Newbies Check Out these 8 Tips for Your Niche Selection
Selecting the right niche is one of the most important decisions that you will make if deciding to establish an online business. It is key to research keywords, competition, and traffic to better assess if a niche is viable. What however are the other recommendations that you could consider to develop a laser-focused niche. They are:
Recommendations:
1) Ensure that you have a variety of products in the niche from which to choose. If your product line is too narrow then you will have little to no flexibility if something goes wrong with that product. Fortunately, affiliate programs (eg. Clickbank, AWIN, Amazon etc) have a wide range of products for many niches.
2) Being able to understand your customer and identify hot ticket items in your niche is key. That means you have for instance be able to anticipate spikes in consumer demand in your niche. For instance, if you are in travel, events, massage parlour and contact sports how can you benefit from the release of the pent-up demand as borders open and distance restrictions are dropped?
3) Do you have access to Influencers in your niche that could help provide you with advice and assist in scaling your business. The power of partnership or forming an alliance with a big player in your market can be the difference between moving you from an Outsider to an Insider.
4) It might seem pretty obvious but understanding how expensive it is to attract traffic is very important to success. If your niche is highly competitive and there is a high ad spend by the major players to push their brand then that niche might be too crowded for you. It does not mean you cannot enter the niche but it will take some time, sometimes years, to distinguish yourself, if you are depending on SEO.
5) Is your niche characterized by repeat buys or membership? This type of niche offers recurring commission income potential typically for as long as someone remains a member. Two easy membership niches are media sites (e.g Shutterstock) and training sites.
6) While it is not a total obstacle it is easier to have some knowledge about a niche before you jump into it. Followers in your niche typically want to understand how to best tackle their challenges and address their issues. Speaking from a ‘first hand’ sense allows you to provide unique insights which your customers will appreciate.
7) Some customer types just do not spend any money. Take for instance, Marlene who set up a small restaurant close to the port where international cruise ships dock. She was hoping to pick up the foot traffic however the cruise ships offered all-inclusive packages so apart from some knick-knacks her food business did not take off. Be sure therefore that your targeted customers are offering you sales and enough margin on your sales to make it worthwhile to be in that niche.
8) Even though it might be a little down the road you might wish to consider whether you can create your own products – E-books, training, webinar, How To’s, etc. Ahead of affiliate and drop shipping models, the maximum profit you can make is on the sale of your own products. This might seem daunting however there are many options that could assist you with authoring including outsourced assistance (e.g. Upwork), PLR (Private Label Rights) and Public Domain.
Are there other recommendations that you think should be added to this list?
Take care everyone,
Hugh
Recent Comments
76
Good morning Hugh,
I hope you're doing well and your business is going well.
Thank you for an excellent detailed blog post for niche selection, some great and detailed pointers!
Just one point, Hugh, I always think it's important to have a passion for your niche. I would be inclined to go where my passion was rather than where the money is.
I say this because I cannot imagine trying to write a blog post about something that I have no passion for. It would make my website extremely hard work! When we have a passion for our niche, words can flow, making writing a joy. I also believe the reader knows if you have a passion for your niche, reflecting in your blog post.
Just a small thought.
Have a great weekend Hugh.
Roy
Roy you are quite right however I want to throw in a wrench. Like you, we are building up our skills with WP, social media, analytics, traffic, affiliate marketing and other systems. Even though I am not in say Mental Health or 4 Rotor Copter Drones, what I have done is to partner with specialists in those fields. I love what I do in terms of helping small entrepreneurs market and monetize and they stay focused on the actual content. What do you think?
A win-win so far for me. But yes totally agree if you are eating the whole enchilada you have to like the whole enchilada lol.
I can see both perspectives, Hugh. I understand Roy's point of view. My niche is Photography and I was a beginner photographer for some time before I joined WA, but I felt uncomfortable at blogging for the first time because I didn't feel as knowledgeable enough to blog about it.
I remember messaging Jay during the training, who encouraged me that I don't need to know everything about photography to blog about it, as long as I'm passionate about it and do the proper research. But I also agree with you, Hugh, as I've been joining up with other 'specialists' in assist me, to help me learn and get better.
Good morning Hugh,
Thank you for your reply.
I think you have thrown in a great wrench, Hugh! This is one of the many things that makes Wealthy Affiliate so good, we can throw ideas at each other and learn so much. Your idea sounds fantastic, Hugh!
I believe that subjects that we don't know about can become interesting when the owner of that niche has a passion. We can also share our passion for marketing et cetera and learn from the other person's passion about their particular niche. Another great thing is that different things work for different people.
I'm so pleased that it's working for you, Hugh, this is great news.
Have a great Sunday,
Roy
Thank you Hugh. Good advise for a not so newbie like me. When I first started, I only go with passion and only briefly check whether my niche has a good product line to branch out. Alas, I think I eventually need to go down the create my own products route.
Perhaps. The important thing is that you do a check and repeat the process routinely. Even have another set of objective eyes take a peek to offer suggestions/ recommendations. I know you will do well Richard. You go this!
See more comments
Great perspective Hugh and I think creating your own products for your audience is often overlooked.
Excellent perspective. I did meet one cafe owner in Spain who had a great take. Her sign said "bored of all inclusive.. why not take a break" . She was full everynight but the hotel food was awful !!
I really love that sign Phil. A sure winner! I trust you are well my friend?
All good here Hugh just very busy so my time on here is a bit restricted hope all good with u
Good to hear that you are well. Doing fine here also.