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…three types of markets that buy products. I'm also going to share with you why number 3 is my favorite. Now, what I want to really make sure that we're clear on here is we're talking about markets or niches or neeshes, however you want to describe it but it’s basically a market. And that’s why I wanted to talk about this because a lot of people don’t realize that there are different types of markets and different buying habits and all of that stuff as far as like creating content for these audiences or these markets. Also, different ways that we can think about it when we’re building a brand and you guys have heard us talk a lot about that in this past year even just we’re really focusing on building a brand inside of a market and really how to find that submarket inside of the main market.
Well, I’m going to talk that here today and kind of go over those three because to me, it’s really important that you understand this. And a lot of people talk about like, “Well, isn’t Amazon saturated? Isn’t e-commerce saturated?” I mean, e-commerce has been around for a long time and some people would say, “Well, isn’t there just everyone out there selling physical products all over the internet?” And the answer is yes, but when people start to hear about Amazon they’re like, “Well, everyone’s going to Amazon so it’s too crowded.” So, then people could say the same thing about Google, right? I mean, e-commerce stores have been on Google for years getting indexed to basically show up in searches and all of that stuff. So, just because someone has already launched a fishing site that means that I can’t launch my own brand in that space? No, that’s not true. So, that’s why today it’s really important that you understand these types of markets when you are thinking about building a brand.
[00:02:00] Scott: Or even if you already currently have a brand that you started, it’ll give you another idea of how you can really position yourself or even just reach other parts of your market. So, just to remind you guys, this show is 491 so the show notes, transcripts can be found at TheAmazingSeller.com/491. I also wanted to do a little reminder here. If you didn’t listen to Friday’s episode, I did a little announcement there and this again it’s kind of time sensitive. Well, it is time sensitive because it’s going to be March 23. We’re going to be an unofficial TAS meetup in Orlando, Florida. Again, that’s March 23. It’s free. We’re just going to be hanging out at this one location and we’re just going to be like I said hanging out, getting to know each other. You can meet other TASers that are going to be showing up. Nothing really planned as far as like there’s not going to be any teaching or anything other than the conversations and the networking that you’re going to be able to do but it’s something that we do generally when we travel and when we go to different locations.
So, we’re going to be in Orlando and just want to let you guys know if you wanted to come hang out you’re more than welcome and all the details can be found at TheAmazingSeller.com/Orlando. All right. And that will take you the events page. Now, if you’re listening to this after March 23, you can still go that page and it’ll probably redirect to our live page where as far as like any new upcoming places that we’re going to be either attending or traveling, you’ll be notified of that. So, definitely go check that out or definitely come hang out with us in Orlando. We’d love to see you there and love to hang out and have a beverage. All right. So, let’s get to it.
[00:03:43] Scott: All right. So, there are three different types of markets that I want to talk about and really there are three types of markets in general. So, let's talk about those. Number one and I'm going to dig into each one of these. I'm going to give you some pros and cons. Number one is problem-solving markets. So, an example would be plumbing, repairs on your house, pest control. These are problem-solving markets. You could even argue and say, “It's going to be car repair.” You could even say even though cars you could go buy a new car, right, but you're talking about car repair. That's a market or submarket inside of automotive. So, problem-solving markets, think about what you're selling right now. Is it a problem that people are having that you’re solving or that there’s a solution to that? I’m going to give you guys some examples here as we work through this but I just kind of want to give you the three of them right now.
So, number one, problem-solving markets, again, like plumbing, repairs, home repairs, could even be just problems that you’re trying to figure out about how to fix maybe a guitar, whatever. There are some problems in every market really. Pest control, that’s another good example because like people are generally calling a pest control company to get rid of bugs. So, that’s number one. Number two, passions and hobbies. Now, that seems pretty self-explanatory, passions and hobbies. Well, let’s have a few examples here. Guitar, may be like playing guitar, that’s a passion of yours. I know it’s a passion of mine. I like to play my guitar every now and then. I wish I played more. I probably should play more. I actually got a new box drum. I like playing that now which I might even do like an intro track using my new box drum which was just a random thing that I wanted and I started doing some research on that which led me to a market by the way which we talk about in Product Discovery Bootcamp quite a bit but, yeah, that product led me to that there’s a whole other market in music like playing music but now we’re into drums but then we’re into box drums.
