Linda's Southeastern CT Real Estate Blog

Riches in Niches - A Book Review 

The books I love are pretty worn; I'm hard on them.  I even turn down the corners of the pages that speak to me.  I have plenty of corners turned down in Susan Friedmann's Riches in Niches, How to Make it BIG in a Small Market.  SEO experts lecture about using "the long tail" in your internet strategy. Susan explains how to use "the long tail" in your everyday business and for me, it relates perfectly to real estate.  It's the "sell more of less" theory, the same theory that Seth Godin talks about in Small is the New Big.

Most real estate agents try to serve too many masters. They will work with investors and builders and single family homebuyers.  In between, they might show a rental or two or throw on some boots to walk a piece of farm land. Just for good measure, they'll try to dabble in commercial real estate.  At the end of the year, a typical real estate agent will have put a gazillion miles on their car. 

Many years ago, there was an agent in my office who's niche was mobile homes.  Diane was the expert. She could drive by a mobile home and tell you what model it was and what year it was built.  If you have ever seen the movie, My Cousin Vinnie, Diane was like the character portrayed by Marisa Tomei who knew everything there was to know about cars. Most agents hated the idea of listing or selling a mobile home because they were cheap which meant the commissions weren't much. As a result, when a call came into almost any office in Eastern CT for a mobile home, they'd suggest the customer call Diane.  Diane made well over $100,000 back in the 90's selling almost exclusively mobile homes.  Since she was the expert, she was also able to raise her commission which helped when selling cheap mobile homes.  Later in her career,  Diane become an expert in selling HUD foreclosures, another area that most agents avoided.  She learned everything she could about the process and became the HUD Foreclosure expert in the area.  I'm sure she never thought about "the long tail" or Seth Godin but it sure put a lot of money in her pocket.

In the book, Riches in Niches, Susan coins becoming an expert in a niche as a "nichepreneur". She goes on to talk about ways to enhance and capitalize on your expert status.  I've always subscribed to the "Do one thing really well theory".  What I do really well is list property in my small town of Ledyard, CT.  90% of my commissions are earned from listing property in one small town.  I realize that a new agent might not be able to narrowly focus on one small niche but it is something to strive for.  By becoming an expert at just one thing, you become a "nichepreneur".  That is a very good thing.

If you get a chance, be sure to watch My Cousin Vinnie. I promise it will make you laugh and you'll see an expert in action.