Friday, March 31, 2006

Niche Marketing is the Simple and Proven Secret to Making Money Online

Niche markets, or specialized areas of demand for a product or service, are key to generating an income whether it be an online or offline business. We are going to discuss a very simple concept that will allow you to identify a niche and how you can then use that niche to generate more income.

Let's start with a very basic category of pets. If you decided to sell pet products on the internet, this category would be very broad and would immediately put you in competition with extremely large vendors like for example. So, rather than competing with companies that have been around for many years and may have greater advertising and financial resources than you have, you will want to dig a little deeper and find a niche that you can focus on while building your business.

Some people immediately think that by focusing on a smaller niche that they are limiting their number of potential customers. That is true to a certain degree. However, it is often far more profitable to have a smaller group of customers that truly want what you have to offer than a larger group that is being bombarded by hundreds of your competitors.

So, let's get back to the category of pets. We have already determined that this group is very large and that you will need to be more specific. Here are some possibilities...

Level 1-Pets
Level 2-Dogs
Level 3-German Shepherds
Level 4-Puppies
Level 5-Training Puppies

Potential niche: "Best Way to Train German Shepherd Puppies"

Once this niche is chosen, it will do two things for you. First, it will give you a greater focus and allow you to promote your service to a targeted market segment. Secondly, it will bring you potential customers that already know exactly what you have to offer. In return, they will be far more likely to purchase from you.

This basic concept can be applied to literally any category of business and anyone can use it to select a niche. Let's look at one more that you have probably seen online many times.

Level 1-People
Level 2-Women
Level 3-Women Entrepreneurs
Level 4-Women Entrepreneurs Working at Home
Level 5-Women Entrepreneurs Working at Home with Children

Most experts will tell you to choose a niche that you enjoy or one that you have experience with in life. However, if you do a little research, you will find out that some marketers have been able to capitalize on various niches even with little to no experience in that specific area.

In the long run, niche markets have been proven to work for anyone taking the time to study them. Have some fun and use the technique shown above to find a niche that you will not only enjoy but one that will allow you to profit as well.

Distributed by E. Kinton, Jr. Article can be freely reprinted provided above link is shown.


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