One of my Product Launch Formula owners recently emailed to tell me he’d had his first six-figure launch. His niche? Teaching people to scream. Which sounds like kind of a strange market – but there’s an important lesson here when it comes to choosing your own…
Video Transcript and Relevant Links
Okay, so let’s talk about markets – or niches you could say.
So a lot of times people come to me, and they’re asking me about ideas for businesses, and the first place I always go to is thinking about markets.
And this is on my mind right now because David Wood is one of our PLF alumni. He just posted in our alumni group that he just did a six-figure launch, and his niche is teaching people how to scream. He said, “Yes, you read that correctly.”
So this is one of those markets that I didn’t know existed, teaching people how to scream, and he did a six-figure launch. I do spend a lot of time thinking about markets and this is one market I’m going to have to go take a look at this because I don’t even know what he means by that. I’ve been in a few different markets and, of course, my students in Product Launch Formula have been in hundreds and hundreds of different markets and this is a new one for me.
So when you are thinking about, for me, it’s before you think about a product, before you think about a business, I think about what we call the Avatar – your prospect, the person you’re going to be selling to, and that leads me to the market.
So when you look at a market, every market has different characteristics. If you’re selling education about edible and medicinal plants and herbs, if you’re selling instruction about tennis, about dog training, about online marketing, about the stock market, about how to meditate, all those markets have very different characteristics.
For instance, one of them is pricing. A lot of times people come to me and say, “Jeff, in my market I can’t charge $2,000. You’re charging $2,000 or up to $12,000 or up to $30,000. I can’t get those kinds of prices.” Well, that’s fine. That’s just a characteristic of your market.
Now, we could talk pricing forever and how our mind plays games with our pricing, but we’re going to leave that aside for right now. It’s just different markets will support different pricing.
For instance, the market I’m in – teaching business, or the market I used to be in – which is teaching about the stock market, that’s a market that does support high prices because people can see, they can quantify their return on investment. They know that if they get better at investing in stocks or trading futures or building an online business, that’s direct money that goes directly into their pocket. They can say, “Well, I spend this money, I’m going to get this kind of result,” so that supports a higher price than if it was meditation.
It’s probably going to be tougher to get $30,000 for a meditation product. Possible, maybe at the highest level with retreats and stuff like that. Who knows? But, in general, the average entry-level price is going to be lower in that kind of market.
Or say dog training – huge. A vast market that dwarfs my market. So that’s one of the characteristics. Smaller markets will often drive higher prices.
And if you think about it… I mean say you were teaching a time management course, and if it was just time management, what would that sell for? Just a straight run of the mill time management for everyone. You’d probably be lucky at the very high end to get just under a $100, call it $99, $97. More realistically you’d probably be at $47 or less for a training on that.
Now, if it was time management for oral surgeons, that would support a much higher price. Even if the product was primarily the same product, just tweaked. Some of the language in it is tweaked. Maybe a different introduction, maybe a different conclusion. But if it’s the same time management system but you made it for oral surgeons, you could probably charge quite a bit more. That might be a $300 product.
Now, if it was a product that was time management for oral surgeons with multi-doctor practices, so you’re teaching them not just how to manage their time but teaching their entire practice how to manage and schedule their time, that could be a lot of money. That could be a $1,000. That could be $5,000 even if it was the same core strategy that was adapted for that smaller, tighter niche.
And that’s how you can take something that might sell for $27 or $47 and all of a sudden be selling it for $5,000 or $10,000. It’s a different market. It’s the same type of product. So that’s one way to think about markets.
Another thing to think about, I think, and we’ll just hit this quick because I know this video is getting long… but competition.
A lot of times people look at a market and they think that if there’s not any competition, that’s a good thing – and it’s not. You’re probably not the first person that ever thought about your type of product and your type of market. So, if no one else is out there doing it successfully, there’s probably a reason for that. It’s probably because it’s not a great market. They’re either hard to reach or they’re super expensive to reach or they don’t tend to buy. So it’s probably not a great market. So you definitely want to look for competition.
Now, I’ve had success… both major businesses of mine have been in super crazy competitive markets. And you go into that market and you look for the gap – and that’s another whole video there. But what is the gap within that market?
I just came out with a new product in this market, in a very crowded sub-niche market. But it wasn’t too hard to find the gap. What is it that people are not serving that other businesses, other products are not serving? Where’s the opening that you can go in and differentiate yourself?
So there are just a few ideas on markets. It pays to study markets – even if you’re not planning on going into different markets. It pays to just be walking around throughout your life… Most of the best entrepreneurs that I know do this, they walk around and they can’t stop scanning and finding things and saying, “Wow, huh. I wonder what that market is like? I wonder how you would reach them? I wonder what the pricing is like? I wonder what’s the pain that you have to solve there?”
And that’s another – boy I forgot about that one. Really big things. I’m only going to want to go into a market that either has a lot of pain or people that are super rabid.
So, I want people that are after the solution I’ve got – and they’re either in a lot of pain or they’re completely rabid – like their golfers and they want to lower their score. That’s a rabid audience. Or people if they’ve got migraines or they’ve got some other affliction that is causing a lot of pain that they want to get rid of.
So study markets and it will make a huge, huge difference for you as you go forward and you start to look at the ideas for new products and new businesses.
