Module 1 Chapter 1 Deciding on your niche
CHAPTER 1
LESSON 1
DECIDE YOUR NICHE
1.0 INTRODUCTION
2.0 OBJECTIVES
3.0 MAIN CONTENT
3.1 What is a market niche?
3.2 How to decide your market niche: step by step
3.2.1 Identify your audience
3.2.2 Conduct niche keyword research
3.2.3 Analysis of the competition
3.2.4 Research trends in the industry
3.2.5 Decision making
4.0 CONCLUSION
5.0 SUMMARY
6.0 ALLOCATION
1.0 INTRODUCTION
After your decision to do business online or take your existing physical business and establish it on the internet as well, the next decision you need to make at the same time is: what niche market are you going to do your online business in.
2.0 OBJECTIVES
- Discuss the meaning of market niche
- Encourage individual learners to use free online tools to research different online business niche markets.
- Help each participant decide on the particular market niche in which they want to do their online business.
3.0 MAIN CONTENT
3.1 What is a market niche?
A niche market is a small segment of the market that you plan to focus on in the course of selling your products, services, and your business in general. Also, it can be subdivided into sub-niches.
Therefore, the first thing to do when setting out to set up your business online is to decide ab initio the particular aspect of the market from which you will operate your business.
I can also say that niche marketing is the art and science of defining your particular small but profitable segment of the market (niche) and then targeting all of your products and services towards that particular segment.
Let me use this example: weight loss => weight loss for women => weight loss for women under 20 => weight loss for diabetic women under 20, etc.
Another thing about doing business online is worth mentioning here.
When doing business online, you need to define as early as possible the type of products you want to market. Do you plan to trade (sell) virtual or physical products?
Take for example the weight loss products listed above, there are virtual or informational products as well as physical products that can be sold to that market.
For most newcomers to Online Business, it’s a good idea to start with Virtual Products for obvious reasons…
Virtual products have higher profit margins, are sold more frequently than physical products, and are relatively easier to set up and market than physical products.
One of the main reasons for these quick and easy sales is the principle called INSTANT GRATIFICATION.
Your buyers will be so excited to get the product they just paid for, instantly, via instant download, which is only possible with information products.
This decreases BUYERS REMORSE, the anxiety commonly associated with online shoppers as they buy from a stranger most of the time, and any delay in getting the product into their hands can make them think twice and possibly , even regret it and may request a refund as a result of mistrust arising from the delay.
That said, in general, the principle is the same (although more acute in the information products market) regardless of the market in which you are doing your business.
3.2 How to decide your market niche: step by step
To decide on the niche in which you want to do your online business, you must follow the following steps:
3.2.1 Identify your audience
This is very important for two reasons: products come and go, but the audience remains forever; This approach will also connect you with the market that has a burning desire and the ability to buy.
From the next paragraph you have to be connected to the Internet to practice.
To learn about the different types of niches and sub-niches you can possibly get into, see this website: note the categories and click the + sign in front of each category to see the sub-categories: ClickBank
Each category and subcategory forms a niche and sub-niche of its own, respectively, as mentioned above.
3.2.2 Conduct niche keyword research
Google AdWords Keywords Tool is the notable free leader in keyword research. It is beginner friendly and you can start using it right away if you have a Google mail account.
You must have a Google email to create an account or sign in to use the tool (see top right corner).
As you go pro, you need a paid version, but the free version is quite useful to start with. If you are not familiar with it, please refer to the top right of the site for instructions (‘Before You Begin’) on how to use it: Google AdWords Keyword Tool
3.2.3 Analysis of the competition
As you type keywords into the Google Keyword Tool search box, click Get Ideas. From the result, check the Competence (low recommended for beginners), Local Monthly Search (1000+ is fine), and the Approximate CPC (how much and how many people are willing to pay for the keyword).
See the red pen marks below.
The keyword I calculated in the search box is ‘Network Marketing’.
This is a reflection of the evaluation of market competitors. Few people will be willing to pay for keywords in a market where there is no money to profit from. The more they pay for keywords, the better the market for business.
Also, when you choose a low-competition keyword that you want to target, type it into Google search and see how many pages are returned, representing the websites that are targeting the keyword.
Also check the number of pages in the first 10 links that have that keyword in the name of their websites. I’ll talk more about this later in another lesson.
Check if there are ads on the right side of each page that are targeting the keyword.
Also click on the first few links to see if there are any ads on those sites (right side). If there is none, then the keyword has no value! Otherwise, advertisers will pay to drive traffic to their sites using the keyword.
3.2.4 Research trends in the industry
Also use Google Trends Explore to see interest over time in the market you intend to enter: Google Trends Explore
In the above, make a note of the country, period, categories, and search topic (highlighted in yellow). These can vary depending on your niche and goal, but it’s generally good to use the last 5 years period when you’re planning to enter a new market. All of these can be varied as you accumulate experience.
There are also country-specific Google Trends. Search Google Trends Explore+your country or the country you want specific information about, for example ‘Google Trends Explore+Nigeria’
To see an example, find and visit the site quoted above, where it is written worldwide, click on the little triangle, find and click on your country, after a while it will return the country specific result.
Scroll down the page and you’ll see some surprises.
There is no use entering a declining market.
Declining markets are markets where other people doing the same business you intend to do are already exiting.
The lesson to be learned here is that your business, even if it is profitable at first, will not last long. Using Sweden as in the search above, the market for the search term ‘make money online’ has been trending in that country for the last 5 years.
Remember, the trend is an investor’s best friend: Robert Kiyosaki.
3.2.5 Decision making
The previous step is educational enough to allow you to decide on the market niche in which you want to do business. Further delays and investigations will result in confusion, information overload, and analysis paralysis.
4.0 CONCLUSION
These days, it is getting easier to start or set up any kind of online business and run it profitably. This is because there are free and effective online tools that will help you conduct a kind of feasibility study and market survey no matter where you are in the world.
In this way, you can know from the very beginning whether your planned business has a good chance of success.
5.0 SUMMARY
Like any other business, the easiest way to start your online business is by targeting a particular niche from the start. The lessons learned about operating successfully in that niche can easily be applied to others over time.
6.0 ASSIGNMENT:
Just do it now!
Start practicing what you just learned right away.
Suffice to say, you don’t need to spend a lot of time on these steps, as you can repeat them over and over and perfect them with time and experience.
The most important thing for you is to start earning money as soon as possible, after a while you will earn enough money that you can even outsource some of these tasks to experts.
Take action now!