Friday, July 30, 2010

How To Choose A Niche For Your Business

Posted by admin On June - 24 - 2009

I was watching TV last night and seen an advertisement to purchase a computer for “low WEEKLY payments of $29.95″.  This commercial was targeted directly at consumers that are having financial difficulties.  Now if you take the “low” weekly payment of $29.95 and multiply it by 4, that gives you $119.80/monthly.  Quick research tells me I can buy a decent, inexpensive computer at Best Buy or Tiger Direct for under $500.  If a person were to save just $25 per week for 5 months, they could walk into the store and purchase a better computer for less than what they will ultimately pay over the life of the low weekly payment contract they’ll be locked into with this commercial.   $25.00 per week doesn’t sound so unreasonable does it? But if you purchase from these people, you’ll be paying well over $1000 for a computer that is probably worth $200.  Doesn’t sound so great this way does it?

I don’t know about you, but this fries my cakes because it preys on consumers that really do not know any better.  They think that like the commercial, they’ll be able to start their own home based business as soon as the computer arrives.  You and I both know that is not reality but that’s the reality the commercial projects.    HOWEVER, I must give this company it’s props because it is a smart niche market that is probably extremely profitable for the company.

Niche businesses are not a new idea.  I myself have owned and sold several profitable niche businesses over the past few years.  Right now, I have 2 niche businesses in the swimming pool market.  My wholesale pool toy and gift site is USAPoolToy.com and my retail site for outdoor toys is NewCoolToysOnline.com.  Both are niche businesses in larger markets.  For example, toys is searched more than 45,500,000 times per month and cover a range of products considered to be “toys”.  Creating a website of toys may sound like a fun idea but realistically, how long is it going to take you to get on the first page of Google for the search term “toys”  FOREVER!  Now if you break your website down into smaller categories under toys like I did for NewCoolToysOnline.com, you will see that outdoor toys is still searched close to 1,000,000 times per month but my strategy is to go after the supporting long tail keywords to get my site on the first page of Google for several search results.

The same thing for my wholesale website.  If you search for wholesale toys or wholesale pool toys, you will see my website is #1 on Google.   If I would have just concentrated on the term “wholesale”, it would have taken me months to get the same search engine rankings.

Sit down and really think about what you would LIKE to sell on your website then bookmark this page because we’ll be going into further detail on how to research your niche business idea.

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