5 Simple Steps To Find The Best Niche Markets Bursting With Profits
Perhaps the biggest request that slithers into my inbox from members is ” help me find the best niche markets”. I suspect the niche markets these people are currently in aren’t quite all they’re made out to be. I do my usual check – crunching the numbers, looking at the big ticket affiliate programs, and browsing over typical Adsense contextual payouts.
To find the best niche markets, you have to weed through the ones that aren’t
The thing is I’ve been an internet business entrepreneur for years. I know how to separate the good from the bad, mostly from my own trial and error. Most newbies don’t and that’s where I offer help.
That’s the point of this article – I want to share with you *exactly* how to analyze any and every niche market so that you can do your own research and never be tricked by another niche package that’s been developed by some greedy fly-by-night merchant that’s just cashing in on the PLR craze.
If you’re about to set-up a niche online business, for the first time or not, you must research the following very thoroughly before whipping out your credit card and buying the first niche package with private label rights that comes your way.
Here are some of the broad techniques that I use to find the best niche markets that I’m considering entry into. If at least four of the five aren’t right, I’ll walk and move on to the next niche on my list.
(1) It All Starts With The Back-End & Existing Income Generating Opportunities – Do They Exist?
I’ve seen it all. Niche packages on internet marketing, pet grooming, how to make your own candles… the list goes on. To find the best niche markets, you MUST start with the back-end opportunities that are available to you. By this I mean the additional income generation methods once you make the first eBook sale or after you get your prospect to the website. You’re not going to get rich on $29 book sales so you need to find some additional items that would interest your prospects. Here are some things you must look out for:
– Are There Big Ticket Products? Even if you convert a standard 1% of a $1,000 product (paying half of the sale value in commissions), you’re going to earn $500 from every 100 visitors to your site. Believe me, in some niche markets there are just no big ticket items (either because the niche isn’t big enough to support such a thing or the site infrastructure is not available as the niche operates largely in the old offline world).
– Multitude of products: I like niches that offer a multitude of different products. CD’s eBooks, DVDs, seminars, courses, software, membership sites. It means that there are lots of unique products to offer your prospects. In some niche markets there may be only one or two established packages for potential customers… they’ve seen it all before, may already have it and your chances of making that back end sale gets much tougher.
(2) Show Me The Numbers!
There’s a debate with some online celebrities as to whether “numbers” matter – by that I mean the number of prospects in any given niche. I don’t want to perch on the fence. While I do think it’s possible to operate profitably in some smaller niche markets, I much prefer BIG ones. Niche industries that have a pool of prospects that number in the millions or even the billions. There’s just a certain comfort knowing that your niche enjoys that sort of demand and it increases your ability to create sub-products, put a spin on your products to target sub-niches and so on. That’s why I love niche markets such as investment & finance, real estate and travel – the numbers alone mean you have a fair chance of success.
(3) Cash Rich Prospects – Don’t Try To Sell A Porsche To A Beggar.
I don’t wish to sound insensitive with this but I’m here to try and help you make money – not win an award for humanitarian of the year. The simple fact is that if you want to make money, you need to sell to people who have money. That’s just basic common sense but you’d be surprised at the number of people who do not even consider this factor before jumping into a niche that has limited cash backing. Now combine a market that has MILLIONS of cash rich prospects and now you’re in a prosperous niche. People in such niches usually pay good money, often without too much thought. For example in the stock market and real estate niche market it’s common to spend $5,000 to attend a seminar and some real estate investors will splash out $300+ on the fly just to view a property that’s abroad (very common in the UK where cash rich investors jet off to Spain/Bulgaria/Portugal etc to inspect a potential buy). This is the sort of prospect you want to sell to.
(4) What Do Advertisers Pay To Advertise In Adsense? How Many Advertisers Are There?
I like contextual advertising – Google Adsense. Some people have been comically predicting the death of Adsense. Check Googles stock price and you’ll find that these people probably have IQ issues. See, in *their niche* (probably internet marketing) Adsense incomes may be on a short term downtrend so of course some set off into a magnificent panic while others sell hyped up reports to exploit the situation. Actually, Adsense in the internet marketing field isn’t all that great – the payouts to publishers can be low (though not always – I’ve had mixed results myself). In other markets it’s brilliant. In real estate returns of $5+ per click are not uncommon. In the investment niche it can be $8+. In these niches Adsense becomes your best friend – it also has an overwhelming ad stock inventory for popular niches and the ads are highly targeted – for example one of my niche sites reviews the Maldives as a luxury holiday destination including a page on each specific resort (eg Hilton). Thanks to Google Adsense, when a visitor comes to the Hilton review they are offered an ad that takes them to the Hilton resort (similar on many other resorts too). This is great for the advertiser, great for the publisher (me) and very convenient for the visitor. Everyone wins.
I digress somewhat – when you analyze to find the best niche markets the point is that you should not only check that the bid values are high, but also that there are a fairly high number of advertisers (more competition means bigger bids means bigger commissions). In some small niches there just aren’t enough advertisers. Why? Because the prospect base is either very small, has no money (or both).
(5) Pay Per Lead? We Love It…
I believe we’re going to see a lot more about Pay Per Leads in the near future. This is when you get paid for a particular action made by your visitor to the advertiser. Typically it means they fill out a short form, or download an eBook, or set up a free membership – the visitor doesn’t have to buy anything. Pay per lead can be very lucrative, particularly in industries such as real estate and foreclosures. I’ve seen some of these niches offering $5 to $20 per lead that you send them. Why? Because just one lead that goes on to buy a property or use their services can bring in several thousands or even hundreds of thousands for them in income. What’s $20 to get in that type of business?
Another big plus point about pay per lead is that once you know how to wield your own content with it the response rate can be explosive. For instance it’s quite easy to write an article on making money through foreclosures, and then prompting your prospects to take action by downloading a free eBook on foreclosures (for which you get paid $5 per download).
The above is the same basic blueprint I use to investigate my niches and I really urge you to do the same. Next time you see one of those junk PLR products trying to get you to pay money for content that has no potential or future you’ll be able to pick it out and trash it yourself.
Happy niche hunting! I hope this little guide will help you find the best niche markets to build your online empire!