Powerful Formula and Strategy For A Niche Owner

This formula you need to use is based on need, market saturation, and profitability. You may find a niche where there's a lot of need, but the audience isn't willing to spend money - or there are too many competitors in comparison to the amount of people within that particular niche.

A Niche Owner Knows the Needs of His Demographics

The formula you need to use is based on need, market saturation, and profitability. You may find a niche where there's a lot of need but the audience isn't willing to spend money or there are too many competitors in comparison to the amount of people within that particular niche.

If you're about to command the attentions of a target audience, then you have to understand their needs. People buy solutions, not products. They don't wake up one morning and say, "I'm going to buy a book on dieting"

Instead, they think to themselves, "I'm going to find a way for me to lose weight." You could have the best product on the planet, but if the person doesn't think it fulfills their own needs or desires, they won't buy it - period.

Sometimes one niche has multiple needs. For instance, parenting is a niche. It's not a narrowed niche, but rather a broad form. Parents have dozens, if not hundreds of needs you can meet.

There are parents who:

Need help getting baby to sleep

Need potty training advice

Need tips to control toddler tempers

Need information on breastfeeding versus bottles

Need advice on educating their kids

...and the list goes on

The great thing about this niche is that it's never-ending. You'll always have new parents, and the demographic can stay with you throughout the life of their child. For example, you could start with pre-pregnancy planning stage and move on to:

Pregnancy

Newborns-infants

Toddlers

Children

Tweens

Teens

Your products could range from catering to frantic parents dealing with a colicky baby to moms and dads looking to cut costs on their child's college education. Once you deliver a good product one to a consumer on your parenting list, you have the opportunity to market backend products to them for the next 18 years.

Are you customers desperate for information? A sleep-deprived mother of twins is - and it maybe 2 o'clock in the morning when she goes online seeking help and downloads your product ask her lifeline to sanity.

You don't have to set out an internet quest to find you niche. Your niche is all around you. What did your sister in law call to complain about yesterday? Was she looking for a way she could make extra money from home?

Go into Barnes and Noble and see what self-help are flying off the shelves. What do people want or need to know about? Is it travelling? Safety from terrorism? Bird flu? Dating?

Don't limit yourself to looking online to try to find your target audience. If there's demand for something offline, then you can bet there's also a demand for information about it online as well.

There is also some online research you can do - you want to use a combination of both. If you're clueless about what audience to target, go to some sites to see what is currently if interest to many people. Use the Yahoo directory at http://dir.yahoo.com to see which categories are brimming with possibilities. For instance, when you click on Health, you see that Alternative Medicine is category with over 500 sub-categories in it.

You then find out that the Herbs, Roots, and Seeds sub-category is a popular one, with 72 entries. Once you click on it, you can get some ideas on what people are most interested in. You can visit categories and their sub-categories to help you brainstorm ideas for your niche.

Another great site is Google's Trends tool that's part of Google Labs. You can find it at http://www.google.com/trends. When you enter the word "tips" in the search box, to see what tips the public is seeking, you find out that they're searching for tips on how to hold down gasoline costs, how to live healthy as a senior citizen, and tips on how to get and stay organized.

One of the best sites to quickly gain information about your niche is at http://www.whonu.com. Whenever your type in your keywords, it gives you links to the results in all of the following places:

• Pages in major search engines like Google, Yahoo, Ask, AOL, MSN, Alexa, Clusty, Exalead, A9 and Snap
• Directories such as Yahoo and DMOZ
• Academic sources such as Google Scholar and Windows Live Academic
• Print resources such as Google Books.
• Public domain sources such as Gutenberg and Creative Commons
• Results in lesser-known search engines such as Dumbfind, Gigablast, Infocious, Giolexa, Grokker, Kartoo, Surfwax and wisenut
• Domain-specific results, such as .biz, .net, .edu, .org, .gov, .info, .tv, and .meuseum
• Results with the keyword in specific places, such as Page Titles, Page Links, and page URLS.

Sites like these cut your research time down so that you're not randomly seeking answers on the net for what may or may not sell well to online consumers. Another one that has several windows of information is located at http://search.rightnow4you.com.

It's a different kind of search tool that delivers quite a bit of information in one quick click of your mouse. For instance, when I enter the word "money", I get to see the following information all at one glance:

• The Google SERPS (Search Engine Result Pages) showing that there are over 1 billion pages relevant to this term.
• There are over 581,000 Overture searches for this word - plus I get a list of the related keywords or phrases, such as "transfer money overseas" or "cash money cd".
• The running cost of advertising for that word on Overture
• Amazon books being sold related to that word

Now why would you care about the advertisements being run on Overture? It tells you that there's a market for this word or phrase, Of course, we're using a catch all keyword.

If you were to type in "parenting", you'd see that the budding price is $0.59 compared to the $3.01 people are paying for the word "money." If there are zero result for a phrase, it means people aren't willing to pay for advertising for it, and it may be a red flag that this isn't a profitable niche.

When you see the results for your Overture keyword suggestions, try to find a niche word that has at least 10,000 searches for it. Some people prefer to stay under 100,000 to minimize competition, but it really all depends on how well you approach your business ideas and what narrow slant you use to hook your target demographic.

Keyword Research Is Crucial to Your Niche Know-How

In the next chapter of this course, we're going to cover keyword list creation to the extreme. That's because 99.9% of your competition is working with a list of 100 or less words - and they're slamming the door on the potential to capitalize on millions of dollars of revenue.

When it comes to choosing your niche, you need the keyword quest to include seeing how many people are searching for word and phrases. The next chapter will focus on how to create a massive list of related words once you already have your niche in mind.

After you choose a broad term, you want to narrow it down. This is known as frilling down the niche. You take sports and turn it into golf, for example. Then you take golf and drill it down to golf putting.

Gauging Your Competition - Who Else Has Their Hat in the Ring?

Too many newcomers to internet marketing focus all of their fears and worries on the competition. While it is smart to see what the saturation rate for a niche is, you shouldn't let it deter you if you find a demographic and have confidence that you can build a profitable empire around it.

Ideally, it'd be great if the number of searches outnumbers.