How to Choose and Research a Profitable Niche Market
Deciding on what product or service you will promote in a niche market should be based on a simple principle. There should be a demand for your product or service. You want to offer something that people actually need, something that will make their lives better, make them feel better physically, make them look better, or help them solve a problem.
FACT: Every business wants to be recognized by the product or service it sells. The primary goal is that the product becomes at the top of the customer’s list as a preferred brand for a specific category. With the cutthroat competition around, every business struggles very hard to get into this position. The existence of the competition does not warrant any security for businesses which have already achieved this goal either.
This means that all businesses, whether it is a newcomer or it has achieved the spot already, must give their own efforts to keep with the competition. The newcomers and those which have not reached the peak yet must continue to struggle to rise to the top while those which are already there must keep on performing all effective strategies to hedge their position at the top. In a business where competition thrives, there is really no safe spot for everyone.
Everyone must do their share to go along with the competition and keep their business up and running.
However, as a newcomer it will be much harder to penetrate an industry in which there have already been established businesses lurking in it for years. Not until niche marketing finds its way to the heart of any business.
Big and small businesses alike can benefit in the strategy as posed by niche marketing. It is because through niche marketing, products can cater to a specific customer segment that has never been attended to by other products under the same category. As such, even there are big businesses that do the same function as a newcomer’s product or service, by building a niche for this product or service, it can be the first product or service in mind of people being targeted in the niche.
By definition, niche marketing is referred to as the selection of an untapped and more specific target market and focus in building the business with this segment by addressing their certain need through the product or service that the business offers.
Through niche marketing, although there are various products or services of the same line, these specific products or services can still be noticed by these customers whom the business wants to focus on.
As a result, even if there are big players in the business industry where the products or services is in, the business can still thrive considering that it is able to get a specific target market where the merchandise can be offered.
Niche marketing does not just thrive in the offline world. Having the same tough competition as the offline businesses, niche marketing has also flourished in the online business. As a matter of fact, competition is much worse online than offline. As such, the need to be able to create one’s niche is as important to be able to grow the online business.
Without any niche to focus on, it will be much harder to penetrate in the online market especially if there have been established products that a business is competing with already.
Clearly, one reason of businesses in establishing a niche in the market is to grow its businesses despite the existence of cut throat competition.
As such, finding a niche online is not that easy.
It entails a lot of research and study to ensure that it can attend to a specific need of a certain group of people and at the same time will give profits to the business. In niche marketing, it is not necessary whether the business is the current leader in the industry for as long as the business is able to create a niche for its product, that business can still become a leader in that particular group.
As such, the success of the business an depend on how good it can find the best niche that is appropriate for its products.
A good starting point for the study to find your online niche is to determine whether the product or service has a demand for it. This is the most basic principle that needs to be dealt with. Only when there is a demand for the product will you be able to create a specific need for this product.
There is also no point in furthering the research if there is a low demand for the product you are selling. It is just not worth the effort, because it only means that it will be much harder for you to grow your business with this limited demand. In this regard, you might need to shift to other products that have wider demands.
This is why it is important that before doing any further research, a demand for the product should be established first to ensure that you are getting into the right marketing niche. Otherwise, all efforts will just go into waste if you will only find out later on that the business is not giving you the expected result as it should have been when you are just studying its feasibility.
Once the demand has already been established, this is the time where you can start finding your niche online. This is the part of your study that covers the specific online habits of your target market. There are available software programs that can help you in this stage of your research. By knowing your customers’ online habits, you will be able to form your niche marketing strategy that you can use to penetrate in it.
Then, the next step on your research is to check on your pricing strategy. This is important for you to know if your price goes within the range of other competing products on the same line. The lower the price that you can offer with the same quality or better, this only means that you will have more edge over competition and the more successful you will be in your niche market.
When you have found your niche and are able to complete the necessary research needed to formulate your niche marketing strategy, this will be the time that you can now be ready to implement your strategy and work your way up to success.
Profitability is one of the factors why niche marketing is being considered as a possible business strategy. The good thing about the niche marketing strategy is that even at the start, one can already easily gauge whether the business can establish its own niche or not. During the research process, an entrepreneur can already get a hint as to whether the niche market will be profitable or not.
