Selecting a niche isn’t easy and if you are like me you want to offer your services to as many people as possible, so what you do is select too broach a niche typically small businesses for example. And all that happens is you constantly run around trying to service too large a market and you lose out on lots of opportunities and lots of revenue. It seems strange to say that, but if you select a focused niche your profitability will increase even though your overall market is perhaps smaller. The reason for this is that your marketing speaks directly to your niche, you become known as the go to person in this niche and you convert more sales than if you try and satisfy everyone.
One of the first things you have to do when choosing a new niche is to define the niche, then do enough research to prove whether the niche is popular enough to monetize it. The trick is to learn how to narrow down a niche to be laser focused enough to create profit. The idea that your audience includes everyone is a sure-fire way to make less money, not more. Therefore when you start a new niche, be sure that your niche has as much of the following as possible.
Identify Your Audience
It’s actually easier to identify an audience first, then develop the products and services that the audience needs. The more you can understand your audience, the more likely you are to recommend products and services that they will want to buy – making your business a lot more profitable. Does your niche have enough starving customers ready, willing and able to spend the money on your product or service?
Lots of Searches Returning Poor Results
You want to determine if there are many searches for products and solutions by your audience, but few solutions being offered to them. This can move into keyword research. Identify keywords that aren’t getting the results that the consumer wants and you’ve got yourself a winner. In SEO parlance, these keywords are considered to be non-competitive. This means the big companies aren’t paying for those keywords, so they’re easier for you to rank for, which means your audience will be more likely to find you.
You want there to be some competition for your audience. However, you don’t want to offer replicated solutions. The reason you want there to be competition is that if there is competition for your audience, then the niche is likely profitable. In other words, if someone else is earning money from your audience, so can you with the right product.
If money is being spent by your audience someplace, then why not with you? You don’t want to choose keywords or a niche that offers 50,000 search results (it’ll be too hard to compete), but you do want there to be something coming up so that you know it’s possible to earn money.
Research Industry Trends
Being up on the trends within your industry is just as important as understanding your audience. Is there a killer technology being developed that will destroy the competition? If you can predict where the market is headed, you can circumvent others from making a profit off your audience by being first to market with a new solution. As they say, “The early bird gets the worm”.
After conducting the research, it’s important to make a decision based on the facts rather than your emotions to help you determine if the niche is worth your time and effort. Are there already products you can promote to the particular audience that offers good solutions to the problems you identified, or do you need to create the solutions? If you’re up to the task, whatever it is, then you can go forward with the new niche.