Membership Niche Selection Tips

2010 July 27

tags: internet marketing, membership business, membership website, online marketing

by striker

Let’s talk about niche selection. This is very important to ensuring the profitability of your membership website.

Number 1 – Discover Niches with Fanatics

The number 1 thing you have to do is find fanatics if you want a profitable membership website. Fanatic is defined as someone with an irrational enthusiasm. These are the people you’re looking for because they are so enthusiastic they’re willing to spend money on their topic of fanaticism. Here’s how to find fanatics:

Here’s something you may not have considered – magazines! We’re so internet-based these days, it’s easy to forget about them. In today’s economy, running a magazine is tougher than ever – some of the best ones are going out of business. So if it’s on the shelves, it’s making money, which means there is a big market interested in this topic. If they can make money in a print version, you can probably make money with a membership website.
Pay attention throughout the day in your regular activities. See what people are talking about on the radio, TV, at parties, in public, etc. If people are talking about something, they probably want to know more about it. Which means you can start a membership business providing information on it.
Again, looking in the physical world for clues you can tell there are lots of people interested in something if there are clubs and organizations around the topic. Conventions are expensive to hold and attend, so if one if going on that’s another strong indication of a good niche to go into with your membership website.
And of course there are all the things you have an interest in, too! If you’re interested in something, it’s highly likely others are, too. And, as an added bonus, it’s much more fun to build a business around things you’re interested in.
Another fantastic way to discover what people are interest in is Google Trends. This service shows you the current most popular search terms. The reason people are searching Google for info on these topics is because they are interested. And the fact that it’s made it into Google Trends tells you LOTS of people are interested. These are the niches you want to be in – lots of people actively searching means lots of opportunity.

Second – Analyze the “commerciality”

After selecting a possible niche to build your membership site around, the next step is to find out if it’s a profitable niche to be in. One way to figure this out is to see if other are making money in it.

OK, how do we figure that out?

Are there blogs or forums in this niche? Take the name of your niche and search for “niche name blog” & “niche name forum” in Google to see if there is an active group of people talking about and interested in the niche. This means there is a large group of people already assembled for you to market to.
Check Amazon, eBay and Google Shopping to find out if others are making and selling products in your niche. It’s a good sign if there are because it tells you people are making money here.
Watch Google Adwords for a period of time and look for ads the run again and again. Adwords ads are expensive, so people only run them repeatedly if they are profitable. And to be profitable, they have to be selling products and making money.

Step 3 – Determine ease of entry

After figuring out a good niche and determining that other people are making money in it, the last thing to do is decide if you will be able to enter the market. Here’s how to make this determination:

Figure out what kinds of products people are interested in. If it’s mostly physical products, coaching and live seminars, then it will be harder to break into this niche. Membership websites based on information are the easiest to start and maintain.
The last thing you want is a marketing filled with tons of competitors. A few means it’s a profitable niche, but too many means you won’t be able to take a piece of it.
Compare the size of the market versus the number of competitors. Some competition is a good sign – just make sure the market is big enough for you to join in.
How quickly do people in this market make buying decisions and are the ready to buy? Every market is different. Sometimes people are looking for information and are ready to pay for it right now. And sometimes it takes weeks, months or even years for them to make the decision to purchase.

Summing it all up

So far, we’ve talked about exactly what it takes to pick a great niche: One with a hungry crowd of fanatics, who are ready to spend money on information about their topic. And you’ve determined your barrier to entry is small enough to give it a go. Now that you’ve prepared properly, you’re success is 99% guaranteed. How to actually run your membership website is the only thing left to talk about…

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