Nov 01

6 Questions to identify your niche market

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In Episode #3, I’m discussing a popular topic – identifying your target market. So many start-up and experienced entrepreneurs ask me how I find and select profitable markets on the internet. I have six starting questions that I put my ideas through when I start, and I’m sharing them in this episode. What questions do you ask when selecting a niche market?  

Once I ask these six questions, I put my niche market ideas through five specific tests. I’m going to be teaching and sharing these five tests in detail LIVE at the Info-Marketing Millionaire Seminar on 3rd and 4th December in London. If you’re in the area, this is a must attend event. Full details here.

Got a question or a comment? Let me know what you think below.

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Transcript:
Welcome to Insider Internet Success the web video show. In this episode were going to look at how to select the right niche. I’m going to ask you four questions, and these questions are going to be criteria to helping you find the right niche.
Now the niche market is probably the most important thing. If you get the niche market right, you know that you’re into a profitable market you can sell stuff over and over again and people will buy. But you need to know and you need to be sure that the niche market is the right thing, is the right one to be in.
And that’s why I always say to be able to select your marketplace, being able to find, analyze, scrutinize and look at which marketplace you want to be in, is the most important skill that you can have. Because when you know how to find marketplaces to be honest the rest is easy. Finding a product, creating a product knowing which product to go for, writing up the sales page or the website all of those bits although they might seem technical and difficult if you’re starting out really is more a systematic process.

But finding the right niche, that’s the key. So here are my four questions initially and then I’ve got two deeper questions, so let’s call that six questions shall we? Six questions to identify your niche market, ok? Here are the first four, the first question is this:

1. Is it something that you enjoy or are passionate about?

Now here’s why. Now I hear a lot of people saying you know, if I’m not passionate about the niche what does it matter? If I don’t go into that niche market because I’m passionate about it, well the point is if I make money that’s great. But here’s the thing, in order to do something that you love, in order to have a connection with the marketplace, in order to give real value without being the person who just asks for money, money, money you need to be passionate about it, you need to like it.

And the way I see it is if you have an idea, or a market or a topic that your passionate about it, you’re going to be there for the long haul, you’re going to be there every day, every week, every month, every year depending how you like it for a very long time. It’s not going to be something that you start, you get bored of and you leave forever, you got to find something you really are passionate about, something you engage in something that you like. So, is it something that you enjoy or are passionate about? That’s question one.

So here’s question two:

2. Is the market that you have chosen, or the niche that you have chosen from the things that you’re passionate about and enjoy, is it evergreen?

Now by evergreen I mean this: is it a market where, you know it’s going to grow, and grow, and grow and people are always going to find it of use? So in 12 months’ time say when somebody goes to Google are they still going to be searching for the thing that you are interested in? Are they still going to be looking for what it is you’re interested in?
Let’s say you were looking at property, if properties are your niche market. Ask yourself in 12 months’ time are people still going to be looking for stuff in regards to property? Well obviously right? Because people are always maybe wanting to look and buy and playing with stuff having to do with property, so that’s an evergreen market.

But compare that to say, Myspace as a topic. Myspace as a topic, Myspace is a easy good example. Myspace is something were you would feel really good about 5-6 years ago. But we haven’t really heard much about it apart from stuff in the news with relates to a sale or anything like that, so we haven’t heard much about that. So having something to do with Myspace isn’t probably an evergreen market, it’s not there or going to be there all the time so people aren’t going to be searching for it.

Here are some clues when you’re looking for an evergreen market, you’re going to look for something that is either going to make people wealthier. So if it’s going to make people wealthier, and you’re going to create that link, that’s going to work. If it’s going to make people more beautiful, that’s going to work or if it’s going to make people more healthy that’s going to work too.

With these three things, the health, the beauty, and the wealth are three things that I believe are key to creating evergreen markets. So if you’re passionate or your idea, or your interest or the thing you really enjoy comes into these three things, then you’ve got a really, really good market. So that’s how I measure whether it’s evergreen or not. So question two, it is evergreen or not?

Question three is this:

3. Have you sufficiently narrowed down your focus to dominate your market? Have you sufficiently narrowed down your focus in order to dominate your market?

Now here’s what I mean by that. There’s the idea of niches and then there’s the idea of sub-niches or micro-niches depending on what you want to call it, right? But the idea of sub-niches and micro-niches is that you drill down deeper into whatever marketplace you are looking at.

