8 CHARACTER TRAITS OF A PROFITABLE NICHE MARKET
What is a niche market and how is it related to online business?
As someone said, “You want to dig your well where you have the best chance of finding water with the least amount of digging.”
Niche market is a small and a specific segment of a bigger market where needs and wants of customers are well defined and can be satisfied with a narrowly scoped product.
You want to target profitable niche markets with online businesses since they can be tapped into with specific products and a level of competition that you can comfortably deal with.
Let me share with you some character traits of profitable niche markets. These can also be used as litmus test to see if you target market is “niche” and a profitable one.
- Market size as well as level of competition is not too big and not too small.
- Search queries and keywords are long tailed, i.e. “black leather jacket mens biker” or “weather in san francisco today hourly”.
- Big brands are not interested in targeting them
- For Amazon Kindle, profit niche markets consist of topics where there is more than one correct answer. For example, self-help or business and money categories.
- It is usually an underserved or ignored segment of a market
- Niche markets can often involve re-segmenting a given market into sort of even smaller or micro segments
- Customers in your target niche must have the means and willingness to pay for the solution.
- Customers in your niche should already know their needs or problems for which you plan to deliver a solution.
Last but not least, subject matter discussed in this post, as well as others, is covered thoroughly in various online courses offered by Private Label Mastery.
Please feel free to share your questions or comments, I will be answering them over the next few days.