What is a niche?
A niche is a focused, target area of the market. In fact, you are an expert at this niche for the simple reason that this is your passion, providing a product or service that focuses on specific group’s needs, which are not addressed in such detail by popular brands.
Kyle Loudoun over at Wealthy Affiliate wrote a pretty informative article “A Niche is A Group of People Looking For Stuff“. He basically simplifies the term “Niche” by defining it as a group of people looking for specific products and services. Furthermore he explains that when choosing this group of people you will want to be very specific, otherwise if you are too broad, it will be more difficult to talk to your audience.
Your main goal is to choose your direction, for example, choose the niche that interests you the most, a niche that gets you pumped up to talk about and write about. If you’re having trouble with deciding, not to worry, a great thing about Wealthy Affiliate when you sign up for a free account is if you can’t think of a niche to start with, there is an Affiliate Bootcamp with seven stages for the “Make Money Niche”. Check it out:
What Is Niche Market Research?
The first step to helping you build your online business is knowing what niche market research is and how to find a niche that you are interested in. More importantly, the revenue you will be generating from it.
Lets dissect this phrase Niche Market Research into two sections, Niche Market and Market Research to get a better understanding of what is involved.
- Niche Market: A niche market is the subset of the market on which a specific product is focused. Ex: Market is Shoes; Niche Market is Adidas Shoes
- Market Research: Market research is the action or activity of gathering information about consumers’ needs and preferences. Its a way of getting an overview of consumers’ wants, needs and beliefs.
How Researching A Niche Is Performed
Niche market research is obviously the first step in deciding what your business is going to be based around. The graph below pinpoints where you should be when choosing your niche of interest.
Lets break this down so you get an idea of the process in which it takes to reach your ideal niche of interest.
First, we have High Market Demand or Market Growth. Here’s how BusinessDictionary.com defines it;
“Market Growth is the ever increasing demand for a particular product or service over time”.
For example, a new product or service might only be marketable to a small group of consumers, but as the price of the product or service decreases and its benefits in every day life increases, more consumers could increase demand.
Another Example, Nootropics! This niche sure has taken off and will only get better as more demand for brain health is growing more and by the day. Who doesn’t want to increase their mental focus, increase memory retention as well as improve overall mood and stress.
Next, we have High Income Potential, which is the largest possible profit that a product or service can potentially make over time.
Lastly, there is the low competition “niche”. This is where we want to be when searching for our niche. We are looking for those low competition niches, the ones that have high income potential and high market demand. See the shaded area in the graph above.
While selecting a niche that suits you, you want to be thinking of a few things that will make it real easy to write content on, something that shows the real you, people love it when they find valuable, meaningful, passionate sounding content, so a few things that come into mind that will help with this:
- Choosing something that is preferably a passion or interest.
- A spare time activity that your interested in and could help people with the same interest just starting out.
- An issue or a challenge you are familiar with that will solve a problem.
- A need or a want that you know will be beneficial to someone.
Additionally you’ll want to grasp an understanding of these tips brought to you from Kyle at Wealthy Affiliate regarding choosing your niche:
(1) You are going to be writing content within your niche
(2) You are going to be communicating within your niche
(3) You are going to be choosing products to promote within your niche
(4) You need to enjoy helping people within your niche.
(5) Your first niche PROBABLY won’t be your last (so don’t worry about it being perfect)
(6) Any niche can become a “full time” successful business
There is NO SUCH THING as choosing the wrong niche.
As you can see just by looking above, you probably triggered a lot of potential ideas for your online business. This is exciting! I’m excited for you as I’ve been there, actually still am there.
You must remember that just about anything you can think of is a niche. And with the incline of the amount of people who are going to the web to get what they need, there is so many possibilities right in front of you.
The following video walks you through what a niche is, how you earn money through a niche, and by the end of the video will get you choosing your initial direction online.
If you have any questions about Niche Marketing or have any comments, I would love to hear from you below.