The Power Of A Niche Market

Do Not Underestimate The Power Of A Niche Market

Niche websites are clearly focused on a corner of a particular market.
They are not only an ideal way to create a profitable online business website; they are probably the best way.
There are millions of websites already on the Internet and there are thousands more being added every day. Those millions of sites and pages are your potential competition . . . unless you specialize. You don’t need to waste time and energy trying to compete. Niche websites are the way of ‘not competing.’
Be a Laser Beam not a Flashlight
As is true of real life, there is little benefit in trying build a website that will please everyone. Your time is better spent pleasing your chosen niche market by targeting your website to that specific group. Once you begin getting traffic and building a client base, you can expand your sales to other areas.

The key to a profitable niche website is focus, focus and . . . focus. You have to focus your entire website business around a single market, product or service.
You continue to focus until you have effectively eliminated almost all of the competition. You then become irresistible to your chosen market.

Products As Niches

Choosing the right niche is critical to making a successful online business.

The most common mistake people make when creating their website is to either choose too general a theme, or no theme at all.
 The broader the theme:

1.  The larger the competition.
2.  The harder it is to rank in the search engines.
3.  The longer it takes to rank in the search engines.
4.  The more pages you will need to create.

The narrower the theme:
1.  The smaller the competition.
2.  The easier it is to rank in the search engines.
3.  The less time it takes to rank in the search engines.
4.  The fewer pages you will need to create.

Choosing Your Niche

Products as Niches

A product can be considered as a very tight niche, but it can represent a large market. 
The problem with a product approach is that some have very short lifetimes.
Some products can make for good niches, but just be careful.

Local Niches

The Internet is now so pervasive that it is being used by more people, for more things, from shopping, to entertainment, to keeping in touch.

Websites are replacing many of the traditional paper based systems we have grown up with from the telephone directory, to the local business directory, to the many local magazines and leaflets.

There is a huge opportunity for creating various locally focused websites to serve your local community.

The Best Niche

1.  Strong demand -plenty of people searching
2.  Low Supply- Not many competing websites
3.  Display plenty of opportunities for niche related keywords - lots of keyword combinations.
4.  Excite you – You are going to be spending a lot of time on it - enjoy it!

Niches to Avoid

The Internet marketing niche is often the first one that comes to mind for most beginners, usually because the products they have purchased have an affiliate program. Try to avoid this niche as it is overcrowded and usually over hyped.

Testing Your Choice

One way to test and see if this niche is right for you is to start writing a few pages on the topic. 
If you find it very difficult to write about it, or no new ideas come to mind while doing it, you may want to rethink that niche.
Some topics are more difficult than others and just don’t generate much variation.

Products As Niches

Taking on a new niche market can be a low-risk way to grow your business, as long as you keep in mind some important rules:

1. Meet your visitor's unique needs. The benefits you promise must have special appeal to the market niche. What can you provide that's new and compelling? Identify the unique needs of your potential audience and look for ways to tailor your product or service to meet them.

Start by considering all the product or service variations you might offer. When it comes to marketing soap, for example, not much has changed over the years. But suppose you were a soap maker and you invented a new brand to gently remove chlorine from swimmers' hair. You'd have something uniquely compelling to offer a niche market--from members of your neighborhood pool to the Olympic swim team.

2. Say the right thing. When approaching a new market niche, it's imperative to speak their language. In other words, you should understand the market's "hot buttons" and be prepared to communicate with the target group as an understanding member--not as an outsider. In addition to launching a unique campaign for the new niche, you may need to alter other, more basic elements, such as your company slogan if it translates poorly to another language, for example.

In instances where taking on a new niche market is not impacted by a change in language or customs, it's still vital to understand its members' key issues, and how they prefer to communicate with companies like yours. For example, suppose a business that markets leather goods primarily to men through a website decides to target working women. Like men, working women appreciate the convenience of shopping on the web, but they expect more content so that they can comprehensively evaluate the products and the company behind them. To successfully increase sales from the new niche, the web marketer would need to change the way it communicates with them by expanding its site along with revising its marketing message.

3. Always test-market. Before moving ahead, assess the direct competitors you'll find in the new market niche and determine how you will position against them. For an overview, it's best to conduct a competitive analysis by reviewing competitors' ads, brochures and websites, looking for their key selling points, along with pricing, delivery and other service characteristics.

But what if there is no existing competition? Believe it or not, this isn't always a good sign. True, it may mean that other companies haven't found the key to providing a product or service this niche will want to buy. However, it's also possible that many companies have tried and failed to penetrate this group. Always test-market carefully to gauge the market's receptiveness to your product or service and message, and remember to move cautiously to keep your risks manageable.

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