The Science Of Coming Up With A Profitable Niche
Thinking About Starting Your Own Business.
Being well-informed and enthusiastic about your passion is not enough to build a profitable business out of it. You must make sure your market or niche has enough profit potential to meet your financial goals, especially since you will need to invest some money to get your business off the ground. Just, thank of the costs to establishing a professional business website, one that has a strong visual brand, optimized to show up in search engines, capture leads, or facilitate e-commerce. One that shows that you are serious about doing business. You will need to spend time, energy and money on design, web development, copy writing, web hosting, SEO, etc.
So, if your goal is to make money on a business?
Then choosing a profitable niche market is critical. Do you have idea or something your interests in, especially one that you are passionate about? Niche marketing involves the art of defining your niche and marketing your product or services to this niche. Many business owners view the idea of niche marketing as a strategy that will cut their profit margin or limit their sales, but the truth is, having a well-defined niche can give your business more power, especially if the niche has enough demand and money in it. When thinking about starting your own business it’s better to define your market or niche the higher the likelihood you can hone your marketing message to resonate with this market, turn this audience into fans, who will buy and rave about your product.
Researching profitable niche markets can be tricky.
I’m going to share with you a some basic, as well as some free tools, commonly used by Internet marketers for niche research. While this approach is essential if your business is entirely online – it is also extremely powerful if you are a brick and mortar business seeking to grow online income streams. While niche research techniques might differ slightly, depending on what you intend to sell like digital products, physical goods, or services the principle remains the same.
If You Are in the Early Stage of Starting Your Business.
Looking to start a business in a market you are passionate about, rather than focusing on what product you want to sell, start first with understanding your audience. Why should you concentrate on a niche audience first, instead of products? Products come and go, but niche audiences stick around forever. When you choose a niche audience and take the time to understand their needs deeply, a whole new world of options opens to you. You switch from struggling to find ideas for products, to instantly knowing exactly the types of products you should be promoting, because you’re in tune with your audience’s needs.
Identify What Keywords Your Audience Uses.
When they research topics related to the niche market, especially searches related to their problems. This information will not only tell you what topics your audience cares about the most, it will tell you whether there is enough profit potential in this niche. An easy one to start with is the free google AdWords tool. You can use it to identify the keywords your audience is using to research products, services, solutions, and information related to this niche market. This tool provides lots of useful data related to keywords (especially if you use this tool while logged into your Google AdWords account) such as local and global search volume, level of competition, average cost per click (CPC) and more.
The level and quality of competition.
Look at the level and quality of competition in the niche that you choose is there a good indication whether the niche is lucrative or not. Not to say that it isn’t a profitable niche. Asking yourself why no one is advertising will yield a lot of insight. A great way to find answers are in the list of keyword suggestions presented by the Google Keyword Tool. Could it be that most people are looking for free information? Are other kinds of products this target audience would buy? At this point it may be worthwhile drilling down to long tail keywords related to the niche market. However, just to be sure, it’s good to circle back to the Google keyword tool and see if there is enough search volume for this keyword niche to support a viable business.
Another critical piece of information to have is where the niche market is going.
A great free tool to use is google trends. If you want your business to be a long-term business, it’s better to establish yourself in a market that is growing or at least relatively stable. There may be other profitable long tail keyword market that you can target. It’s up to you to drill down into the niche to identify what profitable keywords exist and what services, products and solutions this market might be eager to pay for. So, if you are determined to be in the internet marketing business and go after the audience associated with that niche market.