ITCONVERT

Picking markets

Hey…

Welcome back!

I’m Nicolas Gramnea ―co-founder of itconvert.com

My mission is to help 1.000.000 entrepreneurs succeed on their journey.

Because entrepreneurs make this planet a better place to live on!

With that said…

You are in the right place, today, if you want to take your business to the next level!

Offer component #1:

Starving Crowd

The first component.

Figuring out whether your stuff is converting, or not, is by understanding WHO you’re talking to. So the first part of this is Starving Crowd.

So… the offer you’re having might not be converting is because you might be in the wrong market. You might have a great offer, but you just show it to the wrong market.

So this is kinda of the first thing we have to look at in a business.

Here’s how to pick the right market.

• Three levels of success
• Four variable when picking a market
• Three main markets that exist
• Riches are in the niches

Alright.

Three Levels of Success

So, there are three pieces to this. And the first one is the most important, and if this one checks off we go to the second one, when that checks out, we go to the third one.

MARKET >> OFFER >> PERSUASION

• The first is the MARKET itself

To better illustrate and understand that, let’s say that…

…you’re selling toilet paper during COVID-19.

Then you probably don’t need to have any other skills besides actually just having toilet paper on your inventory.

…or when masks exploded in the beginning, if you just had them, you’re going to sell out.

Right. So there are markets that are like that, where the demand and supply curve is so one-sided that it really doesn’t take anything to be successful beside having the product.

Right now, most of us are not in one of these markets. But if you are, then kudos and just stop taking this course right now, and keep what you’re doing.

But it’s good to at least understand the different dynamics between marketplaces.

Here you have 3 variables― “plus” or “neutral” or “negative”. As you long as you’re either a “plus” or “neutral” then you can move to the next part of this equation.

• The second is the OFFER itself

So, as long as we’re in at least a normal marketplace― something that is growing at the same pace as the population, we’re good.

Just try to avoid marketplaces that are dying. You’ll have some examples of that down below.

So, if we’re in a normal marketplace, and we’re not getting sales, it might be that the offer itself is not very good. But if you have a “great offer” then stop here, nothing else matters.

You can crush it.

Now… if you have a normal offer”, then it goes to the next part of the equation.

And, if you have a terrible offer”, then you probably won’t be successful at all.

• The third is your ability to PERSUADE

This is the least important― because really the only reason you need to be very good at persuasion is that you’re in a normal market, and you’ve a normal or terrible offer you have to be exceptional at persuasion.

There have been empires that have been built off amazing influencers and persuaders, but you have to have that. Kinda born with it.

And so, it’easier to look at these first 2 parts of the equation.

Can we find something that’s growing and interesting― and can we make an offer that’s really compelling that we don’t have to develop some of these skills that take a LONG time to develop?

Obviously, if you get better at persuading, all these things get better too. But at the very least, a good persuader in a terrible market it’s not going to beat a bad persuader in a great market.

Markets usually win.

So, those are the three (3) levels of success, just to set the context and framework for what we’re going into.

Four Variable

• PAIN

So, the customer has to be in absolute pain. You don’t want something that’s just convenient or nice to have, we need something that they absolutely / desperately need.

As an example, if you’re selling hot dogs, right at 2 AM as the bars close, in a college area, you’re probably gonna do pretty well.

You got a starving crowd, quite literally 🙂

• PURCHASING POWER

Do these people that I’m looking to sell to, do they have money?

I firsthand saw this― my girlfriend, it’s really, really good at improving resumes and helping people find a job. And so she made this offer, a really good offer, to jobseekers.

Who’s people that are unemployed.

So, you can guess what happened next…

We found out really soon that, you know, no one can afford the services.

Which is kinda of ironic because that’s the market― no job, no money.

I’m not saying that the unemployment market is something you couldn’t go out after, it’s just that at least the way she was approaching it, where she was finding them, those people were all unemployed, didn’t have any money, so they couldn’t afford the services.

So, this is why something you must look at is purchasing power.

EASY TO TARGET

It’s great to have an avatar that you’re going after, but if we don’t have a way to easily target them on a platform, or associations they belong to, or lists that we can rent… or other people that already have their attention…

…then is going to be really difficult to market to them.

Let’s say, we’re trying to market to doctors― and the only way I have to reach people is nurses, well them my offer is going to fall on deaf ears, and is not going to work.

Right… that’s an example. Obviously, there are very easy ways to target doctors.

But you just have to know how to target these people, alright. If you can’t target them, don’t pick that market. Don’t go after that market.

GROWING

And finally, we want something that’s growing.

So, Alex’s friend, owned a software company that provided advertising services to newspapers, local newspapers.

Funny, because he is an amazing entrepreneur. Very good entrepreneur.

But, on this particular situation, he couldn’t figure out why this isn’t working. He had a really good offer― it was a performance based offer, with 0€ down, it was a revenue share based on revenue; super easy offer to sell…

…he had a good revenue model behind it.

But the problem was just the BIG OBVIOUS THING.

That’s why it is good to have outside advisors, or other people to just talk too about your business.

So, for the ones that didn’t notice the problem yet, here you have it.

He was selling to newspapers.

Just for you, who reads this text, to know― newspaper industry shrinks 25% annually for the last 9 years. 25% that’s compounding. It’s a terrible terrible marketplace to be in.

So even if he was growing his company at 25% a year, he would literally only be staying the same because he has to combat the fact that the market is dying.