So for example if your market is marketing, and that you teach marketing or you teach people how to market their business, well how can you drill that down more specifically? Is it internet marketing? Maybe you can drill down internet marketing into internet advertising, maybe you can drill down internet marketing into pay-per-click marketing so where people using Google, Ad Words, or Facebook advertising specifically as your market, that’s your sub-niche.
So how do you narrow it down sufficiently, have you sufficiently narrowed down rather your focus so you’re choosing a specific sub-niche?

For example if you’re looking at weight loss you can narrow it down to say that I want to work with people, who are only going to be men and deal with their weight loss. Or I’m going to choose just females and deal with their weight loss, or I’m going to just deal with people that are between the ages of 18 and 30 and that’s who I am going to deal with for weight loss, or I’m going to deal with bankers for their weight loss, or I’m going to deal with professionals (maybe some specific type of professional) for their weight loss. So narrow down specifically your focus in by topic or by the person that you’re targeting.

For example if you are filming video, and you want to market your business specifically to a group of people, who in that marketplace are you going to choose specifically? Is it going to be small businesses, medium businesses, large businesses? Is it going to be Asian businesses? Or businesses open to everybody? Is it going to be service businesses or product related businesses? Are they going to have offices or shops? So who specifically are going to target? Narrow down your focus and then you have space in the marketplace for you to enter, for you to make change, for you to create variety. Now the thing is, you don’t have to limit yourself to just one narrowing down. But when you narrow it down to just one and then you create another narrowing down, and then another narrowing down, it means you can market specifically to these different groups of people, and there real value in that because your marketing messages are tailored specifically to three groups of people.
Now you can say yeah I run a massive company, we service small businesses and medium businesses, and large businesses but you’re not going to send the same marketing message to all three are you? It just doesn’t make sense, so by narrowing your focuses and by being very clear about who you’re focusing, you get to create different marketing messages for each group and that’s a powerful thing. So that’s question three: Have you sufficiently narrowed down your focus so that you can dominate your marketplace when you enter it?

So we’ve done three questions, here is the fourth one:

4. Are there people in your market willing to spend money? The all important question, Are there people in your market willing to spend money? Now how do you answer that because, you know if you don’t go and ask the people themselves, how are you going to know if people are spending money?

Well here’s the kind of test that I do. 1. I think about the kinds of products that people may want to buy from me and I go to ebay, and in ebay I type in the kinds of products that people may want to buy. And if they come up in ebay and if there’s lots of different types of products in that same space in that market that people are buying, it means that people are selling it means that hey people are actually buying those sorts of products on ebay and that means people are willing to spend money on those kinds of things.

Same idea on Amazon. On Amazon I type in a specific type of product, a specific topic, a specific niche and I see what comes up. And if there are lots and lots of products or if there are products there that are high on the ranking list or the best sellers list then I know that people are going to spend money on that kind of product or information, and I know that I’ve passed that test.

And then finally I go to Google, and in Google I type in the product and I type in the type of product, or I type in the niche. I type in all sorts of different kinds of things and I look for, are people actually advertising similar things, because if people are advertising similar things it means that really there are people waiting to buy, because big companies would certainly have done their work to make sure people wanted to buy stuff.

And if they look like a big company that’s advertising it means that they wouldn’t be spending hundreds to thousands of pounds everyday advertising a specific product or service. And if they are spending that kind of money every day then it means that hey there’s probably a group of people out there that are willing to pay money for this kind of thing. And because they are willing to pay money for this kind of thing I know that I’ve got a market and I’ve chosen my market. But if you ask this question whether people are willing to spend money in your marketplace and you fall short in these tests then you want to rethink this process again.

Because it’s really important that you don’t jump into a market no matter how much you love it. Let’s say you choose crocheting as a marketplace it’s a passion of yours and you know there are people out there that want to learn about crocheting, but you go to Google and you don’t see any online advertising for crochet courses and that’s what you want to create, well I wouldn’t create it you know for me there’s not enough people willing to pay money for that if I was charging a small amount of money to buy that. But if it was a crochet course and class with a few people in then yea you can a few people easily. But if you’re looking for lots of sales, lots of money, lots of income then I would rethink that if there wasn’t any advertisers there. So certainly think about it, because certainly people are selling crochet equipment, but are they selling crochet information or courses, education? Have a look at that?

