Successful online business starts with selecting a profitable niche, whether you create your own products or find affiliate offers.
I like the famous saying of Mark Victor Hansen: “Get Rich In a Niche”. Pay attention because choosing the wrong niche can have a massive impact on your ability to build a big business and generate a massive income…
…which will lead to a lot of frustration, disappointment, lost money, squandered energy. In short, it’s very important to choose a viable niche right from the beginning.
“Find A Large Hungry Mob Of Addicts Flush With Cash and Accessible”
Well said John. Now let’s break down the formula because each word is important.
Large – your niche should be big enough, have a lot of active buyers and potential buyers. If there’s only 4000 people who need the solutions then it’s kinda hard to create the kinda income you really want. But 50,000+ active buyers, now you’re talking about. The niche that I’m in – Home Based Business Direct Sales Online Entrepreneurs and Network Marketers – is a HUGE niche.
Hungry – your niche should consist of a lot of starving crowd. Do you know how easy it is to sell a hamburger to a starving boy who didn’t eat 3 days? Seriously… They should be hungry for the information, for the solution that you are going to be offering. They should display a strong passionate appetite for it. In my niche people are crazy responsive, constantly on the lookout to buy some new training, products, courses and coaching.
Mob – people in your niche should congregate together, create forums, go to events together, create special websites, create FB groups and FB pages…you know, have this community that you can tap into. In my niche that are plenty of Facebook groups and forums that people go to and hang out.
Addicts – People in your niche should literally can’t get enough of the information. They continue to consume more and more. In my niche people have a voracious appetite to consume products about traffic, conversions, generating sales, email marketing, Facebook marketing and so much more.
Flush with cash – they should have money, obviously. More the better. Not only that, they should regularly spends this money.
Accessible – You should have a way to market to them online.
Now, based on all of this, you should be asking yourself the following 6 questions:
- Is this market large enough to support my business?
- Does this market display an existing appetite for the types of products I want to provide?
- Does this market congregate somewhere?
- Does this market consistently invest in their hunger for more?
- Does this market have money?
- Can you access this market online?
Let’s talking a bit about some other factors that you should take into yo consideration.
- Affinity – Do you have any kind of understanding about the market? Did you go through stuff, can feel their pain and can emphatize with them? Do you know how they think, feel and talk? Do you know the language they are using to describe their problems? Do you know what they are afraid to?
- Gender – You market differently to males than to females, if that’s the issue.
- Trends – is this marketplace growing? what’s going on that can affect how this market is going to look like in the near future?
- Psychographics – what is the marketplace think and feel as it relates to the type of information you provide? Do they open, excited, hopeful, or do they have negative feelings and negative experiences in the past?
- Marketplace Churn – How often new people come into the market? Churn is good. Because if new people constantly come in, then there are new people who you can market to.
- Price sensitivity – Do they sensitive to premium prices? Obviously the higher the price point of products you can sell the more money you can make as a general rule of thumb.
- Regulatory/Legality issues – Do you need to abide by some strict law in your marketing. If so, I suggest to stay away from these niches.
- Seasonality factors – Is it a seasonal marketplace? Active for certain times throughout the year but inactive during other times?
- Potential for renewable of continuity income – Can you charge money for continuously delivering a service or product?
- Irrational passion – Do they have irrational passion for this niche? Are they willing to defend their choices?
Well, there you have it, now you know how to select a profitable niche to be marketing to, so you won’t make the mistake of investing a lot of sweat equity and cash into something that will not bring you a good return on your investment.