QA 87 – Matthew Kimberley Answers "How to Market to a Small Niche?"

In today's Q&A, we are helping Olgierd, decide if he should individually contact his market or build a sales funnel to send traffic to. Do you have a question you want answered on our podcast? We would love to help you! Click here to ask your question! [Tweet "Build A Relationship on Trust in Your Target Market"] Resources Mentioned in this Episode Today's expert is Matthew Kimberley at Matthew Kimberley's Website Flipped Lifestyle Membership How to Get A Grip Book Yourself Solid School Let's dive into this week's question! JOCELYN: Hey y'all! You're listening to an Expert Q&A with S&J. Today's expert is Matthew Kimberley at matthewkimberley.com. Welcome to the Flipped Lifestyle podcast, where life always comes before work. We're your hosts, Shane and Jocelyn Sams. Join us, each week, as we teach you how to flip your lifestyle upside-down, by selling stuff online. Are you ready for something different? All right, let's get started. SHANE: What's going on guys? Welcome back to the Flipped Lifestyle podcast; we have got another Expert Q&A on the show today with you, and we are excited to bring back one of our favorite guests; it is Matthew Kimberley of matthewkimberley.com. Matthew welcome back to the show. MATTHEW: Thank you for having me back, Shane and Jocelyn. JOCELYN: Yeah, we are really excited to have you. Today we have a question from, now I'm going to try this, Olgierd, and we actually looked this up online, how to pronounce this and that is the Kentucky pronunciation – SHANE: O-L-G-I-E-R-D [Unclear] or something, I'm not sure. JOCELYN: Yeah, we are so sorry, Olgierd; I think that's right. Okay, so it says, "I have a question related to markets size. I have a solution for an industry with about 100 or 200 prospects. Should I contact each individual person in my market, or build a sales funnel to attract them, or is this market size even worth it?" SHANE: This was a very interesting question Matthew; Olgierd is actually a member of our Flip Your Life community. If you would like to learn more about that, you can flippedlifestyle.com/flipyourlife and he really has fleshed out this and he is in an industry that is kind of B2B and it's more like a furniture industry. So we've been helping him kind of sort through his avatar and his sales funnel in our forums, and he really only has about 200 companies that he can reach. But I think they are all going to be pretty big contracts if he did follow through with whatever services he is providing. So what do you think about that? Is this worth it? With that few people, should he just go ahead and try and contact them or is there some other form of marketing that might work here? MATTHEW: Okay, so it's a two-part question. Let's deal with the last one first, "Is the market size even worth it?" You got to do your math in order to work out whether or not it's going to be worthwhile. You know, work out what the average lifetime value of a decent customer would be, test it against whether your projections are true or not, perhaps with your first and then second customer, and then move on. But certainly, I would say how many clients do you need? You are in the furniture industry, no other context perhaps you need, five clients, six clients, ten clients in order to have a sustainable business. Perhaps it would be great if you had 200; I don't know. There are probably only a handful of aircraft engine manufacturers in the world, probably fewer than a hundred, I'd say, but there are going to be some people who are making a full-time living for their families and their employees on the back of just serving two or three of those companies. SHANE: And you said something – let me jump in real quick just for our listeners, the lifetime value of a customer basically boils down to how often they pay you; like frequency. Like if you sell one thing for 300 dollars and you never sell that person anything again, the lifetime value is 300.