It takes guts to decide to focus on a niche. It feels limiting not going after every one. More often than not, though, marketing to less people actually leads to more business.
How is that possible?
The short answer is that specializing in a niche focuses your marketing, which makes it more compelling. You can’t be all things to all people.
For the longer answer, let’s look at exactly how and why targeted marketing is more effective.
First, it’s easier to rank for long tail keywords. These are phrases that narrow the focus of the searcher and indicate the intent of their search.
For example, a broad term like real estate agent could be someone searching for an agent to work with, but it could just as easily be someone looking to become an agent themselves. But someone searching for best real estate agents in King of Prussia is likely researching agents to help buy or sell a property.
Having a niche also helps you stand out. I don’t have to tell you that you face stiff competition for every potential client. And the more agents those people see, the harder it is to remember each one.
But if you have a specialty to differentiate yourself, those prospects have something to remember. Suddenly, you are the different choice. And that’s the best thing to be. Choosing between similar options is hard. Choosing something different is easy.
Finally, a specialty adds credibility. Even if you don’t have any more knowledge of your niche as a general realtor, people will view you as the expert in that area.
Types of niches
There are several ways to narrow your focus, including:
Most agents know the value of farming specific neighborhoods. Location is one of the easiest niches to cater to, because it’s easy to target those people. This means that you usually face more competition, but if you really devote yourself to your target areas, you can own that niche.
Get to know the people who live there. Learn as much as you can about the area. Create a presence their. You goal is to be the go-to source for real estate advice and information on those particular areas.
I’ve read about agents who have built large client bases serving specific groups, such as single moms or Hispanics. You could also cater to the needs of Millennials or people in their golden years.
If you do choose a demographic niche, be careful not to alienate anyone or violate fair housing laws. Demonstrate that you have experience meeting the needs of these people without explicitly stating that they are your preferred clients.
One technique is to choose photos representing your target market in your marketing materials. Another is to use testimonials or case studies about how you’ve helped specific people in that demographic.
A third option is to focus more on the property attributes than the prospect attributes. For instance, you could specialize in luxury homes, historic homes, waterfront properties, or golf communities.
In a survey of buyers and sellers conducted by the NATIONAL ASSOCIATION OF REALTORS®, 80 percent of buyers stated they would prefer to work with a real estate practitioner who’s focused on a particular type of property.
How to find your niche
Once you decide to specialize, you need to decide what that specialty will be. As you’ve seen, there are plenty of options.
Which is best for you?
Try these three strategies.
- Cater to your sphere of influence. Whether you’ve been an agent for years or are just starting out, you have contacts that could provide referrals or become clients themselves. Do a majority of your closest contents fit into one of the areas above? Use that as your starting point.
- Follow your passions. Are you yourself drawn to a particular property type or affinity that you can leverage into a niche? If so, then chances are you already have extensive knowledge and genuine excitement, which will serve you well.
- Crunch the numbers. Unless you’re just in real estate as a hobby, your niche needs to be profitable. Make sure there is a large enough market for whatever it is you want to specialize in, and that the competition is relatively low in comparison.
One last thought:
Just because you focus on a specific segment of business, doesn’t mean that you’re shutting out all others. In fact, it could lead to new opportunities when your satisfied clients come back to you again or refer you to people they know.