How to Find Your Niche Market

What is a Niche Market?

Before we can explore how to find a niche market I thought we should define what we are talking about.

Here is Wikipedia's definition of "Niche Market"

"A niché market is the subset of the market on which a specific product is focusing; therefore the market niché defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact."

Now that everything is clear as to what we are talking about let's continue. Oh, you mean you still have no idea what a niche is. Ok, in simpler terms a niche market is the sub-set, or the sub-sub-sub-set of a bigger market.

For example, "dogs" is a market, right? Products are marketed to dog lover's all the time...and it is a VERY big and very profitable market.

The problem is, you can't effectively try to make one web page, or one small website that appeals to ALL dog lover's. Because when you try to please EVERYONE you end up pleasing NO ONE!

So, what we need is a niche market within the "dog" market.

Going back to the dog example, lets come up with some examples of niche markets within the larger "dog" market.

Let's see what we can come up with off the top of my head-

How to Find Your Niche

1. Start by finding a niche product or service you are interested in or passionate about. Why? It's the best way to stay interested enough to be able to devote the kind of time and effort to create a meaningful web site, build up the right traffic, generate worthwhile income, and enjoy what you're doing.
   
   
2. Choose a niche product or service you are knowledgeable about. Utilize your knowledge, skills, hobbies or products you know the most about. If you don't have the knowledge yet, then choose a niche product that you would love to promote, then spend the necessary time to research it, so you can eventually become an expert in your niche.
   
   
3. Research- do the necessary research to see if there is a market for the niche product you want to market. To create a profitable business for your niche product, you need to ask yourself these questions:
   
   a) Is there sufficient demand for it? If you choose a field that is too broad (which wouldn't be a niche) it may be hard to stand out from the competition.
   
   b) Keyword research - use keyword tools such as WordTracker  or Google's Keyword Tool  to find out how many people are searching each month on keywords related to your niche product.
   
   c) Use Google Insights tool to research trends for your niche product.

Using Google Insights Tool

Here is an example search in which I will research the keyword "dog". I’ll type "dog" in the search bar, choose Product Search, Worldwide and gather the data from 2008 to the present for the top keywords and phrases. When looking for a niche you don't want to set your date to far back in order to keep the output relevant to current trends.

The data on the graph it's self isn't what you are interested in, what is important is to see if the relative volume for the term you searched is rising. You can even compare this term with a second one. Just click on the plus sign under your search term at top to add a keyword or phrase and Google will generate another chart to compare the data.

The next area down shows the regional interest in the term you searched for.

Finding a niche market is not difficult, the one absolutely essential tool is your brain.

Make a list of things you enjoy doing, then make a list of all the types of people who also like to do what you do. See what is available online in that area and finally research how you can do it better.

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