LESSON #19: How to Choose a Niche (Part 1)

By | August 10, 2008
279 Comments

Back in lesson 7, we established that the type of online business model I’m going to be teaching is primarily an information publishing business.

In other words, you’re going to sell your own information product (also known as an infoproduct). But before we can create an infoproduct, we need to choose a topic for it.

(Watch this video…

NOTE: This niche selection process applies to virtually ANY type of online business– not just infoproducts!)

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Main points:

  • A niche is essentially a specialized market containing a group of people who share a common interest or quality.

  • Reasons newbies get stuck at this point:

    1) They think they’re going to be married to it (so they stress out and procrastinate making the choice)
    2) They’re afraid it’s going to fail and not be profitable.

    (both reasons are basically that they are afraid of choosing the wrong niche)

  • We can start with one of two possible branches:

    1) Something you know
    2) Something you don’t know

  • There are pros and cons to both of those sides, but I prefer starting with something you know and are passionate about because:

    1) Your enthusiasm will help sell it
    2) It will be a better product
    3) You can relate to your market

  • Try not to fall in love with your product idea, as it could become a stumbling block if you’re attached to it.

  • Consider the possibility of developing several products in several niches over the long term (multiple streams of income add stability to your business), but start with ONE.

  • The key is research. (make sure it’s a good niche BEFORE you invest additional time and money into the business)

  • Some questions I answer through research:

    – How big is the niche?
    – How competitive is the niche?
    – How profitable is the niche?

  • Is there potential for back end products? (If not, you may want to reconsider)

  • Trends and fads can be VERY profitable, but you should consider an evergreen topic if you want to build this particular business for the long term.

  • People are looking for information to ease their pain or fuel their pleasure. That’s the kind of information they’re willing to pay for.

    Action step:

    1) Brainstorm some topics that you would be interested in turning into a product. Write them down.

    Don’t worry about details of the niche market for it yet…we’ll be doing the research in the next lesson.

    If you don’t already have some ideas in mind, and don’t know how to start brainstorming, here are some places to look for ideas (starting points)…

    1) What’s hot on Ebay (updated each season)

    2) Ebay Popular (dynamic popularity rankings)

    3) Best sellers on Amazon (updated hourly)

    4) Shopping.com Consumer Demand Index (updated every 2 weeks)

    5) Most popular goals on 43things (updated daily)

    6) Google hot trends (updated throughout the day)

    Special Offer:

    Today I’m offering an ebook which explains how to have your own product online and making sales within 30 days.

    If you’re interested in discovering all the details about the niche selection process, or in getting a jump start on the rest of the product creation process, this ebook is for you.

    It is a brand new exclusive ebook created for Eric’s Tips.

    “How to Have Your Own Information Product in 30 Days“.

    InfoProduct in 30 Days Ebook

    Click here to get more details and download this ebook

    (Resale Rights also available)

    As always, you are welcome to post your questions and comments below. Feel free to let me know if you’ve got some topics in mind, or if you’ve already chosen a niche.

    Have a great day!

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    • 279 thoughts on “LESSON #19: How to Choose a Niche (Part 1)”

    1. Eric Post author

      A website can be a blog, but a blog is not necessarily a website. Some blogs are hosted on blog sites like Blogger.com and WordPress.com, while other blogs are hosted on their own website (for example, EricsTips.com is mainly a blog).

      In general it is better to have your blog on your own website, because then you have full control and ownership of it.

      As far as what type of website is best, it depends on the purpose of the website. Blogs are good for many different reasons, and can also be used in conjunction with various types of websites.

      I will be teaching how to set up a blog on your own website.

      Reply ↓
    2. Carolina

      thanks for making “find a niche” seem so easy and the links for niche ideas was helpful… look forward to your teachings about how to set up a blog on your own website…have a Jesus Day!
      Carolina

      Reply ↓
    4. Adele

      Hi Eric,
      After purchasing your ebook on the Info Products, I saved it, but the formatting appears completely different to the one I downloaded. Can this be rectified? Sorry, I am very new to all this.
      Thanks so much
      Adele

      Reply ↓
    5. Eric Post author

      The ebook is a PDF, so the format should be standard on any computer. So if you’re having any trouble with it, just open a ticket at the helpdesk (www.ericsupport.com) and let us know the specific problem so we can look into it. Thanks

      Reply ↓
    6. Tom

      Hi Eric,

      Have you ever done a teaching session on how to use WordPress? I just started this blog but I have two concerns.
      1. I can’t seem to get any links to my site.I tried to get a link from Clickbank but no luck.
      2. I sent a comment from another e mail address to see if it would show up on my blog and didn’t, can you offer an answer as to maybe why it’s not working?