And don’t compare this by the way, don’t compare this to the free information that’s already out there, because the free information out there is free. People have created this information so they don’t have to pay for it, so the fact that there’s lots of information out there already doesn’t mean that you have a marketplace willing to spend money. So certainly look at whether people are willing to spend money, because that’s the marketplace that you want to enter.
So those are the four questions:

1. Is it something that you enjoy or are passionate about?
2. Is it something that you think is evergreen, that’s always going to be there?
3. Is it something that you can sufficiently narrow down your focus in a dominant market place?
4. Is it a market where people are willing to spend money?

If you have answered these four questions really well then you have a good marketplace and you can go forward and start doing some work with. And I have two more questions, two additional questions once you passed those four questions within your own marketplace, you want to start you know working on these questions. So I’m going to plant the seed and in a future episode, we’ll get deeper into these questions. But for now let’s just plant the seed about these two questions.
Question number one is this:

1. What makes you better or different, to any of your other competitors out there?

You know if there’s other people out there doing similar stuff, what’s your competitive advantage? what is it about you that is special that is different that will want people to come to you for something that is very similar to the guy next door who is selling the same thing? So ask yourself, is it that you deliver better services, is it that you provide like a bit of one to one help service, is it that you do free delivery on your product or service, is it that you package different bonuses or ideas or stuff like that together, maybe it’s the fact because you have a 24-7 help line, maybe it’s the fact that you throw in multiple bonuses, or maybe it’s the fact that your training is simple; direct; step by step to the point; whatever it is. Whether you are selling information or your selling entertainment or your selling product. You need to identify what it is about you, that better, that’s different to any other competitors out there that are doing similar stuff to you. Because when you figure this out, when you work this question out to the deepest level, you have a real business with something that you can really sell, not just sell but sell easily. Because people, all you got to do is present your competitive advantage and people are going to buy from you very easily. So that’s the question one of the extra two that I wanted to ask and here’s the second one:

Ok so the second question is a little bit deeper ok? So have a think about it over the next few days but don’t let it get to you alright? I’m warning you, but here’s the question:

2. What is the end need that you’re fulfilling for these clients? What is the end need that you’re fulfilling for these clients? And how are they going to feel once they have achieved this need?

So let’s say that the need is that, let’s say your providing information for weight loss and somebody is really big and they really want to lose weight, and that’s their goal and they have always wanted to do that. So their end need is to lose weight and feel light and x amount of stone, be able to eat healthily, do exercise and feel great. How are they going to feel once they have achieved that idea of losing weight and have gotten to a better healthy pattern of living? What are they going to feel? I mean just picture it in your head right? Somebody’s walking down the street and they felt you know uncomfortable for years, and years, and years and they’ve gone through your training or your product, or your service whatever it is and they feel much lighter, much more freer. They feel much more healthier. How are they going to feel, what’s going to go through their head? I mean it’s going to buzzing right? So much excitement, so much joy. Massive smiles, no more embarrassment, no more uncomfortable living. That’s the passion that you need to bring through your product, your sales and your market. So figure out what it is the end people are going to result.

So here’s another one, I sell information that teaches people how to market their businesses and make more money. So very recently I was presenting a seminar about how to use social media the right way to tap into marketplaces. Now when people go through the program and they finish how are they going to feel? They’re going to feel excited because they are going to learn how to tap into marketplaces that already exist and promote stuff to them making tens of thousands of dollars in the meantime. Now that is phenomenal they are going to feel free, they’re going to have time and money to do whatever they want and they are going to be much more happier, no more worries no more pretend, bills paid etc. That’s exciting that’s the end feeling that they’re going to get, that their going to live and they’re going to laugh.

So I want you to think about it, what is the end need that you’re serving and how are they going to feel once they’re done with it. Because when you figure that out, when you really get these last two questions that I have asked. The bonus extra two questions. When you get the answers to these questions you’re going to be able to skyrocket ahead. Your marketing message is going to be much more clear and you will come across better to your customers and your prospects.

So there you have it, four questions plus two additional questions, I hope you’ve really enjoyed this episode. We’re going to cut off here very shortly, but I want you to know one thing. Answer these questions in detail, spend some time if you are looking for a niche, this is the video for you initially to get you started. So spend some time answer these questions and over the next couple of videos we’ll go deeper into this stuff. I look forward to sharing more with you in the next few weeks, so look out for the next episode next week and leave me a comment below. Press the Facebook button, press the Twitter button, press the Google plus 1 button, so many social media things you could do right now. Write your email address at the top if you want more updates whenever I send an email.

And you know I’ve had a blast making this and I look forward to speaking with you again very soon.

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