[00:05:47] Scott: A whole other market. Passions and hobbies, guitar, fishing, photography. You get the point. So, ask yourself again, are you in a passions and hobbies market? Number three, and this is my favorite and I'm going to explain why this is what I call the hybrid market. This is where you can take a problem and a hobby or a passion and the passion and kind of bring the two together. Now pest control really wouldn’t be a good one to do a hybrid. Now, you could argue and say well pest control could be bugs and also could be wildlife control and then maybe you could do a hybrid in a sense to where you’re like people that are into wildlife like you could say that, but generally pest control companies are getting called because people want to get rid of something. They’re not like creating honey and they’re going to have maybe lessons on how you can go out there and create this hive and you can start extracting honey from this.
That’s not what they’re doing. What they’re doing is you’re going to call them and say, “I’ve got a whole bunch of bees out my backyard. I got to get rid of those things,” and you’re like, “I’m on my way.” Or maybe you sell stuff online that helps people treat them themselves. They don’t have to call a pest control company. But that’s not really hobby or a passion anywhere in there. So, that would be a hard one to do as a hybrid. Now, I’m not saying you can’t just be the problem solver in your market. You could but it’s kind of hard on the other side of that to really tap into the passion and the hobby side of things. All right. It still can work but I’m going to explain why I like number three where you can bridge the two together and that’s what we call our hybrid.
So, let’s talk about the pros for the problem market. People search for a part or a solution and they generally go to Amazon and Google probably banging Yahoo too but let’s call the big ones.
[00:07:47] Scott: Now, the cool thing is when they are searching for this thing, they’re going to buy it fast because they need it. It’s kind of like your sink just broke. You’re going to call the plumber and he’s going to come over and fix it. And a lot of times you won’t even do a lot of shopping around because you just got to get the thing fixed. So, they’re going to buy fast. So, if they find you, if you’re there, if you’re the solution and they need it, they’re going to buy it fast. So, that’s cool. That’s a good thing to have. The other thing is you can create content around that market and what I mean by that is if you have a leaky faucet, well guess what? They’re going to search for how to fix a leaky faucet and if you’d created content around that, you’re going to show up and you may sell parts that allow them to fix it and then they’re going to buy your parts because you are helpful so that’s the cool thing about a problems market as well. The other thing is YouTube content and guides or maybe even a lot of people have how-to stuff on Pinterest. So, that’s another angle.
So, those are some good things that can happen. Those are the pros, the top-level pros that are for being in a problems market. That’s cool. Now the cons usually are people may buy only once. They’ve got a problem, they find you, they buy the part and they’re done. I don’t need you anymore. The only time I need you is if I have a problem again. So, pest control would be well let’s see, you’ve got bees. They come over, they get rid of the bees, they knock the hive down and they’re gone, and you don’t have any more bees and you only go to call them again if you have bees. Well, if you don’t ever have bees again, not going to call you. Now, I could argue and say, “Well,” and I’ve got like my wife’s cousin they own a pest control company. I talked about that before. I would say that they could do a better job and I’ve told them this stuff and again that’s one of those things, right?
[00:09:40] Scott: It’s like you can kind of tell people what you think they should do business wise but if they’re comfortable in their business and they are, they don’t really need to do that stuff or want to do that stuff because it adds more work, but I think it’s still something they should do. And that is if they built an email list or took all of their past customers of there and took all those people and sent them out an email and just gave them tips for the upcoming season, they would increase their calls and their sales. Pretty simple. Or they could do let’s say that they have everyone’s address. I would send them a postcard when it’s getting ready to be the summer and giving them a special inspection, free inspection. So, this way here you can go this year without having any bees or any ants or any mosquitoes or any of that stuff like that’s what I would do. So, that’s how you could continually help that market in a problems market. A little bit more work but you can do it. But anyway, getting a little off track here. You guys can kind of see where I’m going with that, right? You can totally do it but a little bit more work.
