Right Fit Market: How to Identify the Market Segment That Will Pay Top Dollar for Your Product
The Exact Steps to Identify Your High-Value Market and Guarantee Your Product’s Success by Black Friday 2024
Do you want to:
Turn your ideas and knowledge into products that make you money?
Take an idea and build a profitable program around it?
Learn the systems, structure, and strategies to create products that solve problems for people—products they’re excited to talk about?
If you’ve been looking for answers, wondering how to start or what steps to take next, let me introduce you to a few strategies that can help turn your idea into a profitable reality.
Last week, we nailed down your product message. Today, we're diving into the second crucial part of our challenge: finding the right market for your product.
Remember, our goal is for you to have a product ready to sell by Black Friday, 2024. So reply and let me know how this is going for you.
Why Picking the Right Market Now Could Be the Difference Between Thriving or Failing in a Recession
You might have heard we're headed towards a recession.
Based on sales data, we’ve been in one since about Q3 of 2023.
But the real question is: What can you do about it?
From experience, I know you can thrive even during tough times, but not by accident.
You have to be strategic, focused, and make the right decisions.
One of those decisions is choosing the right market for your product.
4 Proven Market Types Every Solopreneur Must Master to Sell Out Their Next Product
As a coach or consultant, understanding your market is key to creating products people love, talk about, and buy.
Let’s explore the four types of markets and how you can apply them in your practice.
[Credit: "Business Model Generation" by Alexander Osterwalder and Yves Pigneur (2010)]
1. Mass Market
If your goal is to reach as many people as possible, focus on creating products that are universally applicable. Think about products that solve common problems for a large audience.
This approach targets a broad audience with a general need. The product is designed to be applicable to a wide range of clients, with a focus on scalability and accessibility.
This is where you find low-cost online courses and eBooks on general topics such as "Effective Communication Skills", "Leadership Skills for Any Industry," and "Basics of Business Management."
I must mention here that this usually requires large volume to break even because the price is not usually high. Except you’re already Cristiano Ronaldo.
2. Niche Market
If you prefer working with a specific type of client, you might create a highly specialised or targeted product that addresses the unique challenges faced by a small, distinct, niche audience.
This approach focuses on a specific segment of clients with specialized needs. The product or service is tailored to address the unique challenges or goals of that narrowly defined group.
Example: Coaching programs for female startup founders in the wellness tech industry or consulting services for UX designers transitioning into leadership roles. You see how specific those are?
Lower sales volume, but allows for higher pricing, and requires strong brand reputation and specific expertise.
3. Segmented Market
If you see that your audience has different levels of experience or distinct needs, consider segmenting your offerings to better serve each group.
This approach involves creating different products or programs for different segments within a broader market. Each offering is customized based on the specific needs, behaviors, or preferences of each segment.
This is like having variations of the same product or service catered to different client profiles or customer segments.
An example of this? Let’s use the one from point 3 above: Coaching programs for female startup founders in the wellness tech industry. In a segmented market, it will now look like this: one coaching package for male startup founders in wellness tech, and another for female startup founders in edtech. It could be same program content, but delivered to different market. Do you get that?
4. Diversified Market
If you have diverse skills, passions and interests, or you have different bodies of knowledge (we will talk about methodologies next week), you might want to create entirely different offerings for different audiences, each with its own unique value proposition.
With this approach, you offer a variety of products or services that cater to multiple, unrelated customer segments. These could be entirely different in terms of content and audience.
Ultimately, you would want to build a broad Product Portfolio appealing to various markets with distinct needs.
Example: As a certified life coach and therapist, I created The Fear Resolve Processâ„¢ to help busy professionals deal with fear, worry, inner critic and anxiety. But as a product professional, I am helping you, the solopreneur, create products people love, talk about and buy - all based on your ideas, insights and intelligence. Each of these products have different intellectual property sitting behind them which allows me offer completely separate services to different sets of clients.
As a solopreneur (coach, consultant or creator), understanding these market types can help you position your products more effectively.
For instance, a change management consultant might start with a niche market focus, offering specialized services to tech startups undergoing rapid growth.
As their expertise grows, they might segment their market, creating different programs for startups, mid-sized companies, and large corporations.
Eventually, they could diversify, adding leadership coaching or organizational culture consulting to their portfolio.
And if they choose, they can go mass market, and author a best-selling book.
Remember, the key is to align your market approach with your expertise, capacity, and business goals.
Whether you choose to cast a wide net with a mass market approach or dive deep into a niche, your strategy should reflect your unique value proposition and the needs of your target clients.
