Building a business on quicksand
I often get emails from people who are psyched to get started online, and have a KILLER product idea they want to base their business on. Their emails go something like this…
Hi Derek, thanks for all your advice! I know with your help I can make great money online. I want to sell [INSERT PRODUCT IDEA HERE] because it’s my passion — any suggestions on what to do first???
FORGET ABOUT YOUR PRODUCT IDEA.
Seriously. Wipe it right out of your head.
Now, I’m not saying that product idea is going to doom your business to failure.
But what I AM saying is this:
When it comes to Internet marketing, it’s not WHAT you sell that counts — it’s WHO you sell it to!
If you don’t take the steps necessary to make 100% sure there is an easily reachable market of people online who WANT TO BUY something you can sell them, then there’s a strong chance you’re building your business on QUICKSAND.
That’s why in all of our programs and courses, the first thing we always, ALWAYS urge you to do is…
MAKE SURE YOU’RE SELLING TO A NICHE MARKET WITH REAL PROFIT POTENTIAL!!!
By "niche market," I simply mean, a group of people who have a certain problem, and are ACTIVELY looking for a solution online without much luck.
(And of course, they must be willing to pay good money for that solution!)
If you can provide that group of people with a product or service that solves their problem, then your business has a good chance of making money.
BUT: No matter HOW fabulous your product is — if no one is looking to buy that product — or something like it — online, then your business will collapse like a pack of cards.
It’s just that simple.
This isn’t just for beginners, either… Even if you already HAVE an online business, you STILL need to make sure that you’re targeting viable niche market. It’s the only way to make sure your business is built on a solid foundation.
How do you make sure you’ve identified a market with great profit potential?
Simple! Once you’ve done your keyword research with a tool like Keyword Discovery or Wordtracker to identify a potential problem shared by a significant number of people online, you need to research your market online and find the answers to these four important questions:
1. Is the market easily defined and reachable?
You need to know where they hang out, what publications they read, if they have clubs or events that bring them together, and where they look for or share information online.
Most potential markets will already have places where they congregate. Look for groups, forums, discussion boards, clubs, and special websites — a simple Google search should bring up places to start. Links on any promising sites you find will point to other useful sites.
2. Is the market small enough that there are not many competitors — but large enough to allow you to make a profit?
You want a small pond, but it still needs enough "fish" in there to make it worth your efforts.
If these competitors look well supplied and well funded, it may be more difficult for a small business to compete for eyeballs, traffic, and PPC keywords. Too much heavy-duty competition is a sign that you should look for a smaller, more precise niche.
3. Will this market actually have and spend money?
You need to know if these people actually buy stuff!
It’s actually a good sign if there are sites selling products for the market. If related products are being sold profitably, you know there’s a viable market and you should consider these businesses as potential joint venture partners.
4. Does the group have a ridiculous amount of passion for the hobby or topic?
A motivated market eats, sleeps, and breathes their hobby.
You’re looking for prospects who are so passionate that they must have all the information related to their subject. Think about video gamers or collectors… their obsessive passion is a big reason those markets are so huge!
Admittedly, this is just the tip of the "niche market research" iceberg.
There’s a whole lot more you need to know, in terms of doing quality keyword research and how to find your niche market online. But no matter where you’re at with your research, you always need to keep these four questions in mind.
They’re the questions that will help you determine whether you’re sitting on a sand pit… or a gold mine!
To your success,
Derek Gehl
P.S. Next week I’ll be discussing another one of the the important steps you need to set up your business for success… and I’d like to know what are the three biggest challenges you face.