The other thing is it’s not as easy to build an email list if you’re just selling a part or if you’re just selling something like that. You’re not going to go and do a contest for, “Here, win this ultimate new trap for your sink.” You had this new trap that’s a stainless-steel trap that goes under your sink. Who cares? “Here, win this ultimate toilet bowl.” Who cares? You’re not really going to change it unless you’re remodeling or unless it breaks. Not a great one. Now, you can but it’s not going to be as easy. It would be something like you would have a how-to guide and then you would get that email list started where people are searching in that market for a problem. Now, if that problem also lended itself to something else in the market that could lead to a passion then we’re starting to get into a hybrid.
[00:11:36] Scott: But in this case, I would say, and you got to ask yourself like and these are some questions to ask yourself like in the market that you’re in, is there a passion or a hobby side of things and a problem side of things or is it just driven by problem? And usually, if you have even like guitar like let's just use that as an example. If I have a guitar, I have problems with that guitar every now and then. My strings break. I got to get new strings. Or maybe I’m refinishing it because the finish, I want to change the finish. It’s not really a problem but it’s technically something I could fix up. But not a lot of stuff that I’m like unless something the wiring went bad. That’s kind of intricate but, yeah, it could but it’s not like a problem like we’re talking about. I’ve got an infestation of a bug and then I’ve got to get it fixed. It’s not that. It’s not my sink is leaking. I got to get it fixed. It’s not that.
It’s like my guitar I want to make it better or I want to make it play better. I want to try a different tuning or whatever. It’s not really a problem although you can kind of argue and say it could be a problem but not really like a problem, problem. Hopefully, that makes sense. So, those are the pros and cons to the problem market. And again, I did some examples here. I’ve got them kind of mapped out. So, let’s just say for example and I did a little research here like a plumber’s snake. Now, this here would be something that you would offer to this market in this problem market. So, for a plumber, they have a clogged drain, someone is going to search for a plumber’s snake. The other thing you could add is probably like a drain cover because you don’t want to get the hair down there because the problem is it’s all full of hair until you snake it out. You’re not going to get the hair out of there are so prevent it, putting a drain cover over top that’s got smaller holes. And then a drain stick and that’s like an easier version of the snake.
[00:13:35] Scott: Well, there’s someone on Amazon right now that’s selling I believe they call it Dr. Drain and they’re selling one product, only one product, and they’re about 2,400 sales per month. The problem with that is that they’re only selling one product. So, some people be like, “I would love to have 2,400 sales.” Yeah, that’s great. But what happens if, number one, that listing goes away because you get in trouble with Amazon or whatever? It’s risky or what happens if someone else comes in and just starts to compete with you and underprice you and then starts to drive your price down and now you’re only banking on the one product? So, this particular brand here, they’re doing okay right now with sales but they’re riding on one thing and what else do they sell them? Well, like I said they could sell them the drain cover, the drain stick but it’s not really something that I would want to go into.
Now, another brand sells drain sticks at $4.99 and they are making or they’re selling 21,795 per month for this $4.99 stick. Okay. But here’s the thing, they sell all repair stuff. That’s their business. Not just plumbing. They sell every kind of gadget and every kind. So, if you wanted to do that, you got to be like the answer to all of these other markets for problems. You would probably sell stuff for the pool industry. You would probably sell stuff for like I said not just plumbing but maybe a home repair. Maybe it could even be automotive stuff like you’re the repair like brand. Now, to me, it's less focused on one market so that also makes it harder to sell that stuff especially if you're trying to do anything like email list building and all that stuff. It's harder to do that because you're spreading yourself off really out in front of all these other sub, sub, submarkets. All right.
