What is a Niche Market and Why do I Need One?

What is a niche market?

At its simplest, it’s a segment of a larger market.

It’s a specific sub-audience with its own interests and problems.

This sub-audience can be the focus of your business.

By defining what group you serve, you tell the world you’re not for everyone.

Why pick a niche?

Marketing to an entire industry is ineffective, while, focusing on a small cohesive group is powerful.

For instance, if you’re in the health business, a huge, diverse industry, you need to define who you help.

As an example, you specialize in people who have anxiety, fear, and depression. That’s still a big group. So break it down even further. Specifically, people who are looking for natural, non-drug ways to overcome their problems.

Once you identify your ideal audience, the easier it is to target your marketing. You’re not trying to reach everyone, only those select people who meet your profile.

When you target your audience, speak to them in a way that resonates with their needs.

Speak to them in their language and the words that they use to describe their issues.

Calm their concerns. Explain how you’re different, and how you help.

You become the go-to expert when your content, ads, services, and products all portray what your audience wants.

 

Example of defining a niche

Here’s an example of how a larger topic can be broken down.

Let’s look at Financial Advisors. The advisor can look to attract only people in a certain occupation, like doctors, lawyers, entrepreneurs, etc.

Or they can choose a specific demographic,  like divorced women, middle-aged people saving for their children’s education, or older people planning for retirement.

Any market can be segregated by interests, age, sex, income, problems, or industry.

 

How to find the right niche.

The niche you select should be one you’re interested in and excited to work on.

Of course, it has to be profitable too.

You can ensure it’s viable by seeing what others are doing.

First, find your competition. Competition is good because it means there is an existing market.

Once you identify your competition, look for the following things:

• What products or services do they sell?
• Does there appear to be a demand?
• Are customers making comments online? Are they positive or negative?
• Do social media groups talk about this topic?
• How many competitors are in direct competition, and how many are similar?

After you determine there is a market for your niche, how will you make money?

 

Will your niche be profitable?

A profitable niche needs to solve a problem or meet a desire that people are seeking. It must attract people willing to spend money to solve their problems or fulfill their desire.

A niche that has a lot of interest but no one wants to buy anything is of no value. Here are some ways to determine whether it will be profitable.

 

Some research is required.

Start by searching with a keyword that describes your topic.  You’ll see the magnitude of searches in your proposed niche.

First–a Google search is a good place to determine how many other sites are in your niche. You can look at these sites for the products they sell, prices they charge, and the number of customers.

Second– Amazon and Shopify are two more places that can provide a wealth of information.

• How many physical products apply to your niche?
• What prices are they charging?
• How many books are available about your topic?
• How are customers using the service?
• What reviews are these products getting?

Third–Paid ads on Facebook, Pinterest, Google, and other social media platform will give you more insight into what’s available. Examine the variety of products, the quantity of paid ads and the businesses selling them. This will give you great insights into whether you have a potentially profitable niche.

 

How do you stand-out?

Now that you’re confident you have a viable niche and there will be a way to make money—how do you stand out from the competition?

You need to find an edge that makes you one of a kind. Something that makes clients and customers believe you are the best choice.

One of the best ways is to provide valuable, useful content, a strong voice, and a consistent image.

You can read more about branding in my article, Why Defining Your Brand is Essential.

 

How to create a business from a niche?

There are several ways to monetize your niche.

• Start an affiliate site-where you generate sales from other businesses’ products through your blog
• Have businesses place advertising on your website-especially display ads, if you have high traffic
• Sell a physical product-either through your own sire or on Amazon, Ebay, Shopify, etc.
• Sell a service- coaching, tutoring, design services, freelancing, etc.
• Create a digital product-online course, ebook, audio courses, webinars, templates. etc.

Of all these monetization methods, creating your own digital product involves the most work, but it’s also the best way to earn income.

By creating a product you show your authority and knowledge in your field.

You’re in control of the quality of the product, set the price, keep all the profit, and most important—have it reflect your brand.

If you want to learn more about how to create your own digital product, read  Your Ultimate Guide to Digital Product Creation,

 

In summary

The more you narrow your niche, the more specific and targeted the person you appeal to.

When you speak directly to an engaged audience,  you’ll experience greater success, as you become the go-to authority in your field.

 

Ready to Move Forward on Starting Your business?

If you need further help finding the right business idea and a good niche that works for you, Sign-up for my Idea Finder Course.

You can find it here.

 

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Published by CII © 2017