Niche Marketing – 4 Tips For Testing the Potential Profits in a Niche Market

Niche Marketing – 4 Tips For Testing the Potential Profits in a Niche Market
By Candace Sinclair

Before you even consider investing your time and dollars into a home-based business that is focused on selling or promoting a product or service, you have to choose the right niche market. You don’t need years of experience to turn a profit, but it’s wise to do your research and ask yourself the following three questions.

1. Do consumers spend lots of money to buy the product in the market you’re considering?

You might be asking yourself, “How would I know if people spend lots of money?” You have several options here, and it sometimes depends upon if your product is seasonal or not. For example, I know that consumers spend billions of dollars on Halloween costumes every year, regardless of the economy. I know that because I typed “Halloween costumes” into Google trends, and I noticed that starting in September of every year and continuing until one week prior to Halloween, sales are spiked into the hundreds of thousands.

In addition, when I searched the news feeds I found that a survey commissioned by the National Retail Federation projects recorded spending of $4.96 billion nationwide, which was up from $3.29 billion during the prior year. Now that’s a hot niche, but it’s seasonal.

However, if the marketplace you’re targeting is not seasonal, then you need to investigate further. To see if there’s any buzz (heightened interest), type a keyword phrase into your favorite search engine, and see if there is more than one page of sponsored ads.

Or, let’s say that your target niche market is anyone who has diabetes. Open up your favorite web browser, and type, “diabetes news.” The search results will give you a current status of what’s happening in the news about diabetes. However, diabetes is a broad term. To establish yourself in a specific marketplace for diabetes, you would want to search for terms such as, diabetes in children, diabetes and newborns, diabetes and natural remedies, and so forth. I think you get the idea. When there’s a buzz about the topic in the news, that’s a good indicator that you could make money in that market.

2. Is it an evergreen product?

An evergreen product is a product that always sells-yesterday, today, and tomorrow. It’s a product that’s unlikely to just be a fad, and it has all indications of always being sold. For example, phones, insurance, cars, hobbies, crafts, and baby care are evergreen products. When you know where consumers hang out, and how they spend their money on the same products year after year, that makes it a viable evergreen niche.

3. Is the niche market lacking something that you could provide as a product or service?

To find out what people in your niche are talking about, search for forums. Check the date when the forum was started. If it’s been in existence for many years, then you have found a target audience. In the forum, read what people are talking about, and the questions they’re asking. Participate in the discussions, and let people become familiar with your contributions.

Start a forum thread and ask questions. The responses you receive will either validate or nullify your thoughts about getting into that particular niche market, and if there’s a product you could create that would fill the void. Of course, if there is a lot of interest but no information product on the market, then you can fill that void by creating a product that you can market to that niche.

4. Do the people in the niche market you’re targeting have an insane passion for it?

Another way to determine the strength of a niche market is to see if there are multiple magazines or publications available. A quick trip to your local bookstore will give you the answer immediately for any number of possibilities. There are magazines for writers, entertainment buffs, cars, online gamers, beading enthusiasts, dogs, cats, and the list goes on.

Another form of research is to make a quick trip to your local library and ask the reference librarian for the book on associations and publications. You will see thousands of niche market categories. You could also go online and search for public speaker bureaus. Each speaker addresses a specific marketplace.

By researching your market, and following the tips provided above, you will be light years ahead of other business opportunity seekers who wish to profit in a niche market.

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