Episode 45 – Selling to These 2 Market Types Will Make You Rich

Introduction    00:00:03    Marketing, explosive growth, and revolutionary secrets that can catapult your business to new heights. You’re now listening to The Underground Marketer Podcast with your host Tudor Dumitrescu, the one podcast devoted to showing new businesses how to market themselves for high growth.  

Tudor Dumitrescu     00:00:25    Welcome to the underground marketer. This is the place where we deliver the real truth about marketing and explore big ideas that can help new businesses thrive and grow into big ones. I’m your host Tudor. And today I want to address a topic that one of you, one of the listeners, has sent me, basically, he was asking, what are the best markets to get into? If you want to sell products or services, what are the best markets to get into? And the answer to that is that the best markets are markets, where people have something that’s driving them to make a purchase. And usually there’s something that’s stronger than just the desire for gain. It’s like an obsession. So I like to think of these markets as the markets that are driven by passion. These markets are generally evergreen and they’re always sustainable, regardless of what you do.  

Tudor Dumitrescu     00:01:19    There’s always going to be people in those markets. It’s not something that comes and goes, it’s there to stay. Apart from the markets that are driven by passion (and we’re going to cover these in a bit more detail), there are also the markets that are driven by the fundamental human needs, like health, the desire for belonging or for love – that’s the second one – and the third one is the desire for power, for money, which is really sort of the same thing, ultimately. So these two categories of markets, markets driven by passion and then markets that are driven by one of the three fundamental human desires. They’re evergreen. They’re always going to be there. People are going to be willing to pay top dollar in those markets for whatever is on offer. And the offers always change. Most of those markets end up going through cycles and through new mechanisms of delivering the same kind of benefit to them.  

Tudor Dumitrescu     00:02:14    Take an example like weight loss, right? Weight loss addresses two fundamental markets really at the same time. So number one, it’s health and number two is relationships, belonging and dating because obviously if you’re fat, you’re not as attractive and it’s more difficult to get a partner. It’s more difficult to feel good about yourself and confident about yourself. So if you take a market like that, you will see that historically the benefit is the same. The benefit is losing weight, but the mechanisms of achieving that keep changing one time. We’ve had mechanisms which were just through exercise, but now a lot of people, they have tried exercise and they couldn’t lose weight. They couldn’t keep up at it. So they’re not satisfied with exercise anymore. They’re looking for a new mechanism, get that same benefit. That’s how pills came along or surgery came along and all the other mechanisms that we have for actually losing weight.  

Tudor Dumitrescu     00:03:08    That’s how all of them actually came about. And it’s this cycle of the market going from one mechanism to another in popularity that really drives those markets. And they’re evergreen. It’s like they’re circular. They’re like a spiral which keeps going up and up in the sense that the mechanisms are changing and they’re getting better or not necessarily better, but different over time. And it’s what drives the market. The market is never going to run out. We’re always going to have people who have fat problems and weight loss problems. So it’s an evergreen market. The same can be said about the market’s driven by passion. So think about people, for example, who are passionate about golf, they spend hundreds, some of them, thousands of dollars every month on golf. And what’s the reason behind it. It’s just that they’re passionate about the sport, their passion, whatever it is, doesn’t have to be a sport, makes them feel alive.  

Tudor Dumitrescu     00:04:07    It gives them a meaning in life that they wouldn’t have without it. And that’s so precious to them that people spend hundreds of dollars on them. So when I advise people who are looking for markets, I always say, start by looking either for passions or around markets that are involved with these three essential needs of human beings that we discussed. And you can look into sub-markets. For example, if you pick something like golf and there’s a sub market for people who want to improve their swing, right, to improve their points in golf. So that’s one sub market. There’s a sub market for other people who maybe want easier transportation on the golf course or who want to stand out to other people on the golf course. All these are possibilities and it’s your job really to figure them out and to figure out where you fit in.  

Tudor Dumitrescu     00:04:59    Normally what I advise people is to look for stuff that’s hot in that market. What’s already selling. Maybe you find that some training course with a special swing for the golf club, that’s trending and it’s really popular. Then you can look into doing something similar or something that may even be complementary to that. But whatever you do, if you have a chance to pick your market beforehand, and you know that you want to sell some product to them, try to go after one of those hot markets, either a passion-based market or a market that’s based around their needs. The alternative is that you go after some sort of new or emerging market. And if it’s not tied into a passion, if it’s not tied into a need that human beings fundamentally have, then what you risk doing is stepping into a fad like a few years ago, there was a fad with these spinners that they would sell it.  

