How-To
How to validate a profitable niche using Eben Pagan's three-question test -- A systematic approach to discovering and validating niches that have high probability of success
Teaching16:03
Daily Customer Conversations Reveal Niche Qualification Patterns
Talk to a minimum of one prospective customer every single day live - in person, on Skype, or telephone. Ask about their biggest problems, frustrations, wants, and what they've tried that didn't work. After several weeks, you'll see patterns and know if they meet the three niche criteria.
Teaching8:38
Three-Question Niche Test for High-Probability Market Selection
Use Eben Pagan's three-question niche test: 1) Is your customer motivated by pain/urgency or irrational passion? 2) Are they proactively looking for solutions? 3) Do they have few or no perceived options? If yes to all three, you've found a high-probability niche.
Teaching18:04
Customer Interview Questions to Get Inside Their Head
Ask what motivates them, their biggest fears and frustrations, their wants and aspirations, what they're doing to solve problems, what they've tried that didn't work, and what they think the solution is. Learn how they think and get inside their head.
Teaching
Choosing vs Discovering a Niche — A Critical Distinction
Choosing a niche means picking what you want to sell. Discovering a niche means identifying unmet customer needs by understanding what your prospects are actually going through - their fears, frustrations, and aspirations in their own words.
Teaching14:04
Narrowing Your Niche Creates Premium Pricing Power
Narrowing your niche is better because you can carve off a small chunk of a big market where people have specific unmet needs, allowing you to dominate that space without competing on price and charge premium prices.
Teaching7:52
Niche Test Question One: Pain Urgency or Irrational Passion
Question 1 of the niche test: Is my prospective customer motivated by pain and urgency or irrational passion? Look for customers who are already emotionally driven, not ones you need to motivate
Teaching16:34
Defining Niche by Customer Need Not Demographics
Think of your niche as the specific need your customer has, not as your product or customer demographic - focus on their fears, frustrations, wants, and aspirations in their exact words
Teaching8:38
Niche Test Question Three: Do Customers See Few Options
Question 3 of the niche test: Does my prospective customer have few or no perceived options? Avoid competing on price by targeting niches where you can be the only or one of few options
Teaching4:41
Niches Are Discovered Then Developed by Going Deeper
Niches are discovered and then developed - you discover a niche by finding an unmet need, then develop it by going deeper, getting more focused, and isolating that specific need
Teaching11:50
Niche Test Question Two Proactive Solution Seekers
Question 2 of the niche test: Is my prospective customer proactively looking for solutions? Target people who have gotten off their lazy butt and are actively seeking solutions
Teaching16:34
Narrow Your Niche to Carve Out an Unmet Need
Narrowing your niche is better than widening your niche - start with a big niche where there are lots of customers, then carve off a small chunk where people have unmet needs