All of the successful internet marketers say it. You've got
to find a niche to sell to. Find a group of people with
needs and meet those needs. If you try to sell to everyone,
you'll sell to no one. You've heard it all before.
But where do you start? Where can you find a niche market
and how can you tell if it's worth marketing to? These are
legitimate questions and thanks to some online detective
work and a little educated guessing, we can hone in on the
niche markets that have real potential.
Here are the four key steps you need to take in evaluating a
niche market:
1. Supply - are enough people looking for the topic?
One of the best ways to find a group of people looking for
the same thing is to use Overture.com's Keyword Suggestion
Tool. Just type in a general term, like cooking or football,
and Overture will give you up to 100 related search terms
and how often each one was searched for the previous month
on their website.
You're looking for a significant number of searches in a
given month. There's no hard and fast rule here, but 5000 or
more is good base. Anything lower and you risk having too
narrow a market.
2. Competition - how popular is your market?
Alright, contrary to your natural human instincts,
competition is a good sign. The more the merrier.
Contrary to popular belief, competition is a sure sign
you're in the neighborhood where the money is. If you think
about it, it makes sense. No one wants to call on people who
don't or can't spend money. It's like that in the off-line
world - and the online one.
The trick (if you want to call it that) is adding your own
flavor, twist, or personality to what you're selling.
Personally, I really don't believe a market can become
over-saturated. Simply because new people are coming online
everyday and people tend to buy multiple products on the
same topic. It's just human nature.
So don't be scared off by competition. As the old saying
goes - follow the money.
3. Buyers - are the searchers buyers?
One of the most discouraging things that can happen to an
online business (or ANY business for that matter) is to put
a lot of work and effort into creating and marketing a
product to people who aren't buyers. You can get all worked
up over high demand and low supply, only to find out in the
end that your market is full of a bunch of freebie-seekers.
One of the best ways to find out if people in your chosen
market are likely to spend money on your chosen topic is to
find out if other people (i.e. your competition) are already
selling to them. To do this, go back over to Overture.com
and enter your search term. Near the top and to the right of
the results page is a "View Max Bids" link. Click it and
enter the code they give you. You can then see the maximum
bid of each advertiser listed. A good rule of thumb is if
the top 2-3 are paying $.20 to $.25 a click or more, these
sites are probably making money selling to this market. If
there are no bids or very low bids, look for litte red
flags.
4. Products - what can you sell to your new-found market?
So you've got a potential market of prospects that you now
need to sell to. So what do you sell them?
Well, it's either going to be your product or someone else's
product (rocket science, right?). Either way, you've got to
match an appropriate product to what the people are
searching for. Of course you can create your own, such as an
ebook or multimedia product, but the first step might be to
seek out some affiliate programs. Go to Commission Junction
(cj.com) sign up for a free account and search for affiliate
programs based on your target keywords. Or, go to Google and
type in "your keyword" + "affiliate program."
Zeroing in on established affiliate programs accomplishes a
couple of things for you. One, you can jump right in and
start promoting a product without laboring to create you
own. Second, it's a pretty good sign that others are making
money with this market (remember, competition is a good
thing). And third, this may or may not be a market you want
to work in long term - promoting an affiliate program is a
good way to test how profitable and how fun this market is.
Alright, there you have it. Following these four steps won't
guarantee you'll profit in your chosen market. But, they
will increase the likelihood that you won't waste a lot of
time and money on a dead idea.
Chris Custer is the editor of NicheNotes, a free weekly
newsletter that reports on profitable niche markets and
the best ways to reach them. Get your free subscription at http://www.nichenotes.com
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