There are basic indicators that can help an entrepreneur know that an online niche market will be profitable.
One basic indicator is whether there is an existent market for the product. And also, along with the existing market is if there are actual and consistent buyers of this product already. This is crucial because through this information, an entrepreneur can already tell whether there is a demand for the product. If there is a demand, this means that the niche market can be profitable.
If there is almost no activity at all for the product, then most probably the business will just end up losing everything it has worked for. As such, before even venturing into the business, one has to make sure that the market and the demand both exist. There are available online resources that can help to know this profitability indicator. Ebay, Google and Amazon are just among of the reliable online sites that can help an entrepreneur know if his business can be lucrative.
The frequency at which the product is needed and whether the product is easily recognized are also indicators whether the niche market will be profitable. For sure, an entrepreneur wants his product to be searched for most often and is bought repeatedly. This will make the business more viable in the niche market.
Furthermore, products that are most frequently being discussed in the different top article directories get the most chances of being in demand.
As such, if products are recognized in these article directories, it will be easier for the business to promote its products and get increasing demand for it.
Another indicator is whether the niche has been thriving long enough in the market. In this niche market indicator, profitability of the business will entirely depend at which entry point the business started in the niche. Definitely, it will be better to enter into a niche where it is just starting. This means that there is a big potential for the business to grow in this niche market compared to another niche where there have been established businesses already in it. It will be much harder to penetrate in it.
Furthermore, if there are other available complementary products that can be offered within the niche, it is another indicator that the business can be triumphant in its venture. This only means that aside from the income coming from the main product, the business can also create other sources of income from its complementary products.
These are the basic indicators that can merit profitability of a niche market. When all these basic indicators are met, there will be certainty that the business can achieve the success in the chosen niche market.
Being able to identify a profitable niche market is one key to visualize one’s success in the business. This means that a niche has not just been established for the business but because the niche is found to be profitable, it can be certain that the business will grow within this niche. There have been various software application tools that can help a person identify these profitable niches in minutes or even seconds.
Some of these software programs are Yahoo Top, Google Insights and Delicious Tags among others. Regardless of which application tool is used, there are still guiding principles that an entrepreneur needs to follow in order for him to identify the profitable niche market that is just right for him. However, these tools can only be helpful in identifying profitable niche markets fast when the person already know what he is looking for. The effectiveness of the tools are just dependent on the one using it.
Certainly, it will be apparent that a profitable niche has already been found when it is able to tap on the strengths of the entrepreneur while keeping away from his weaknesses. Identifying a profitable niche market is not just finding out which are doing well in the market. There are relatively multitudes of profitable niche markets available particularly online.
However, not all of them can be profitable to any entrepreneurs. The profitability and success of a particular niche market will still depend on the capability of the entrepreneur to thrive his business in this market.
Therefore, it is important that the entrepreneur knows where he can maximize his strengths and even improve his weaknesses to gain from the niche that he identified to be profitable.
It is also important to always be on the lookout for the different demands of people that is still untapped. Combined with the entrepreneur’s strengths, the business can create innovative products that can cater to this specific untapped need. The success of a business depends on how it is able to meet the demands of the consumers.
This should be the focus of businesses rather than to be more concerned whether it will be profitable or not. For sure, it will not take long before the product is recognized as to meeting this particular need. When this happens, the business can definitely grow as one can never have imagined.
A profitable niche market is not really on how well other businesses are doing it successfully. The profitability of this niche is also dependent on the capability of the entrepreneur. It will be hard to join into a bandwagon where the nature and processes of the business is hardly known to the individual.
Worse is when an entrepreneur does not have an interest on the business at all. It is no wonder why there are businesses that fail no matter how good the business plan is. Just like any businesses, the success of a business just relies on the background of the person behind it. Take all these into consideration when identifying a profitable niche market appropriate for the entrepreneur.
Multitude of online software application tools are available for entrepreneurs who are on the search for niche market ideas. These online applications are very helpful to entrepreneurs for gaining valuable information that they can use in establishing a niche market.
