Nicolas Cole recommends defining three to four experience levels in your niche, then listing ten specific problems each group faces. This reveals which audience segment you can serve best, and beginners often become your most valuable early customers.
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When creating digital products, I think this is a very helpful exercise. Start with experience level, map out what are the 3 or 4 different experience levels. It's always the same. It's like, I haven't started yet. I started, but I'm not seeing traction. I've been doing it for a while, but I'm running into these problems. I'm almost an expert and I want to go to the next level. It's always those same ones. Map those out for your niche and then actually go through the exercise and write out what are the 10 different problems that each one of these different archetypes has. Because what you might find is as you do that exercise, I thought I wanted to work with this person, but actually it's the person who's kind of just getting started that I actually can help even more, 'cause I'm even more aware of their problems.