In Seven Rules for Effective Networking, I argue that a successful networker must be:
- Distinctive
- Strategic
- Systematic
- Responsive
- Prepared
- Helpful
- Thankful
But behind “Distinctive” and “Strategic” is the most important building block of all: your niche. A well defined niche is the essential first step. It drives what you say, where you network and with whom.
You can be the most systematic, responsive, prepared, helpful, and thankful networker around. But without a niche, it won’t matter. You may be saying the wrong things to the wrong people in the wrong places.
What is a Niche?
Here is a definition in BusinessDictionary.com
“A small but profitable segment of a market suitable for focused attention by a marketer. Market niches do not exist by themselves, but are created by identifying needs or wants that are not being addressed by competitors, and by offering products that satisfy them.”
Your niche is defined by what you offer and to whom. It can consist of any of the three combinations below:
- Service Offering +Target Market
- Service Offering + Problem/Situation
- Service Offering + Target Market + Problem/Situation
Here are four examples:
- Target Market – The accounting firm that focuses on expatriates
- Problems Solved – The online marketing firm that specializes in companies reaching baby boomers
- Service Offering – The IT firm focusing on Fortune 500 companies with high risk/high reward projects
- Fee Structure – A law firm that offers fixed price project fees in an industry that bills by the hour.
Below is a list of 10 professionals I know. Each can solve a wide variety of problems and serve a wide variety of clients in a wide variety of industries.
But I don’t look at them that way. I see them as specialists, not generalists
This enables me to distinguish them from their competitors. And it makes it much easier to refer them.
| Profession | Niche |
| Trusts and Estates lawyer | Elder Law |
| Business Lawyer | Exit Planning |
| Business Lawyer | International Tax |
| Business Lawyer | Internet/Media |
| CPA | Exit Planning |
| CPA | Medical Practices |
| Financial Advisor | Special Needs Children |
| Financial Advisor | Divorced Women |
| Marketing Consultant | Publishing |
| Graphic Designer | Non-Profit |
Remember, having a niche doesn’t preclude you from working outside your niche. But it does position you as an expert.
Just because a trusts and estates lawyer specializes in elder law, doesn’t mean he can’t write a will. It just means he tells certain people that he is an elder law expert.
A Niche: Why You Need One
Your niche determines every business development decision you make:
- Target Market – The types of prospects you pursue
- Expertise – The services you emphasize
- Referral sources – The people in the best position to introduce you
- Networking – The places where your prospects and referral sources hang out
- Message – The way you describe your business
- Marketing – What your website and marketing materials say about you
Without a well defined niche, you’ve got a problem. In fact, you’ve got several problems.
Colleagues won’t know how to refer you. Prospects won’t understand what you offer. Your marketing and networking efforts will be ineffective.
So, let’s review the advantages of a niche
- Well defined target audience = Focused prospecting effort
- Clear message = More referrals
- Effective networking = Meeting the right people
- Efficient marketing = Reaching the right people with less effort
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