There are indeed lots of online niche markets available that are just waiting to be tapped. However, not all of them can lead the business to its desired success. Some niche markets have just low demand that an entrepreneur will definitely not want to venture in. This is why it is helpful to use online software application tools to be able to determine which niche market the business can thrive in. This is most helpful particularly if an entrepreneur is still struggling for niche market ideas and still does not know where to start.
One of the most popular online application tools to find niche market ideas is Google Insight. Another good thing about this online tool is that it can be used without charge. This is a free tool that can be used by any aspiring entrepreneur who is looking at venturing into a niche market He can use it to maximize the business earnings’ potential. Using Google Insight to find niche market ideas is just simple.
The only requirement in using Google Insight is that you should have an existing Google account. If none, registration is just simple and free as well. Creating a Google account will be the very first step in this case.
Once there has already been an established Google account, visit the Google Insight page. This is the page where the user will be asked to sign in using the Google account information that is registered. After information has been validated by the system, it will lead to the search page. At this point, the user can already start his quest in finding a
niche market by keying-in keywords that he may find interesting and can possibly be an attractive niche market to dwell in. In this page, the user can also refine searches in terms of categories, seasonality and geographic distribution of the market that is being searched.
Google Insight will be able to provide the user keywords phrases and other keywords related to the search that are among the top searches.
By using the filter options, a user can even further drill down the search to include only the specific categories that will be relevant to the business. Google Insight will also be able to generate a graph that can help the user any trend about the keyword being searched. Through the trend, the entrepreneur will be able to determine whether it will take to venture in this niche market.
Another good thing about Google Insight is its ability to compare multiple keywords to check which is more ideal as a niche market. Other than that, Google Insight can also be very helpful in providing other potential niche market ideas through the search that has been made. Thus, it will further help the entrepreneur widen his options on what niche market will be best to do business with.
There are technically wide possible niche market options for an entrepreneur desiring to use this marketing strategy to boost his business. Different tools and guiding principles are available that he can use and apply to be able to select the appropriate niche market for him. There is relatively no right or wrong choices when considering which niche market is appropriate for an entrepreneur. Among the wide selection of niche marketing ideas, there are three markets that yield the topmost revenue-generating results in the online business.
These are health, finance and relationships. When looking for a possible niche market, it is recommended to focus on these three big markets. While it will really be hard to compete in a market with very tight competition, there are still various advantages that these three market giants may bring into the business.
One reason that makes the big three markets a very good potential business venture is the limitless possible income that they can produce. The growing competitions in these businesses are just indications of this possible infinite income. This means that the people are indeed patronizing the products in these businesses.
While it may be very hard to compete in these businesses, the different possible options can be able to give probable niche marketing ideas. As such, an entrepreneur can focus on other niche marketing that has not been tapped within these businesses.
Another reason why these three markets are very lucrative is the fact that there are complementary products available for each product in this business that can be offered to customers and even visitors of the business. Being able to offer complementary products can give the business other sources for its revenue, thus further helping the business to expand its reach. This is important to consider in the business.
Because this only means that the business can still thrive even if it has already reached the maximum possible earning potential of its existing product.
The only real challenge when venturing into these three market giants is on how people can notice your website and products. Indeed, with cutthroat competition there is really no easy way around. But there is always an approach to find your way into it. One of the most suggested approach is to target a sub-niche that ranks the highest.
Then, once you get the hang of the business in this market, it will be easier to get through a more general market. In addition, markets that are found to have less competition in these big three markets are just another opportunity where you can grow your business.
This will only mean that because the market is part of the three market giants, there is a potential for you to turn this low competition to a more lucrative business opportunity.
There is really nothing to be afraid of with big markets. But before even deciding to venture into these markets, you just need to make sure that you have carefully studied your business to ensure that your approach fits well and can eventually lead you to success.
Question: How important is it for a certain online business to make use of the appropriate niche market research tools in order to completely dominate the business battle field?
The fact remains that without ample knowledge regarding the significance of keyword research, there is still a tendency that your company might not meet the requirements of the niche market. Use the online tools so you will know what your target market is searching for. Do not let yourself be left in the dark when it comes to sudden changes in your prospects buying style.