[00:15:34] Scott: But they’re doing an okay job and that’s why they can get away with selling a product at $4.99 because it brings people in, not making a lot of money on that product but they’re selling a ton but then from there, they have a whole bunch of other products that people are led to in their brand. But again, why I don’t like that model? There’s no focus on brand or one market and it’s going to be hard to create content and build a real business. Because again it’s kind of scattered. But to some people, it will be like, “Wow. 21,795 sales per month $4.99. It’s not a lot of money.” Maybe even if they made $1 each it’s not bad but unless you have a whole bunch of other products that they’re going to be led to, that’s where you’re going to make the money. So again, the one person that’s selling the one thing, the snake, the plumber’s snake, 2,400 sales, not bad but they don’t have all of those other products that this other brand has to really compete and really build a brand or business around it. So again, just some thoughts there just to think about.
So, let's talk about the passion and hobby markets. Well, people buy what they want. What makes them happy, people buy generally. They need accessories for their hobby or their passion and because of that, you have a lot more things that you can offer that one customer. Wouldn't it be so much easier for you to think that you could sell something to the same customer at different times or even all at once? So, let’s just say for example guitar, someone buys a guitar. They need a guitar strap, they need guitar strings, they need picks. They might need a tuner. They might need a hard-shell case. They might need a guitar stand. They might need one for the wall. I know I have all that stuff. It’s why it’s easy for me to think of that stuff. Those are accessories that I need. I need chords. I might even need a soft carry bag versus having my hard-shell to drag around.
[00:17:34] Scott: Like, all of those things are accessories that I could buy as one customer. Now, I might not by them all right now, but I have a chance to especially frequently bought together. If I’m buying a case, well, it might also have a strap and it might also have a stand there. And I'm just thinking of the fly here. I'd actually have to see exactly what that would be. The other cool thing is in this type of market is it's easier to build a list. Because now we know what they want so we can very easily take that thing or things, make a bundle and then put it out there and run ads to it and get it in front of the right audience and then say, “Hey, you want a chance to win this? Enter your name and email address and then we will enter you in the drawing.” And it’s worked for us time and time again in our new brand and we continue to do that but it’s a great easy way to be able to attract the right people into your ecosystem in a sense to where then you can market to those people later.
So, again, that’s what we really like the hobby market or the passion market because it’s so easy to do that. It’s going to be harder to say, “Here’s your ultimate drain repair kit. Enter to win yours today.” Like that’s not going to really work as well. So anyway, just to kind of illustrate that it’s much easier to do it in a passion/hobby market to build a list. It’s also easier to create how-to content. Now, you could create how-to content on how to fix your drain but people that you want to be able to connect with time and time again like let’s say for example someone entered my contest for the ultimate guitar kit. Now, I follow up with them and I know that they are into electric guitar. They’re also into this certain maybe it’s a flying V guitar and anyone that’s a guitar player, you know what I’m talking about. It’s like a flying V. It’s a special shape. That’s usually going to be like heavy metal/hard rock generally.
[00:19:33] Scott: So, I know that they’re into that stuff so then I can start to give them how-to content, how to play this cool new lick, go here and check it out and then you can see me or someone else showing them how to play this thing. And I could do that over and over and over again, how to restring your guitar in five minutes, like those types of things are going to be ongoing all the time. I actually just subscribed to an Instagram page. I think it’s called Sounds of Guitar, something like that and they have their users submit a minute-long video of them playing and they post it every single day and it’s constantly in my feed. They’re just bringing awareness to their brand from people in their market. Great, great idea. Great idea to get content. But anyway, that’s for another discussion. I thought that was pretty cool. So, it’s easy to find influencers, a lot easier to find influencers when you have a market like this because again, once you find someone that is like in that market and they already have influence in that market then you just have to create a relationship with them or pay them to get in front of their audience. So, it’s another reason why I like that.
It’s easy to build a brand and sell if you want to because again, we’re able to connect with those people. We’re also able to focus on one part of the market and then become like that resource. The ultimate resource for that market is your brand really and then you just happen to sell products around that and it’s also easy to find multiple products when you’re in the space. If you think about it, just think about a passion or a hobby of yours right now and all of the different things that you need to do that thing. It could be a scrapbooker. Let’s say that you’re a scrapbooker. There's a whole bunch of tools that you need to scrapbook. There's also the parts and things that put the scrapbooking together, the things put on the paper. There are also binders. There's also like I said certain tools that cut certain shapes like all of that stuff like that's what that would be.
