Evaluating Your Niche
It’s all well and good being told to choose a niche market but how can you actually tell if it will prove to be profitable and worthwhile.
How do you do that? It’s easy. Just follow the steps in this post.
Many information publishers fail because they don’t do their homework. They fail to research their niche and find out if there is (1) interest (2) demand and (3) supply for their chosen product category.
This means you need to know whether anyone cares about the topic that you’ve selected. If people are actively seeking information on your topic then chances are it is a good one. Just because you think something is a great idea doesn’t mean that others do. Keep this in mind before you get to carried away!
See this detailed post on how to perform free research on the number of searches for particular phrases.
You have to find out whether there is demand for your information. Demand is different from “Interest”. You can find out how many people are looking for information (the “interest”) using the tools I’ve shown you in the Research Search Results post, but you also have to find out whether people will spend money in your niche.
So how do you determine this?
Well the answer is actually to find out what the competition is like. If there is a lot of competition, then there are probably a lot of people spending money. That is why the search engines are so useful – check if there are paid adverts for your particular search terms. If there are then that means that presumeably the advertisers are making money and thus there is demand.
Remember, if people aren’t willing to pay, your product will fail!
Finally you need to know if there is room for you to enter the niche market that you are interested in. Too much competition can be bad because you will have a hard time making an impact. You want to make sure there are enough customers out there to buy your product but you also want to make sure competition isn’t so fierce you can’t enter the market.
Try to get an idea of how much competition there is for your product or niche category. To do this, again look at the paid adverts in the search engines. How many advertisers are there? What are they offering? Can you compete with them?