There are various items that are considered very hot in the market and you should keep a close watch regarding these products. If you can possibly turn to the direction where money is flowing then you should do it. The most important quality of an ecommerce merchant is his ability to be flexible in facing dynamic changes. The buying public is often influenced by a lot of things including promos, advertisements and even recession.
When you accepted the challenge to build your own web site and sell commodities online, you have also embraced the risks of shifting from one product to another just to serve the needs or your customers.
How can Keyword Research Target a Niche Market?
1. You cannot possibly communicate with millions of people who log on to the internet at the same time but there is a way for you to know the items or products that they are searching through the net. Keyword research tools keep track of your targets’ searches and make a complete list of these items. Guess works will absolutely be eliminated because facts will be provided for you in an instant.
2. Research tools uncover those business chances that have been kept for so long. The best thing about using these wonderful software is that you can unearth several words which not yet been discovered before. Your web site can earn huge traffic once you make use of these new keywords in your content.
You have to understand that your web site will only appear on the first page of the search results if you were able to use the exact optimized target words which are familiar to the search engine. It naturally follows that if you utilized keywords which are not regularly used then your web page might land on the last pages of the results and the busy web user will not be able to know that your business existed in the first place.
3. Large companies spend a huge amount of money for their search engine optimization project. Millions are actually spent for each special endeavor that is related to SEO. Why do these businesses go through these expenses just to build traffic to their web page?
The equation that you should take note of is:
traffic = conversion = sales = profits.
These businessmen believe that they will eventually recover their investment in the long run. Keyword research tools can provide the same service but at a relatively lower cost.
Online businesses fight for traffic!
So what is the best way by which you can drive traffic your blog or company web site?
The proper use of “keywords” is the main answer to this kind of predicament. In order to make it easier for the search engine to access your web site, you have to give the key. The words that you include in your content are vital to search engine optimization. Always take note that your business cannot possibly survive for a longer period if you do not have traffic.
Unless you have other purposes in building an attractively designed web site other than earning profit online, you should do everything to select the best target keywords that you can utilize in your articles. Is there a more convenient way of finding target keywords? A lot of marketers actually use the niche market research tools in order to assist them with their project. There are actually quite a number of tools that you can utilize to find a hot niche.
Important Online Search Tools that you can Use to Build Traffic to your Web Page
1. Wordtracker is one of the most popular research mechanisms but you have to invest some cash in order to get this particular tool.
However, the provider will let you use the Wordtracker during the free trial stage. All you have to do is to sign up for the “test-drive” and you can already gain access to the program. If you are willing to put up a small amount to invest in this tool, that will be best for your business.
2. Another hot research tool is keyword discovery. This is just perfect for merchants who want to know the number of people who are regularly using particular keywords. The discovery can unearth even those keywords which are not familiar to most merchants but which rank well on search engines. By using this kind of premium service, your web site will be given all the business opportunities that it requires in order to make it online.
3. The Google AdWords traffic-estimator tool will give you the right information as to the total number of online marketers who are investing in particular target words. Once you will be given the data, you can come up with an informed decision as to whether or not you should follow and subscribe to the most commonly used words.
Of course you should always remember that the most familiar keywords have costly prices but it can absolutely generate the right amount of traffic to your web page
4. Nothing can beat the importance of Google AdWords Keyword Search not only because of the quality of traffic that it can bring to your web site but more importantly because the service is free of charge. Another advantage of using this tool is that it has the ability to give you additional keywords once you type in the keyword that you want to use in the search bar. Make a wise choice and began populating your web site with so much online traffic!
A niche market has always been closely associated with small business establishments which do not have the same capacity as several large businesses in terms of financial capacity. Needless to say, larger companies deal more with general markets which necessarily require huge amounts of investment. If you really look closer at the marketing opportunities that are being provided by small niche markets, you will see that there is a great advantage when it comes to investing in a narrow segment of the society.
Niche marketing is a good foundation for a thriving company. In the first place, there is no need for the newbie to put up a huge amount of cash just to make his online business be visible to his target market. There are even free online tools and techniques which can be utilized to study the movement and preferences of online surfers whenever they click on the search bar. However, you also have to prepare yourself when it comes to competition but your rivals are also small business players.
