I’ve written about real estate marketing niches in the past, but the question of niche marketing came up again recently, and I thought it was time for an update.  Here is some basic information on the topic:

• Definition:  A market niche is a distinct segment of a market.
• Benefits of niche marketing:
• You reduce the number of people with whom you compete.
• Prospects are less likely to focus on commission rates.
• You can focus your marketing budget and services to a specific group of people.
• You can become an expert in a specific niche, further differentiating yourself in the market.
• You can take advantage of your strengths.
• You can work in an area you know and love.

Why People Don’t Identify Real Estate Marketing Niches

Looking at the benefits of niche marketing, and the information on this post on real estate niche marketing, you’d think every real estate professional would immediately define their own niche.

But, that doesn’t happen.  And, the biggest reason that people avoid defining a niche is fear.  People are afraid that if they narrow the focus of their marketing efforts, they will be walking away from lots of good business.  Or, they’re afraid that no one outside of their niche will ever work with them.

Another thing that makes people avoid defining a niche is that they never analyze their market and their strengths to come to the realization that they could easily define a niche and it would help them meet their goals, not hinder them.

Finally, lots of people are proud of their generalist skills and don’t see how narrowing their marketing focus would  help them.  For example, if your people skills and knowledge would allow you to work with anyone on any type of a real estate transaction, you can fall into to the trap of thinking that remaining a generalist is going to be the path to fame and fortune.

The Simple Way to Define a Real Estate Marketing Niche

Let’s say that you are at least curious about how a marketing niche could help you improve your business.   There are far-reaching processes you can use to define a niche, and those undertakings are worthwhile and do get you right where you want to go.

However, if you want to try a quick and dirty methodology, here it is.  Ask yourself:

1. Are there groups of buyers and sellers in your market that share the same interests or needs?
2. Does that group do enough buying and selling activity to let your business prosper?
3. Are most of the transactions for that group handled by a specific real estate agent or agents?
4. What services do I (or could I) provide to meet that group’s specific needs?
5. How can I effectively market to that group?

Any ideas on how to answer those five questions?  Anyone have any insight from their own experience of marketing to a niche?  Any questions?  Leave a comment.

And, stay tuned for Part II – a brief discussion of how to go about answering those questions!