Shaking hands in an agreement at a business meeting

Sell to fewer people, make more money

If you’re struggling to gain clients or customers at the rate you feel you should be please be patient and read this whole article.

Over the years I have tried to share this piece of information with many people but alas I have failed almost every time. Maybe it’s because I am poor at explaining or maybe it’s because the lesson is hard to learn. It’s definitely counter intuitive. The reason for it being counter intuitive is because it’s the opposite of what we see every day.

First I want to walk you through an average day. We start by kissing our wife, husband, girlfriend, spouse etc.. then we check our iPhone for message, eat breakfast, have a shower, take our kids to school, take a car/bus etc.. to work for a large company and so on.

Let’s break down our exposure to brands:

  1. We start with apple (iPhone)
  2. Then a large supermarket (Breakfast)
  3. Then a large water company (shower)
  4. Then a government school (kids)
  5. Then a massive international car company
  6. Or Public transport

Each of these companies/organisations are absolutly massive and each sells to everyone.

So it’s reasonable to believe that when you want to make a lot of money you have to sell to everyone.

THIS IS NOT TRUE. THIS IS NOT TRUE AT ALL.

The thing you find out quickly if you’re lucky is that this is not true at all. The reality is much more complicated than this. Yes, in the fullness of time you likely do want to sell to everyone. But maybe you won’t even do this in the same sector. Think about companies like Virgin, to get to the point where they can sell to everyone they have many businesses selling products from CDs to air and rail travel to insurance. At the beginning if you think you are selling to everyone you are not only wrong but you are in fact wasting time and money at what’s likely an exorbitant rate.

I think the mis belief that people feel they need to sell to everyone is for two reasons.

1. Firstly I think they see big companies that have already made it selling to everyone

  1. Secondly I think they don’t research and carefully understand how these big companies actually started

Looking at how these companies started and you will see they all started really really small. Selling a simple product to very few people.

Take a look at the following examples:

  1. Uber started with one private hire limo company
  2. Google started with a simple search engine for the university
  3. Facebook stared with a trivial website, with just pictures for one university
  4. Apple started selling a hobbiest computer to local computer stores

The bottom line is starting small with one simple product is a MASSIVE advantage. Consider the following:

  1. You know exactly who wants to buy it so it’s faster for you to find potential customers
  2. You know who to ask for market research
  3. You can really understand the problem facing the people you are working with
  4. You can save on wasted marketing costs
  5. You know how to change and improve your product for those people
  6. You can make your product so good that people you work with really care about it and start sharing it for you rather than building an average product for average people
  7. You know when your product is not working as you can trust the persons response you are working with rather than just looking for a new customer
  8. You can learn how to communicate the value of your product to that person
  9. If you improve your product for one customer it should improve for all others too
  10. It’s easier to create metrics to tract your company progress
  11. It’s easier to hire people as you know your looking for people that can relate to your potential customers
  12. You know where the easiest places to grow to are as you can find out what people are most likely similar to your customers
  13. You know when to stop growing or pivot your customers, in the unlikely event when you cannot solve the problem, saving you bags of wasted time and money
  14. etc…

All in all you need to REALLY know who you are working with to create the business you’re building and in the long run it will save you time and money.