You have done your research, and narrowed down a list of potentially profitable niches. But are they truly suitable for you? Here is where you will need to analyse and prune the list you’ve compiled. No niche is perfect, but there are many things to consider when deciding to do internet marketing in a niche.
The most important part of this process is finding out the things that appeal most to YOU when it comes to each niche. Use the following 14 questions when determining whether a niche is for you or not. Some of the questions are about the profit potential of a niche. Other questions are about how easy it’s going to be for you to reach your target audience on a daily basis.Then there are questions about how fast you can grow and become a force in any given niche market. If a niche doesn’t sit with you after asking these questions then delete it from your list.
Question #1: Are there multiple good products in the niche?
The first question you want to ask yourself is, are there a lot of good products? You want to know this because you may quickly run out of good products to offer to your website visitors or e-mail list subscribers. If you’re running AdSense or selling ad space on your website or selling ad space in your e-mail newsletter, then that’s one thing. But if you’re going to be depending on making commissions, then it’s vital to have multiple offers you can promote.
Question #2: How big is the problem to your prospect?
If it’s not a hobby niche, how big is the prospect’s problem? Is the problem significant enough to make them willing to part with their hard earned money, in order to to get a solution? Maybe someone would be willing to pay for pain relief, but they wouldn’t be willing to pay to solve a lesser problem.
Question #3: Are there potential JV partners in the niche for explosive growth?
Here’s something not many marketers consider when selecting a niche. Are there potential Joint Venture partners already in the niche? Are all of them so big that they would never consider doing a JV deal with you? Or are they so small that it wouldn’t matter if they did a JV deal with you? There’s no faster way to grow a business than by using Joint Venture deals, so it’s something to consider.
Question #4: Does it make sense to build a list in the niche or not?
Are other internet marketers in the niche building an e-mail subscriber list? Would it make sense to build a list in the niche? You may or may not want to get into a niche where it’s a must to build a list in order to make nice profits.Take a look around at the competitors and see if they have opt-in forms on their websites or not. Join their lists and see what it would be like to market in that niche.
Question #5: How expensive is available ad inventory in the niche?
One major thing you have to consider before getting into a new niche is how easy it will be to reach your target audience. If you’re looking to pay for traffic, then you’ll want to see how expensive the ad inventory is for that market. For example, you’ll find the costs vary when bidding on keywords and URLs using CPV networks like Lead Impact and also when bidding on PPC keywords with Google AdWords.
Question #6: Will it be easy to generate free traffic in this niche?
If you’re looking at going the free traffic route, then take a look around at how easy (or hard) it would be to reach your target prospects in a particular niche using free methods. You can use the Google Keyword Tool to discover generally how competitive keywords are in a niche. Also try to do some digging around and find out if your competitors are successfully using other free sources like YouTube, Twitter, and Facebook. If they can do it, then why not you?
Question #7: Are there continuity programs like membership sites in the niche?
It is easier to make dependable income when there are continuity programs in a niche. This includes membership sites, subscriptions, etc. They are especially lucrative when there are services that customers need and will keep paying for month after month.
Question #8: Do you already have knowledge of this niche?
It’s much easier to enter a niche when you already have the knowledge or expertise . You don’t have to be an expert, but being an intermediate is enough to share what you know information-wise. A burning desire to learn more about a niche is helpful as well in getting into a niche. In that role you’re more of a reporter than an authority figure.
Question #9: Are people spending money in this niche?
Many hobbies are popular, and solutions for problems are searched for all over the net – but that doesn’t mean people are willing to spend money on it. In this case you’ll need to verify whether there are buyers in the niche. It’s easy to make the mistake of choosing a popular yet unprofitable niche, so make sure you “do your homework” on this.
Question #10: Will it be easy to stand out from the crowd in this niche?
Some niches have a crazy amount of competition, but that doesn’t mean you should be scared to get involved. Is there a way you can stand out from the crowd in a competitive niche? Think about it, because standing out can help you stomp your competition into the ground.
Question #11: Is this niche related to Health, Wealth, or Relationships?
If the niche you’re looking at is related to Health, Wealth, or Relationships, then you may have a mass market on your hands. Health, Wealth, and Relationships-related products and services are known to be cash cows. Also, the traffic potential is generally higher when related to Health, Wealth, and Relationships.
Question #12: Are there many searches in Google in this niche?
Take a look at the Google Keyword Tool (type “Google Keyword Tool” into Google to find it). If you see low traffic levels for keywords in your niche, then it doesn’t make much sense to choose this niche. Sure the competition is likely low. However, there’s usually a reason for that – there’s probably a lack of customers.
Question #13: Could you create a product in this niche?
Having your own product gives you maximum leverage in a niche. You can create cross promotion deals with JV partners and you can sit back and let your affiliate army crush your offer with traffic all day long. If it’s a physical product you must create in a niche, then that may be something you can’t do. As for digital products, if you don’t have the expertise in a niche, then there may be Private Label Rights material available on the web that you can use to aid you in creating a respectable product.
Question #14: Will it be easy to build your authority in the niche?
Having your own product is honestly the ultimate way to build authority in a niche. Another way is by having JV partners who customers associate you with, so you’re borrowing your JV partner’s credibility in a way. A popular blog can also give you authority in a niche.