      Thanks,

      Tom

      Reply ↓
    7. Eric Post author

      Yes I will be covering WP in lessons #33 and 34 🙂

      As for the comment problem on your blog, its hard for me to know… but maybe you just need to log into your admin panel to approve it.

      Reply ↓
    8. Peter

      Hi Eric, I joined your list some weeks ago and have been an avid follower of the series (great stuff), however some of the vids, covered stuff i was already competent at, so I jumped a head using the link and changing the lesson number, however after 32, this became impossible as the address 404 website not found appeared.

      Have you altered the link forthe up coming lessons?

      thanks for your time.

      Reply ↓
    9. Tom

      Thanks Eric, That was it I had to approve the comment. Look forward to your lesson on Word Press.

      Tom

      Reply ↓
    11. Lynda

      Thanks so much Eric. Although I’ve wanted to start an online business for a few months now, nothing has been clear as to what I should do or how exactly I would go about it. Your videos are amazing, I am getting so much out of your down-to-earth words and very clear steps. I started this lesson (Part 1) not knowing what I wanted my niche (sorry but I pronounce it ‘neesh’ here in New Zealand!) to be but half way through I’ve got some really good ideas, one in particular which I’ll now research. Thank you very much. Lynda 🙂

      Reply ↓
    12. Donna

      Hi eric,

      As always another very good lesson. I hope I will choose the right NICHE, I know what I want but there are alot of them out there, but my ideas is to put all the get ones on my webpage. Sort of like the best of the best. Until the next lesson.

      Reply ↓
    14. James

      Eric, I have some, really good ideals i hope there marketable, anyway looking forward to the next lesson. Thanks again for all your Knowledge, James

      Reply ↓
    16. Joey

      Hi Eric. My name is Joey and I am a newbie. I don’t know where to start. I am a very hard worker and single dad. I have a baby girl and she is by far the love of my life. I have been so lost in my life and desperately need guidance. I try to keep a close relationship with god as much as possible, and continually pray for help. Everyone tells me that I can’t do it, or I won’t amount to anything, and so far they are right. I don’t want them to be right anymore. I need help! I need to start earning money now, I don’t want to quit. So far I have everything I need I think. I have the software for traffic, even though I have no idea to use it, my website and all fees paid for. I have been intently watching all of your lessons eric, and I know I can do it. I fear I am out of money for your 97$ membership for traffic machines. It brings me joy that you are christian based, that’s very important to me. If you can guide me in any way, please.

      [Reply]

      Reply ↓
    17. Tanya

      Hi Eric, thank you very much for the lessons. Really great info!
      I’ve got a problem. I just paid for your book “How to Have Your Own Information Product in 30 Days“ by PayPal, but I did not click the “Return to Eric Holmlund” button to reach the download closed the window ( I closed my PayPal window by accident). How can I get my book?

      Thank you, Tanya

      Reply ↓
    19. Eric Post author

      Don’t listen to those people. You can do this. You do need to take care of your baby, so keep working your job if you’ve got one, and learn as much as you can in your spare time. Follow these lessons. Don’t give up, but you will probably need to be patient. It won’t come instantly. Instead of looking at it as a quick way to make money, start looking at it as building a long term sustainable business. It may take longer than you expect, and take more work than you anticipate, but it will be worth it. God bless

      Reply ↓
    20. Eric Post author

      Don’t listen to those people. You can do this. You do need to take care of your baby, so keep working your job if you’ve got one, and learn as much as you can in your spare time. Follow these lessons. Don’t give up, but you will probably need to be patient. It won’t come instantly. Instead of looking at it as a quick way to make money, start looking at it as building a long term sustainable business. It may take longer than you expect, and take more work than you anticipate, but it will be worth it. God bless

      Reply ↓
    21. Bob

      Eric,
      I am trying to stay with you big guy. I really am but the lessons are coming slower than I would like and I got marketers coming at me from all over the place. (two of them using this email address and I don’t give this one out…don’t know how they found me.) I really want to get up and running but I remember your lesson on not buying stuff. So I am not buying. Is there a place I can go and get the lessons quicker than one a day. I am on lesson 20. Thank you for what you are doing and any further help and suggestions you have…..you got my ear.

      Reply ↓
    23. Bob

      I thank you sir.I will be in Steamboat Springs in June….how far is that away from Ft Collions. Would like to take you to lunch or maybe dinner is your close. God Bles

      Reply ↓
    24. Eric Post author

      it’s about 6 hours. But maybe we could meet at a seminar sometime. I’ll let everyone know when I plan to attend one.

