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The Niche market scam
Fast growing amongst the popular terminologies being thrown around by online marketers is the term Niche Market or Niche Marketing in its various forms.
It would appear to be dominating their every conversation and for good reason. It is actually where the money is.
So, to the heart of it – what is Niche Marketing ? Is it another of those over-hyped terms or does this fad have some legs?
So let’s see what it isn’t.
– It isn’t something you can buy
– It isn’t something you can make ( well not directly )
– It’s not a new job opening so don’t ask your boss for a transfer
– And as usual, the hordes of people taking a stab at it are nearly all probably going to fail.
Niche Marketing – An example
Here is my own quick definition : Niche Marketing is an examination or sales analysis of a very narrow marketing segment that is being under-served by the competition. Let’s see what this looks like.
Marketing to those that buy
– runners. Niche or not? Not
– Nike runners. Niche or not. Not (What did that surprise you?)
– Nike marathon capable running shoes. Niche or not? Feeling the sun yet ?
– cpu enhanced marathon capable Nike runners. Niche or no Niche? Jackpot !
So, the warmth of the sun is shining on our face, its going to be a great day. We can now see the light, yaddy, yawn… So where do we go from here? We have accurately identified a niche right? And isn’t that what everyone is talking about? Do we stock up now or wait for Christmas?
Not even! You have heard this street english before right? No, I am not keeping this niche area for myself, I wouldn’t do that to you, so don’t think I am holding back. Truth is, our premise of a niche marketplace sounds good but is still yet unproven.
The prior example was just that – an example. An niche marketing example of the narrowing market segment that a niche market might end up in. That wasn’t even close to the process used to find a niche market so please don’t jump on that phrase just consider it dead in the water, lol.
Even if half a dozen sports friends asked me for that product next week, I would neither stock nor drop ship this product for reasons that you will soon know.
Bad Niche market Example ?
So, did I just give you a really bad Niche Market example?
It might be and maybe it wasn’t but we don’t know that yet. When doing this kind of research one has to remind oneself that people use specific key words when searching for a product or service. Only the search engines, search engine tools ( like wordwatcher ) really know what is being searched for. And unfortunately only niche marketing software tools can give one the market intelligence needed in order to make a business decision.
If we know how many people are searching for the product and how many competing websites there are, isn’t this enough information to quantify this as a niche product? Wasn’t this what groups traditionally used to make their decision in the past? Well, it was, but its not enough anymore. There are tools out there now that can make a newbie 10 times more efficient and powerful than the traditional analysis used just 6 months ago.
Perhaps you are experienced and know that this was not the process used to find niches. Perhaps you are still using the tools inside google adwords, or google trends or wordwatcher.
They are time tested and have worked wonderfully for the past few years but a newbie using a niche market tool and having little or no knowledge of the existing search tools from Google could blow you and I out of the competitive water in less than 5 minutes.
Competitive Niche tool products go significantly further than just how many potential clients are searching and whether the competition has the keyword on their site. They use algorithms that use several additional variables for ranking competition. They can immediately open affiliate sites like clickbank and others with a related product already found and ready for you to use. They can find articles from Private Label Sources for reprint. And this is less than a 1/10th of their abilities.
At this stage in online marketing, it no longer makes sense to find Niche Market products the old way. There is a list of products on my site. Have a look.
P.S. I would NOT stock or drop ship a product like that because it has no upsell whatsoever and I would have worked my butt off just to give walmart or Nike or someone like that another customer that will never come back to me.
By Trevor Weir
Niche Marketing – What is it ?
The term Niche Internet Marketing is bandied about by online marketers like it’s the cure for all ills. You
can’t turn around in one of those heavily trafficked internet seminars where thousands meet to “find the cure” without running into half a dozen splinter groups discussing the merits/demerits ( but mostly merits ) of tightly focused Niche marketing.
So, for the newbies amongst us, what is niche marketing?
Perhaps its best explained by first discussing what it’s not. Niche marketing is not marketing to a mysterious marketing segment called niche, nor is there a product called niche that a huge underground swell of people are clamoring over insurmountable walls to get. Nor, is there usually a department within any major corporation that has a position open in their niche marketing department. So don’t call Human Resources at your local City Council and ask for a position in their niche marketing department. Sorry, just had to get that one out of the way, lol.
Niche marketing example
I am going to make up a definition on the fly here. Niche marketing is marketing that is directed very specifically at a very narrow vertical market segment. So, let’s try this one.
Marketing to those that
– buy running shoes. Niche or not? Not
– buy Nike running shoes. Niche or not. Not (What did that surprise you?)
– buy marathon capable Nike runners. Niche or not. Uhmm you’re getting warmer.
– buy high arched marathon capable Nike runners. Niche or not. Yes absolutely!
This last example sounds like a niche for sure. It has a narrow focus and we have eliminated several wider approaches to our target audience. So, should we run out and stock up on these specialty running shoes in anticipation of the demand?
Not by a long shot. If you are reading this now, thinking that I am holding back, stop, don’t do it. Our research hasn’t even begun yet.
That was merely an example of what a niche market might look like, but for any number of reasons, I would never enter that marketplace – and I don’t much care if 4 of my marathon running friends ask me for those specific shoes next week.
So was that a poor example of a Niche Market ?
It wasn’t necessarily a poor example, but the truth is – far more research is required. To start off with, are those actually the keywords that people use to search for this product?
Since 60-70% of your expected traffic may be coming off of one of the 3 big search engines, you must truly know exactly what terms they are using and how many potential buyers are using that term and lastly how much competition is actively attempting to get that same traffic.
And after traffic evaluations, then would this be a good idea …?
This is where a wiser head, who has hopefully made this mistake already, can potentially save you some months in wasted effort.
You have now accurately found 4 phrases that the public is using to search for this product.
You may for example have also determined that there may be less than 200 other websites vying for the 1500 customers inquiring monthly.
As Yoda might say, “Ready are we to raid the College funds for some seed money”
A wise head must say, at this point, don’t spend a dime,nickel, peso or whatever. Drop shipping services will send the product to your customer without you spending one centavo
An even wiser head might say, hold on a bit. Is there any upsell possibility here? You might pause and say, sure research has shown that runners wear these marathon shoes out every 3-400 miles – so the recurring revenue possibilities are astounding.
Can’t argue with that, right? But will the shopper come back to your page to buy that second set of running shoes or will they go direct to walmart, nike or whoever you used for your drop shipping. Or now that you have educated them about how wonderful this shoe type is, won’t they simply go across town to a
specialty shoe sports outfit and try on a few pairs there?
Let’s just ponder this question – When is a niche market not a niche?