LESSON #20: How to Choose a Niche (Part 2)

By | August 14, 2008

In the previous lesson, I talked about some important things to keep in mind as you choose a niche market.

I ended the lesson by asking you to brainstorm some possible topics for your information product.

Today we’re going to do some research to help you determine whether your topic has good potential for success…

(Watch this video…)

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Main points:

  • Google your topic (in quotes) and look at these things…

    – How many results?
    – How many paid ads?
    – What kind of sites are in the top 10?

  • Regarding number of search results: If it’s too few, your niche may be too obscure. If it’s too many, you may need to zoom in on a tighter niche.

  • Regarding number of paid ads: Lots of ads equal proof of money in the niche. But keep in mind that more ads also means more competitors.

  • Analyze the top 10 results. What kind of sites are they? Does it look like the sites are making money? Are there any information products, or direct competitors with your product idea?

  • Check the PageRank of some of the top listings. You can use Google Toolbar, or a free PageRank lookup tool.
    (This shows you how hard it will be to compete with their listings from an SEO standpoint)

  • Find out how many times the topic is being searched for each day. You can use this free keyword tool

    If you plan on launching many niche sites, you should consider investing in a tool that will help you automate most of the above processes. I recommend Keyword Elite

  • Spy on the competition using the free Spyfu search tool

    Look at:
    – How many advertisers?
    – How much traffic they are getting?
    – How much they are spending daily?
    – What are they advertising?
    – Do any related advertisers have an affiliate program? (potential back end promotions)

  • Search the ClickBank marketplace to see if there are similar information products, and how popular those products are. (Look at the grav score)

    UPDATE: The CB site has changed, and now you have to be signed in to see the marketplace. You can sign up for a free CB account here:
    https://accounts.clickbank.com/public/#/signup/form/key//cid/AffiliatesDIY

  • Search Ebay and Amazon for your topic to see if people are buying related products. (Are they hot sellers, or are they mostly getting 0 bids?)

  • Don’t ignore your gut feeling (if your gut is often right)

    Action step:

    1) Go through the research process I used in this lesson, and answer these 4 questions for each topic that you are considering.

    – How big is the niche?
    – How competitive is the niche?
    – How potentially profitable is the niche?
    – Is there potential for back end products?

    2) Choose a niche that seems to have a good balance; one that you want to pursue. We will be further refining it in the next lesson.

    Once you’ve identified a potentially lucrative niche, you need to go the extra mile and dig deeper. You need to zoom in on the market and find out EXACTLY what they want.

    There are some simple ways of surveying the market and focusing your topic to give it the best chance of success, and I’ll be detailing those strategies in the next lesson.

    As always, you are welcome to post your questions and comments below 🙂

    Have a great day!

  • 376 thoughts on “LESSON #20: How to Choose a Niche (Part 2)

    1. Jimmy

      Hi Eric,
      I’ve been following this course (Eric’s Tips) for sometime now and I’m very impressed with the content and the very simple English style you’ve adopted. Good job!
      I bought your Fire sales product ($9.95) yesterday but somehow I’m yet to receive the product.
      How do I get it?
      Thanks and have a great day!
      Jimmy

      Reply
    2. PT Leshoure

      I’m enjoying the lessons Eric. Can someone give me some ideas on how which affiliate marketing programs would be best to sign on with for a Celebrity Blog? I am working on a celebrity blog site, but am not quite certain which links and banners to add-or what other ways it can be monetized? Need some advice?

      Reply
    3. Louise

      Eric,
      I am a total newbie. I am learning a lot from your tips, but right here is where I’m stuck. Is there a mo more detailed step by step or can I move on and keep practicing?

      Thanks

      Reply
    4. Micah

      Hello Louise,

      Eric covers many more details in the next lessons.

      Yes, you could move on, and come back to this lesson later when you feel you are ready to choose a niche.

      Reply
    5. Rene

      Hello Eric,

      Thanks for your great lessons sofar. However,
      I can’t locate lesson 22. Can you please forward
      this lesson to

      Thanks again for making your info available to
      me.

      Thanks a million,

      Rene

      Reply
    6. G.S.Commander

      If you use Firefox you can get SEO Quake,which shows page rank and other SEO info about ecah site on search results

      Reply
    7. Vernon Jeter

      This video was out of a date. I am not sure when it was made but it needs to be updated. clickbank has changed as well as spy fu, (there is no longer free tools on spy fu available. This video was the first one I was very disappointed with.