[00:21:35] Scott: Or if you like to fish, there's a whole like the fishing pole. There's a tackle box. There's a vest. There's a net. There are different components that you would use in the boat like all of those things would be multiple products. So, right now, we’ve covered the problems market, or problem markets and then we’ve also covered passion/hobby markets.
Now, the third one and that’s what I really like, it’s not really its own market. It’s its kind of thing. It’s the hybrid. It’s where you’re taking the two and bringing them together, the hybrid market. That’s where we’re taking passions and hobbies and problems and we’re bringing them together. That’s the best of both worlds. People search for a fixer solution and then how to use and do something. So, ask yourself this question.
Again, in your market, in your brand you have right now if you’re already selling or if you’re thinking about selling and you’re starting to do product research, whatever it is, think about that for a second. What are they buying accessories around that thing and then also think about some problems that they would have while they’re doing that thing? So again, guitar. Strings and how to play. So, strings are a component. They break and then how to play. They need parts to repair and new accessories that they want. I know that myself because sometimes maybe a knob on the guitar breaks. That’s a part to repair it but then you also want new accessories for your guitar. Maybe I want a new strap. Maybe I want a new tremolo system on there or maybe I want a new bag for it or a new case for it. Or maybe I want new chords.
[00:23:32] Scott: So, all of these things are things that I want but also, I don’t necessarily need that. I mean you could argue and say, “Well, you need the case because you’re going to be traveling.” I might just want one because I want one to store it in because I want to protect it, but I want it and I also like it because the one I got was a soft case and I want a hard case so it’s something I want. There’s a whole bunch of other things too with the guitar playing. I mean, heck, we can get into there are certain guitar pedals that you buy. They’re electronics but they're still pedals. There are these jumper chords that go in between them. There's also a pedal board so all your pedals would go on top of that board to keep them organized when you’re playing. They’re up at an angle. I actually built one years ago, a piece of wood and it was like a little ramp kind of like and all my pedals would sit on there. All of that stuff. So, that’s like that market but you got to ask yourself that like what different problems like problem-problems does your market have? But then also are there things that the market is buying because they want them? Not just because they need them because they want them. I think you need both.
And then the cool thing is, again, this quick example using the guitar lessons. So, we can now create how-to content, how to fix their instrument like all of that. So, we have two different things, how to play and then we also have how to fix. So again, for you, you need to ask yourself that. Here’s another example. This is going to be a very unique one. Vitamix. I have a Vitamix blender. I love it. Pretty expensive. Sometimes they’re about $500, $600. I think I got mine for like $475, something like that but they’re pretty expensive but they last. My mother-in-law had one. It was like 25 years old that last forever. And they’re built like a tank. But there are some things that can wear out. There’s like a little gear that goes on the bottom and that could wear out over time, so I got to go find one and actually I did. I did a little research on that and, yeah, I mean I could go and find one. I think they were selling for like $20.
[00:25:33] Scott: But I also could buy some accessories for my Vitamix, tamper tool, a tamper holder, a special spatula, drive socket. That’s what I was trying to think of before, the gear thing there. It’s a drive socket. I need the wrench now that goes with that. It’s a special wrench that fits the drive socket, a wet blade so that’s a different blade than the regular blade and I’m sure there’s a whole bunch of other things that I could think of. But here’s the other thing that we need to also understand for this example, for the hybrid example. Some people would say, “Well, it’s a blender and there are some accessories but where can we make this a hybrid where we can actually go after people that have a passion that own a Vitamix?” Well, the passion could be cooking but it also could be healthy shakes.
