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An_Overlooked_Niche_You_Can_Target
| An Overlooked Niche You Can Target
If you were going to open a business with your own money, which
of these two would you attempt?
A mega superstore or the corner deli?
Would you try to battle some of the world's largest companies,
with the most established names and huge budgets? Or would you
try to find a community with relatively few eateries and a
sizeable population, then try to appeal to that group of people?
If you wanted the best chance of success, you would open the
corner deli. Guess what many people would do when given the
equivalent online choice?
That's right. Many people who create web sites try to build the
"superstore" web site instead of the "corner deli" site. They
join dozens, even hundreds, of affiliate programs, create as
many categories as Yahoo and then link to all these programs.
They're unlikely to succeed. They will not be knowledgeable
about most of those programs. How can they be? There are only 24
hours in a day. Why would people visit their site? People visit
web sites for information. Don't ever let anyone tell you
differently. If a site doesn't have some sort of unique,
specialized information then it has nothing.
Internet marketing. It's not a niche. It's a mass market, like
Wal-Mart rather than the local deli. Yet it's amazing how many
neophytes try and promote Internet marketing affiliate programs.
Most likely they do this because that's the first thing they are
exposed to when contemplating starting an online business. But
that's not the right approach.
The right approach is to use the information about Internet
marketing to carve a niche for yourself in a place where there
is not as much competition as in the "gorilla" areas - areas
where you have to compete with proverbial giants.
You have to focus on a niche you know and love. Why? Because
that's the only way you're going to be able to devote the kind
of time and effort to create a meaningful site, build up the
right traffic, generate worthwhile income, and enjoy what you're
doing.
Here's an example. I sell display-ready ship models. It's a
niche that upon first inspection has a lot of competitors. But
most are just small shops that have a web site. Is there demand?
Yes, a search on Overture's Keyword tool reveals nearly 30,000
searches last month for the phrase "ship model" and thousands
more specific searches for a number of related items.
What's the top bid? About $0.70, so there's money in it too.
Advertisers don't continuously pay that kind of money without
generating results. So there's your answer. Yes, there is demand
and there is money in it. Is there too much competition?
No, you don't see any "gorillas" the size of a Sears or General
Motors or Amazon in it. When you think of model ships, there's
no company that you instantly associate with it, like Amazon
when you think of books. That's a promising start.
If you were to open a deli you would find what the locals like
to eat, when they eat and how much they spend. From there you
can offer a menu that suits their tastes. Do they like cold
cuts? Roast beef or chicken or vegetarian? What kinds of
toppings? Side orders? Dessert? What do they drink with it? What
portions? How would you get the word out? What do you want your
deli to be known for (bean burritos)?
The same is true with an online site. In this example, who buys
ship models? What for? How much do they spend? For a start, ship
models are upscale, luxury goods. I've seen prices of $20,000
and more (imagine a commission on that)! We sell in the more
affordable $40 to $1,300 range. Clients buy them as decoration
in homes and offices. Or as gifts, especially retirement gifts.
What does that tell us? Our target market is older affluent
folks who use the Internet (we currently sell exclusively
online) who live in the US or Canada. The recipient is usually a
man, though the buyer is frequently female.
Of course, you don't want to pay $0.70 a click for traffic if
you can help it. So how would you go about promoting something
like this? By thinking of related areas or sub-niches. Using a
little bit of lateral thinking, what else are older, affluent
men interested in? Traveling? Golf? Cigars? Wine? Vacation
homes? Investing?
You could create a mini-site that's strictly about model ships.
It'd be like the hot dog stand instead of a deli. The bare
essentials to service customer needs in a tightly defined area.
Or you could focus on related things like maritime history,
birthday or retirement parties, interior decorating, gifts,
travel to coastal areas, a particular aspect of boating or
sailing, and link to a few related affiliate programs. There are
many possibilities.
For example, suppose you decide to focus on 40th birthdays for
men. Your site might include 40th birthday party ideas, humor,
cartoons, birthday cards, and gift suggestions (maybe 40 of
them). Among those suggestions could include golfing
accessories, wine, vacation packages, and of course ship models.
There are many, many ways to approach this. The goal is to find
some combination of supply (targeted traffic) and demand (goods
or services) that is favorable and related to the topic of your
site. Choose the affiliate programs that fit well with your
niche. Then focus on that niche by developing related content
that visitors want, and consistently promoting it.
The reality is that putting up a web site alone just about
guarantees that no one will visit your site. And creating a web
site takes work. As with bricks and mortar, it's better to build
a thriving deli with a line out the door than a mega store with
an empty parking lot.
Keep that in mind as you look to uncover profitable niches.
About the author:
David Nguyen is co-founder and affiliate manager of
AuthenticNautical.com, Internet retailer of display-ready model
ships & sailboats.
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