at a severe disadvantage. You’re better off choosing a market where there’s a whole lot less competition.
So, remove any idea of selling into these four markets and you have more than doubled your chances of success. (Yes, I know you really wanted to get into the biz-op market, but things change. Stay out of the biz-op market and your life will be a lot simpler.)
What’s Left?
So we’ve written off four possible directions for your future product. Including the one general direction that almost everyone thinks is the one to get started in (business opportunities).
What could possibly be left?
Well, the good news is . . .
almost everything else is!
That’s right, once you eliminate the four ‘don’t do’ markets, you’ll find the remaining markets virtually untapped by people with marketing skills like yours. See, with the majority of direct mail entrepreneurs concentrating on the income opportunity/ biz-op market, almost every other market is . . .
wide open!
That’s right, find a niche in just about any market other than income opportunity/biz-op, and you’ll have the place pretty much to yourself. You won’t be competing with literally tens of thousands of people trying to sell the same product to the same old audience.
In many cases, if you pick a target market, you may be the only person offering unique products to that niche customer base. And that puts you in a position of almost guaranteed success.
Now, before we go any further, I want to make sure you understand what I’m saying.
I’m telling you to stay out of the income opportunity/biz op market, and instead look for niche markets where you are either the only one, or one of just a handful of people offering products tailored to people specifically in that market.

“If the Market is a Chicken… and the Product is An Egg… The Chicken definitely came first!”
Let’s take it one step further.
Defining who your targeted customer is, before you create a product, makes it a lot easier to create the kind of product they will actually buy.
For example, if I know that my target customer is someone who has just spent over £3,000 on a set of golf clubs because he wants to start playing golf at the local club, then I have a pretty good idea of the kinds of products (especially information products) he is likely to want to buy.
But if I know nothing about my customer, if I don’t know his recent purchase habits, his area of interest, his age, his language, or his ability to pay, coming up with a product for that person is going to be extremely difficult. In fact, it is unlikely that I will be able to come up with the right product for this person – even after several tries.
So, since it is almost impossible to come up with the right product without knowing who the customer will be, it only makes sense to first define who exactly you are creating products for.
One of the most important rules of successful product development is . . .
The easiest thing to sell is…
a product people already want to buy.
But before you can create a product that people want to buy, it helps to first define who the ‘people’ are. Are you with me?
And since it is you who gets to define who you want to sell to, shouldn’t you take advantage of that opportunity by defining the most highly qualified target market possible? Don’t you want customers who have the desire, ability, and need/want to buy the kind of product you want to create?
Again, it only makes sense. Choose as your customers the people most likely to purchase the kind of products you can create, and then create the exact products they want.
If you do that, create a product people already want, a product that has little competition and has a crowd standing in line wanting to buy, you will succeed.
It’s that simple.
Here’s how to do go about it.
How To Find A Targeted Group Of People Just Ready To Hand You Money For The Right Product
To me the target customer for my new internet product will be someone that:
* Has an immediate desire to buy my product.
* Has the financial ability to pay the product’s asking price.
* Has a proven history of purchasing related products with a similar price to mine.
* Is easy to reach via joint venture partners, discussion forums and search engines.
* Has a desire to purchase additional related products aftewrwards.
When looking for a market that meets the above characteristics, I generally first look at my own buying patterns and product desires. The reason?
I am part of large target market of consumers who spend money on the internet, and am also part of several sub-niche markets. I spend my money on some clearly defined types of products (in many cases, software development tools, website development tools, professional lighting and professional audio equipment for the entertainment industry and property investment information – just to name a few).
Being part of those sub-niches means I have some knowledge of what people in those sub-niches experience, what problems they face, what products are available to them, how those customers find information, what discussion groups they visit, what magazines they read, and what price ranges they are used to seeing for products in those niches.
Being a part of these niches gives me ‘inside’ information on how people within these niches think, what ‘hot buttons get their attention – and this gives me (and you within your own niche) a tremendous advantage when thinking about the kinds of products people in those markets want to buy.
Think about the sub-niche markets you are involved in. These will probably include certain areas of technology, certain areas of product development, certain hobby activities, specific business skills, financial interests, and more.
Somewhere in your sub-niche interests is the perfect target market for your next product.
Further defining the niche
When looking for qualified target markets, I also like to look for sub-niches where:
* The customer will have an ‘urgent’ need or burning desire to purchase my product that supports this sub-niche.
* The customer will have previously invested a significant amount of money in a major product in this sub-niche.
* The customer can see an ongoing reward for purchasing products in this sub-niche.
* The customer will have a very limited selection of products supporting their needs this sub-niche.
* The customer will understand that paying for specialised information or a tailor made solution is usually a good investment.
By narrowing down your target markets even further to those that meet the criteria above, you can carve out a sub-niche where your chances of success will be greatest. You have limited time and resources available to you, why should you waste either by starting in the wrong way and developing a product first… or creating a product for the wrong market entirely…
As I have said before, I like to gamble when the odds are in my favour… not the bookies.
Sub-niches to avoid
When looking for a target market of customers, you would do well to avoid those with the following characteristics:
* The customer has little or disposable income
* The customer only has a temporary need for my product (one that will pass quickly)
* The customer has no history of buying products from a distance or on the internet.
* The customer has a numerous choice of products and suppliers who can solve their specific product requirements in their sub-niche.
* The customer is difficult to reach by internet or email.
* The customer has not shown previous commitment to the sub-niche by buying complimentary products.
* The customer is looking for a ‘cheap’ or free solution.
* The customers is in a sub-niche where piracy is accepted or even encouraged.
Finding your perfect sub niche of qualified customers
Generally speaking, the best sub niche of qualified customers will be one with which you are already involved, or want to be. It will be one where there is a continual demand for a series of information or software products with a central focus. It will be one where immediately after you develop the first product for the sub niche, your customers will ask you for another.
While finding the perfect sub niche of qualified customers can take some time, it is almost always time well spent. And certainly it makes sense to start out by targeting customers ready, willing, and able to buy a specific product than it does to start without having any idea who might want the next product you create.
Next article in this Project Diary series – I will be taking a look into coming up with the right pricing model for your products and overall income strategy.