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

First – Look for Fanatics

If you want your membership business to be profitable, you have to find a marketing with fanatics in it. Simply put, a fanatic is someone who’s willing to spend time and more importantly money on a topic they are interested in. Now that we know what we’re looking for, let’s talk about how to find them…

  • Look at magazine racks. This is an often overlooked, yet extremely simple way to find niches that people are interested in. 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. This is a very good indication that it’s a good niche for you to go into.
  • 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 it, they are interested in it. And this means there may be a market for information about 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. By the same token, if enough people are interested to hold a convention on a certain topic, you can definitely find enough people to build a membership business around that same topic.
  • What about your interests and hobbies? 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. These are the things people are actively searching for in Google. They’re searching because they want information. These are the niches you want to be in – lots of people actively searching means lots of opportunity.

Step 2 – Determine the financial feasibility

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. An easy way to determine this is to figure out if anyone else is making money in this niche.

Here’s how to determine if you can make money in your chosen niche

  • 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 lets you know there is a market (a group of people actively interested in the niche.)
  • See if other people are creating and selling product in this niche by searching in Google Shopping, ebay and Amazon. 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.

Last, but not least… How hard will it be to break into this niche?

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 are some things to look at to figure this out:

  • 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. That’s because it’s much easier to build a membership business around information vs. any other kind of product.
  • Competition. How many other people are trying to sell to this market? You want to start in a market that’s not completely saturated with competitors.
  • Size vs. Competition. Some competition is good. It means that this is a profitable market. And as long as the size of the market is large enough to support the competition, you’re fine.
  • How ready is the market for marketing messages, and how willing are the fanatics to buy. Depending on the market it can be anywhere from a couple minutes to a many months between when someone starts the investigation process to when they actually make a purchase.

In Summary

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. If you’ve followed along with these steps you’re success in practically guaranteed. The only thing left to cover is exactly how to run your membership business

  


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