I’ve always maintained that I’d rather have a database of 20,000 people who I know are interested in my product than a database of 20 million people who might be (but also might not be).

Why? Because sales are a whole lot easier when you’ve got a customer who’s craving your product.

In other words, marketing doesn’t start after you’ve launched your product. Marketing starts way before then. Effective marketing means getting to know your customers, then creating a product that they want out of what you’ve learned about them.

Part of this process involves choosing a specific audience that you will market your product or service to. Going narrow rather than broad is always better for sales. You’ll find riches in niches.

Choosing a niche doesn’t only help you create a product that your customers love. It also means you’ll find it easier to spread the word. Most niches already have communities on Facebook, Twitter and LinkedIn who will love sharing your product and your story with their peers.

(On the flip side, if you mess up, everyone will know about it – bad news travels just as fast as good news, if not faster.)

How can you make sure you develop the right product for your audience? Here are three simple ways:

• Drill deep to choose a specific niche. The more specific, the better. Pick one customer need you’ll help to solve, and run with that.
• Create a customer avatar. This means writing a highly detailed description of your ideal customer. Who are they? How old are they? Are they male or female? Where do they live? What are they passionate about? Who are their friends? What TV shows do they watch? What are their favorite products?
• Talk to your customers. Discover where they hang out, in real life and online, then engage them in conversation. Find out what troubles them, and what drives them.

By targeting your product at a specific audience, you too will find that there are riches in niches.