      Reply
    8. Bobby

      Eric,
      Just a word on weight loss, i never watched my weight but woke up one day over 200 lbs on a 5 8 frame, so my brother gave me a book Fit for Life and just by eating fruit in morning on empty stomach all morning long i lost 50 lbs in 6 months, plus stopped drinking coffee like a maniac…i spaced out meals and always had a meal handy but the key is fruit its a daily detox and 80 percent water so your bodies energy can streamline your body instead of digesting big hearty meal:)

      Reply
    9. Micah

      Hello Vernon,

      I’ll let Eric know, so he can decide what needs to be updated when he gets a chance.

      It’s common for websites and services to change constantly, but we hope you can grasp the tips and instruction being given for free here.

      Imagine how difficult it will be keeping the following lesson up to date, as there are over 400 links:

      LESSON #84: Over 400 Free Web Traffic Sources

      Reply
    10. Judy

      How does one tackle multiple keywords in a domain name? One at a time perhaps or must one only have one keyword in a domaine name?

      Reply
    11. Micah

      Hello Judy,

      More that one keyword is fine, but remember to keep your domain name as short and memorable as possible.

      Reply
    12. Liz

      I am a newbie and would like my niche to be related to the category of Christian living for instance speaking only faith filled words. Every google search I have done produces results without paid ads. Any advice? Is my topic potentially unprofitable, too broad, or I’m just searching wrong?

      Reply
    13. Eric Post author

      It sounds like you’re researching the right way. Your suspicions are correct; I’m sorry to say it but it’s probably not a profitable niche. It’s a great topic for a website, but will be very difficult to monetize. So I would recommend finding a truly profitable niche to support your financial needs, and pursue your ministry at the same time by developing a separate website for it. I’ve done that as well.

      Reply
    14. barry

      Hello Eric,
      how are my new friend?
      I first want to say thank you from my wife Enel and myself.
      You have made a big change in our lifes. We are now setting goals and plans, for our vision for the future. Cool!
      We are new and have lost some money trying to understand all this.
      It is our number 3 site from Flippa.
      We just want to thank the customer servics guy at Godaddy.com that told us to check you out. Please stay with and for the people.
      All the very best to you and your family.
      Barry & Enel your new fans 🙂

      Reply
    15. Carolyn

      Lesson #20 34 minutes. The video stopped at minute 9 and would not resume. I’ve printed out the info hope i didn’t miss too much.

      Reply
    16. Tommy

      Eric,
      This video needs to be updated with new information. A lot of the information is old. But I am not sure if it affects everything, because I don’t have enough knowledge in it.
      Tom

      Reply
    17. Foreigner

      Nicolas….. Saludos desde Texas:

      Ive heard about the Spiderweb System about 4 years ago. I do not think is a scam, but a bunch of MLM opportunities tied to each other (like a web…) that you need to join in order to get commissions on the people you refer to the system that do the same.
      There are a lot of other opportunities that will provide a better business base. Just by following these video tutorials, you will learn how to build your own business. I will be around, checking the postings and we may “talk” again soon.
      Hasta luego,
      Foreigner

      Reply
    18. Micah

      Hello Tommy,

      Eric tries to make the lessons as “evergreen” as possible. The concepts taught should stand for a very long time.

      However, there are times when Eric feels the need to update lessons. We update lessons from time to time.

      Reply
    19. Saeed

      Dear Eric

      It’s long time after creating this video and your ideacash.org website. I wanna know if possible of course, have you sold this infoproduct well?

      Reply
    20. Eric Post author

      I haven’t really launched it, I’ve just been using it as an example site.

      Reply
    21. Gary Hogan

      Lesson 20 stopped at 10:19 (time elapsed)before it stopped looked like some important info – Thanks Eric — Gary

      Reply
    22. Benn

      Hello Eric,
      My browser doesnt show any Ads at all?
      Any ideas how to see them? I am using Google Chrome!

      Reply
    23. Benn

      Hi Eric,
      Now I am getting worried!
      I dont understand what part of Clickbank I should use? because they want me to login as I dont see the pages you got to in the lesson.
      Also my Chrome browser doesnt show any ads at all.
      I have no ideas for Niche that will work.
      I have all your Hot Niche new products so why dont I just use them?
      I dont feel like I am making progress at all today as this lesson has left me totally dejected.
      I am part of the Real Coaching Club.
      Is there a way I can get someone on the phone to sort out this block I have please.
      Cheers
      Benn

      Reply
    24. Benn

      Eric what I am trying to say here is that I couldnt do the research in the action steps because I don see any ads on my brower and I cant get into the Clickbank Marketplace – I need help here as I cant go ahead now -its a dead end.

      Reply
    25. Micah

      Hello Benn,

      We don’t offer phone support at this time.

