Determining the Perfect Niche for You
As an entrepreneur, determining what niche you want to build your business around is one of your first decisions. It’s helpful if you know something about your niche so that you are somewhat familiar with it and your learning curve is not as steep.
For example, if you are a chicken farmer who has spent the past 20 years working on an egg farm, you probably don’t want to launch a business having to do with buying foreign currencies, especially if you have never traded in Forex in your entire life.
Rather, you probably want to consider capitalizing on your expertise and working within the poultry niche.
A good place to start is by thinking about your own passions. What sorts of things fascinate you? What could you talk about for days? If you choose a passion niche – especially for your first online marketing business – it’s easy to share your enthusiasm with others.
Do you have a hobby or interest now or have you had one in the past? Was there a job you had, an educational experience, or some sort of informal training that you could use as the foundation for building your expertise?
Benefits of Passion Niches
When you are interested in your niche, it will help to keep you from becoming bored or frustrated later. But your niche should also be something your customers are going to want as well.
What you want are niches that have a lot of customers and different types of products that can be packaged in various ways and priced in the mid- to high-price range.
Here’s an example: Assume you have always been interested in consumer electronics, which is an excellent niche. For your first product, you might choose to promote replacement parts for 3-D HDTVs that cost only $1.25.
While this would be a good product if you are the only seller of those particular parts after they have been discontinued – because you could essentially charge anything you like – in any other instance, you would need to have a huge volume in order to make a lot of money.
Because you want to work in the consumer electronics niche, a better product might be the 3-D HDTVs themselves. While they have a much bigger price tag, you could arrange to buy them through a drop shipper, and each sale could bring you commissions worth several hundreds of dollars.
Researching Your Niche
Once you’ve selected a niche that you believe has a lot of potential customers, the next step is to confirm it by conducting niche research.
Measuring the size of a niche market is as easy as going online to see if there are a lot of competing products already being offered in the niche you have selected by doing a simple Google search. Let’s keep our example of consumer electronics.
Go to Google, search “3-D HDTVs” and you will instantly discover hundreds of competing products within that same niche, meaning you have hit upon a niche with a huge potential customer base.
The main objective of niche research is to determine if there is a high demand for the types of products you want to promote. Visiting these web-based marketplaces can tell you that, because if a lot of products are being offered in your niche, that means potential buyers are plentiful.
Evaluating the Competition
To size up your competition, generally the first place to visit is Amazon, the world’s largest online retailer. While Amazon is known for selling eBooks for Kindle and other eReader devices, it actually is the marketplace for practically any type of product in the world.
So you want to search on Amazon to see what other marketers are selling that are the same or similar to the product you are considering.
Amazon also provides a lot of data you can use to develop your own marketing plan even further, such as how many similar products already are being offered for sale, which are the least and most popular, and the price range you can expect.
To learn more techniques like these for improving the profitability of your business. Click Here To Connect With Me!