If there is one subject that is not nearly enjoying enough attention in online marketing, then it is the art of choosing a niche market. The niche market you choose to work in will make or break your online business. It's as simple as that. The real challenge however is in choosing a niche market. Although there are no real cold hard facts, there are some good guidelines that can really serve as a good guide when choosing a niche market for your online business.
There is nothing worse than spending months building a website or developing a product that was doomed from the start. What I mean by this is that if you start a website or a newsletter or a product in a niche that is not profitable, you simply won't make any money from it. A profitable niche does not only rely on the fact that there are customers who are willing to buy the products, but also on the fact that there is a demand for what you've got to offer.
Most affiliate marketers are after the 'golden nuggets' - those niches with high demand and very little competition, and although there is nothing wrong with this, it is not the only consideration when choosing a niche market. Here are some of the most important factors to consider when choosing a niche market and some suggestions for actually finding it.
- The niche must be profitable.
This means that there must be a big enough market of people willing to spend money on the products and services in that particular niche. You also want to make sure that there isn't too much competition in that particular niche as this makes it harder to turn out a profit. Ideally you want competition, but not too much. Competition is a sign of profitability in that particular niche and it is quite a healthy thing. A simple way to seek out a niche that fulfills this requirement is to do keyword research and to match the most profitable keywords to the most profitable products.
- The niche must interest you.
Although there is nothing wrong with jumping into a profitable niche on curing athlete's foot, the real challenge in any niche is longevity. In most niches your success will rely on your persistence and staying motivated for long enough to keep on keeping on until you succeed. Finding the inspiration to build a website on athlete's foot can proof to be more challenging than you think. When you are really interested in a subject, your enthusiasm is usually reflected in very subtle ways and building a business based on a subject you love seems almost effortless.
If you build a niche business based purely on profitability, it is only a matter of time before someone will come along that actually do love the subject and who will eventually kick you off the top spot. A very useful thing to do is to come up with five to ten things you really love; markets that you would love to work in and do this even before you start doing any of your keyword and profitability research. Start looking in these markets for profitable niches. You are bound to find something that's not just interesting, but also highly profitable.
- The niche must be scalable and have a decent lifespan.
As you do your niche research you will most certainly come across some hugely popular niches that, at first sight, would seem like 'golden nuggets'. Before you jump in though, it's well worth a closer look at the lifetime of that particular niche. If you are building a niche about the Soccer World Cup in Germany, you should know that it is bound to loose popularity as soon as the event is over. Similarly, many niches based on specific products have a limited lifespan and even though they would do well for a while, they might die an early death and along with that your paychecks would die.
When choosing a niche market, look for something that at least has the potential of long term success. Similarly, you want to make sure that your niche has the potential of growing. Most niches do and there are always related products that you can add and attach to your niche. If you are in very competitive markets this might be quite difficult. It typically happens when you find a very tight niche with only a couple of keywords in a very busy market. If it's too tight you can really smother yourself and hamper your potential future growth.
Choosing a niche market really is an art and it takes experience to really anticipate which niches have real potential. There is no surefire way of knowing before hand whether a niche will be profitable, but you can get very close and at least make an educated guess. Many private label sites actually specialize in doing the market research for you and apart from sniffing out the profitable niche markets, they also give you the content with which you can easily build a website or even compose your own ebook. Not only does this take a lot of the guesswork out of it, but it also takes a lot of the work out of it. You can build a site in no time and even if the niche turns out to be a dud, at least you didn't spend weeks working on it.