Thursday, April 12, 2007

Interesting Niche Markets - How To Find The Top Markets

A lot of people with an interest in pursuing Internet marketing find that their main problem in getting started is finding niches – or more to the point an "interesting niche market". First of all what is niche marketing? Focusing on a niche market can be defined as addressing a demand for a product or service that is not being supplied by established providers.

The key to profiting on a niche market is to find or develop a market that has customers who are accessible, that is growing quite fast, and that is not owned by one established business already.
Once the profitability of an interesting niche market is established, marketing to them is the process of locating and supplying (or designing) custom products or services for them.

Finding an interesting niche market on the Internet requires extensive keyword research and analysis, that takes time and effort. And of course it will require some serious thought. Firstly what you need to do is think about what skills or knowledge you possess. It is always easier to start with things that you yourself are interested in, or are knowledgeable about.

Try to find as many answers as possible to the following questions:

What do I enjoy doing?Do I possess any special skills?
What am I good at?

These will form a list of possible areas to target as an interesting niche market, but now you will have to find the ones that will give you the best possible chance of success by looking at demand. How to find the demand for your interesting niche market.

You need to know how many people are looking for information on the topics you have chosen. This is easily done using Overture or another keyword suggestion tool. On entering one of your topics into your Keyword tool it should return figures for the month before.

Let's use "golf" as an example. The word "golf" itself is extremely broad and returns 441712 searches at the time of writing.

"Golf course" has a huge 172260 searches made on search engines, while "custom golf club" has only 5802 searches.

You may just want to jump right in and go for "golf course" as it seems to be an interesting niche market, but don't forget you have to think about your competition. What you must do next is look at the competition involved. To do this all you have to do is visit Google and type in your phrase in the search bar (including the speech marks).

On searching for the term "golf course" we come up with 22,900,000 competitors. You won't corner that niche too easily.

But if you do the same with "custom golf club", it only brings back 206,000. Still a lot - but a lot less competitors than before.

Now we will use the demand supply ratio math formula, which is the number of searches divided by competition, and then times by ten. This should find you the niche you should be targeting. For example lets take a look at our "golf" figures again. If we divide the number of searches for "golf course" (172,260) by the number of competitors (22,900,000) and multiply the number by 10 we get only 0.075. Likewise if we do the same for "custom golf club" we get 0.28. On first looking at the number of searches these both look to be interesting niche markets but on further analysis we realize that neither of them would be easy markets to target.The rule is that the higher the number, the more profitable the interesting niche market will be. Any niche that returns a figure over ten when you apply this formula is a great niche. The lower the number the more difficult the niche will be to conquer as it is already saturated.

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