      Reply ↓
    25. Dana

      Eric,

      I have a niche in mind and I would like to talk to you more about it. You see, I have been doing biblical research since 1982 and while I still do not consider myself a professional, I have had some small articles printed. I just googled “biblical research” and got 13,500,000 hits which tells me that it is a sound topic. I was hoping that maybe you could help me put together an e-book and video on the subject that I could market. I just need a guide to show me what to do next to make this work. I actually have enough material together right now to do 2 or even 3 products. Can you or one of your staff contact me to help guide me here? I really would appreciate it.

      Dana

      PS. Your course has been great thus far. I am really getting a lot out of it.

      Reply ↓
    26. Eric Post author

      Hi Dana
      Lots of google results shows that its a popular topic but that doesn’t mean it’s a profitable one. First you need to do some more research to zoom in on a profitable niche in your field of study (see next lesson). I will also be covering product creation within this series of lessons 🙂

      Reply ↓
    27. ayiee

      Hi Eric,

      Thanks for sharing this info in such an easy to understand way.

      I’m sure that choosing a niche and developing the product may well be a challenge, but I suspect that marketing the product will end up being the biggest challenge. Advertising can so easily swallow up huge amounts of capital.

      I’m sure you will be covering the marketing of the product in your next video. I’m certainly looking forward to it.

      God bless

      Reply ↓
    28. Betty Johnson

      Hi Eric, the lesson was great as usual but I feel lost. I’m a newbie and don’t know anything about owning an online business I just know I really want to do this I’ve been following all the lessons and taking notes, reading the suggested books but it seems like everyone else is ahead of me when I read the blogs. were there products I should have purchased from you like web trafficing products if so I missed it, should I have a web site setup already, because I don’t. I stopped reading other e-mails from on site business offers,so I’m not following up with any products, I did download the free ebooks from you w/bonus package the bonus I could not download I have the paypal account with reciept # what else should I have, I have no ideal about a product but I will do the research, I don’t know how to design a web-site or write for a living, so I feel lost here at the start.
      Betty

      Reply ↓
    29. Eric Post author

      Hi Betty, just keep taking it one step at a time. I show how to build a website later in these lessons, so don’t worry. It’s normal to feel lost and have times of frustration anytime you’re learning something new. If you’re truly not enjoying the process at all, then it might not be a good business for you. But if you’re still excited about it, then just keep taking one step and learning a little more each day 🙂

      Reply ↓
    30. JoAnn

      Eric,
      I’m really confident about selling afiliate programs such as “Send Me Recipes” and “PLR Food Content”. Traffic has really picked up on my blog “This Dame Cooks” due to articles I’ve written, RSS streams I’ve written for, and other Foodie websites are now contacting me and asking me to display their widgets. The ebook I’m writing fits right in to the “food niche” and I’d like to use Clickbank to market it. I’m also looking for kitchen accessories on affiliate programs, eco shopping bags, and my good friend has just launched Botashi.com a new composting system designed by Japan which I will grab also. I’m going to register my domain with wordpress and use BlueHost as they are recommended by wordpress. Okay, other than food, I might consider selling household budget software, or bookkeeping for micro (mini-sized) businesses.

      Reply ↓
    31. George

      Eric,
      I’m following your lessons with great interest,
      I don’t want to sound snotty here but we Brits say niche( neesh) because thats how the French say it as it comes from the french word “nichier” meaning to nest.
      The modern meaning as you know, “finding a position particularly suitable for the person occupying it” i:e ” he found his niche in politics” Keep up the good work and thanks for spreading your knowledge in such an unhyped easy to digest way.
      G

      Reply ↓
    32. Rick Ng

      Hi, Eric:
      I really like your lessons. 🙂 Good work!
      I got one question here regarding the ebook that you are selling. Can I purchase it first with $9, and then after I read it and find it really fantastic, and pay the remaining $18 dollars to have the resale right?
      Can I do that? Or I have to pay the full $27 to have the resale right?

      Rick

      Reply ↓
    33. Eric Post author

      Yes you could do that. Just submit a ticket to helpdesk, and we’ll give you the email address to paypal an additional $18. Thanks

      Reply ↓
    34. JOHN-PAUL

      Eric,to have a nich as you said, did it mean to buid your own house on the internet or is it to buy from somebody{rent}?

      Reply ↓
    35. Eric Post author

      I’m not sure exactly what you mean, but generally speaking– I am teaching how to build your own business from scratch, not rent or buy it from someone else.

      Reply ↓
    36. Louise Cox

      Eric,

      Lesson #19 was very informative and a good introduction into the process of finding a niche in the ever-growing commercial world. Since my “product” is a service, I will be walking beside your lessons instead of exactly through them. Accordingly, I may find that I have questions that help me transfer your information from product to service. I did do the action step for this lesson and came up with four ideas that might be turned into products sometime in the future when I am ready to venture into other income streams. These are:
      1) Teaching how to read music – I know how but have to research how to teach it
      2) Newsletter with tips for healthy eating — many already exist and RealAge already comes to my inbox
      3) Weight loss — I wrote a series of 7 lessons for an on-line weight loss site and can edit these lessons to remove any reference to the company
      4) Recipes — again, this seems to be overdone already; I am collecting recipes from several sources already

      I hope and pray that my website will be found quickly once it is set up. I am anxious to get to work as an FF&E contractor. The nature of the service has already determined the niche. The people who would be interested in my service are those in the design or construction fields.

