Hot markets determine who is more likely to succeed than those who are not. One of the differences between a business owner who fails and one that succeeds is the type of market they are playing in. Being able to identify a hot market can keep you miles ahead of your competitors.
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Types Of Markets
If you don’t know how to find a hot market, I’m here to help you but before then, let’s look at the various types of markets you are likely going to encounter.
Cold Market
A cold market happens when the supply is higher than the demand. In such a market, sellers are literally forced to reduce their prices just so that they could survive. If you are playing in a cold market, chances are you are in the wrong environment or you’ve been targeting the wrong audience. You need to switch up things. You will know this when you start playing the price war just to make a sale.
Hot Market
A hot market is when the number of buyers is higher in number than the number of available products. When you are in a hot market, you are guaranteed sales, all things being equal. And the best part is that you can easily raise your price (if other ethical market forces demand that you do so) and people will continue to buy even more.
When you are in a hot market, you will sell more in less time. If there’s one favour you must do yourself today, whether as a business owner or an intending business owner, it is to pay attention as I break down 3 out of the 7 guaranteed ways to identify a hot market and do so with absolute precision.
Ways Of Identifying Hot Markets
Without further ado, let’s delve in.
Engage in Funnel Hacking
Funnel hacking simply means understudying the marketing funnel of top players in an industry so that you can reverse-engineer their strategies using your own approach.
- How many times do they send emails?
- What’s their writing tone like?
- How many posts do they make per day?
- How are their core values and work ethics impacting sales?
Study the top players, and reverse engineer these top players in your niche to learn their systems, strategies, and processes so that you can implement them in your business.
Also Read: Lucrative Businesses You Can Start With 500k or Less in 2023
The outcome of what you’ve done will help you identify how hot the niche is. For those of you in the e-commerce (Dropshipping) niche, there’s a tool that can help you do ALL the work at the click of a button. Enter any store and it will analyze it for you including their hottest selling products and profit margins. If you are in that e-commerce-dropshipping niche, you can request and I will forward it to you. The tool is kind of pricey but is worth it.
Look Out for Real Demands from Customers
When it comes to a product that requires a financial commitment, “I’m interested” is not a sign that there’s a demand for it. You can have more than a thousand “I’m interested” in your comments section yet nobody will buy the product when you eventually launch it. I don’t know if it has happened to you before. If yes, you can share a bit of how it happened with us and what you were selling.
Now that a non-financial commitment has been established as not to be a sign of hot demand, what then shows that there’s a demand? It’s very simple… Either ask them to make a financial commitment or build the entire shop and leave the payment in TEST MODE.
When the payment is in TEST MODE, your would-be prospects who are truly interested will key in their bank card details as though they were about to make a purchase but they won’t be debited. By so doing, you can capture their data and know how the height of the demand is. The higher your conversion rate, the hotter the market is.
If you aren’t using an automated system you can hire an expert to help you build one. Alternatively, you can ask for a financial commitment for them to secure a slot, you can do pre-orders, early bird offers or direct sales. It’s okay to entertain “I’m interested” as a way of knowing your audience’s demands if the product doesn’t require any form of financial commitment. But if it does, learn this strategy I shared above.
The Government’s Interest Zone
The government, as corrupt as it can be, is still the highest determinant of a hot market. Oftentimes, every new government has an area they would like to focus on. If the government says, “We are pivoting to renewable energy as our source of power supply in the country” and they mean it, you don’t need a prophet to tell you that all forms of renewable energy sources will be a hot market soon.
By hot market, I mean that the demand will be more than the number of inventory available to be sold. By simply positioning yourself in that area you will be able to stay relevant, make loads of sales and build an empire for yourself.
Take a tailor in Aba for instance, they can switch up the game by becoming a fashion designer for high-profile individuals who don’t price so long as you can deliver. While others are complaining of low sales, you will be earning in one month what your competitors can earn in a whole year.
Sincerely speaking, I know the impact being in a hot market will have on your business. I also want to believe that you will take the necessary steps to identify the hot market for what you do.