So, just quickly, these are the 4 components:

PAIN
PURCHASING POWER
EASY TO TARGET
GROWING

These are thing you must look at when picking a market. If you can’t find one of these things, you need to try to find a market that meets all these 4 variables.

Ok.

But what markets exist?

Three Big Markets

So, there are three main markets.

If you think about, these are like the three (3) core problems of the human condition.

We want to have money, we want to be loved, and we want to be healthy.

These are the 3 big things.

When you look at these markets― everything exists within one of these 3 buckets.

What you want to do is…

Help a unique avatar solve a specific problem in a unique way that overcomes their biggest objection.

So, by doing that, we’re positioning ourselves in a unique way in their mind, and make them feel understood. So it goes something like this:

Oh, this is for me― because it is about them and is solving their specific thing

Oh, I have this problem!!― they feel understood

But, wait, is going to be one of these things?

No, they do it in a unique way―that solves their objection.

You can think about that how it works from a persuasive standpoint.

Now, within each of these markets, are submarkets.

So, within wealth, you could help people advertise their products, finding real estate deals, building sales teams, you can help people create offers…

…you can do a variety of things that help people make more money.

And tons of other sub-buckets. So we got all of these ways of solving the same problem.

Often times what we need to do is repackage what we do, so we position ourselves differently and sell more stuff.

When we’re looking at this:

• wealth is going to be…

B2C = targeting normal consumers and helping them make money. That might be a new business opportunity, or might be a job opportunity, or learning a skill that allows them to get a higher paying job.

B2B = targeting existing businesses and trying to make them more money. Anything that’s marketing related, sales, HR, even IT services is wreath related. You build all this big tech infrastructure for businesses to make them more money.

• health is going to be…

(99%) B2C = targeting people and helping them be healthier.

Here might be a small percentage that does corporate fitness programs. But these services are very rare. In general, health services are targeted to consumers.

• relationships are going to be…

(100%) B2C = targeting people and helping them have better communication with their friend, family, wife, husband, business partner, etc.

So, you need to find your submarket underneath of that…

…where you’ll be targeting a specific avatar, solving a specific problem of theirs in a unique way that solves their biggest obstacle.

Now, the reason submarket is so important is this fourth point.

Riches Are In The Niches

I’ll share with you this visual…

…which is from Dan Kennedy. It will explain perfectly the point of niches. It is eye-opening, changed my life, and it will change yours too!

Once you see it… everything else will make so much more sense.

Let’s see WHY.

#1 level― Let’s say you have a general time management course. And let’s be honest, if you’re going to Google right now and do a quick search, you can find a time management course for 19€.

Just a normal thing, a small book or some videos.

It will sell for just 19€― because it targets everyone. There is no unique avatar, no unique process whatsoever, it is just generic. This is why it has to be priced this way.

#2 level― Now, let’s say we then take the same course, changed the language inside the course, same core thing. Time management for sales professionals.

On our sales messaging, we can talk about more specific problems that are going to solve for them, in the actual product itself.

We can talk about, “hey this is going to make you 1 more sale, 2 more sales just by being more efficiently with your time”.

It will sell for 99€― because it targets a more specific avatar.

That’s cool.

Let’s look at the next one.

#3 level― We niche down even further. Time management for outbound B2B sales.

Now, if I’m an outbound B2B sales rep… I’ll be like, “wow, this is really specific for me. It’s 500€, but I can do one deal, I can make this money back. So I’ll get my ROI on this thing in no time.”

Notice how we went from 19€ to 500€ just by being more specific.

#4 level― Let’s just see how much further we can take this thing.

Time management for outbound B2B power tools & gardening sales reps.

We can sell this for 2000€, because think about this.

If you were an outbound B2B sales rep for power tools & gardening…

You’ll be like: “this thing is literally made just for me. Like there is nothing else on the market that’s like this.”

Category of one.

As a result, it’s going to be made specifically for me and solve my problem in a unique way that overcome my biggest obstacle that they know, because that is who I’m.

So we went from 19€ price to 1997€… we x100 the price of the product that we have simply by niching down.

And that is why they say the riches are in the niches.

That’s why this is so important.

The reason niches are so profitable is that you can be very specific in your messaging and how you craft your solution so that it is very much MORE valuable to your avatar.

The goal of great writing is for the reader to understand.

The goal of great copy is for the prospect to feel understood.

That’s the difference.

When you try to persuade, you don’t try to teach, you’re trying to get them to feel understood. Because the better you can articulate their situation, and their problems, and if you can say what they are suffering from, better than they can…

…then they will automatically believe that you can also articulate the solution to their problems better than they probably have thought of.

And as a result, you’ll be an expert at solving their problem, and justify the price that’s probably significantly more because it’s made specific for them.

So, if right now your offer it’s not converting, it may be because you’re not in the right market.

This is why it’s so important niching down― especially if you’re under 1.000.000€/yr or even below 10.000.000€/yr in some markets.

Realistically if you try competing against mass market, there are massive massive massive companies, with unlimited budget, that already exist and occupy that space, and it’s very difficult to dethrone them.

Whereas if you can niche down, niche down then it will be easier for you to make a compelling argument that you can solve this specific person’s problem, better, than a generic / commoditize solution.

And as a result you’ll be able to spend more targeted AD euros, have more specific ways of reaching out to customers, with specific messaging, at higher price points and make a good profit and build a profitable business around it.

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