A differentiating point is what makes your ISP stand out from the crowd of look-alike access providers. When you create differentiating points for key services your business provides, you create a niche market in which you can profitably peddle your wares.

After interviewing hundreds of ISP owners, and speaking with thousands of ISP operators via the ISP-LISTS, I've concluded that only about 15 percent of the ISPs in business today have succeeded in establishing an effective differentiating point.

The other 85 percent of the ISPs pretty much look like cookie-cut services cloned from the same business plan. These businesses have a limited life span and many are nearing the end of the line — even if they don't see the tombstone at the ISP graveyard with their name on it.

If you've read my past article entitled What Makes Your Business Unique?, then you know that it's important to create your own ISP USP (Unique Selling Point). But now it's time to go beyond what the market expects you to be and start teaching the market what unique capabilities your ISP offers customers.

ISP know thyself
In order to create differentiating points for your ISP, take a moment to complete a simple exercise. If you really want to start differentiating your ISP in the market, ask yourself what business am I in?

Most folks define their business too narrowly. When you're creating a differentiating point for your ISP you'll need to step back and take a broad view of your business. For example, if a service provider defines their business as an ISP aggregator, then they trap their business in a very narrow market segment.

In my opinion, aggregating ISPs can't sustain a long-term, profitable business cycle. Identifying your ISP as being an aggregator alone won't make your business profitable. Why build a business plan around a limited marketing mentality?

Step outside your business
Honda does not operate an ISP, but it does understand that it is not in the business of making cars, generators, motorcycles, or lawn mowers. Honda's core competency is being able to convert fuel into power — Honda is in the engine building business.

Honda is thriving because they create products that utilize their engines. Car models may come and go, but each and every item that Honda makes still needs an engine. Honda avoids diminishing profit margins in a commoditized market by being a motor-maker. Because Honda owns their differentiating point and consistently sells it in the transportation marketplace, its future is bright.

Let's get physical
In order to determine what benefits your ISP really provides customers, take 20 minutes to complete this marketing exercise. Ask yourself what business am I in? Write down the first answers, use the first things that come to mind.

Next, call 10 customers that contacted your ISP for technical support this week. Ask your customers what business am I in? Now, compare their answers, to yours. You might be surprised to learn that the marketplace views your ISP in a completely different light than you thought.

If you complete my little marketing exercise, you might learn that your customers are using your services in ways which you didn't anticipate. Recognizing this could unlock your ISPs business potential and allow you to exploit new niche markets by re-marketing your goods and services.

Turn on your discovery channel
Another way you could discover differentiating points for your ISP is to ask your prospects why they didn't buy from you. Find out who they bought their services from, and why they chose a rival ISP.

Simply ask your sales team to call back prospects one week after they rejected your ISP's services and ask them what company they went with, and why.

It's a good idea to get into the routine of finding out why prospects are not buying from you several times a year. Make sure you let your sales team know that you do not expect them to close every prospect, every time they make a call. It's good for your business to stop wasting time trying to sell prospects goods and services your ISP doesn't provide.

If you make a habit of understanding how your customers see your ISP and why your non-customers don't buy from you, then your business should never have to face a "red alert" situation where you don't know why your ISP is losing customers and failing to reach your target audience.

Goto Page 2: Poll your best customers