What are the tools that you can use in order to survive the rigors of business rivalry?
You have to be unique both in the type of product that you give out to the public and in your offers as well. If possible, you should provide freebies, discounts and other kinds of promotional items just to entice your potential customers. Always bear in mind that the more unique and exciting your offers are; the greater is the chance that people will click on your link and purchase the goods or services that you are selling.
Make use of the niche market research in order to take a peek at the latest items that are hot in your niche market.
Take note that these items do not remain constant because the taste of individuals vary depending on what products are actually “in”. Trend has a great influence in your buyer’s preferences. There are also times when even television commercials and advertisements can dramatically change your target market’s manner of buying. The general market is usually more stable because the big players cater to the needs of the worldwide market.
Of course competition is also prevalent in the general market but the big companies can easily take the challenge because these businesses have been in the field for so many years and they have their finances to back them up just in case the tides turn against the company. On the other hand, small niche markets can also have several complexities but it is more with how you deal with competition. Even though you are merely playing in a small field, you can always expect your competitors to do everything just to acquire a greater portion of the niche market.
Try to stay calm in facing the challenges that you will encounter. Once you were able to hurdle all the obstacles, you can expect to gain a “name” in the small niche market and even your rival companies will appreciate what you have achieved.
Earning enough profit from your selected niche market is not that difficult especially if you have already mastered various procedures on how to turn your ordinary web page into a money-making machine. When it comes to niche marketing, having an effective and constantly sought e-mail list will let you advertise and at the same time sell your good to your contacts and you can repeat this type of scheme for as long as you want.
No matter what type of product you are trying to sell on the web, it is important that you try to reach people who are interested in purchasing your goods.
Niche market research can help you target the specific group of consumers that has a common problem. For example, you are selling rubber shoes. The tool can help you gather enough information regarding web users who place the word “shoes” on various search engines. This is how the market research tool works and it can give you the heads up regarding the number of online user who regularly log on to the internet just to locate the right providers that sell a particular commodity.
The following is a list of easy and uncomplicated procedures that you can adapt in order to earn huge amounts on your niche marketing ventures.
1. Make use of target keyword searches. A number of web surfers use Google tools because they do not have to pay anything for the people but others prefer to avail of premium search tools. Niche marketing campaigns will be useless without the appropriate use of various research software programs.
The purpose of these tools is to help you find the targeted keywords that are being typed in by your prospects.
2. You have to accept the fact there is a tendency for you to swim in a sea of offers if you do not have a list of all the useful keywords.
Notwithstanding the fact that you have made a wonderful business plan which includes possible expansions just in case your trade become successful online; all your efforts will become useless if your web site cannot even drive the right traffic. In short, you can never expect conversion to happen because of these lapses.
3. It is not enough that you only take note about the target keywords that you can utilize to enhance the driving power of your web page.
Studying your niche market is also one of the basic things to do. In this light, you should correctly get the list of various individual’s searches so you can implement several changes in your online business in case it really requires some renovations.
4. Since niche marketing necessitates collecting numerous email addresses it also follows that you require a suitable domain name. It is recommended that you use the domain which is also your primary keyword. The reason behind is for your web site to be easily accessed by people. Once your domain becomes active you can now build your optimum target connections and sell the merchandise that you need to dispose of.
Problems regarding your niche market can always surface so you have to look for the most suitable solution to answer for these issues. The web contains vital facts that can be utilized in order to properly analyze the mistakes that were committed by a number of marketers. Even though you consider yourself as a newbie when it comes to niche marketing, you still have to do everything in order to be successful in your chosen field. After investing your time and money in this field, there is no reason why you should back out simply because you run out of ideas!
Here are some ordinary issues that most ecommerce marketers encounter on a regular basis. Learning to address these problems will bring huge amounts of profit to your web site.
1. Problems regarding identifying the right product to drop-ship.
Several gifted individuals have the ability to come up with unique concepts and ideas in an instant but this is not the case with most people who engage in e-commerce. Online retailers have to be constantly on the lookout for a good opening and once they see that more and more consumers are purchasing a particular commodity then they should check if they can afford to offer the same goods to online surfers.