Tudor Dumitrescu     00:05:56    They sold a lot of them, but what happened is that ultimately people got bored of them. And a lot of sellers, they ended up buying huge volumes of those spinners and then they couldn’t sell them. They couldn’t get them to unload the inventory, basically. So that’s what can happen if you step into a market that doesn’t have the potential to be evergreen and to sustain you in actually growing a business because, and this is another mindset shift and that’s supremely important. And a lot of people don’t understand it. You have to position yourself in a market that actually enables you to build a business rather than make a sale. Too many people. They just want to make a sale. And in their effort and making a sale, they do whatever is going to get them a sale, the quickest. But of course, often that’s not actually, what’s going to help you build a business in the long run.  

Tudor Dumitrescu     00:06:49    And what happens is that you make a sale or a bunch today, and then tomorrow you find out that you actually have no business and you have to put in more and more work to get more sales, right? That’s not ideal. The ideal is that you start making sales and there comes a point where those sales come to you by themselves, right? You have, you don’t have to push any more and you don’t have to work super hard anymore to make those extra sales. And that’s the ideal. Some people also prefer to go into innovation based markets, new gadgets, cool things. Those markets are high risk. Sure. The reward, the potential reward is also high, but they’re very high risk. I mean, think about companies like segway. If you remember the segway device, right where you basically, it’s two wheels and you sit on them and they move you about right that company, they failed. 

Tudor Dumitrescu     00:07:44    And they failed after having invested millions upon millions of dollars because it turned out that people were not interested in that cool gadget. And they didn’t really find a use for it where it actually made sense for them to pay the kind of money that that device cost. Right? So that’s the problem with the other kind of markets with the innovation based ones. You’ve very likely to fall into a situation where there’s no market for what you have. And there can be a couple of reasons for that. It’s not necessarily because what you have sucks and it’s useless to people. It could be useful to people. It’s just that the economics may not work out, which is what’s frequently the case, right? So what you have may be useful to people, but if it costs them 2000, $3,000 at that price point, it’s not sufficiently useful to deserve it.  

Tudor Dumitrescu     00:08:35    Right? So then you don’t really have a business again. So the safest way to sidestep those problems is to actually look for those markets that are evergreen and the best thing that I always advise people, if you have a passion, and if you passionate about say golf, or you’re passionate about tennis, or you’re passionate about dating or whatever it is that you pet passionate about, try to go into a market that at least related to that market, because number one, you’re going to understand it better from the get-go you one need to spend hours upon hours researching and figuring out the market and speaking with people and going through all that hassle and process, right? You’re going to be able to go straight into it and know what people want already pretty much, because you’re one of them. And that’s a huge advantage. Not many people realize how big those advantages are, but it actually takes a tremendous amount of work in terms of research, in terms of thinking about what your customers may want in terms of actually speaking with those customers and getting them to say that that’s what they actually want.  

Tudor Dumitrescu     00:09:49    It takes a tremendous amount of time, effort, and money to do that kind of research. And if you can jump into a market that you already know, you’re extremely passionate about yourself, then it’s going to make that much easier. You already know what the people are like. They’re like you, right? They have similar desires to what you already have. And if you’re building a product that’s going to satisfy your needs. And you’re part of that market. And if you’ve tried to buy something for example, from that market and you couldn’t find it, then there’s a very high probability that there are other people like you with a similar problem and you can sell to them. And that’s ideal. If you can do that, then you’re virtually guaranteed to have a market. I say, virtually guaranteed, because there is still a small chance that you have some weird passion within that market.  

Tudor Dumitrescu     00:10:39    That’s very few other people share, but this is more rare, right? This isn’t as frequent. So, um, that’s what I advise people all the time. If you can start with your passion, do that, whatever you, and this includes in terms of your actual work, what you’re actually going to do, because you realize, for example, let’s say that you try to build a blog. Let’s say, about tennis, but you’ve never played tennis yourself. And you’re not really passionate about it, but you’ve seen that some other guy makes a lot of money doing that. And you go and try to do it. And for each article you have to spend hours upon hours reading about how to do this, serve how to hit it, how to whatever. And then not only that, you have to find the best ways to explain why you actually lack the practical knowledge of how to eat yourself.  

