“Smallest Viable Market”

Dear Erin,

I’ve been on a Seth Godin kick lately. He’s a phenomenal thought leader in the world of marketing and branding. I used to follow him pretty closely a few years back - maybe 5 years? - and then, I don’t know, he just fell out of my feed. His signature look is his bright, primary colored eyeglasses, usually yellow. In the past week, I’ve bumped into him across 3 separate podcasts and resubscribed to his blog - which he emails out each week. His book, This is Marketing” is a seminal work. Good stuff.

Here’s what I’ll share right off the top. He embraces the notion of pursuing the “smallest viable market.” In other words, aim your business towards the specific niche of people who will become rabid fans… people for whom you are responding to a very specific problem or interest in a very specific way. Specific, not general. He later went on to write a book called “Tribes” which doubled down on the advice.

The basic premise is what we now refer to as “finding your community” or “intentionality” in building and understanding your target market. It is a reminder to not try to be everything to everyone. A sustainable business, audience, nonprofit needs only a large enough market to support it. While it is nice to think about size and scale and a million followers and fame and fortune, you don’t need all of that to be successful and impactful. “Smallest viable” refers to the minimum size market (revenue, support) you need to thrive. For example, if your average donor gives you $100 and you rely on donations to fund your $250,000 budget - you need 2,500 donors. Maybe that means you have a supporter list of 10,000 and 25% donate a year. Or 5,000 and 50%. Whatever it is. You need to find the right number of people who are over-the-moon excited about what you do and are willing to pay for it. That is a much more targeted and focused strategy than trying to appeal to the most people you can.

The point is, you do not have to create art or product or a compelling end of year email that will reach 100,000 people in the above example if you only need 10,000 in your “smallest viable market”. And, according to Seth, it is easier to cater to the needs of your market of 10,000 and give them exactly what they want than dumb down your work to try and appeal to a larger crowd. The message won’t be as compelling when you cast a wide net and it’s harder to please a larger group. Instead, when you are talking only to “your peeps,” you can speak the language they want to hear.

As you create your business, always know “what problem you are trying to solve” and for whom you are trying to solve it. How many people share the specific problem you are trying to solve - and how can you reach them? Are there enough of them to support your business? If so, focus on them. If you get that right, they will provide you all you need to be successful.

Seth Godin. Check him out.

Love,

Mom