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How to Pick a Good Money Niche
When you make the decision to become an online entrepreneur, you can’t start building the foundation of any business model or seeing any profits from your leadership until you have a niche locked down.
But picking a niche can be harder than you think. Some people get lost on this very first step – and it’s crucial that the niche you pick provides ample money-making opportunities for you.
You don’t want to put a lot of time, effort and money into a niche and not see any return on your investment. So, let’s take a look at how you can narrow down the choices and pick a niche that brings in a steady income for you over the years.
Personal Versus Anonymous Niche Profits
The first thing you want to keep in mind is what kind of leadership you want to have in this niche. Your authority building skills will come from generating trust and loyalty with your audience.
That’s best done when you put yourself out there, show who you are and let your readers begin to form a relationship with you. But not everyone feels comfortable doing that.
You may want to remain anonymous, or use a pen name in your niche building exercises. This is especially true if you plan to target some niche markets that you may not want everyone in your personal life knowing you’re a part of.
For example, you might want to hone in on the relationship niche or something even more explicit like penis enlargement. But maybe you don’t want your children seeing that online associated with your name – or your church congregation finding out that you’re promoting male enlargement products.
You can always choose another niche – one that you wouldn’t mind having associated with your name and likeness. Or, you can simply use a persona or brand name to build your niche business instead.
Still, it’s something to consider when you pair it with whatever marketing strategies you plan to use to funnel profits into your account. If you know you want to incorporate video blogging, for example, then you might have to adjust your strategy so that you’re only recording a screen capture process – like narrating a PowerPoint slideshow.
Evergreen Versus Trend Niches
There are two different types of niches in terms of longevity. There are those that last forever – the evergreen niche market. And there are trendy niches that will come and go.
Both have ample opportunity to help you profit. But you might want to consider the fact that in order for you to fully and adequately cash in on a trend, you need to be at an advanced level of marketing that you can swoop in, quickly set up a niche profit funnel, reap the financial rewards, and fold when the wave is over.
Someone who is new to Internet Marketing who tries to capitalize on a quick trend will be struggling to the point that he or she is just getting going when the trend is over, and all that work will be lost.
Evergreen trends are those that you see continuing to hold a place in the marketplace for years and years. That would include:
- Weight loss
- Anti Aging
- Making Money
- Relationships…and more
Now within each of those evergreen niche markets, you can find trend sub-niches that are great to cash in on, such as the hcG diet, or texting as a way to rekindle your romance.
You’ll often see signs of these trends on the news and in magazines. For example, you always see a diet story as the main component of Woman’s World magazine – but each week, a different trend is the focus. Recently, the Paleo diet was a big feature – because it’s currently the “in” thing to try.
You can build an online empire with a broad, evergreen niche and then branch out with trend topics over time as part of your ongoing information product release line.
The sad thing is, some people don’t understand about trends versus evergreen niches, so they’ll target trends and start enjoying profits, only to see their entire business crumble when the trend has passed.
This can create a feeling of panic and desperation in you, so make sure you target at least one evergreen niche. Use the trend niches as a way to supplement your long-term evergreen plans.
Digital and Tangible Niche Analysis
When you choose a niche – regardless of whether it’s long or short term in nature – try to choose those that provide you with ample digital and tangible promotion opportunities.
So you want to start with the digital promotion options because, compared to most tangible items, they have a better payoff in terms of commission. For example, you can earn 50% of a $47 info product and get paid over $23 per sale.
Or, you could promote a $47 tangible item and only see about 4-7% of the sale if it’s on a site like Amazon, which would give you $1.88 to $3.29 in commission, so there’s really no comparison.
You do want both, though – because having both types of products, means you double your affiliate conversion possibilities. When you review info products from your blog, you can link to specific tangible items.
So, let’s use a health topic like blood pressure as our example. You can write a blog post reviewing a diet or health ecourse that helps lower blood pressure. Inside your review, you can link to a blood pressure monitor, giving you the chance for two sales instead of just one.