      Meanwhile, I am continuing to upload and edit items to my online stores. I still have to read the ebook I downloaded about eBay. I have been avoiding putting items in my eBay store because of the fees. It’s a bummer to have to pay fees when you are not selling products.

      I apologize for the length of this post. I do not know why I get so long-winded. I actually dislike writing even though I seem to have a knack for it. Case in point, I have not been back to my blog since the day I created it….

      Louise

      Reply ↓
    37. Scott Gorczyca

      Great lesson on finding a niche. I have always strugled in this area. I think I will focus on my passions first (which are computers (setup and fixing, computer software).

      Reply ↓
    38. William Dapper

      you are such a wonderful guy. i don’t believe this. this is what many top internet marketers sell to us. you are a thousand times rewarded.

      Reply ↓
    39. Jim

      Great lesson Eric
      Wow I have finally found a niche after almost three weeks. Tons of research done but no ideas until I stopped and went fishing for the weekend. Walked in the door and you could say it slapped me in the face… LOL

      Reply ↓
    40. Dot

      Eric, you’re wonderful. Don’t know how on earth you find the time to reply to everyone but it makes interesting reading! I had almost given up after months of research and printing out all the freebie articles – having no money,(ended up with 30 folders!) but following your lessons and sticking to one goal has got my enthusiasm back, I can see I will get there one day!!! Many thanks, Dot New Zealand!

      Reply ↓
    42. Prince Samuels

      These are definitely good information we need to know before starting a business. The niche thing is very important because you want to promote a product that is profitable especially that is search engines friendly is in demand. I think a big ticket items will definitely be wise move. A big ticket item is your big fish to profits. Thanks Eric

      Reply ↓
    43. Yanto

      Hi Eric,

      All I can say is that it is a good, good, good lesson. Thanks a lot!

      God Bless You n Your Family.

      Reply ↓
    44. robert

      i’m still hitting it.guess what this dummy final figure out how to label his email folders.i was rereading your lessons for the umpteen time and it dawned on me you showed how to do this in a lesson on something else.so i finally got my head around it and label all my files.wow this is easier than keeping a written list by numbers thanks again from slow but forever learning me.

      Reply ↓
    45. Barry

      Hi Eric , I do not mind telling you my Niche

      Actualy it will tied into my Brick and Mortor business. I am building 2 Luxury resort style Villas one is a one bedroom and the other is a 2 bedroom. My hospitality Niche is simple my online customers will have a chance to experience for free for example a one week stay for paticipating in my affliliate programs , for purchasing a related product that is tied in to our Tropical Health Life Style Living. In fact I have a hand full of ideas directly related to my brick and morter business thru links. I cant wait to finish your lessons there great Eric.

      I need more patience , I feel like a race horse over anxious for that gate to open .

      Thank You Eric for giving your time to all your readers to help them start their business venture online. Barry Charles Anderson

      Reply ↓
    46. dyuane

      thanks for the info. I already did this. I was trying to get listed on a competitive site. I am now listed 4 times on the first page.

      Reply ↓
    47. Arlan

      Hi Eric,

      Can I ask you a favor? I bought the ebook you recommended above, “your own product online and making sales within 30 days” but I was not able to downloaded the additional bonus ebooks. Will you allow me to download it again. I will understand if you will not because it’s my fault but I will highly appreciate if you consider my request. Thanks.

      Reply ↓
    48. Eric Post author

      sure thing, I will email the link to you. In the future, just submit a ticket at the helpdesk and we’ll take care of it 🙂

      Reply ↓
    50. Cheryl Miller

      Hi Eric: I’m a wellness expert but am new to the niche world. I’m finding that wellness for everyone doesn’t sell 🙂 I have several markets I could focus on but am having difficulty choosing one and would like your input. I could choose: chubby speakers who want to enhance their wellness by losing weight and looking bright eyed and bushy tailed……wellness practitioners who are newbies and want help putting together a wellness business (presentations, free ecourses, info products)–I could mentor them and sell them wellness products that they could sell; entrepreneurs who want to get their health and lifestyle together so they can be more successful. I enjoy all of these markets but know I’d do better if I picked one and focused on developing that. I can easily get scattered and go in too many creative directions. What would you recommend? Thanks for any insights. Cheryl

      Reply ↓

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