So, let’s say that we went after the healthy shake part of it that are owners of these Vitamix. They’re spending a lot of money on the Vitamix and they are health-conscious where they want to be able to create healthy soups. They want to have healthy shakes. They want to make healthy ice cream because you can actually make ice cream in a Vitamix by the way. So, those are some things that I could create content around. I could make these recipes and then I could do how-to content around it and then I also could do different how-tos on how to fix the Vitamix that if it breaks. Or if there was a certain problem that people were having, I could figure out the solution and then write about that or do a video on that. So, it’s all these different things that I could do around the Vitamix because it’s what people are using the Vitamix for. It’s not necessarily just the machine but that’s how I would do that if I was going to be selling Vitamix accessories or repair things and then I would start to figure out accessories built around that. So, again, a couple of examples there, a guitar one I just gave you, the Vitamix one which is kind of unique in itself but really let’s just recap here real quick.
[00:27:38] Scott: There are again three different types and I want you to ask yourself again these questions because again when we ask ourselves questions, we get answers and see where you can find different elements in this market or in the products that you are thinking about selling and see where it would create a hybrid of the two. So, number one, problem-solving markets. So, number one, problem-solving markets, pest control I think is a great example of that one because again it would be kind of hard to make a hybrid of that. You could probably but it’s going to be a little bit harder. Two, passions and hobbies. Guitar fishing photography, Vitamix for healthy shakes and just health conscious people. And then three would be hybrid and that would be taking those two and bringing them together. Now, if you already have a brand like I said I want you to ask yourself what type is your business? What type is your business right now? Can you create a hybrid?
Ask yourself this question, what content would your market search for, for your product? Maybe it’s obvious. Maybe it’s not. Ask yourself that question. What could you offer your market in exchange for their email address? What would they be just like that’s a no-brainer? I’m going to enter my name and email address to either win that or I need that guide because it’s going to help me make five healthy shakes or five different recipes that are going to be healthy that I’m going to be able to use with my vitamins like what is something that people would, it would be a no-brainer that they would do? Ask yourself that question as well. Are there influencers in your market already doing what you could do? That's a great one because now we can actually see what's working and what's not working. Is there a YouTube channel or content on how-to videos in your market around your products?
[00:29:36] Scott: So, these are definitely some good questions to ask yourself to kind of evaluate where you are right now and to start thinking about these different components, these different pieces that you could be building into your brand to, number one, make it a legit brand and also allow you to go out there and reach new people that might not be on Amazon looking for your services right now. And again, we talk about this a lot. We want to be able to have our own asset outside of Amazon which then we can drive sales through Amazon if we want to and that’s going to help us. So again, when we’re thinking about the two different markets and bringing them together, not all will work but a lot will again if you think about your market as a whole and then also what part of the market you are serving. So, just some things to think about, guys. I think that as we move forward here especially with building a brand, this stuff is really, really important and I would definitely say, “Go through and ask yourself those questions.”
[00:30:40] Scott: I’m going to go ahead and link everything up in the show notes. Those questions will be there as well so definitely go over to the show notes, the transcripts. You could find them at TheAmazingSeller.com/491 and that will get you over there. Also, reminder, the Orlando meet up, TheAmazingSeller.com/Orlando and that is March 23. I would love to hang out with you there. And then one last thing before we go, if you guys are stuck right now with like picking a product, I want you to kind of pause for a second and I don't want you to necessarily focus on the product. I want you to focus on the market and then from there, you can start to see the products that the market is buying. If you guys have not went through the 24-hour product discovery challenge, I definitely recommend that you do that. The link to that can be found at TheAmazingSeller.com/Challenge and you’ll see all the details there.
And what that basically will do for you guys is it will really open up your eyes, well, your ears and your eyes and it will allow you to see things differently and really how to focus in on a market where people are buying products and that will open up a whole new way that you go at this finding the next product or the next thing that you want to sell. It’s a lot different but it’s a lot easier when you have a market that you can sell products to so definitely go check out the challenge, TheAmazingSeller.com/Challenge and get all the details there.
All right, guys. So that’s it. That’s going to wrap it up. Remember as always, I’m here for you, I believe in you and I am rooting for you, but you have to, you have to, come on, say it with me, say it loud, say it proud, take action! Have an awesome amazing day and I’ll see you right back here on the next episode.
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