When customers buy information, particularly “how to” information, they want to buy from an authority or expert. The customer wants to be confident that you know what you’re talking about and that they’re going to receive a useful product for the price.
Creating products is easier when you can rely on what you already know, without having to do extra research. This is why you want to tailor your products to a specific group. This also makes marketing your business much easier and effective because you know the exact group you’re targeting and what their needs, problems, and desires are.
For most successful vendors, the ideal niche is a combination of three things.
Can You Access Your Potential Buyers?
Access is about reaching your potential buyers. You might have the best products in the world, but you won’t sell any if you can’t get them in-front of the people who would buy them. When considering a potential topic or niche, ask yourself some questions:
- How well do you know the ideal prospect in this niche and do they actually exist?
- If they exist, are they already looking for products tied to your niche?
- Can you think of any places where ideal prospects might gather like clubs, blogs, or forums?
- Are there any major competitors in the niche?
Don’t be afraid of a little competition. If there are others selling information products in this niche, that probably means that someone else has already figured out that prospects are indeed accessible, or actively looking.
Is There Potential For Back-End Sales?
Think about wants versus need. People always buy what they want, but will only sometimes buy what they need. It’s important to not overestimate potential by thinking, “everybody in this niche needs to know this”.
It’s important to think about how many prospects in the niche fit this want criteria. Are there prospects that are willing to spend money for the information they want? Do they actually have money to spend? If your prospects are not willing or able to spend money, you’re going to have a tough time making sales.
It’s also very important to think about the back-end since this is where the real money is made. Will your prospects be willing to pay more to get more? Will you be able to create ongoing information around your topic? Remember, you're looking to build a customer base you can sell to again and again, over a long period of time. So thinking ahead about the niche’s POTENTIAL is key.
Do You Have Passion For the Subject?
Too many budding vendors make the mistake of selecting their niche or topic based solely on access and potential. They don't think about what it’s going to take for them to create the products. So it’s important to ask yourself:
- Is this something you’re interested in anyway?
- Even if you weren’t doing this business, would you be involved in this niche or interested in the topic?
- Does creating information products for this niche seem like it would be fun?
- Would you have to force yourself to create the products?
- Do you empathize with your prospects?
- Can you see yourself in this niche five years from now?
It’s important to remember that you’re building a business for the long-term. So asking yourself whether you can maintain the enthusiasm in the future is a must.
Take an Inventory of What You Know
Get out a sheet of paper and take an inventory of everything you know. Think about your profession or work experience. Do you know something, or have you learned something, that others might want to know? Think about your hobbies and pastimes. Have you figured something out that other hobbyists would love to learn? Think about your life experiences. Is there something you’ve learned or overcome through the years that would be of interest to potential customers?
You probably know more than you think so it’s very important to take an inventory and explore all niche possibilities.
Score the possibilities on each of the criteria: Access, Potential, and Passion. A possibility that scores well in each category is a good niche.
Having passion or interest in the topic you select is going to make everything in your business easier. Keep in mind, the business of being a vendor is something you can replicate; so don’t think you're limiting yourself by choosing one niche to pursue first. The possibilities are endless, but you have to start somewhere.
Visit our article on Developing Your Product Offerings.