To be successful in selling a product on the Internet, you are going to need to find a profitable market niche.
For those of you who are new to marketing, you might be wondering what a niche market is. Its simply a sub-market, or category of products.
According to Wikipedia, A niche market is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.
Let me give you an example. If the market was dog training, a sub category of dog training might be obedience training, or defense training. In that case, obedience training would be the niche.
You can drill down even deeper if you need to a micro-niche. For example, you might find that there is an opportunity for obedience training for labs, and in this case, obedience training for labs would be your niche.
You could even add geographic or price range criteria if you liked, and for some products, that might be a suitable decision to make. In our case of dog training, we don’t really need it because the idea would be to sell a dog training manual on the web.
Now, the reason a niche is so important is because you are going to need to find a market where there is already sufficient demand for a product, without too much competition. If, for example, you decided you were going to pursue the “weight loss” market, you would quickly realize that, due to the level of competition, you would need to find a niche within the weight loss market.
Thankfully, the Internet makes doing this research quite easy (I’ll get into detail on this on a later post) and the decision to pursue one niche versus another often comes down to common sense and math. Don’t worry though, the math is not complicated and I’m going to teach you the rules of thumb. There aren’t any actual equations to do, instead, the “math” is really just your looking at demand (is there enough?) and competition (is there too much?). No algebra here!
So, now that you have an idea of what a niche market is, you’re going to need to be able to find a profitable niche market and that is the topic I’ll cover in an upcoming post.