Thursday, February 23, 2012

Two Simple Steps to Identifying A Profitable Niche Market

A Niche is a smaller segment of a larger market. In internet marketing Niche marketing is preferred by many affiliate marketers because it produces higher conversions and is proven to be more profitable.

The biggest problem is therefore how to identify a profitable niche market. This article gives two simple steps which can be followed to answer this question:

1. Identify target audience and problems they want to solve

Who is your target audience and what problems are they desperately looking to solve? Is it:

- That college student desperate to get rid of her acne quickly

- That mother frustrated by not being able to potty train her toddler

- That guy who will do anything to win his ex back

To start, simply think about the "general" market and then dissect it so that you have at least 10 related "sub-niches" to evaluate as such:

Health - General / Broad Market

Segments include:

- How to lose weight

- How to prevent / cure acne

- Gout

- Menopause

- Pregnancy

- And the list goes on

Rinse and repeat this formula with any broad topic and you'll likely find a handful of niche markets that consist of highly motivated prospects who are anxiously looking for a solution or answer to their problem.

2. Existing products or services to solve the problems

What types of products and services are your competitors currently promoting to help the niche solve their problems?

- Physical products such as skin creams and beauty supplies

- Digital "how to" guides such as ebooks and video trainings

- 1 on 1 guidance and personal coaching, webinars, software

- Monthly membership offers, trial offers, subscription plans

You can find this information by searching Google and looking at what types of products are being advertised. Chances are that whatever the top sponsors are promoting, this is what is making money. If not they wouldn't be promoting it. So be sure to make a note of the "types" of products so you can promote the same (or similar) products on your sites.

As an example, let's say that you choose to go after the extremely lucrative "health" market which gets BILLIONS of monthly searches...

From there you make your list, narrowing down to at least 10 sub-niches like we started to do above..

- "How to lose weight" is first on the list and gets well over a million global monthly searches from people who are desperate to shed some extra skin, look better and feel better as a result.

- A simple marketplace search at ClickBank and Amazon reveal "plenty" of potential products to promote..

- A search at Google reveals LOADS of competition investing money to advertise - which means the prospects are spending money to buy their much needed solution.

There you go, you now know how to identify a profitable niche market. Following the above 2 steps will assist in assessing the potential profitablity of the niche.

Hastings Chikuse is an Internet marketer and niche website publisher who is committed to helping others succeed online by providing information and resources necessary to build their own online business. He lives in Adelaide, Australia.

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