Let's get started and talk about marketing and how it varies depending on the business model you're in. We'll explore the importance of audience size and how to niche based on your business model. Your marketing strategy needs to align with your business model, and if you plan to expand your income streams, you'll need to adapt your marketing accordingly. Let's get started!
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How to Niche Based on Your Business Model with Abagail Pumphrey
To start, let's view business models as existing on a spectrum, ranging from one-on-one to one-to-many. The key concept to grasp here is that as you move from one-on-one to one-to-many, the size of your audience becomes increasingly important. This shift in audience size has several implications for your marketing strategy.
Audience Size Matters
The size of your audience is directly related to your business model. If you're targeting a larger audience with lower-priced products or services, you'll need a significant volume of potential customers to generate the desired revenue. On the other hand, one-on-one services with higher price points require a smaller, more focused audience.
Conversion Rates Vary
Conversion rates differ significantly between one-on-one and one-to-many models. For instance, one-on-one services may have high conversion rates of 60% to 75% or more, while one-to-many models typically see around a 2% conversion rate. Understanding these differences is crucial for setting realistic expectations and optimizing your marketing strategies.
Now, let's dive into the concept of niche targeting, which involves both the specificity of your audience and the nature of your offer.
In a one-on-one business model, your audience should be fairly specific. It's essential to understand your audience's needs intimately and cater to them effectively. However, in a one-to-many model, your audience can be broader because you're targeting a larger market. The key is to find the right balance between specificity and reach.
Your offer should match the level of specificity in your audience. In a one-on-one model, you can provide highly tailored solutions. In a one-to-many model, you might offer a broader solution that appeals to a larger audience. For instance, a consultant helping authors write and publish their books could expand their audience to all authors while retaining a specific offer like self-publishing on Amazon.
Hybrid business models, where you offer a variety of services to different people, require careful consideration.
- Focus on one offer at a time: Avoid the temptation to offer everything simultaneously. Concentrate on one specific solution or one specific audience within your hybrid model.
- Balancing specificity: In a hybrid model, either broaden the solution or the audience, not both simultaneously. A broad audience with a specific problem or a specific audience with a broader problem is more accessible to a larger group of potential clients.
The Changing Landscape
It's essential to recognize that the digital marketing landscape is evolving. While super-specific niche targeting used to be effective, it's becoming increasingly challenging to reach your ideal audience organically. Therefore, consider offering specific solutions to broader audiences to enhance your reach.
In the world of marketing, there is no one-size-fits-all strategy. Your marketing approach should align with your business model, whether it's one-on-one, one-to-many, or a hybrid model. Strike the right balance between audience size and niche targeting, keeping in mind the changing dynamics of the online landscape. By adapting your marketing strategy to your business model, you'll be better positioned to achieve your goals and grow your business successfully.
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