Brief Summary
This video presents a three-question "Niche Test" designed to evaluate the potential of a new niche or product. The test focuses on emotional motivation, proactive solution-seeking, and the perception of limited options among prospects. By focusing on these three key questions, entrepreneurs can identify profitable niches where they can offer unique solutions and dominate a specific category.
- Emotional Motivation: Determine if your target audience is driven by strong emotions like fear, desire, or passion.
- Proactive Solution Seeking: Identify if your prospects are actively searching for solutions to their problems.
- Limited Perceived Options: Discover if your audience feels they have few or no alternatives to address their needs.
Introduction to the Niche Test
Eben introduces the "Niche Test," a three-question framework designed to evaluate the potential of a new niche or product. He emphasizes that products can be viewed as sub-niches, and these questions should be considered whenever entering a new market or developing a new offering. The test aims to identify opportunities where entrepreneurs can create unique solutions and dominate a specific category.
Question 1: Emotional Motivation
The first question is whether your prospect is strongly motivated by emotion, such as fear, desire, passion, or worry. If the answer is no, you should refine your niche to target individuals who are emotionally invested in solving their problems. For example, teaching people how to save for retirement may not be as emotionally compelling as helping them get out of debt. People burdened by debt are highly motivated to find solutions, making it a more promising niche.
Question 2: Proactive Solution Seeking
The second question assesses whether your prospect is proactively seeking solutions right now. This means they are actively searching online, visiting stores, asking for advice, or participating in forums. If they are not actively looking for solutions, it may be challenging to motivate them to take action. The goal is to find a sub-niche of prospects who are already motivated and seeking answers to their problems.
Question 3: Few or No Perceived Options
The third question explores whether your prospect perceives they have few or no options to solve their problem. This is crucial because you don't want to enter a market where there is already an abundance of readily available information and solutions. To uncover these unmet needs, engage with your prospective customers, ask about their challenges, and listen to their experiences. By understanding what solutions they've tried and what's missing, you can identify opportunities to create unique and valuable offerings.
Finding Unique Opportunities
Even in crowded markets like relationship coaching, opportunities exist if you listen to your customers and identify unmet needs. Ask them about the problems they can't find solutions for or the desires they have that are not being addressed. By drilling down and focusing on emotional needs, you can discover a niche where your knowledge can help customers achieve their desired outcomes. This allows you to create a new category or sub-niche that you can dominate.
