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How To Make Money Online: Lesson 3 – Understanding Niches

_CSC0308_0371  Welcome to “How To Make Money Online: Lesson 3 – Understanding Niches”.  At the same time as I’m mentoring you, I’m throwing lots of ideas around to inspire you to grow your own ambitions.

  It’s really important to understand what niches are because you can’t formulate your business model (such as affiliate marketing, product creation or ecommerce) and make plans moving forward, until you’ve decided WHAT you want to sell. Your business model is your “HOW”

  1. The niche you choose must be for a product or service that a large number of people are searching for on the Internet. It can be a single product or even many thousands of like  products. Don’t fret about niches…just about every small business and store is operating within one or more niches.

  2. The niche you choose represents what your home business is all about. So if your friends ask you what you’re doing, you might say: I’m selling ( I want to sell) electronics, fashion clothing or shoes and accessories.

In this instance you’re selling physical products online as against the more frequent digital (downloadable) products. They’re more popular, not because you’re wrong, but because digital means no inventory, no packaging and no need to talk to people. Also instant delivery.

There’s nothing to stop you selling both physical and digital if you wish, but it costs more, needs more of your time, and would be a huge commitment especially if you’re new. Better to do things in stages as your experience and extra cash grows. 

One last thing. There’s also nothing to stop you selling at flea markets or even eBay ( a business model). If eBay, you are no longer allowed to sell downloadable products except through a classified ad or putting the digital information on a CD or DVD.

3. Mostly you’re selling online so your “web space” is where your home business “lives” as a result of you purchasing web hosting from a reliable provider. We’ll talk about that soon. You must get this right.

When you choose your domain name with the hosting, your domain name should be easy for people to remember, and preferably have a .com extension. Otherwise use .net as your next choice.Where possible, it should combine your business name, site name and keywords that people search with. Having said that, you can only buy what’s available, so try to be inventive.

Remember with domain names you can’t have spaces and you can’t use any special characters. You have to stay with alphanumeric but dashes are ok to separate words instead of a space.

4. Imagine a large shopping plaza/mall. Just about every business is operating within a niche, even the small cubicle ones. Here are some stores you’re likely to see:

department store

cafe/coffee

donuts

ladies fashion clothing
fashion accessories

lingerie
bags, purses and wallets
men’s clothing
cosmetics and skin care
women’s health
massage
chiropractor
natural food products

mobile and smartphones

laundromat
dry-cleaner
alterations
fast food
locksmith
shoe repairs
newsagent and magazines
pharmacy
doctor surgery
hardware
supermarket
asian food
sushi
pets
vet
books
banking
video games
computers & electronics
toys & games
sports
fitness/gym
sunglasses
optometrist
dentist
barber
hairdresser
teen/prom dresses
wedding dresses

5. In recent weeks I mentioned that a niche is like a slice from a gigantic apple pie where the pie represents the total market for products/services for sale. A niche is also like one book in a library containing thousands of books.

6. Quite often to get away from the big businesses and “top guns” you need to choose a sub-niche or micro-niche. You can’t compete with their money. advertising budget, resources and huge mailing lists. In emails or elsewhere you might see “drill down”. It means major niche>sub-niche>micro-niche

Examples: Major niche is “general health”. Sub-niche is “women’s health”. Micro-niche could be “skin care/anti-aging”.
Major niche is “make money”. Sub-niche is “affiliate marketing”. Micro-niche is “cost-per-action” (CPA).

7. It’s interesting to see that quite often, your business model is very similar to your chosen niche. So you have: business model>niche>plan>focus>action. In the background you have to learn basic technical stuff. Always remember, you’re not necessarily trying  to be an expert at anything. BUT, you need to be seen as an expert by your site visitors and/or people on your subscriber list/s.

Your friend,
Kevin

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