June 8, 2010
You want your business to be successful so you need to make sure that you do not make the mistake of choosing a niche market with no potential. The niche market potential and size is something that you must research. Of course if this is just a hobby blog or site it really does not matter.
Here are some guidelines that I use when determining a niche market.
Personal Interest – There are a number of interests I have but when it comes to being a profitable niche I find out there really is not any money in it. For example if you were interested in “Training an Elephant to Paint” your prospective buyers is going to be a small number of people. I do believe that it is best to choose a niche market that you have interest in since you will spend a lot of time with it, that is, if you want to successful with your website. Create a list of topics that you would like to market in and then apply the rest of the guidelines in this article to determine which is going to be the best niche to market in.
Niche market potential – Naturally you want to sell something that has a lot of people with interest in your niche. To determine this use Google Trends, Adwords and Amazon.com.com. Go to Google Trends and type 5 of your niche ideas into the search box. You will see on the graph which one is the most popular. The niche that appears to be the most popular may not be the niche that you want to get into, the next rule tells us why. Next, navigate to the Google Adwords webpage, go to Google.com, enter your niche in the search box and count how many paid for sponsored listings there are at the top of the search results and the links down the right hand side of the page. Those listings show that people are spending money on your niche which is a good sign that the niche market potential of your niche is really good. Lastly, go to Amazon.com and type in your niche. Are there books written about your niche and products for sale in your nice? If there is nothing then you should think twice about the niche you are thinking about and find something where there are products for sale.
Fad likeliness – This is a topic that I don’t here people talk about. You need to be cautious, regardless of the amount of traffic in that niche or the number of products that it is not just a fad. Having been in the retailing of vitamins and supplements there is something new every quarter and the old stuff sinks into insignificance, for example, bee pollen, deer antler velvet, shark cartilage and others. These supplements are not as common and popular as Vitamin E and other supplements and herbs that are popular and people will always be looking for.
Competition – There are two different schools of thought on how to relate to competition. The ideal would be to find a niche with a lot of traffic but no one seems to be targeting it. Those niches are hard to find, kind of like the black 69 Camaro that has been driven 150 miles and then sat in Grandma’s garage. She lists it in the classifieds not knowing what the value is and you buy it for a song. Apart from the ideal there are the two groups and the first group suggests that you go into a niche market with little competition and you will be able to rank high in the search engines with good keywords. The opposing group believes you should compete in the more competitive niches. The are competitive because there is a greater profit potential. To do this you need to know how to do the best SEO possible. That is something that you will have to determine for yourself. It is true though that to try to rank for a popular prescription drug without Adwords or some black hat SEO methods would be near impossible.
Those are the most important rules that will assist you in finding the best niche with great niche market potential. Take your time to make this decision, don’t rush or you will most likely regret it.
Niche Market Potential is something Bill Wynne understands having made a great passive income from operating a number of niche websites.