Build a Stong Target Market To Creat Good Referral Sources

This is a Question that I got on Linkedin, I thought it was very appropriate for this blog.

 In my coaching practice, clients (especially new entrepreneurs) often tell me they don't want to nail down a specific target market because "everyone is a potential client" and/or they feel like they are missing out on business opportunities in other markets.

Have you nailed down one target market? If so, how did you go about making your choice? Did your target market choose you? How long after starting your business did it take for you to choose your target market?    Do you target more than one market? How do you balance your marketing?  Do you even believe that choosing a target market is essential to your marketing success? If not, please tell us why.

This is one of the toughest questions that I tackle with my students in the Referral Dynamics Program.  Generally, business people think with a scarcity mindset, always afraid that they are going to miss some business regardless of the quality of the business.

For instance if I am an Insurance agent who writes insurance on anyone who has a business, and then I am always running around trying to find anyone!  From the small one-person business who has very little money to the multi-million dollar business.  It is like shooting in the air and hoping that a bird will fly over.

On the other hand, if I am the insurance agent who is an expert in working with Attorney Firms who have one or more partners in the

Central Indiana

area, I know exactly where to spend my time and my money marketing.  IF a CPA Firm calls my office and ask me to write a policy for them would I say NO?  Heck no, I would do business with them.

Declaring a target market does not mean that you cannot or may not do business with anyone else, it just means that you will have a target to aim your message to and spend your money on.  When the time comes to recruit Referral Partners they will be easy to find and easy to train.

It allows you to develop yourself as an expert so that your target market seeks you out instead of you searching for them.  It allows your customers to create a buzz about you!  Take a moment and ask yourself the following questions........

1.  Who do I like to work with?

2.  What makes me the most money?

3.  What market do you have the greatest experience in?

4.  Is there a market less served?

Building yourself a strong target market will allow you to work less and make more money!

Comments

[Jan Vermeiren]

Hi Hazel,

thanks for posting this.

What you are writing is so true!

After making the choice about what your target market is, everything becomes so much easier: where to focus your attention on, which organisations to become member of (and which memberships to cancel), how to tell your network who might be a good customer,...

I would like to add to your questions:
- Which geography are you focusing on?
- About the money: some people want to go for high volume, others for high margin, this might also be a good question to ask oneself.

Have a great networking day !

Jan

Jan Vermeiren, founder of Networking Coach (http://www.networking-coach.com)

[Hazel Walker]

Thanks Jan, those are good questions and I appreciate the feed back.