What is a “Niche”?
A Niche (market) is when a product is focused on a specific group, typically a moderate demographic.
Why should I choose to create a product for a specific niche?
Products that are created for a specific niche are proven to become more profitable than those that are created for a general customer base!
Did you know:
Facebook was originally created to fill the demand of a universal social network for college students…
How can a Niche be more profitable?
It’s quite simple to explain how a niche can be more profitable than a product that is not created with a specific customer in mind. By narrowing your target number to those that fall in a certain group of people, you are automatically saving your company expenses by not advertising to the uninterested! The other positive side of a niche, is that you are only spending your valuable time and money on those people that actually matter. Think of it like this. If my company just created a new high-tech baseball bat, why on earth would I advertise on TV during a football game?!
Does my target niche have to be large?
The answer is, NO! The most important (and obvious) part of your niche, is that the people in it spend money! Say my goal for the month is to make $5000. My niche contains 15,000 people and I’m selling a product that only costs $100. If only 50 (.33%) people buy my product, I have easily reached my goal. This is called “the minimal customer base.” It is not unusual to get a .5%-1.5% response to an ad that is targeted to a demographic! For example: Don’t market to dog owners, but instead market to ONLY German Shepard owners. German Shepard owners are a large enough demographic to make it worth your wild, and the simple fact is, they spend money!
How to find a Niche!
The easiest way to be profitable in a niche market, is to be part of the niche yourself. Think of what social activities you partake in, industries your part of, or professional groups that you belong to. Pick 2 markets that you’re familiar with. Look for 2 smaller magazines with a readership of at least 15,000 people that is specific to your niche that offer full page advertising for less than $5,000 dollars. Next, brainstorm products that can fill a gap in this niche! Do not create a demand, fill a demand. This is of course easier to know what the demand is since you are part of this specific group!
What Do I Do Next?
- Digest this information into your think tank.
- Find what niche you are part of.
- Find gaps that have a demands in that niche that needs to be filled
- Brainstorm product(s) that can fill that demand.
- DO NOT invest money into that product!
- Instead, run tests ads (click here for tips)
- Study the response based on the test ads. If the response is good, take it to the next step. If the response is not in your favor, go back to the drawing board and try again.
Hope you found this useful, and as always, I love hearing your feedback and stories of your results!