Know your market by learning how to choose the right niche.
How to Choose the Right Niche:
Firstly, you must choose the right niche that will suit YOU and that you are really passionate about. You need to forget about everyone else’s niche, imagining that there’s a magical niche out there that’s guaranteed to start making you money. Instead, just focus on choosing the right niche for your needs.
This should be fairly easy. Do you have an interest in that category’s subject matter? Can you get excited enough to talk enthusiastically about the niche topic? You MUST personally believe passionately in the products or interests of this niche market.
Is there an existing demand for your chosen niche?
It’s quite easy to determine the demand for any niche thanks to the Internet. You start by coming up with some good keywords that relate closely to your niche.
You can visit the Google Ad-words keyword planner tool for free initial research, but there are many other tools to consider.
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You then need to check out the commercial value of your niche. Again, the free Google Adwords’ keyword planner tool is very useful for finding this information.
Do a keyword search and you’ll find the estimated cost per click for that keyword. This gives you some idea of how much advertisers are paying for that keyword. The logic being, If people are willingly paying that amount, chances are, they’ll be making a bit more than that per conversion. The better the niche, the higher will be the cost per click.
The ROI has to make sense for you, or, it’s going to be wasting your valuable time. As far as the commercial value of the niche you’re targeting, you must be very strict to keep things real.
Your next task is to find a niche with a manageable level of competition. Simply type into Google’s search box, keywords related to your niche. Be sure to use the US version of Google’s search box, for the results to show you how many other competing pages are targeting your keyword.
You next have to ensure that your niche is scalable.
- Study the keywords related to your niche.
- Study websites that are already offering products or services that target your niche.
- Will a customer be willing to buy more than one product?
- Are there other related products within your niche?
Another way of looking at this is to consider if you can sell more products that will speak to the interests of your niche.
The two product categories might not be obviously linked, but you might be able to find other related merchandise or services that you can sell to the same group of people, if you look at the probable interests of people who buy the original product.
When you learn how to choose the right niche, you will not only be able to sell products that specifically address that niche, but the interests of your customers will be broad enough that you can find other products to sell to them.
This lets you maximise the value of your email list over a longer period of time.
Your email list will then become a rock solid money-making asset, rather than just a one-shot conversion or sales delivery system which is essentially worthless after you sell to a fraction of your list members just one time.
Finally, you should learn if your niche can be sold to in a low-cost way. The best way of doing this is to research other businesses targeting your niche.
- Find out how they are making money from the niche.
- Are they selling a book or some sort of digital product that they only need to create once, to sell many times over?
- Or, are they selling something unique and handmade?
As far as possible, keep away from selling handmade products, or products that need lots of input. It is possible to make money from such a niche as an affiliate, but you will probably enjoy a higher profit margin by just selling a book or digital product.
To start building a passive income business, focus on a niche that can be monetised using the lowest cost possible. You don’t want to find yourself in a situation where you’re providing services and essentially just selling your time to your list members. It’s unlikely that you’d be able to service many of them.
The whole point of building your own online business is to create a passive one, where you work only once, but you profit from it many times over.
Think about publishing a book. There’s research, writing and publishing a book. But, as soon as it’s published, your costs become zero, because when people buy a book, you don’t even have to be around to process payments. They just pay you via PayPal or credit card, and get access to your download page to download the book.
You don’t have to research or write another word. You don’t have to package another book. Everything then takes place in the background. So, you work only once, but you sell many times over. The best part is that the payment processing takes place in a seamless and automated way.
Think along these lines … The lower the cost in servicing your niche, the better.
I hope this post has helped you to learn a bit more about how to choose the right niche.