So I’m Jeff Walker. Wherever you’re watching this, scroll down, leave a comment for me, and let’s go get ‘em this week.
Hi Jeff, I found this really exciting because we are in a fairly small market with fairly low priced physical products and have been looking for an allied product that will scale this market up with higher sales and more market penetration.
I am now going to start studying the products already running in our market stream to try to achieve this.
See you at Launchcon in November.
Thank you so much. I’been wondering about pricing also and this hits the nail on the head for me. It’s really great in detail and the examples you’ve given clarifies a lot. Thank you for this article. Not let me go figure out how to raise my rates in another market.
Love your content Jeff, this is so relevant for me right now. I’ve almost your book LAUNCH, was reading and this email arrived!…now let me finish your book! Haha!!’
PS I recommend it to everyone as THE GUIDE !
Quick Correction: it’s David Wu not David Wood.
On the one hand, it’s exciting, but on the other, it’s depressing. OK, so David Wu found a kind of gimmick. It worked. I’m glad for him but my online businesses are pretty much floundering at the moment.
What about me? Will I ever launch an personal online business that gives sustainable and healthy profits without running me dry? I can help other people launch their stuff, but I’m talking about mine…
So do I ask myself: do I have something “gimmicky?” I mean what I have is authenticity. If you work with me to learn how to write your songs down, you will gain true musical competence. But it just seems like almost no one is interested. People want software that helps them instantly write chord progressions. Who actually wants to “learn” or put forth “effort?”
Jeff: have you ever wanted to write a song? Did you know that a lot of songwriters don’t know how to write their music down? Famous, wealthy, functional illiterates that can speak — but can’t read or write. Did you know that learning to write your songs down gives a settled, powerful feeling of accomplishment and joy?
But very few people are interested in competence — apparently — or I haven’t found them yet.
My traintrack has 2 rails, one musical, and the 2nd IT (technical communications). So if you work with me to have your online presences serve your business without hitches, glitches, or problems, then your websites, funnels, email lists, etc. etc. etc. will all work. But it’s like ppl want the world and are willing to pay for a grain of sand.
So, I’ve learned the PLF “vocab” now. I know what PLC content is, and I know what you’re saying when you use the term “shot over the bow.” OK — but my launches need to be profitable, and they aren’t right now.
Maybe it takes a special kind of brutality or selfishness or “gimmickiness” to succeed with PLF. Basically, you need to be an apple orchard — and you need to put a gate around it — and you need to make people pay for your apples.
For some, the adjustment from natural abundance to selling perceived value at gates, is tough to navigate.
Hi Dainis, Maybe your niche might be people who want their music to outlive them? Who want to live forever through their music? Because if you don’t write it down, it may not?
I’m been giving a lot of thought to this topic as I start my new business teaching people how to sew.
Sounds boring right?
If you wanted to learn to sew, what’s the first emotion that pops up? Fear? I could never do that!
Am I on the right track here? This would be the gap.
I’m still struggling to get an approach to this that feels natural to me.
Thanks for your continued emails over the years. I learn a lot from you.
P.S. Any thoughts on this niche gap would be most appreciated.
Hi WendySue, I think you’ll do well if you just start listbuilding. Gathering the emails of people you have a warm, friendly connection with.
Fear certainly does not pop up when I think about sewing. I think about mothers, and grandmothers, and tailors! Fireplaces and chestnuts roasting on an open fire…
Even with just 10 people on your list, you can start a dialogue, and ask your audience about their interests and troubles — and you can find out how you can help them.
Hi WendySue, stop thinking. Stop it.
Go listen and ask your audience in groups and forums what they want, need and what their most burning questions are.
Give them what they want.
Great direction and approach Roland!
Hi Jeff – this is a great video! A couple of things:
A) If a market is big enough, (i.e., investing in crypto-currencies), isn’t it possible that one could find the gap in the market to develop a sub-niche where potential clients are not being served? Just wondering…
B) Can you combine different ideas to create a sub-niche in a crowded market? Again, just wondering.
Thanks for everything you do, Jeff – you’re the best!
Yes and yes. 🙂
Great summary. Thanks.
Very helpful, Jeff. I am close to finalizing an online program that teaches authors how to write effective marketing copy for their books, and your thoughts on pricing are very timely for me. Appreciate it! Casey
Great suggestions and ways of looking at Niche Markets.
I’m about ready to publish my first book, but I’m struggling with my niche. The book is a collection of Intuitive writings that cover a wide range of topics. Donna from PLF suggested targeting people seeking clarity in their lives. I love that, but am woderig if it’s too broad.
Great insight Jeff! Really got my brain going, as I am trying in the midst of identifying my “avatar”!
Thanks for sharing!
José DESGRIS Pro
Read that Steve jobs learned and used primal scream techniques when he was Young.
Have to have good marketing to make six figures launch.
I loved your book SLF, cheers
Thanks for the video. But now I am curious: What was the screaming launch all about?
Was it about the metal singing technique screaming? Or about something completely else? 😀
@Jannis: yes… it was about vocal performance for metal.
You said “I’m only going to want to go into a market that either has a lot of pain or people that are super rabid.”
That is a hugely important idea. That alone could save people years and tons of dough. Would you please say more about that?
All my best,