Niche Marketing - An Internet Goldmine

If you haven't heard the word 'niche' being batted around by Internet Marketers then you haven't been listening. Finding a niche has become the antidote to competing in overly saturated online markets.

What is a niche?

According to Merriam-Webster's Online Dictionary a niche is described as "a place, employment, status, or activity for which a person or thing is best fitted... a specialized market".

Have you noticed that despite the closing of many businesses in these sometimes harsh economic times that the local hobby train store is still around? That the 'hole-in-the-wall' eatery is thriving? Or that trends such as scrapbooking can start with a bang and then close within a year as four similar businesses start up in the same area?

The online business world reflects the same trends you'll see in the offline world - often with faster turnover and startup rates.. Those who promote a product or site that targets a small, select audience can tap into a market that is otherwise not being served. Despite the limitations of the client base, the targeted nature of the business creates a devoted and active market - the aim of any business.

HOW DO I FIND A NICHE?

Finding a niche requires diligent research. Whether you have access to software that harvests and sorts information, or you take a manual approach, you must start with ideas.

With a pen and paper (or computer, if that's more comfortable), brainstorm a list of businesses, products and industries. Start with a specific keywords in your fields of interest.

Using a software program such as WordTracker or a free resource such as the Overture Keyword Selector Tool, type your keyword in one at a time and search for words with a high amount of traffic. For instance, if you typed in the word 'golf', you'd discover that over 695,000 searches were done on that keyword.

Although a program like WordTracker can give you further details such as how many sites compete for that market, you can also do your own research.

Go to google.com and do a search and you'll find over 97 MILLION websites pertaining to golf.

Ouch. A little too much competition. So you need to narrow your search.

For instance, the phrase 'golf practice net' had over 72,000 searches done on it. When you search Google, you'll find only 13,000 websites specifically referring to that keyword phrase. That's a little more like it. In fact, if I knew anything about golf, I'd use it myself.

Are you starting to get the idea? You're looking keywords with a high Keyword Effectiveness Index (KEI) ratio. For an explanation of KEI, go to http://www.wordtracker.com/help/keihelp.html

Concentrate your attention on question phrases such as "how do I..." or "where can I...". These questions will clue you into potential markets that need servicing.

Next look in Google Answers. Type some of your keywords. What questions are being asked and how much are people willing to pay for answers? If you find a group of keywords with a high number of searches enter these words in your search engine.

What sites come up? Do they provide answers or solutions to the problem? How are they making money? Can you see an opportunity to serve these individuals?

Finding a niche can be an open door to a profitable online business. Research the market and be certain that your product or service is valuable to this group. Find forums or groups that target this audience and pay close attention to their concerns.

If you can help these people you WILL make money. The best of both worlds!

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