In my last post “Legit Ways to Make Money Online and the Power of Diversified Income” I discussed one way I was able to diversify my income selling books on Amazon. In this post, I would like to cover some of the steps involved in finding a niche market. This info once gathered will give you some valuable insights into what markets, products or services have a chance at gaining a high-profit margin. In my case I gather this info to determine profitable products I can white label and sell on Amazon and Ebay, however, this infer could be used in a number of different applications.
#1 Choosing the right Niche
- You want to make sure your Niche is getting searched for in the search engines. (Use Google Keyword Planner)
- Look for a niche that has no less then 1000 searches month and no more then 50,000 search per month
- If its your first Niche try to stay within 15,000 search a month
- Don’t be afraid to go after 3 – 4 word long tail terms. Ex. Mens wait loss program
- Do a Google search for keywords like “Expensive hobbies”
#2 Choose a niche that does not have a lot of competition in the search engines.
- Choose random and obscure niches to reduce competition
- Find a niche that no one else is talking about.
- To determine if niche has a lot of competition a quick Google search should help determine this.
- Make sure to pay attention to the number of results that turn up. If there are 1 – 2 million (or less) results then you probably have a good niche if there are more you may want to move on.
- Look to see if there are a lot of high authority pages specific to your search. If so this is probably not a good niche
- If however your results pull up a 3rd party sites like Wikipedia, Facebook, Twitter, Pintrest, etc mentioning your niche then you may have a good target niche.
#3 Find a niche where people actually buy stuff.
- Think about how you will make money from your niche
- Find magazines or websites focused on your niche and determine their subscriber rate.
- Look for market or consumer studies related to your niche market
- Determine how many people are buying with in that market
- by using top seller list on Ebay, Amazon etc.
- Go to Amazon and look at books related to your Niche and look at the books sales rank. To find best sellers on Amazon go to www.amazon.com/Best–Sellers/zgbs Profit Spotlight 2.0 http://profitspotlight.com/
- Identify trends
- trendwatching.com (free news letter)
- google trends
#4 Test the market
- Post your product or concept on internet marketing places like Ebay, Amazon, Craigslist, etc. See
- Advertise your product or concept via Google or Facebook ads
- Go to events or places where your customer base is and have them test or sample your product.
- Conduct Niche research on an affiliate site – http://sugarrae.com/affiliate-marketing/conduct-niche-research-affiliate-site/
#5 think about how you want to position yourself in the market.
If you have comments or questions about this process please leave them in the comments section below. Perhaps there are some techniques we have left out or possibly you have some market research ideas you have found of particular benefits. We would love to hear your thoughts. In my next post I will discuss the process determining what makes a good product.
Adam Chronister is co-founder of Enleaf, an award winning Web Design and Internet Marketing Firm. You can find him on Facebook Facebook and Twitter.
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