15/07/2024

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Easy Methods to Niche Market Research for Beginners

Easy Methods to Niche Market Research for Beginners

To create a winning product, market research is the first and most crucial stage. You must first find your targeted hungry buyers BEFORE you create a product. In other words, find a niche market which is ready to buy your products. Many newbies make a mistake of creating a product first, then try to market it and end up disappointed when there is no one to buy the product. So researching the market and identify the ready buyers will definitely helps to eliminate this problem.

Another big mistakes newbies make is creating products targeting the big markets, which is supposedly highly profitable. While it is through that niches such as Internet Marketing and Make MoneyOnline are very profitable but these niches are just way too big and competitive for a newbie. Besides, there is no way a newbie can compete with marketing gurus with huge lists and joint-venture partners to start with. The competition is simply so huge that it will crush any newbie just starting out. So, don’t make the same mistakes as most newbies do.

Therefore, the first key to create a winning product is to find a profitable niche. Basically, a niche market is a specific group of people with the same interest. You has a much better chance of success if you focus on a very specific group of people. Find out what they want, create a product and sell it to them! That is it! It is as simple as that. The niche which newbies should target should not be too big, and not too small either, of course. Most importantly this niche group should have spending power, which means, they are ready to take out their credit card and buy your product. It would be useless to create a niche product for a school children, for example, even though your market research may show that there is a market. If you are keen to create a product for children, target the parents instead, as they are the ones with the credit cards!

Here are some simple steps which you can easily find your niche market:

First, open Overture Keyword Selector tool at http://inventory.overture.com/d/searchinventory/suggestion/
and start keying in the keyword of niche market which you want to target. Try basic products which you may be interested in selling, such as dog training, auto repair, or digital camera. The results will tell you the number of searches in a month. You should target a specific niche which has a decent number of searches. For example, “dog” has 3716120 searches. While the numbers shows a massive customer base in this broad niche, you would not want to write a book on “Dogs”. But if you scroll down and look at other keyword terms, “dog training” fetches 54505 searches per month. This would be a better niche to target.

Now you want to go to Google or other major search engines to find out the number of result pages which has your target niche term. This will determine the level of competition in your niche. To determine the searches and competition ratio, I find NicheBot (http://www.nichebot.com) most handy and it is free!

Now, let’s analyze the numbers. I am going to use the same example as above, the keyword “dog” has 1,727,003 searches, while it has 6,570,000 in the search engines. As you can see, the level of competition is very high. Therefore, it is not a good idea to target this broad niche. On the other hand, “dog training” has 1,463,802 searches a month, while there is only 120,000 pages in the searches engines. While the demand is high, the competition is relatively lower, so this may be a good niche market to target.

You may want to spend more time to research for the right niche market. This is a step you should not miss. The steps above is only a very basic but essential steps which will determine the success or failure of your first niche product.