I’m at the first day of our Roundtable Meeting in Puerto Rico this morning, and the subject of the economy came up, as it always does.
One member, Clifford, runs a very niche business that sells a personal development tools and training to a very specific audience.
Jaco Bolle of Function42 Marketing and Scott Martineau of Infusion, just outside our meeting room overlooking the Caribbean ocean
He says, “During October and November when the stock market was plunging into ruin, I would watch my sales carefully.
“Every time the DOW took a plunge, sales would pause for a day… then it would go back up and everybody who was waiting to buy would buy. Sales have really been just fine. It takes a little creativity to stay ahead but it really hasn’t been a problem.”
I look around the room and everybody’s nodding. I haven’t taken a formal survey but I’m going to guess that the average business in the room is up 20% over last year. One company got its 2nd round of Venture Capital and has knocked out walls to add new employees. They added several dozen new hires in 2008 and more in ’09.
Businesses that cater to peoples’ passions and personal interests are always steady, even in a recession.
This is the power of niche marketing. Yes, certain markets like real estate and banking are terrible. But I even have a member who sells real estate coaching who is doing extremely well. He started his business just when the crash started, 18 months ago.
I cannot repeat too often the fact that the media people who tell you the news are, themselves, in one of the hardest hit businesses that exists. Their business is being decimated by the Internet. Your business is profiting from it. Bad news for them is good news for you.
And yes, Roundtable Members are an exceptional group but that’s why they’re in Roundtable in the first place. They hear about all the garbage but refuse to participate in it – and sharpen their saw instead. We’re all here improving our game. Some people got their money’s worth by 10am today.
Stand against the negativity and enjoy the victory of selling, even in a down economy. Relish the opportunity to buck the trend – and buck it.
Perry Marshall
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About the Author
Perry Marshall has launched two revolutions in sales and marketing. In Pay-Per-Click advertising, he pioneered best practices and wrote the world's best selling book on Google advertising. And he's driven the 80/20 Principle deeper than any other author, creating a new movement in business.
He is referenced across the Internet and by Harvard Business Review, The New York Times, INC and Forbes Magazine.
14 Comments on “The Safe Harbor of a Niche Business”
Hi Perry,
As usual very well said.
I live in Ireland and here is the same,I’m tired of the papers’ and the media’s gloom and doom.
I couldn’t agree with you more.
Thank you for this well-written post.
Noemi
Good sound advice as always, Perry, and well-written as always.
Our business looks like being many times bigger and better in 2009 than it was in 2008. Yes, there will be challenges, but we’ll be fine because we’ll supply what people are looking for, based on our skill set and resources, with an emphasis on quality and integrity.
Roy
I think the internet gives you a massive opportunity to access other countries that may not be doing so badly.
Hi Perry – couldn’t agree more.
I once heard this comment from Robert Kiyosaki (who I used to work with a few years back, before he wrote his first book. I actually have an autographed copy of “If you want to be Rich and Happy …”)
“In a recession there are always people making money. In a boom there are always businesses going bust.”
I personally don’t think it has ANYTHING to do with so-called “recession-proof” or even niche-based businesses (though the comfort-based products “should” be easier to sell in these times).
I think it has much more to do with the capacity of the entrepreneur/businessperson to continuously build innovative value propositions while simultaneously looking after the business systems that underpin stability – no mean task, but essential for profiting in any environment …
My 2c!
Thanks Perry & all other commentators – always a good read.
Robert
My sentiments are the same as the others posting here. Our revenue grew over 50% in 2007, over 50% in 2008, and we’re already headed for a banner 2009 with a target of 50% or more growth. People are still spending money. You just have to run your business wisely, take care of your customers better than anyone else, and be the company they continue to choose.
At the tender age of two I was shusted into the first great depression.Now at almost 82 they tell me that it is happening again.In 1929 people panicked and rushed to take their money out of the banks.In 2008-09 the CEO’s and Big Financial Inst’s took away the money in the banks.A subtle difference but one that will be significant. 1929 panic and fear 2009 Anger and aggravation. I don’t find the correlation to be akin enough to send us down the slide again.That’s just an old man’s opinion. Alvien
I would like to know how this worked out in Argentina, which suffered a near-total collapse of the economy after huge agribiz bought most of its farmland and sells its produce abroad–thus collapsing the base of civilization–a secure food supply. They collapsed in 2001–only 5% still middle class.
We might be in for a crash of such magnitude.
Perry, I couldn’t agree more – my niche businesses are doing just fine right now. As for the media, I just turn it off and concentrate on my business and clients. Great post.
Thank you. I learn optimism from you. And find always good advises. I began to sell jewelry made myself and can confirm that the persons do not think about crisis when they have to buy something for their soul, for peasure. I’m so too.
But I not agree with agressive marketing because people are afraid to ask something, to live the address, to look something. So much are they afraid of the vendors. So, I make much to explain them that they are not obligued to buy. Ask!(=stop!,turn different times,and finally buy). Maybe I am wrong, but I see that the readers become “askers” now and stopped once turn to buy too.
:-))) Confess. I like not only your advises. I adore your english and read your articles to learn “alive” language too. It’s a real pleasure for a phylologist to read your articles.
We’ve noticed the same thing. We’re in the chocolate business, and we’ve been seeing strong growth through these “down” times. Any type of “feel-good” product traditionally does very well in times of recession, with the big three being chocolate, tobacco, and alcohol. A phrase we’ve heard from a colleague of ours puts it best, “When they take your house and repossess your car, you somehow find the money to have a piece of chocolate, a cigarette, and a beer.”
Money may be tight for a lot of folks, but all that means is that people are prioritizing what they buy. If your product fits into a “must-have” category in your consumers’ minds, you should do just fine. If not, well, maybe it’s time to branch out a bit…
This is so on target! My husband and I write websites on topics that we are passionate about, and so are our readers, and both November and December set records for us. Not really related to the holidays either!
My business is up 175% on last year (so far) and that was 170% up on the year before. Seems growing your own food and frugal living was the right hobby to turn into a business!
It’s interesting to read other niche markets are doing well, I suppose people with a struggling business are looking for training and help to survive.
Thanks for reminding us about the sky-is-falling naysayers. They’re stuck in their own Dungeon of Delight. While plenty of ’em are bigge, with larger budgets and more advertising coin to spend, they certaintly can’t out think you if you put up the time, effort and creative energy.
Hey Perry,
Wish I was there with you and the gang! Tell everybody “hello” for me and have fun down in sunny PR.
Sincerely,
Derek Naylor