Finding a great market is like finding a unicorn—rare and magical, but not strictly necessary to make money hand over fist. You don’t need to be in the hottest market to see wild returns. Most of the markets I’ve been in are about as average as they come, yet they still deliver. But let’s be clear—you don’t want to be out there selling ice to Eskimos.
So, what exactly does Rhino Communities look for in a market? Let’s break it down:
1) Massive Pain
We’re not talking about the kind of pain where someone says, “Eh, that’s annoying.” No, we’re talking about the type of pain that makes people desperately crave what we’re offering. Think about the daily struggles people face—being broke, stuck in a bad relationship, or dealing with a stubborn backache. Life is full of pain, and for us entrepreneurs, that means endless opportunities to solve problems.
The rule is simple: the greater the pain, the more you can charge. When people hear a solution to their problem, and imagine life without it, they’ll be drawn to your offer like moths to a flame. That’s why I always say, “The pain is the pitch.” If you can articulate someone’s pain accurately, they’ll practically throw their money at you.
Pro Tip: Good writing makes people understand. Good persuasion makes people feel understood. If you can do both, you’re golden.
2) Purchasing Power
Here’s the thing—you can have the best solution in the world, but if your audience can’t afford it, you’re out of luck. A friend of mine had a killer system for helping people beef up their resumes. The problem? His target market was unemployed. Sure, they were in pain, and there were plenty of them, but they couldn’t pay for his services.
It might seem obvious, but it’s a crucial point: your market needs the financial means to pay for what you’re offering. Make sure your audience has the money or can access the money needed to buy your service at the price you need to charge.
3) Easy to Target
Even if you’ve found the perfect market, it won’t matter if you can’t find them. You want a market that’s easy to reach—whether through associations, mailing lists, social media groups, or specific channels they frequent. If your potential customers are all gathered in one place, you’ve struck gold. But if finding them is like searching for a needle in a haystack, your offer might never reach the right eyes.
This is the tactical side of things. Your audience needs to be easily identifiable and reachable. For example, targeting rich doctors is great, but if your ads are showing up to nursing students, it’s not going to work, no matter how compelling your offer is. The key is making sure your promotions hit the right audience.
4) Growing
A growing market is like a tailwind—it helps push everything forward. On the flip side, a shrinking market is a headwind that makes everything harder. Take newspapers, for example—they might have plenty of pain, purchasing power, and they’re easy to target, but they’re shrinking fast. No matter how hard you try, fighting against a declining market is a losing battle. Business is tough enough as it is, so you might as well choose a market that gives you a bit of a boost.
So there you have it—these are the four pillars Rhino Communities looks for in an affordable housing market. Get these right, and you’re on the path to success, even in the most “average” of markets.
