You can create the coolest, most beautiful, most exciting online store or website ever created, and fail miserably.
Because you probably didn’t choose a profitable niche!
Niche selection is so important that it can literally make or break your success.
A good niche should:
Having a moderate to large audience
Having some moderate competition underscoring the fact that money
is already in fact.
Have buyers who are passionate about the niche or need help
with their own personal problems
Having products that are high enough to be profitable and
can be promoted as an affiliate
You want to make sure that there are enough people who are interested in the niche to support a good number of sales, but you don’t want the niche to be so saturated that it’s hard to make a profit.
You want a market in which buyers are passionate, or have a real need for the product. It’s going to be hard to make money by selling good ordinary products unless you have a very unique selling point, such as a radically lower price, or some kind of value-added outlet. You want to sell products that people will be happy to buy, and that they will keep coming back for.
You want to make sure that you have products that can be priced high enough to make you a good product without setting you price outside the market. You probably won’t make a lot of money selling products at very low prices because you won’t be able to build a big enough market fast enough. Of course, there are people who have made a fortune with very cheap products, but it takes a larger rolling volume than a beginner could probably handle.
Find your passion
It is not enough to choose a niche that is profitable. If you choose a niche that you’re passionate about, or a niche you really find don’t like, your business is likely to turn into a chore very quickly.
A good starting point for niche research is simply to make a list of your own hobbies, interests, areas of knowledge, and needs. The more you know about a particular subject, the better. You don’t need to be an expert, but some knowledge will help give people confidence in what you know what you’re talking about.
You may not have interests that would be profitable, but that is very unlikely. Even if you like some relatively obscure things, there will usually be at least a decent number of other people who are also interested in it.
Once you have found a niche that you believe has a lot of potential for profitability and passion, you should try to drill even further to create the tightest niche possible.
For example, let’s say you’ve decided that you want to focus on the outdoor hobby niche. This could include things like camping, backpacking, hiking, hunting and fishing.
It is a large niche and it would be a huge amount of work for one person, or even a small team.
Instead, it’s good to focus on one area. It could be the area that interests you the most, or the one you believe will be the most profitable (as long as you are still interested in it). But it is important to drill down for the tightest niche you can without going so tight that it would be difficult to find an audience or source products.
For example, instead of “outdoor hobbies,” you might drill a little down to fishing. This may still be too wide, so you could drill down for fly fishing. It’s pretty good, but you could even go a little further to specialize in a specific type of fly, or maybe in fly bonding supplies for people who want to attach their own flies for fishing.
Keep drilling until you reach a point where you can’t find enough products to source or be interested in the niche. You’d be surprised how far you can go in many niches!
Once you’ve found your niche, it doesn’t stop there.
You still have important decisions to make…