I talk to a lot of agents about identifying a niche market to go after. Those discussions end in different ways. Some agents immediately see the value of a niche, others really feel that narrowing their marketing focus will be detrimental.
There are a couple things I try to communicate about defining a niche:
1. Defining a niche doesn't mean that you eliminate all other prospects. If you specialize in working with people who are relocating, that doesn't mean that you won't work with local buyers or sellers. It just means that you don't market to the local folks.
2. Most (perhaps all) successful businesses define a niche. I always tell people that one strength I bring to the table is the ability to apply good marketing principles to the real estate industry. At times, it makes me sound like a nut, but I keep after it anyway.
Think of any business that comes to your mind and ask yourself if they have a niche. Let's take cleaning products, for instance. Have you ever been unlucky enough to be watching television during the day - maybe during a bout of the flu? Have you noticed that there are tons of commercials for cleaning products during the day?
Could that be marketing to a niche? There are many more women responsible for cleaning the house watching television during the day. The cleaning product manufacturers know that men and women working outside the home may also use their products, but they don't market to them.
Do you have a luxury magazine in your city? We do here in Atlanta. How many ads do you think there are in that magazine for luxury cars? How about pickup trucks? Sure, the pickup manufacturers know that someone with a lot of money might buy a pickup truck. But, they don't market to them.
So, the next time you are thinking about a niche market, keep in mind that every human being on the planet might buy a home from you, but do you want to market to them?