Niche Marketing - How to Find Hot Niches and Explode Your Profits
Chances are you've heard the phrase "find your niche" more than once. But what does it really mean? Niche Marketing generally refers to the development of a monetized website intended to have a specific appeal to sub-mainstream markets. Most niche marketing websites are usually monetized with a mixture of Google Adsense and affiliate products.
Niche marketing is often considered an ideal venture for new marketers. This is because there is generally less competition in highly specific niches, which usually translates to lower operating and advertising costs. Choosing the right niche can also enable a new marketer to establish themselves as an expert while gaining valuable experience in the world of Internet marketing.
A profitable niche must meet a few requirements. The stronger each aspect is, the more profitable the niche can be. It comes down to "supply and demand". First, it's important that there are a good number of people actively searching for the information that your niche will be providing (i.e. high demand). Second, you'll want to be sure that your niche does not have a lot of other websites targeting it (i.e. low supply). And finally, you'll need to make sure there is money in your market. This all involves research.
Looking for a niche market should begin with a brainstorming session about things that you have some experience with or an interest in. Keep in mind, enjoying the niche you choose is always a plus as it will help you maintain your focus when building your business. Checking out your ideas on websites such as "Yahoo Buzz", "AOL Hot Searches", and "eBay Pulse" will give you a jump start on finding out if there is a high demand for them.
Keyword research is the absolute best way to drill down your niche into smaller, more specific sub-topics. Using the free keyword search tool offered by Wordtracker will assist with this. It will provide you with an estimated daily search volume for a given word and offer you suggestions for other words related to it. For example, doing a search for a topic like "recipes" will allow you to discover what types of recipes are being searched for and approximately how many people per day are searching for them.
Doing a search on Google, Yahoo, and MSN for each of your newly drilled down keywords (in quotes) is the next step. The top of each page will tell you exactly how many results contain that keyword. Remember, we are looking for a niche with a good number of searches but not too much competition. Also, take note of the number of Adwords ads that appear during your Google word searches. It's important that you can confirm that advertisers are willing to pay for traffic for these words if you are planning on using Google Adsense on your new niche website.
Finally, you will need to find out if there are affiliate program available for your niche market. There are affiliate programs for almost everything these days, so the odds are in your favor. Checking affiliate networks such as Clickbank and Commission Junction are good places to begin. Simply doing a search for your keywords with the words "affiliate program" included will also give you a good idea of what's out there.
Once you have compiled all of your information you should have a good idea of possible niche markets and if they have the potential to be profitable for you. The final decision on which niche market to target can be based on the highest search count, the least competitors, the highest number of Adwords ads or a combination of all of these factors. Finding the perfect balance between search volume and competition is up to you. Once you find your niche, you can move onto building your website to capitalize on it as effectively as possible. Be prepared. Niche marketing often results in big profits and tremendous success!