Article: Gone Nichin'

Defining Your Niche in a Changing Marketplace

You’ve probably heard many agents and trainers say that the best way to stay in business in a changing market is to get back to the basics — to generate business the old-fashioned way with sphere of influence, farming and all the things successful agents do in every market. However, the trend today is for more specialization. You won’t be successful trying to be all things for all people. You need to focus your attention on an area that you know and enjoy, something which will set you apart while creating a steady flow of business.

Finding a niche doesn’t just mean finding a part of the market that is underserved so that you can work where there is less competition. It should also be an area where you can easily develop an expertise and hopefully one that you will enjoy working. You should also remember that today’s market conditions aren’t the only thing that has changed; so have the ways we keep in touch and cultivate the relationships that bring us business.

We must use the Internet, e-mail and technology to serve our niche consumers. Develop a specialized Web site, blog or electronic newsletter that will reinforce your niche expertise and reach more of this demographic.

What’s Out There
What are some of the popular niche markets available today? Well, “green” is the newest and fastest growing given all the media hype of this topic. According to the National Association of REALTORS® 2007 Homebuyers Survey, 46 percent of buyers consider energy efficiency to be very important when buying a home. The EcoBroker Certification, as well as NAR’s new Green Designation, will give you the tools to attract and serve today’s green-conscious consumers.

Another fast-growing niche is the Certified International Property Specialist (CIPS) program with its emphasis on serving the international market in our local communities by focusing on culture, investment trends, legal issues and so on. With the large population of Baby Boomers (20 percent of the population is over 50), there is a definite niche available with the seniors market. NAR’s Seniors Real Estate Specialist (SRES) program will help you to understand how to work with this consumer group.

If you want to take it a step further, consider a niche within a niche. For example, in the senior’s group you might specialize in resort and second home properties because many of the Baby Boomer generation do own vacation homes and investment properties as part of their portfolio.

How to Maximize Niche Markets
There are several key steps to take for any niche you select. First, clearly define the demographic you are addressing, whether it’s Boomers, luxury home buyers or green consumers, for example. Know who you want to target, and stay within those parameters. Remember to keep the group large enough to generate a continuous stream of business, yet small enough to manage and keep it as personal as possible.

Next develop a marketing plan. How will you market to this group effectively to attract their business? Some great suggestions for kicking off a niche campaign are to hold seminars or speak at local community groups that contain members from your niche demographic.

Another tactic is to bring in a team of other professionals who also serve that demographic. Together you can pool advertising ideas and funds, as well as share databases of clients and make recommendations to grow all your businesses. Again remember to tie in Web sites and blogs for today’s Web 2.0 consumers.

Finally, be consistent and don’t drop the ball. Follow through on your business plan and stay in touch with your niche on a regular basis. Have more frequent contact in the first three months, and then taper off to a monthly “drip” system. It takes about seven touches for someone to actually remember your message, so that frequent marketing early on will help to establish your expertise in the niche you have chosen.

These are just a few of the many areas that you can develop as a niche, and there are many certification programs that focus on specializations, such as short sales and foreclosures, luxury properties, home staging, buyer representation or Internet specialists.

Or you could discover your own area of specialization to create your niche, whether it’s gardening or horses or whatever you have a passion for. For me the new niche is green. I’ve developed my plan, organized my green group, and now I’ve gone “nichin.’” What are you waiting for? Get started today.

Marilyn Urso, CRB, CRS, GRI, PMN, of Long Island Village Realty, Inc., in Syosset, NY, can be reached at 516-921-0220 or wcrli@aol.com. Her Web site is LIVillageRealty.com. She also holds the EcoBroker certification.

Posted November 2008