If this is where this newsletter ends, I’d have done a good job. Right?
Don’t worry. There’s more…
How to Choose the Right Market for Your Product So You Can Maximize Sales
How do you know which market is the right fit for your product?
To determine that, consider:
Target Income → Target Market: When I work with my clients, this is one of the things we do. We define your target income, then identify the market type that can help you achieve that income target.
Price/Volume Ratio: We then break down the price/volume ratio for your product. How many sales will you need to hit your target income? What category of your market can pay for the product?
Personal vs. Professional Solutions: Next, we decide whether you want to help people solve personal problems or professional/business problems.
With my business, I know that due to my current full-time commitment and parenting two kids, I can only work with 5 people 1-on-1 per time.
So, I've adapted by running group programs like my Canva Workshops to accommodate multiple people at different stages.
FYI: If you’ve been considering working with me to implement these ideas for your business, 2 new spaces just opened for 1-on-1 sessions. Let’s talk for free here to know if we match.
Next question, how do you find those people?
Big Fish, Small Pond: The Concept of Selective Popularity
Now that we've covered the types of markets, and how to choose your market, let's talk about a key concept: selective popularity.
You don't want to sell to the entire market.
Instead, aim to be the big fish in a very small pond.
Selective popularity means being known by the right people at the right time and for the right reasons.
It’s about being super relevant and visible ONLY to the people who need you.
Let me illustrate with 2 examples:
In the UK, where I live, there have been protests, unrest and riots recently.
Some attribute this to misinformation, but it's clear that it's a result of pent-up anger finding an outlet.
Those guys are frustrated by something else, but are taking it out on immigrants who look like me who have nothing to take away from them.
In this context, a name like Tommy Robinson might be unknown to many, but to some, he's almost a messiah.
This is selective popularity in action.
Another example: Most people in the UK know the name of the new Prime Minister, but how many know their local MP or Councillor?
These local politicians are selectively popular — known only to the people who need to know them.
The key is to be like that local politician rather than the Prime Minister.
You want to be the go-to expert for your specific audience, not a general practitioner trying to appeal to everyone.
This selective popularity is precisely what you want for your product.
You don’t need everyone to know your name; you need the right people to know it and to value what you offer.
The Key to Selective Popularity is Affinity.
Since your goal is to create products that solve problems for people — products people are excited to talk about—people are at the centre of that.
Affinity, then, is the deep connection and resonance you create with your audience.
It’s not just about being visible or being known; it’s about being the person or brand that your target market naturally gravitates towards because they feel understood and valued by you.
This is why your message is so important.
And in the context of your product and market, AFFINITY is what MAGNETIZES your ideal clients to you and your offerings.
Creating affinity involves understanding your audience’s pain points, aspirations, and language, and then positioning your products or services in a way that speaks directly to those elements.
Think of affinity as the glue that holds your relationship with your audience together.
It's what turns a prospect into a loyal customer and a casual buyer into a brand advocate.
In a niche market, for example, your affinity with your audience is what allows you to charge premium prices.
Your clients are willing to pay more because they feel that you "get" them in a way that others don't.
They see you as the expert who understands their unique needs.
In a segmented market, affinity is what enables you to offer slightly different versions of your product to various segments, each resonating with its specific audience.
By understanding the nuances of each segment, you create products that feel tailor-made, deepening your connection with each group.
And in a diversified market, affinity ensures that even though you may offer entirely different products to unrelated customer segments, each product still connects deeply with its intended audience.
It’s about ensuring that whatever you offer feels like the perfect solution for the specific person it’s designed for.
Putting It All Together
Creating a product from your knowledge and skills is about more than just having a great idea.
It's about getting clear on your message first, then understanding your market, choosing the right segment, and positioning yourself as the expert for that specific market in a way that builds a strong affinity with them.
Remember:
Identify which of the four market types best suits your product and goals.
Use the guidelines to choose the right market for your product.
Aim for selective popularity within your chosen market.
Build affinity with your audience to ensure your product resonates deeply.
Package your expertise at a rate that reflects your value.
By following these steps, you'll be well on your way to creating a product that not only solves problems for people but also generates the income you're aiming for.
Your Next Steps
I really want this series to be useful and practicable for you.
Do you have any questions about creating a product from what you know and can do for others?
Are you struggling with identifying your market or positioning your expertise?
Don't hesitate to reach out.
Whether you need help refining your product idea, defining your target market, or strategising your pricing, I'm here to help.
Let's work together to turn your knowledge into a profitable, transformational product that people will be excited to buy and talk about.