10% vs. 90% - 2 Major Target Groups for your Business
There are only two target groups you can sell to: the rich and super rich top 10%, or the other 90%. Stefan Neuss explains why this choice decides the future of your business.
Every business owner sells to someone. But according to Stefan Neuss, founder and managing director of WERA Capital Partners, there are really only two target groups to choose from: the top 10% of society, the rich and super rich, or the remaining 90%, the middle class and those with less. In his view, this is probably the most important decision a business owner will make in their entire business life.
Target group one: the top 10%
The rich never run out of money. Whether the economy goes up or down, they always have the means to pay. For this group, a hundred pounds more or less on an invoice matters far less than quality and service.
"From my own experience, these people would rather pay a premium when they are convinced that you have the perfect solution for their problem," Neuss says. Quality and service are the key to doing business with the top 10%.
Target group two: the other 90%
The rest of society faces a very different reality. Taxes, inflation, loan repayments and social pressure from their own circles mean they regularly run out of money. As a result, they find reasons to delay payments, or reasons not to pay an invoice at all.
Neuss warns that this is getting worse over time, especially in the current economic climate.
Your decision as a business owner
Knowing these facts, which target group do you choose? Your job as a business owner is to decide who you sell your products and services to. "If you make the wrong decision, you may end your business with that decision," Neuss says. This one choice will largely determine your success and the future of your company.
How to reach the top 10%
Many owners agree with the idea but ask the obvious question: how do you approach the top 10%, get their attention and convince them that you are the right solution for their problems? WERA Capital Partners and it's sister company CLAMS Consulting has developed a playbook for exactly this, called 8-figure performance marketing playbook. It gives clear guidelines on how to get in contact with this target group and present your products and services as the real solution.
Book a 15-minute private consultation with Stefan Neuss or his team to find out how you can reach the top 10% of society.