Finding Your Niche Talk (Part 2 of 3)

                               Part 2 of 3
   click here if you haven't read the first part of "Finding Your Niche" yet
This is a transcribed part of a seminar at which I taught on internet marketing.
I broke it down in three parts so that it's easier to read for you.

If they are in the desert, and their small stall, and they have run out of water and are running around five hours without having a sip of water, they are dehydrated. They want water. Their body tells them that they need water. This is a starving crowd.

Now, I’m not telling you to set up a water store in the desert. Because there’s another factor that also goes into selecting a profitable niche. We already talked about the first point. A starving crowd that means a high passion index, and a willingness to spend money on offers similar to yours.

Another important factor in evaluating niche is how many people are interested. And how well can you reach them.

Let’s look at the desert and the water example again. People who go to the desert generally know that they will need water. And they prepare for that. They even know where they can get more water, or they just take enough water with them to make sure that they don’t need to buy extra water. Still, every once in a while something happens and people run out of water. They can’t find a waterseller, and after some time they are really willing to shell a lot of money for a single bottle of watter.

But how are you going to find them? The desert is huge. If you just pick one place in the desert and then wait for customers to come by and buy your water, there’s a high chance that you will get struck by lightning before you find someone who is willing to buy your water.

So what did we just learn from that story? We learned that the market has to have enough people. It has to be worth the effort. If you set up the water store in the desert, there just are not enough people who happen to run out of water, because in general people prepare for bringing water already, and something unexpected has to happen for people to need to drink more.

On the other hand, we learned that you have to be able to reach possible prospects. The desert is so huge. Setting up a shop in one place won’t help you, because the likelihood that the few people who did run out of water come by your store is zero. The distances in the desert are so far. So you really cannot reach prospects in that market. The same is true online. If there are five people in the world who are interested in your niche, then it probably is not worth going into. Unless you have some trick for multibillionaires how to save $100 million in taxes a year.

And if there are 10 million people who are interested in your niche and they are willing to spend money, but they do not use the Internet, and they do not spend money on the Internet, then there’s no use to set up an online business targeting that niche. Because trying to get people to spend money with you online when they don’t spend money online is just too much of an effort.

So the niche that you select has to have people that are willing and able to spend money online on products similar to yours, and you have to be able put your offer in front of them.

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