Membership Niche Selection Tips
Wednesday, January 19th, 2011Let’s talk about niche selection. This is very important to ensuring the profitability of your membership website.
Step 1 – Find a Fanatical Market
The number 1 thing you have to do is find fanatics if you want a profitable membership website. 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. OK, so we know what a fanatic is, but how do we find them?
- One simple idea that’s easily forgotten is to scan the magazine racks when you’re out and about. In today’s economy, running a magazine is tougher than ever – some of the best ones are going out of business. So if it’s on the shelves, it’s making money, which means there is a big market interested in this topic. This is a very good indication that it’s a good niche for you to go into.
- Pay attention throughout the day in your regular activities. See what people are talking about on the radio, TV, at parties, in public, etc. People generally talk about things they are interested in. And this means there may be a market for information about 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! There’s a good chance that others are interested in these things, as well. Making money is fun and it’s even more fun if you can do it in a niche you’re excited about.
- Another fantastic way to discover what people are interest in is Google Trends. Google Trends tells you the most popular current search terms. These are the things people are actively searching for in Google. They’re searching because they want information. Hot topics that people are excited about make great niches for your membership website.
Step 2 – Determine the financial feasibility
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. An easy way to determine this is to figure out if anyone else is making money in this niche.
OK, how do we figure that out?
- Are there blogs or forums in this niche? Take the name of your niche and search for “niche name blog” & “niche name forum” in Google to see if there is an active group of people talking about and interested in the niche. This lets you know there is a market (a group of people actively interested in the niche.)
- Search Amazon, Google shopping and eBay to see if people are creating and selling products in the 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
After figuring out a good niche and determining that other people are making money in it, the last thing to do is decide if you will be able to enter the market. Here’s how to make this determination:
- Figure out what kinds of products people are interested in. If it’s mostly physical products, coaching and live seminars, then it will be harder to break into this niche. Membership websites based on information are the easiest to start and maintain.
- The last thing you want is a marketing filled with tons of competitors. A few means it’s a profitable niche, but too many means you won’t be able to take a piece of it.
- Compare the size of the market versus the number of competitors. Some competition is a good sign – just make sure the market is big enough for you to join in.
- How quickly do people in this market make buying decisions and are the ready to buy? Depending on the market it can be anywhere from a couple minutes to a many months between when someone starts the investigation process to when they actually make a purchase.
Summing it all up
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…