      Do you have a plugin, such as AbBlock Plus installed?

      That might be preventing you from seeing specific ads.

      Here is Eric’s first lesson on choosing a niche, in case you missed that one first.

      How to Choose a Niche (Part 1):

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

      Reply
    26. Benn

      Thanks Micah,
      I dont have an ad blocker but still no ads. Do you use google chrome? Is it ok for me to continue without having all the Ads displaying?
      Maybe I could use another browser or it could be the Kaspersky Anti-Virus? Any ideas please please please.
      Cheers
      Benn

      Reply
    27. Benn

      Hi Micah,
      Sorry to keep bothering you but I really need to get past this lesson.
      I couldnt get to clickbank market place as the site must have changed.
      Do you know if you have to sign in first? What confuses me is that there are several options for signing to clickbank and I dont know how to go forward…
      Do I really need to join clickbank at this stage?

      Reply
    28. Fred S

      Eric, thank you for providing this great resource. It has truly been informative and inspirational. Especially the vision lessons. However I’ve noticed after studying lesson 21 that you are now steering the ship towards selling an information product versus affiliate marketing. Which is what I am interested in for now. So with that I think I’m going to start utilizing the No Cost Income Stream Course I purchased from you recently instead of your weekly emails for my training. With that in mind would you be willing to offer me any helpful advice for starting my online business with the affiliate marketing model? I’m interested in marketing name brand products and services that you see on today’s TV commercials. What are some of the challenges and pitfalls I will run into? I know I will have to apply for membership to affiliate networks such as Commission Junction and Linkshare. Is it a challenge or even a possibility for a newbie? Your advice would be greatly appreciated!

      Thank Eric,
      Fred S

      Reply
    29. Mario

      Hi Eric,

      I’d just like to point out that SpyFu (at least when I clicked through to it) no longer has a ‘free use’ option

      Reply
    30. Hannah

      Hey Eric!

      Thank you so very much for all of the wonderful lessons, as they are all so beneficial. Whether the lessons are brand new or a little older, there is still a lot to be learned, at least for me, anyway. I am so grateful! What is the difference between “UP SELLING” and “BACK END?” It seems essentially the same to me…I am trying to sell you something in addition to what you have already purchased. Thanks so much!

      BLESSINGS, BLESSINGS, and more BLESSINGS!
      Hannah

      Reply
      1. Eric Post author

        Upselling and backend can be synonymous in some instances, and I probably use them interchangably in some of my lessons. But technically speaking, upselling is generally selling something in addition to an initial purchase. It could be before the sale is even made, it could be after the initial sale is made… but it’s linked to the initial purchase. Backend is a broader term that encompasses everything your business does to make money from a customer after the initial sale is made. This may include the upsell, but also an ongoing relationship with the customer. That’s why it’s often said that most of the money is in the backend.

        Reply
    31. Wendy

      Thank you Eric. Very helpful information! I’ve taken many courses but you have a clear, precise way of showing and explaining valuable and helpful information for entrepreneurs. I will be coming back often to view this video lesson.

      Reply
    32. Sam

      Hi Eric

      Thank you again for the information you share…Just a question
      Are you meant to try a product out to see what its like before you try and sell it on the net??

      Thanks…

      Reply
      1. Micah

        Hello Sam,

        That won’t always be applicable. A paralytic can still sell running shoes. But, it is good to do some due diligence, making sure you are selling quality products and services. Your customers will appreciate it, and come back for more!

        Reply
    33. K.

      Thank you for these excellent tips and step by step instructions. I have looked at both Ebay and Amazon. Ebay does have a number of bids for informational products for the niche I chose: organic gardening, but 0 bids. Does this mean the product I chose is not good? Amazon has a number of items listed. There are dates on the Amazon ads (some from 2009), does this mean the product has been selling since that time? Amazon seems more like a good candidate for items, though, since there were numerous products for sale. Please advise. Thank you.

      Reply
      1. Micah

        Hello K.,

        Yes, it sounds like you are citing the time since the item originally became available at Amazon.

        Amazon has a large number of people who use the Kindle e-reader. Many have found Amazon to be a great place to sell ebooks.

        Reply
    34. Nuno

      Hi. Spyfu search tool is not free anymore, in fact is an expensive membership site. What’s the alternative?
      And about the PageRank lookup tool, when i insert an url in the box and press Lookup Page rank it opens the site http://tools.seochat.com/ with a lot of links for search tools, but i can’t find one related to page rank. Can you help?

      Reply
    35. mike

      Could you please resend the link for “Finding your niche” part 2. The video freezes part way through and won’t go forward from there
      Thanks
      Mike

      Reply

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