Niche Finder -What is a niche? (Part 3)
NICHE MARKET = PEOPLE WITH A COMMON INTEREST OR PROBLEM + PEOPLE YOU CAN EASILY LOCATE + PEOPLE WHO HAVE MONEY TO SPEND
So you have identified the people you want to serve, and you have figured out where to find them. The next challenge is to figure out if they have money to spend, and if they do, will they spend it on you and your product.
There are a number of clues in the research stage about whether this niche will buy. Microsoft has a nifty little tool designed to identify commercial value of a particular keyword. Adwords bids tell you what other advertisers are willing to pay which can be an indication of whether the niche is profitable.
These tools are just indicators providing clues, but none of them are entirely reliable.
This is where testing comes in. You have to float a trial balloon to see if people will buy. Some marketers do this with organic search and some do it very quickly with pay per click advertising. One costs time. The other costs money. Both work so take your pick.
The fastest way to test is to throw up a well optimized WordPress blog (please don’t freak…I can help you with this and it’s really not that hard any way) with someone else’s product (ie an affiliate product) and see if people buy.
So you run a test to see. If they buy you know it will be worth spending your time, energy and money to create a product of your own. You already have your marketing engine in place so it’s just a matter of creating the product (much easier when you know there’s a market yes?).
If on the other hand, you can’t sell a product, you have saved yourself a ton of resources that you can now spend on creating something else.
Next – the role of competition in finding your niche…