Is the market big enough? Is the market profitable enough? Is there too much competition?
These are just a few of the questions that weigh heavily on the mind of those who are looking to start a new online business. Generally speaking, a good niche market is one that…
- People are passionate about…
- People are spending money in…
- Is easy (and cost effective) to reach…
- Already has other people selling in it – preferably, more than one (if no one is selling in that market, it’s likely because no one has found a way to profit in that market)…
- YOU have an interest in (this is not a requirement, but it certainly makes it a lot easier if you have a passion for the market yourself!)
A good place to start is to realize that choosing a market doesn’t have to be complicated.
A lot of people that want to start an online business will lock themselves in a room and focus intently on keyword research, pay-per-click numbers, and all sorts of other cryptic data. It can quickly become a sort of ‘rocket scientist’ type of thing that gets blown way out of proportion.
3 Simple Strategies for Discovering Your Niche Market
The reality is, choosing a market doesn’t have to be complex. Here are three of the most common strategies that people use to find a market…
Strategy #1: Search for a market that you believe will make you the most money. People who follow this strategy are sort of mercenaries, with the simple goal of exploiting gaps in the market.
They might go to a newsstand or bookstore, search through various magazines on the shelves, and try to pick a market that looks like it could make some money. So they’ll be jumping into something they know little about, but they’re just looking for an area where they can make some money.
This approach can be successful (I certainly know people who’ve done it successfully), but it’s not the most inspiring way to choose a market.
Strategy #2: Identify your primary passion and then try to convert that into a business. In this case, it’s all about the passion. There’s a saying, “do what you love and the money will follow.” The problem is, that’s not always accurate.
If your passion is walking on the shore and looking for seashells it might make for a fun niche to pursue, but the odds are good it won’t be all that profitable.
The first market that our leader Jeff Walker personally started an online business in was teaching people about the stock market. He had an interest in the stock market and investing, and it just happened to be one where you could make a lot of money.
Another market that he has a passion for is information marketing and building online businesses, and that’s another market where you can make a lot of money teaching people if you can carve out your own little piece of the pie.
Strategy #3: Take a self inventory of your passions, experiences, and interests. You then simply identify a profitable market where you can leverage your passions and interests. This is far and away the best option, in my opinion.
When using this strategy, it’s important to remember:
You don’t have to be a world class expert in your chosen market… you just
have to know more than the beginner’s in your market know.
When Jeff launched his first online business about the stock market, he had no credentials. He wasn’t a stock broker… he wasn’t a financial planner… he had no fancy initials. He just had a decent understanding of the stock market and started writing about it.
As it turned out, there were plenty of people that didn’t have much understanding about the stock market who were willing to follow him.
Identify Your Niche Self-Assessment
If you can find a market you’re interested in, where you have skills and expertise, that people spend money in… that’s likely where you’ll find your sweet spot.
Here are five questions to help you get started:
1. What are your core passions and interests? (i.e. helping people, mountain biking, fly fishing)
2. What are your best skills? (i.e. accounting, outdoor survival, building models)
3. What are your relevant experiences? (i.e. traveled the world, played professional tennis)
4. What profitable niche markets fit well with your passions, interests, skills and experiences?
5. What niche markets appeal to you most?
The bottom line is, selecting the right niche market is a critical first step to building a hugely profitable online business that you’re passionate about.
These questions will help get you thinking in the right direction about the market that’s best suited for you.
The Jeff Walker Team
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