Finding your focus
Topple Barriers to Niche Marketing
Don’t let hesitations stop you from embracing this powerful online selling strategy.
BY MICHAEL RUSSER
In last month’s column, I showed you how three real estate professionals successfully revamped their Web sites to appeal to a very specific market. They did this by focusing on a special area of interest and expertise that sets them apart from their competition.
It seems simple enough, yet this basic principle of niche marketing is all but lost on the majority of real estate salespeople who market on the Web. Why? There are probably hundreds of reasons, from lack of time to confusion about what niche marketing really entails. But here are the three top concerns I hear time and again from people in the field who are hesitant to embrace this powerful approach, and my reasons for why these hesitations should be overcome.
1. What if I turn off prospective customers who don’t fit my niche?
Many practitioners are reluctant to focus on a specific niche because they’re afraid they will miss out on prospects who don’t fit their target market. The reality is quite the opposite. It’s much easier to stand out when you specialize rather than commoditize your services. And by narrowing your focus to specific target markets or specialties, you effectively eliminate about 98 percent of your competition—the people who’ve chosen not to specialize.
Specializing also helps you save marketing dollars, since you can greatly reduce the number of e-mails or postcards you send out while getting an as good or better response rate. In addition, prospects who do respond are much more likely to do business with you when they see how your Web site and other marketing materials speak to their specific situation. And of course, there are no rules that you must turn away a prospect who doesn’t fit your niche.
2. How will I ever connect with prospects in my target market?
Even real estate practitioners who understand and embrace the idea of niche marketing often fail to execute their strategy because they don’t do enough research to find effective ways to connect with their niche. Redesigning your Web site is one way to speak directly to your niche and provide specialized services that appeal to their needs. Also, a targeted Web site will help niche prospects find you on their own.
The Internet’s also a great place for you to begin your search for customers in your niche. Use your favorite Web search engine to find organizations or events where members of your niche congregate. Participate in those events, contribute to live or online discussion groups, and subscribe to niche publications to make contact with and better understand you niche. These sources also may be willing to loan or rent you mailing lists or e-mail addresses you can use to contact prospects.
You can tap into online groups that focus on issues ranging from gardening to archaeology through Web sites like Google Groups and Yahoo! Groups. Keep in mind, however, that you have to introduce your interest in doing business with other chat room participants and e-mail correspondents gradually or you’re likely to be seen as a spammer.
One subtle way to get your business name out there is to include it—along with your phone number, e-mail address, and marketing line—in the signature of your e-mails. When sending e-mails for business purposes, also remember that you must comply with the CAN-SPAM Act, which requires that all “commercial” e-mails soliciting business must include your name, street address, and e-mail address and be clearly marked as an “advertisement.” For more on information on laws and regulations affecting all types of marketing solicitations, visit the Field Guide to Anti-Solicitation Laws" /> .
3. Won’t targeting a niche market violate fair housing laws?
The idea of creating a highly focused e-marketing campaign often raises the specter of fair housing violations. The Fair Housing Act prohibits advertising that either discriminates or indicates a preference for any protected group: race, color, religion, sex, national origin, familial status, or handicap. However, this certainly doesn’t mean that you can’t niche market legally.
Professions, hobbies, and political groups, for example, generally are not covered by fair housing and are ideal places to find your niche. However, it’s important that you’re careful not to inadvertently violate fair housing laws when you focus on a group. Targeting lawyers would be a good approach; but targeting members of an association for Hispanic-American lawyers could violate fair housing.
The U.S. Department of Housing & Urban Development has information on laws and advertising guidelines that you can review before you begin promoting your services to members of your niche. One good preventive action is to periodically advertise in general-circulation publications or send out more broad-based e-mails to demonstrate that you are not showing a preference for any protected group.
Of course, to ensure compliance with fair housing laws and the REALTOR® Code of Ethics, you’ll want to provide equal professional services to all customers.
Is targeting really worth the effort? You bet! There’s a huge payoff any time you can eliminate 98 percent of your competition. And because you can concentrate on a smaller group, you can more easily gain the specialized skills to better serve the clients that you enjoy helping. So if you’ve ever rejected the idea of niche marketing because you weren’t sure about how to find your target groups or whether your strategy was legal, now’s the time to put doubts behind you and put this powerful marketing tool into action.
More Resources on REALTOR® Magazine Online:
Extreme Web Site Makeovers September, 2004
Ask Mr. Internet Main Page
Internet Q & A: Web Design