2. Hot items do not stay for a very long time. This can really be a very sensitive issue especially if the marketer is not ready to shift to another line of business. This is actually the reason why it is important for a businessman to use niche market search tools and techniques. These tools will give you an early warning that your potential customers are actually shifting to another line of business.
Imagine keeping your inventory pile until such time that people will go back to their usual preferences. Several merchants lower their prices as soon as they notice that there is a tendency for their clients to change their usual purchases.
3. Finding a dependable supplier can also be a terrible problem particularly if you are dependent to only one provider. As an individual who is involved in the ecommerce world, you should always be prepared to face the consequences and learn to device different strategies. Never let yourself be fully dependent upon a particular trade because this kind of practice can have a devastating effect on your business career.
It is very easy to find a reputable supplier. Use the web to locate various companies which can offer the same product or service with the same costs that was originally provided by your former contact.
4. Problems that are related to search engine optimization has always been one of the top issues that merchants have to face but there is a solution to this kind of predicament. All you have to do is to make use of target keywords in your web site and once these words are accessed by the search engine; your site will immediately be placed on the search results. Read several articles regarding Google and Yahoo searches so you will learn more about SEO.
Online marketers have one goal only and that is to make money out of their niche business. The truth is that there are various hot and in demand products that is fit for your company. You just have to be smart enough is searching for the right financial opportunity. Selecting the appropriate merchandise that can be sold through the internet is not a plain case of discovering a niche market and gathering all the related items that you can incorporate on an e-commerce outlet.
Check out the following guidelines on how you can identify the suitable commodity that you can market on the internet.
1. The best thing to do is to check out the most number of items that your target customers are regularly typing on various search engines.
You can always use the niche market research to accomplish this goal.
Once you are able to get the list, check out the product that has been searched customarily and determine if there is a possibility for you to enter the same line of business and investment therein.
2. Identify the products that can answer the needs of your target market. If you are already running an online store, you have to check you inventory and determine which of the products that you are offering are saleable and determine why your customers are actually purchasing such particular items. Maintaining an online outlet does not necessarily require that you have to sell every kind of inventory that you keep in your warehouse.
3. Encourage your customers to post their comments and suggestions on your company web site or blog page. This way, you will have an idea as to the things that they really need. Remember that you have numerous competitors who are also busy targeting the same customers. You can easily beat your rivals and climb your way to the pedestal once you are able to understand the strict requirements of your niche market.
4. People always fall for products which are unique. It might be the design, shade or just the packaging of the item but whatever it is that can set you apart from your rivals should be properly taken into consideration. For example, if you think that the online customers are after the goods that you sell because of good quality then you should make the appropriate ads that showcase the superior class of your merchandise.
5. Be sure that you build your company name by using your strong points. People will surely be enticed to check out your quality offers. Conversion rates are very significant and as long as all the promos and ads that you provide online are geared towards this particular goal of increasing your market share, you will not have any trouble later on.
6. Make an extensive study regarding the margin of profit that you can acquire. Basing your competitive business qualities on lower costs is not the right thing to do. You have to be wise in selling! Be diligent in offering new good to your customers because you just do not know when they will order for your goods.
If you can determine that there are people out there who are willing to spend money to buy what you are selling and you can identify those people then you have a niche marketing product or service that can make money on the Internet. Sometimes it takes reframing your product or service to make it more attractive, better or just different than what others are selling it for.
Research is the key to successful niche marketing.
Market Research Masterclass
There’s nothing more important when making wise and profitable decisions for your business, than understanding your market. Whether you’re thinking of starting up your own online business or blog, or if you already own one, you need to research your market to ensure you achieve success and maintain it. The same goes for brick and mortar businesses. So how can you discover what sort of research you should be doing?
The Internet Business School’s Market Research course has everything you need to know to analyse any market or niche to get an accurate insight into your chances of success. Most importantly, you can get this knowledge before you spend any money building websites, pages or online advertising. This hands-on workshop will teach you to do your own online market research and how to use it power up your business.
With an increasing number of people shopping online each day, it has never been more important to research your online customers. The Internet Business School, provides all the training and expertise you’ll need to produce top quality market research.