Membership Niche Selection Tips
Let’s talk about niche selection. This is very important to ensuring the profitability of your membership website.
First – Look for Fanatics
The first step in developing a profitable membership business is to find a market with fanatics in it. Fanatic is defined as someone with an irrational enthusiasm. These are the people you’re looking for because they are so enthusiastic they’re willing to spend money on their topic of fanaticism. Here’s how to find fanatics:
- One simple idea that’s easily forgotten is to scan the magazine racks when you’re out and about. It’s becoming increasingly difficult to run a print magazine. So if you see one on the shelves you know they are making money, which means that there are enough people interested in what they’re saying to make it profitable. If they can make money in a print version, you can probably make money with a membership website.
- You’ve got lots of opportunities every day to see what people are interested in. Just pay attention to what people talk about on the radio, at social gatherings, at the store or restaurants and anywhere in public. If people are talking about something, they probably want to know more about it. Which means you can start a membership business providing information on it.
- Again, looking in the physical world for clues you can tell there are lots of people interested in something if there are clubs and organizations around the topic. By the same token, if enough people are interested to hold a convention on a certain topic, you can definitely find enough people to build a membership business around that same topic.
- And of course there are all the things you have an interest in, too! Chances are that if you like a certain topic or hobby, other people do, too. And, as an added bonus, it’s much more fun to build a business around things you’re interested in.
- Google Trends. This is a great way to figure out what people are interested in. This service shows you the current most popular search terms. The reason people are searching Google for info on these topics is because they are interested. And the fact that it’s made it into Google Trends tells you LOTS of people are interested. Building a membership business around things people are actively searching for is a great way to ensure your success.
Next – Figure out if there’s money in it
Once you found a potential niche or topic to center your membership site around, you need to figure out if you can actually make any money in it. One way to figure this out is to see if others are making money in it.
Here’s a punch list for figuring out if anyone’s making money in your niche:
- Find out if there are blogs or forums related to it. Just search Google for “YourNiche blog” & “YourNiche forum” and see what comes up. This means there is a large group of people already assembled for you to market to.
- Check Amazon, eBay and Google Shopping to find out if others are making and selling products in your niche. If other people are creating and selling products in this niche, it means there is money to be made.
- Look at Google Adwords for the same ads are running over time. If people are running the same ad over time it means they are making money in the niche. They would not continue to spend money on the ads if there were not making a return from them.
Finally – Figure out your barrier to entry
OK, so you found a hot topic and you know other people are making money on it. Will you be able to get involved and do the same? Here’s how to make this determination:
- Look at the product types in this niche. You want to find a niche where information products are being sold as the norm. The easiest membership website to create and maintain are information membership sites.
- The next thing to look at is the competition. You don’t want to try to break into a saturated marketing, so figure out how many people are already selling in this niche.
- Unless the market is just so big that it doesn’t matter how many competitors there are, you want to limit the competition. So evaluate the size vs. the competition.
- Market readiness. Are people ready to buy? Are the receptive to marketing messages? Every market is different. Sometimes people are looking for information and are ready to pay for it right now. And sometimes it takes weeks, months or even years for them to make the decision to purchase.
In Summary
So far, we’ve talked about exactly what it takes to pick a great niche: One with a hungry crowd of fanatics, who are ready to spend money on information about their topic. And you’ve determined your barrier to entry is small enough to give it a go. If you’ve done your homework, your business will be a success because you already know your market is a profitable one with room for you. Learning how to run a membership website is a topic for another article…
So you are one of the new breed of network marketers who actually use the internet to market online.