Common Question

How do I position my business in premium market segments?

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AnswerFrom the source
Yes, but be very careful. Success outside the big three mega-niches requires massive emotional passion from your audience who treat the topic like a religion. Examples include golf, fantasy sports, and musical instruments where people become irrationally passionate.

Also asked as

move my business upmarket to charge higher pricesI'm tired of competing on price with everyone elseI want to attract premium clients who don't hagglepremium positioning high end market coachingstop racing to the bottom on pricing

Eben's Answer

Not every market is worth entering. I use a three-question niche test to filter high-probability opportunities from traps. First: is the customer motivated by pain, urgency, or irrational passion — or are they just casually interested? Second: are they proactively searching for solutions, or do they need to be convinced they have a problem? Third: from their perspective, do they have few or no perceived options? If you get yes to all three, you've found a high-probability niche. Narrow is better than broad — carve off a specific segment of a large market where people have unmet needs, and you can command premium prices without competing on cost. Discover the niche; don't choose it.

Read the full canonical answer →

Reframe

Premium positioning isn't about raising prices — it's about narrowing your audience and deepening your expertise until you're the obvious choice for a specific outcome.

Relevant Clips261

  • Teaching6:55

    High-Value Problem Coaching Charges 100 to 200 Per Session

    Personal coaching, especially problem-oriented coaching around health, weight loss, relationships, dating, and debt, represents huge opportunities charging $100-200+ per session because having someone hold your hand through problems creates significant value

  • Teaching3:13

    Layer Niche Selection Strategies to Boost Success

    Layer multiple niche selection strategies together - niche testing, customer research, narrowing focus, problem-solving orientation, mega-niche selection, and beginner appeal - to dramatically increase success probability

  • Teaching1:17

    Why Generic Self-Introductions Fail to Attract Prospects

    Most people answer 'what do you do' with generic statements about themselves like 'I'm a writer' or 'I'm a relationship coach' - this approach fails because it's all about them instead of the prospect's needs

  • Teaching7:07

    Education Marketing Establishes You as the Trusted Advisor

    Education marketing positions you as a trusted advisor by teaching prospects what they don't know they don't know - the right questions to ask, expensive mistakes to avoid, and how to make good decisions

  • Teaching14:33

    Niche Depth Creates a Natural Moat Around Your Market

    The more niched you are and the more of an expert you are on that niche, the more you have what Warren Buffett calls a natural moat around your castle with natural protection of your market

  • 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

  • Teaching8:22

    Better to Be First in the Customer's Mind Than Best

    It's better to be first in the customer's mind than to be better - humans create mental categories for new information, and once those categories are full, it's hard to add new things.

  • Teaching12:40

    Name the Category You Create

    Once you create your category, name it to mark it out in customers' minds - Eben created and named the category of 'dating advice for men' online, establishing leadership position.

  • Teaching2:25

    Building a Single Ideal Customer Avatar

    Create a customer avatar by combining all your customers into one imaginary person with only the traits of your ideal customer, including demographics, income, fears, and desires.

  • Teaching13:14

    Narrow Your Category to Own It

    Create specific enough categories to be first - instead of general 'health' coaching, narrow down to something like 'natural weight loss for women' to find a category you can own.

  • 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

  • Teaching9:50

    Three-Question Niche Viability Test

    Use the three-question niche test: Does your prospect have an emotional irrational need? Are they proactively looking for solutions? Do they have few or no perceived options?

Show 249 more

Other answers29

10x ROI framing justifies premium product prices

Prospects unconsciously ask two questions before buying: 'How can I know this is worth far more than I'm paying?' and 'Can you prove the result you're promising?' Your pricing presentation must answer both. First, identify your prospect's unique currency — what they're truly trying to accomplish. Then translate your product's benefits into their terms and connect them to dollar values using conservative estimates. Show at least a 10x return on investment even in worst-case scenarios; backing off from your biggest promises builds more credibility than overselling. A simple formula: take their aspirational income, divide by half, remove three zeros to get an hourly rate. You can also anchor price by referencing what live training would cost, then positioning the digital version as a discount on the same value.

Always test higher prices counterintuitive results

Always test higher prices — you might be surprised. When I raised my ebook from $29.95 to $39.95, sales volume actually increased and total revenue went up, defying conventional wisdom about price and demand. Test multiple price points on every launch. Even a 10 percent price increase that maintains your conversion rate can double profitability. Most entrepreneurs undercharge because they assume they know the right price without testing it. The marketplace will tell you what price maximizes revenue, but only if you actually run the test. Price is a variable, not a fixed truth. Treat it like any other assumption — go check if it's right.

Category Creation: Be First Rather Than Best

Competing in crowded categories is a losing game — you're always fighting uphill against whoever got there first. The leverage move is to create a new category where you can be first. When you're the original, you have enormous built-in persuasion power: you set the frame, you define what good looks like, and competitors are permanently positioned as coming after you. In any sizable marketplace, there are always groups of people with unmet needs that existing companies aren't serving. That's your opening. The goal is to position yourself as the leader of that new category from day one — name it, define it, own the vocabulary. Then connect your category directly to the emotional problem your ideal customer experiences and can't find a perfect solution for anywhere else. First mover in a well-chosen niche beats best in a crowded one almost every time.

Category creation beats competing in crowded markets

Human minds can hold approximately seven items per category before they're full. First-mover advantage is real — people remember and choose the first thing that comes to mind, not necessarily the best. That means fighting for position in a saturated market is almost always the wrong strategy. The winning move is creating an entirely new category where you are first by definition. You don't need decades of history. Creating something genuinely unique makes you the original. This is how David D'Angelo created the 'dating advice for men' category, how I created the 'information product business' category. Look at where your industry is heading in ten years, stake a position in that emerging niche today, create content and build a reputation there before it becomes crowded. First in the mind beats first in the market.

Category creation makes you the obvious premium choice

When you're one of many similar products in a crowded market, you're competing on price and features — a race to the bottom. When you create a category, you become the originator and leader, which changes everything. People prefer to work with number one in a category. Category creation attracts premium partnerships and clients because instead of presenting yourself as another option, you're presenting yourself as the obvious choice. Position your solution as uniquely appealing and new — humans automatically value new information and current techniques, often discounting older content even when it's still valuable. Make your approach feel genuinely different and current. This isn't just a positioning trick. It's about carving out a distinct niche where you're not competing with anyone — you're defining the space.