Tudor Dumitrescu     00:11:26    It’s so painful. And it takes so much time that you are just going to hate yourself. I tell the same thing to people who want to get started with affiliate marketing. You know, it starts selling a product that you’re interested in that preferably you use yourself. Because if you don’t do that, the alternative is that you’re going to do something. That’s going to be basically infinitely worse. You’re going to make your life a living hell, or you’re going to spend ages upon ages researching. And it’s going to be so hard and you’re not going to know what to write. It’s going to drive you to desperation. So just choose the easy route, just choose something that you’re interested in. Something that you’re passionate about, choose a market that you’re passionate about. And it’s important. I mean, it doesn’t have to be exactly what you’re doing, but choose a market that people are passionate about.  

Tudor Dumitrescu     00:12:18    And then all you have to do literally is check that there are other people who are passionate about that market and for spending money. I always advise people to look for other products in the market that are selling. And if you find a lot of markets that have a lot of products that are selling in that market, and a lot of people similar to you prefer bubbly. So not huge brands selling that product. Then you know that there is space and you, that you can be successful in that market. And this is actually very relevant because a lot of people and I am actually very well known for direct response and that’s to this day, what a lot of people come to me for and all these passion driven markets, all these evergreen markets, it’s all about direct response in them because you’re actually catering to real needs that people have.  

Tudor Dumitrescu     00:13:09    There is no trick behind it if you’re not selling something just because it’s cool. You’re not doing any of that, right. You’re actually catering to real needs that people have. And that’s what makes it so powerful. And that’s what they are why direct response is pretty much the, the main way of selling to these markets. If you look at the health and wellness market, if you look at the money market or the financial market, if you look at the dating and relationships market, pretty much everything that you see copy wise is going to be some form of direct response, where they show you a new way or a new mechanism that bypasses all the difficulties of the other methods and mechanisms and so on and get your result. That’s how pretty much every single brand starts and grows big in those areas. If you take any fitness brand out there, any brand that selling a product in one of those markets, you will see that they built the brand around the unique mechanism, how their product is actually different and delivers the benefits to that market without the same shortcomings as other markets may have, you can call this relative value difference.  

Tudor Dumitrescu     00:14:22    They’re providing additional value to the market. However you want to call it. The point is that they’re marketing something that at least is marketed as being different than what’s already out there. And that’s what’s making people buy it and they’re selling it to evergreen markets. People have real needs. They’re always going to have those needs. People are always going to need good health. They’re always going to need relationships. They’re always going to need money. And they’re always going to have passions, things that they just want to spend money on because they enjoy doing so much stuff like golf, playing tennis, kayaking, mountain climbing, rock climbing, whatever it is. That’s basically the advice I have for those of you who are looking for markets to go into: don’t waste your time trying to invent something new and going to some, and basically open up an entire blue ocean.  

Tudor Dumitrescu     00:15:09    Instead of doing that, try to focus on a sub niche of an existing market, find out the products that are already popular and that they’re already selling there. Look for product ideas and for improvements that you can make around those products and start selling that don’t waste your time trying to innovate because likely you’ll build something that nobody wants or nobody wants at the price point where it makes sense for you to sell it, right? And then you don’t have business. Or the alternative again, is that you risk going into a market, which is a fat, right? And it’s going to work out for you in the beginning, but then you wake up and you find out, oh my God, actually I still don’t have a business. And that in my opinion is one of the worst things that can happen, right? That’s pretty much my advice on this topic with regards to choosing your markets.  

Tudor Dumitrescu     00:15:58    Remember the most important thing is there are two types of markets that you should go after. If you have a choice, passion-based markets, stuff like people who love playing golf or tennis or kayaking, that kind of stuff. That’s one. And number two is evergreen markets, which are built around the three coordinates that people are always going to have health and wellness relationships and dating and money. I will include fitness in the health and wellness part. That’s also part of that market. And then of course, you can look into sub niches of those markets. The great thing about the needs-based markets is that they’re always going to exist. And the great thing about the passion-based markets is that people are always going to be willing to spend crazy amounts of money to fulfill their passions when something is not a passion and it’s not an absolute must have need you sort of skeptical about spending money, right?  

Tudor Dumitrescu     00:16:53    You want to make sure that everything is perfect and you’re getting a bargain and whatnot. But when you’re actually passionate about something, you just spend money on it and you don’t even think about it. That’s the kind of customers that you want to have because those are the customers who can make you very rich, very fast. So that’s about it for today. Stay tuned for the next episode. And until next time, keep growing your business and providing massive value to the world. You are the reason why we’re all growing richer. Our freedoms are expanding and we’re all living in greater prosperity. Thank you.