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Why Your Secondary Target Market Matters More Than You Think
Thursday, June 15, 2023
In this short post, we’ll be discussing your secondary target markets. Now, many don’t really look into this. And it almost doesn’t even exist for 95% of businesses.
Everyone on the internet is an expert in “niching” down and picking one market, which can get you started – but having an additional secondary market that is complementary is more important than you may think.
Now before we go in-depth on markets…there are 2 types of secondary markets. One is going wide, another is going up or down.
Here’s an example, think of your market as Chiropractors, and you help them get leads. You run the same ads, funnel, and emails. Now what if you could go to similar businesses? Think PTs, they have a very similar target market and offer similar services. What about yoga? How about Osteopaths? So that is going wide in a market and getting a similar clientele to the one you already have.
Going up market or down market creates new offers that would serve the same market but on a higher level.
Think Fortune 500 companies or chains. You will likely need a new offer or a custom-built plan for such companies. And as much as I hate going through a whole bunch of people or through a committee, the other option is going down market, to people who may be a one-person show. Or someone who has 1-2 employees, and cater your offer to them.
If you’re wondering, “Well, why would you do that?” here are a few reasons why:
If there's one thing I've seen too often, its businesses fixated on their primary market like a dog on a bone, completely neglecting their secondary market. In fact, your secondary market can be a gold mine - a gold mine that's more crucial than you might think.
1. Untapped Potential:
Think of your secondary target market as the wild west of expansion opportunities. Here, you might just find your business branching out and diversifying in ways you didn't foresee.
Over time, your so-called secondary market could well turn into your main game for a slew of reasons – especially if you’re small.
The truth is, there are still thousands of businesses that have zero clue about what they’re doing, whether its marketing, systems, sales, or even hiring. Which leaves a big gap in the market that someone can go in and tap into. Especially when the backend fulfillment system is dialed into an SOP (Standard Operating Procedure).
2. Cash Flow Safety Net:
You're in business to make money, right?
Well, don't ignore the steady stream of revenue your secondary market can provide.
Sure, your primary market might bring in the big bucks, but a safety net never hurts. Ultimately it helps keep paying the bills and lowers your cost to generate a customer over time, especially if you have a referral system in place between multiple businesses or cross markets.
3. Bigger and Better Reputation
Who doesn't like a business that can juggle?
Catering to more than one segment doesn't just demonstrate your agility—it shows you’re attuned to the needs of diverse customers. That's a big tick in the reputation box. This allows for people to mention you over and over and over again.
And sometimes, the perceived reputation is almost as important as the true reputation you, your business or your product or service holds. We all judge from the outside.
4. Cross-Market Promotion:
I always love when other businesses can mention me, especially when it’s similar to markets.
A gym recommending a chiropractor is a good example.
A general dentist referring to a specialist is also another example.
You want to create great JV/Referral partners whether you are online or offline. And this relates to my earlier example of going wide and how it creates many different referral partnerships that you would’ve never had before.
5. All Your Eggs in One Basket? Bad Idea:
Relying on one market is like walking a tightrope without a safety net. If that primary market takes a hit, where does that leave you?
Your secondary market can act as your buffer, your shield. It keeps the employees paid and on payroll so you can find ways to go after the bigger fish.
6. Knowledge Is Power:
I’ve learned more in other markets than the market I’m in. There are strategies, tactics, and blueprints used in another market that give me ideas I can use in my own market.
So getting to know your secondary markets, you're arming yourself with powerful insights. You'll understand trends and preferences before they even reach your primary market, and you can be the first person to do so in your own market.
7. Competitive Edge:
By catering to a market that your rivals aren't, you're crafting a unique selling proposition.
This can be your secret weapon, a way to outmaneuver your competition and secure your spot in the market. There is no being nice and playing it cool. You always want an unfair advantage, a one-up over everyone.
In the book Russell Brunson and I are working on together, he tells the beautiful story of the dumb venture capitalist who couldn’t grasp what Russell was explaining: about how he whipped two competing, enormously well-funded, VC-backed software firms, taking ClickFunnels to $100-Million in 36 months with its capital credit card with a $1,000.00 spend limit per day.
Russell was certainly at a funding disadvantage, yet he manufactured an unfair advantage that the big dogs did not have and could not understand even though its secrets were visible: a complete, comprehensive, multistep advertising to marketing to selling system.
So this is why having secondary markets is important. Don’t sleep on ‘em, and use ‘em to outwit your competition because they won’t be even thinking of it, let alone using it.
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