Find a Profitable Niche
As we discussed in the last section a tiny niche, as the name implies, is niche marketing on an extremely small scale. It’s based on marketing to only one segment of a larger niche market.
There are many ways to segment a niche in order to reach a specific consumer group.
For example a mass market would be marketing to everyone who shops for consumer electronics. A niche market would be consumers who are looking for computers a tiny niche would dig down even deeper and target groups within that niche link people who want laptops or tablets.
– Finding a profitable niche
A profitable niche is one where people are ready, willing and able to spend money. There will be some competition, but not so much that you will have to spend all your time and money fighting for consumer attention.
One of the biggest mistakes made by beginners is thinking that a good niche shouldn’t have any competition. Nothing could be further from the truth. If you find a niche doesn’t have competition then chances are it doesn’t have any customers either which also means there is no money to be made.
This is where research becomes very important because there are some niches where you will find a lot of people talking about things and asking questions but they just aren’t willing or able to spend money. To make a profit you want a niche where there is a lot of interest and people are willing and able to spend money.
The same is true for competition. If there’s too much competition, it’s probably better to stay out of that niche or target a smaller (tiny) segment of it, at least in the beginning. You can always expand your market share as you gain traction.
A good place to start is by seeing how many competitors there are in the marketplace. If there are already some people selling in the niche then it’s a good sign. You can also read through online forums and social streams to learn about your target consumer base. Amazon.com is a great place to find what types of products your target audience is interested in.
As you are researching take notes and keep track of the types of products your audience is interested in, the various price points of goods being sold in that market and the top sites where they can find information on them. By analyzing this type of information, you can get a good idea of how profitable the niche will be.
Next we will be talking about how looking for problems can help you target profitable niches.