Using Niche Marketing: What Makes A Good Niche Market For YOU?

In Part Two we move onto the second of your 9 steps to niche marketing success and cover:

  • The 10 key requirements of a good niche market
  • What you need to identify in your market
  • What your target customers must have
  • The things you simply must offer to succeed

Before you jump ahead to start building your first niche business, there are a few vital questions that you need to take into consideration.

Based on the research the Dr Nitch niche research team have undertaken into literally thousands of niches we’ve compiled the 10 key factors for a good niche market.

Key Factor #1 Can you identify a need, a problem or an opportunity?

If you stand in your potential customers shoes can you see a problem that needs solving or something your customer wants or maybe something that they could do if only they had X?

Seeing things through your customers eyes can make sure you go for a niche that really is a niche and not just a waste of your time, effort and energy.

Above all, the niche you’re considering must ‘want’ something not just need it. It’s only when a compelling problem, need or opportunity becomes important enough that the secret switch in your customers mind switches to WANT that they will buy or do anything to get hold of the solution on offer.


Key Factor #2 Is There Good Access to the Niche?

Even if you have the best narrowed down topic in the world for your niche, if it is not easily accessible, then you’re not going to make sales. It’s as simple as that. No niche can past the test if it is not accessible.

If your niche cannot be accessed using any of the following methods, it’s a good idea to move onto a different idea.

  • Social media (Blogs, Video, Podcasts, Social Networks and Bookmarks)

  • Advertising on websites your target market is interested in.

  • Advertising in magazines your target market reads.

  • Mailing lists and subscriber lists of customers in the niche.

  • Professional associations.

  • Trade shows.

If you find that customers in your niche cannot easily be accessed through more than one of these means, you might not have a niche that is accessible enough to allow you to reach your audience.

Key Factor #3 Are people in the niche passionate about it?

Are the people in the niche very keen or passionate about their interest so that they simply must have any and all the information available that relates to their interest?

Think about rabid (aka nerdy) fans of certain films or TV Shows. They go out of their way to get everything they can about their interest and if someone offers up a special edition, some sneak preview or collectors classic then step out of their way when they go to buy!

Now this is an extreme example but such passionate if not almost irrational purchase behavior can be seen in any market if the customer wants the offer in front of them enough.

Remember, without interest there’s no demand. And without demand, there’s no sales.

Key Factor #4 Is There a Limited Supply of product solutions to the Niche?

Another thing you’ll have to make sure of before committing to a niche is that there is not an overflow of products already available in that niche.

A limited supply is a good thing, because this builds demand from customers.

However, over-saturation of the market drowns customers in too many options and lowers profits for everyone. There should be a supply, but it should be limited. Think about when you go to a store to buy something. If there are too many choices your brain will just give up and either decide not to buy or will just grab the first option that comes to hand.

This overload of choice creates a general rather than specialized market so the smart niche marketer will move on someplace else for niche opportunities.

Key Factor #5 Is the Niche Market of Sufficient Size?

You want your niche market to be small and specialist, yes, but go too narrow and you run the risk of not being able to break even at all.

A good thing to keep in mind is to select a niche that is large enough to ensure there are sufficient customers but small enough to limit competition.

Above all, you need to evaluate whether the amount of profit is sufficient to make it worth entering the market. Why chase after tiny scraps of profit margin if there is another market where higher prices and bigger profits are available?

Producing a product that sells one copy every few months is ok – if you want a paid hobby not a business.

Key Factor #6 Are Customers in the Niche Willing to Spend Money?

You could come up with the most perfect product solution in the world for your target customer group but if you target to the wrong niche, you won’t make a dime.

Why is this the case?

Well, besides making sure your potential customers would be interested in your product, you need to make sure they can afford your product. This is more than just having extra spending money.

This means knowing whether or not your customers are willing to spend their hard-earned cash on your offer.

You see the difference?

Determining if your niche is suitable involves more than just your ability to sell a product. It’s about your customer’s ability and willingness to buy it too.

Key Factor #7 Are You a Credible Source?

If you know nothing at all about the market to which your chosen niche belongs, then you might will be in trouble.

You don’t have to be an expert, but it is important that you build a knowledge base that can support your niche ventures.

Not sure if you are “credible” or not? This is simple to determine. Examine your primary competition. Could you hold a conversation dealing with the subject matter their marketing materials cover?

If so, you’re all set.

If not, you may need to read up a bit on your niche of choice.

Also, do you know the buzz phrases, equipment or terminology that form part of the niche? For example if you were entering the Fly Fishing niche you’d need to be able to talk with confidence about tippets, takes and priests!

Something as simple as building a glossary of terms from a niche and then explaining each item will go a long way to establishing your credibility and expertise against others.

Key Factor #8 Are Your Niche Products Affordable?

Affordability doesn’t just involve how much your product costs. It also deals with what a customer will get if they purchase your product and what it will cost them if they don’t purchase it.

It’s a fine balance, but figuring out if your niche products are affordable will help narrow your focus and ensure there is profit potential before you jump into the market.

Key Factor #9 Is Repeat Business Possible?

As with any good business, selecting the appropriate niche also entails the possibility of repeat business. It isn’t a good model to follow if you can only make a sale to each customer once.

The need to seek out new clients all the time seriously puts a damper on your business. You want to select a niche that lends itself well to repeat business as you will spend significantly less time finding new customers and encouraging them to buy when you can sell new things to old customers.

You’ve already gained their trust.

All you need to do is show them a compelling reason to purchase from you again.


Key Factor #10 Do you like it or hate it?

Last but probably most important in your early days of niche marketing is deciding whether you like or hate the subject involved.

It’s ok to love your market or feel ok about it but do you really think you’ll get up early, stay late or give up an evening out to work on your fledgling business if the market you’re trying to access is one you really don’t like.

NO you won’t!

So in the early days try and pick a niche that you at least feel good about.

Now on to Part Three of your Niche Marketing Course!

In Part Three we’ll move onto the third of your 9 steps to niche marketing success and cover the different types of Niche you can use including:

  • Age and life stage
  • Health
  • Ethnic
  • Religion
  • Location
  • Lifestyle
  • Hobbies or interests

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