Identifying A Profitable Niche Market

People start their business for a variety of reasons. Some are really passionate about something and they are committed to sharing it. Some want to improve the quality of their lives and the people around them. Some are just looking for a way to make a little extra money. Some want to make a difference. No matter how they get started, most people decide what they want to offer and then go find the market for it. This is the hard way!

Now, while this is a valid approach and has proven to be successful for some, it is not for most. Statistics say that 95% of new businesses fail within the first 5 years. That means only 5% remain in business, some barely survive and struggle to make ends meet.

How do you improve your odds? How do you become one of the very successful thriving businesses? You do what they do! Do your homework first! Find out what the people in your target market really need!

Ask them! What are the problems that they are having with your competition? What are some of their aches and pains? What are their dreams, their wishes and their commitments? What are their demographics, psycho graphics and spending habits?

The more you know about them, the better you can serve them. The better you can serve them, the more loyal they will be to your business – causing you to be more successful – “The more you know about them, the more successful you will become.” Simply stated, find out what they want and sell it to them!

Identifying the keywords or keyword phrases is the next step in creating an effective internet marketing strategy. Starting with a few root terms or phrases, you can conduct an extensive analysis of at least 300 keywords and how frequently they are search for over the internet each month.

There are a lot of tools out there to help you conduct your keyword analysis. Here are a few to help you get started:

• Free Google Keyword Tool:https://adwords.google.com/select/KeywordToolExternal
• Keyword Elite 3.0: http://www.wpseotoolbox.com/links/keyword-analysis

This analysis tells will tell you exactly what your prospects want and their demand for it. Begin your research with a root keyword phrase. This should be a broad term based on your niche. You will have an opportunity to refine your list later.

Below is a list of major markets and niches. Under each, you will find a list of subcategories. Use the name of the subcategory as your root keyword phrase.

Simply enter your root phrase using your favorite keyword tool or one of the tools above. Once this step is completed, you will see, there’s no guesswork here, the numbers tell the whole story.

For our example, let’s use the keyword phrase – “Small Business Coaching” and enter it into Google’s Free Keyword Analysis Tool – https://adwords.google.com/select/KeywordToolExternal

As you can see, there seems to be a lot of competition for this term and the top websites clearly demonstrate that there is money to be made in this niche market online.

Another way to approach building your business is to take some time and identify your “Ideal Client”. By getting clear about who they are, it becomes much easier to find them and present your products and services. You may need to determine your “Who, What, Where and Why”

Your “Ideal Client” is looking for what you have to offer at the optimum level that you would like to provide it. Here are a few elements to help you to identify them:

• Desire/Require – Your products and services solve a problem, fulfill an emotional need or supply a requirement.

• Immediate Need – An acknowledgement or commitment to acquire your products or services within the next 30-60 days.

• Means of Acquisition – Your offer(s) are viewed as a “high value proposition” and they have access to the financial resources to acquire your products or services.

If you are currently marketing to individuals, companies or organizations that do not meet the above criteria, then you are probably not getting the results that you want!

Sometimes, we discount our prices or agree to jobs that end up costing more than they are worth in the long run. We may even find ourselves spending a lot of time doing business that really does not allow us to best serve our clients.

By identifying your niche market and “Ideal Client,” you can create more effective marketing strategies for building your business.

The first area to identify is Who – This is the most basic group of your “Ideal Clients.” Your target or niche market is not everybody. It is fairly difficult to market to everybody unless you really have deep pockets. Even if you do, it may not be the best use of your marketing and advertising dollars. I recommend that you start with determining the best match for your products and/or services.

For example, if you are a Small Business Coach/Consultant, then your most basic group would be small business owners and managers looking to solve a particular problem or to achieve a desired goal in their business. You may want to become an expert in a specific area of business – like internet marketing, strategic planning, direct marketing, or sales training.

As an expert in direct marketing, you are recognized as someone that helps small business owners increase their sales using a combination of cost effective direct mail, print, radio or TV strategies. You can then provide the concept, copy writing, database, delivery and consulting as a part of your offer.

You can also write articles, books and special reports on your area of expertise to provide your current and prospective clients with solutions to growing their enterprises. Seminars and workshops are also a great way to add value to your clients.

If you were a Mortgage Broker, then your most basic group would be people looking for money to buy a house. As a Retailer or Distributor, your most basic group would be shoppers/buyers who are seeking to purchase your products.

Are you starting to see what I’m talking about? It is not everybody. It’s a very unique group that has the desire or requirement, an immediate need and the means to acquire what you are offering.

The next area to examine is What – This is the demographics and psychographics of your niche market. What do you know about them?

Here are some areas to consider:

• Aches & Pains, Challenges & Problems
• Vision & Goals, Wants & Desires
• Commitments & Other Interests
• Ages, Gender & Marital Status
• Occupation & Income
• Residence & Automobiles
• Education, Training, Degrees & Certifications
• Savings, Investments, Money Management & Credit/Debt
• Family Orientation, Children, Siblings
• Recreation, Travel, Vacation
• Health, Well-Being & Spiritual Beliefs

The next area to take a look at is Where – These are the places where your “Ideal Client” can be found.

It is helpful to identify locations and resources that are already providing products and services to your niche market.

Here are a few to start researching:

• Newspapers, Magazines & Websites
• Television & Radio Shows
• Associations, Organizations & Groups
• Shopping Centers, Stores & Restaurants

The final area to identify is Why – This is probably the most important one of all. It defines your Unique Value Proposition. It is what sets you apart from your competition. Your “Why” is the main reason your “Ideal Client” chooses you, your products and/or services.

Here are a few components to consider:

• What is your Story, Life Experience and Professional Experience?
• What about your Accomplishments, Awards, Degrees and Accolades?
• What is it that only YOU can provide to THEM the WAY that YOU Do?

As you are probably beginning to see, it is much easier and far more profitable to identify your “Ideal Client.” All of your marketing messages, website content, referral partners and strategic relationships should be consistent with serving your client.

If you would like some additional support on Building Your Business, Niche Marketing and Identifying Your “Ideal Client,” please listen to my radio talk show interviews with the following experts.

·        Identifying Your “Ideal Client” and Niche Market with Bill Davis
·        Transforming Your Business Mindset with Lalita Amos
·        The “Real” Power of Internet Niche Marketing with Willie Crawford
·        Creating Your Business Model for Coaches, Consultants & Trainers with Denise Hedges

After you listen to theses interviews, be sure to leave a comment. I would really love your feedback.

Now, that we have established a more focused pathway to your niche market and have determined that it is profitable, let’s look at selecting the best keywords for your niche.