How to reach your goals 10 times faster using niche marketing

3 Reasons to Pursue a Niche

If you’re struggling to get ahead, and keep falling short of your goals then this article is for you.

I used to be at a stand-still, not going anywhere in my own business. I was trying to find single family houses to flip in a highly competitive market. For two years I worked at it, door knocking foreclosures (later I found out this is a highly competitive market), mailing to equity lists, and cold calling anyone. It was frustrating because nothing came out of it.

But, when I transitioned into a niche that I thought I would never get into, my world went from 0 deals in two years… to too many deals I couldn’t handle.

What happen?

Well, I realized that my true desires and goals were not to have this elaborate flipping business. That’s what I was initially aiming at: to have a “turn-and-burn” business with lots of flip deals in the pipeline. But that’s not what I really wanted (actually the thought of it now makes me nauseous).

I want financial freedom.

It’s just that “flipping” is always (and will always be) the sexy new thing, so my shiny-object syndrome carried me to it.

In reality, I can gain my financial freedom goal by pursuing the niche that everyone else was avoiding: mobiles homes.

The un-sexy, “wobbly wagons” that most investors cringe at, transformed my slump to a forward-propelling business. The point of this article is not to persuade you into going into mobile home investing. However, what I am saying is you should greatly consider narrowing down on a market to achieve your goals faster.

I know this is hard to do (mentally and emotionally), but if your goal is financial freedom, does it really matter what “product” you serve the marketplace with? If financial freedom is the desire, the goal of life is to get their as fast as possible. And the key to getting their fast is to work in a under-served market, AKA finding a niche.

That’s why mobile homes worked out great for me. I knew how to value them, and how to sell them. Most investors back away from them, so therefore, that leaves a lot of motivated sellers without a solution and leaves me with a profitable low-hanging fruit to grab hold of.

To find that niche you need to find those problems in market; your own underserved market and capitalize on that. Finding that problem is hard, I know. It takes time and effort. As far as finding niches in real estate, here are some examples:

1. College housing
2. Mobile homes
3. Value add
4. Converting one-bedroom houses to 2-3 bedroom
5. Divorce sellers
6. Elderly sellers
7. Land
8. Condos
9. Location
10. Million-dollar luxury homes

These are some examples of seller/strategy types in real estate that can be your niche. However, if possible, you can even narrow each of these down further to find that underserved market.

Why does niching down work so well? It allows for you to have specific messages focused on your ideal prospect. It allows you to cut down costs compared to “umbrella” marketing. And you become the perceived expert in that field rather than a“Jack-of-all-trades”. It’s ok to be a Jack of all trades eventually, but NOT when you’re starting out…. You’ll get crushed by the big boys if you do.

If still not convinced about niche marketing, here are the 3 reasons why you should niche down:

1. Reduced Competition

This alone should stir your interest. The competition in heavily populated areas is fierce. You can’t outspend them. And diving into a mass market will exhaust you, and take some serious time to get your wheels hitting the pavement. By niching down, you cut out a majority of your competition by focusing in on one type of prospect.

Go small, into a targeted group, or a specific strategy. This will allow you to tailor your service towards them.. You’re the “go-to” for their problem because you specialize in that. It’s like the JC Penny’s tie rack vs. Ties.com.

2. Low Cost

Narrowing down is extremely cheap compared to casting a wide net. You spend much less on advertising. Less mail and signs are needed. You get bigger bang for your buck. This works in two ways: first, you don’t need to buy a truck-load of mail, and second, you get a higher response because your message and your advertising is targeted towards your niche market.

For example, if you do most of your deals with elderly motivated sellers at retirement age in a certain location, you don’t need spend tens of thousands of dollars on general mail to find them. Write a letter that suits their needs, find/create a list of elderly homeowners at retirement age, and only send to them. You cut thousands of dollars while still achieving the same deal amount you normally would.

Even if you don’t hit the same deal amount, your net revenue will be greater because of the increased response rate.

3. Expertise

When you need to know about the tax benefits of a self-directed IRA, you don’t go to any Joe-Schmoe on the street. You go to a perceived expert in the field. Even if that expert is a friend that just happens to know about it and use a self-directed IRA.

The same goes with being an expert in a niche. People go to you. They even bring you deals, and funding. The perceived expert brings in much more opportunity (and growth in your own field) faster than being a “generic” investor.

To Summarize

Niches are the way to go especially when starting out. Even if that niche is just a particular marketing strategy like bandit signs. Find an undeserved market, go at it until you nail it, and then move on. Going with a niche makes life much easier and your road to entrepreneurship smoother. That’s why I love mobile home investing: hardly anyone does it and there are MANY motivated sellers. If you’d like to know more about mobile home investing, click on my profile.