Choose Your Market Niche Carefully to Ensure Success
When you identify your market niche, you identify your audience. This means that before you starting clacking away on your keyboard, you can envision your reader in front of you . . . are aware of her needs . . . and can address those needs. This comes across in your writing; and over time it builds trust.
Trust pre-sells your audience, and will translate to more sales for you . . . a win-win proposition. Your audience wins because you’re providing them with useful content, and you win because you’re making sales!
But let’s start at the beginning.
How to Find Niche
If you are choosing a market niche for the first time, start by asking yourself:
- What hobbies and interests do I have?
- Writing Profitable E-books?
- Forex or swing trading?
- Building a computer?
- What are my life experiences or what have I achieved?
- Staying married for over 10 years?
- Starting a successful business at age ______?
- Mastering Microsoft PowerPoint?
- Raising nieces, nephews, or grandkids?
- What are some problems I have solved during my life?
- Surviving bankruptcy?
- Making lifestyle changes after a cancer diagnosis?
- Taking care of a parent with Alzheimer’s?
- Finding love again after a divorce?
Because it can be difficult to find enough demand without too many competitors, it’s wise to develop a list of 3-5 possible ideas before you settle on one. This way you aren’t at a loss if you find, through research, a pet market niche won’t work.
Now that you’ve brainstormed your interests, it’s time to talk about your market niche.
Your market relates to who you are focusing on, while your niche can be defined by demographics . . . this is when you segment or aggregate a population according to sex, marital status, age, education level, income level, psychographics, etc. The following examples demonstrate how this works.
As an experienced parent, you feel you know what you are talking about when it comes to parenting. But, again, that market is too general. Your niche might be parents with gifted children . . . and a sub-niche could be parents with gifted children who also have ADHD.
Or . . . say you are interested in setting up an Internet auction site selling ladies apparel, but you know that’s way too broad. While selling ladies apparel isn't a niche, selling "sun hats for women" is. To niche it even more, you can sell only hats that would appeal to boomer-aged women — wide brim with a built-in sun screen that prevents aging and skin cancer.
In short, a niche can be defined by, but not limited to, the following synonyms:
- Place . . . example: Phoenix chiropractor
- Position . . . example: oldest child, middle children, baby of the family
- Function . . . example: sun hats
- Role . . . example: fathers; sub-niche: single fathers
- Forte . . . example: gifted children
There is value in choosing a tighter niche on the Internet, especially when you are building your first site. There are a couple of reasons for this. First, when you segment your market, you are often filling a gap . . . enabling you to compete against larger competitors who aren’t doing this. (More on this later).
After you have identified a niche, it’s time to conduct some
free market research
to see what your target audience wants, and to see if the niche has a good profit potential. Does it enable you to make money working online?
Define Your Internet Niche
After identifying and researching a market niche, it's time to define your Internet niche . . . the topic of your site . . . your angle or spin. Begin by brainstorming. You are looking for a keyword phrase that will represent the theme of your site.
Any good business class teaches about supply and demand. You're looking to find an Internet niche where the supply doesn’t exceed the demand . . . where there is some competition, but not too much. Too much competition often points to a late stage market that is saturated.
Zero competition in your site topic isn’t a good sign either. This is because it often means that others have tried it, but found that the niche couldn’t be won . . . or that it’s so new, you’ll have to spend a lot of time educating people about its benefits. This is what is known as an early stage market.
And don’t forget . . . when choosing a site theme, pick one that lends itself to content development. Is it meaty enough? Also, is it an idea where you have experience or enough interest to invest the necessary time to learn it? Without this, it will be difficult keep expending the energy it takes to develop or maintain your site.
Tight vs. General Internet Niche
Because Internet marketing is keyword driven, a tighter niche can be won earlier than a more general one. For example, while “parenting” pulls in 83,221 searches a day, it also has 350,000 competitors. Compare this with “parenting a gifted child” which only has 447 searches a day, but with 79 competitors, also much less competition. (Note: You'll want more demand than this for a site theme, but this example would make a great sub-topic on your site.) Let's look at what this means . . .
With less competition it will be easier to find you in the search engines. . . meaning you can rank higher sooner . . . allowing you to appear on the first page of Google more rapidly. Also, your traffic tends to convert more easily into click-throughs and sales. This is because the visitors who use these terms to find you know what they are looking for . . . and it is something specific. This is targeted traffic . . . the kind you want!
What to make of all this? If you want to become profitable more quickly, choose a tighter market niche. However, if you have the time to wait longer, a more general niche has the potential to earn a higher income in the long run . . . but know that you will need lots of good quality content as well as sales with higher profit margins to win against the competitors you will be up against.
In the final analysis, , the market niche you choose will be determined by your forte, your passion, and what your research uncovers. And unlike brick-and-mortar stores where it's all about location, location, location, with online businesses it's all about keywords and good content . . . with targeted traffic being the main goal in both situations. In short, your aim is to pick a market niche that fills the wants and needs of your audience . . . one that fills a gap and will be profitable for you. Keep this top of mind when choosing your market niche.
Go from Market Niche to Free Market Research
Return from Market Niche to Home