Start by going through the various digital marketplaces and seeing what kinds of products are available for you to promote as an affiliate. Look at ClickBank and JVZoo as well as WarriorPlus.
You’re looking for signs of a thriving market, which would include ample products, a nice commission percentage, and sellers who cater to the needs of their audience with a nice affiliate toolbox in place.
Brainstorm everything that might fit nicely for your niche, too. For example, if stress is your niche, you can promote tons of products such as:
- Finances…and any other topics related to stress
All you have to do is tie the topic in with your main niche and how it can help your subscribers and readers. You’ll do the same with tangible items as you search through markets like Amazon, Share-A-Sale and Commission Junction looking for ample products to promote.
Not only do you want to have affiliate opportunities, but also consider the fact that as you level up in your online empire, you might want to start creating your own info products as well.
So, ask yourself what you know or feel like you could contribute to this niche – even if it’s just your take on a certain slant. It doesn’t have to mean reinventing the wheel, but you want to feel capable of being a product creator in the niche too.
Know Your Niche Audience
It’s not enough to study your niche, which you’ll learn about momentarily. You need to know how to develop a profile of your actual niche audience. They may be very similar or a wide array of individuals.
For example, the niche of “how to pick up women” would all basically be the same type of male – someone who lacks confidence or has had bad experiences in his past with women.
But a niche like insomnia can cut across a wide spectrum of demographics. It can include men, women, teens, senior citizens, new parents, etc. The reasons for their insomnia can be numerous – stress, sleep hygiene, nutrition, and more.
You want to build a profile of each type of person you’ll be targeting in your business. That way, every time you create your content, you can make sure it doesn’t exclude an important demographic – or that it zeroes in on one portion of them on purpose.
The best places to get to know your target audience in a niche is to go where they talk openly about the topic. That would include other people’s blog comments, forums, comments within articles, and social networking sites like Facebook, Google Plus, and Twitter.
You can be a lurker watching for information or engage with them directly to ask questions and carry on important conversations that help you get to the bottom of their needs.
What are you looking for? Their emotions. You want to know if they’re desperate, determined, sad, frustrated, ashamed, and more. This allows you to tailor your niche profit funnel to their needs and make them instantly feel like you’re empathizing with them whenever they land on one of your squeeze pages or blog posts.
Preliminary Niche Content Research
Seeing if there’s a market for a niche is one thing – learning what people want to know about that niche, and how you can position yourself as a leader (even if you’re an affiliate only), is another.
Once you pinpoint a niche topic and see that there are plenty of selling opportunities and an audience willing to engage about it, you’ll want to start digging in to see how you can craft your niche profit funnel to cater to their needs.
You want to basically outline your niche – with both broad and sub-topics. So for instance, the anti aging niche might include these broad topics: wrinkles, hair loss, memory…and so on.
Drill down in each of those topics so that you can adequately provide information to your audience and expose them to products you want to promote. So, the topic of wrinkles would be drilled down into crow’s feet and fine lines around the mouth (for example).
You can then create a list of possible products that address each level of your findings. You’ll be able to find broad anti aging products as well as products just for wrinkles – and then branch off to serums, creams and lotions – for eyes or other areas.
You want to look at common topics – and those can be found in forums, keyword research tools, and by spying on the competition (such as inside the table of contents of popular books).
But you then want to dig in and find lesser-known slants or topics that haven’t been covered as much. For example, if you type in “wrinkles” in Google and click on the News tab, you’ll discover that a new collagen supplement helps reduce wrinkles by 20%.
That’s significant and worthy of you teaching your audience about – so you could create an info product about how to increase the production of collagen in your skin, and you can inform and promote products to your buyers.
When you organize your niche content, and look for up-to-date studies, it helps you continually serve your audience on a frequent basis, and it helps you put yourself in a position of authority that people can rely on week after week.