The one thing everyone seems to want these days is to start their own business. Many new business owners believe that the only thing they need to be successful is a website that will bring in automated profits around the clock.
While a site is a useful tool to have, it isn't a full-fledged business. Unfortunately, many would-be entrepreneurs are not prepared to put in the effort that is required to research a niche correctly to determine that the niche they want to work in is a paying one.
Finding a paying niche, and then creating content, products, and services for that niche, is the best way to for you to build a solid foundation for a successful online business. It is also the best way to achieve the level of success and kind of profits that most business owners need to make their efforts worthwhile.
Not picking a lucrative niche is an easy mistake to make when you are excited about all the great ideas that you have. It is also easy to fall into a niche that you’ve heard people are making a killing selling online.
Passion and enthusiasm are essential when it comes to running your own business, but so is research. All the large corporations spend time researching before releasing new products to the public to see if there is any interest in a new product.
Unfortunately, most new business owners get it wrong. They first create a product, then spend the time and money to launch the product, then try to mind a market for it.
The secret key to online success is to:
• Find a paying market
• Create a product for it
• Launch the product by directly marketing to the paying market you’ve already located.
The best niche marketing strategies and tactics are based on concrete research and building a relationship with the prospective customers in your niche.
While there is a lot of popular niches out there, not all of them are paying, or even well-paying ones. While you can make money with ‘bargain basement' kinds of customers, it is much better if you create products for people who are willing to pay a reasonable price for real solutions to the issues they are facing.
This is the basis for a sustainable business, with happy, loyal customers that will come back regularly to buy from you. In fact, if you do things right, some of your customers will be so loyal that every time you launch a new product, they’ll be willing to buy it.
Without doing the proper research, you may end up putting in hours of time and effort only to discover that you don't have a real viable business after all. Your attempt to get your blog or website set up and to try and create a product to sell will be a waste of time unless you know your niche is part of a paying market.
Once you are sure you have chosen the right niche in a paying market, you will start to earn the profits you need to meet your financial goals.
Chapter 1 – Why Finding Your Niche is Important
A niche is a small, specific, target market of potential customers. Smart business owners try to sell their products and services to a niche base of customers by conducting detailed market research with a focus on trying to understand the consumer behavior of the people who are interested in that niche. Specifically, their needs, concerns, and desires.
Once the research shows that consumers that are interested in the niche are willing to pay for products, services, and solutions that are related to the niche, the business will then try to cater to them as much as possible by providing a range of items for sale at various price points.
Some of the products they offer will have a much broader appeal than others. For example, there will be more customers interested in golf products for beginners, than those looking for advanced information on golf because they are or are hoping to become a pro golfer.
Therefore, by focusing on products for beginners, you will be able to increase sales based on volume by offering a lower price point to a more significant amount of customers.
However, while there may be fewer advanced students looking for information and products on golf, the exclusive, high-level information that you can provide could command a much higher price than the eBooks focusing on a beginner's level.
Offering advanced students, a course, multimedia package, coaching program, membership program, or other similar products could command a much higher price point, especially if you are seen as an expert in your niche.
This is because the more credentials you have, the more money you can charge for the products and services you are offering in your niche, within reason.
Your price point has to be within reason because finding the right niche isn't just about finding the right one that pays, but it is also about what people are buying and how much they are willing to pay for them.
If the average price they are willing to pay is $29.95 and you want to enter the market with a $39 product, there will need to be an apparent reason why your product is worth more.
Your expertise, credentials, and the added extras you are offering can help to remove some of the doubt in the customer's mind and convince them that the extra cost is worth it. However, you will only be able to convince them to pay the extra money if you know what other offers are available so that you can make an even better offer.
As you research your niche, you will not only discover if it is a paying one but if there are users who are willing to pay premium prices for the kind of insider information that you can provide.
You also want to think about the life cycle of the customer in a niche. While they might start out as a beginner, by sticking with the niche and continuing to learn, they will eventually need to obtain intermediate or advanced information.
Understanding the life cycle of your customers provides you with the opportunity to continue to sell to them over and over again.