Niche marketing

A niche is a smaller part of a bigger market on which a specific product is focused on. Niche is the most important part of online marketing, cos this is where the real money is on the internet. This's because it's easier to be a master a small market than a larger one. For example, it's easier to market a car stereo on the internet than marketing the car itself. This is because their are more competitors in the car market than the car stereo market. So the secret is always to look for the smallest part of any niche you know very much about.

How to select a good niche

obviously there are things you look out for when selecting a niche, but most internet marketing newcomers tend to ignore them. These are:
- niche market research report
- graphs showing demand and profitability of niche market
- price range of niche market
- market needs of the niche
- production method of niche market
- geographical need of the niche market

i'm going to explain the first three for now due to time and tiredness.

Niche market research:
business on the internet today is all about keywords. Customers enter keywords on search engine when they need something. This is what niche research is about, doing a proper niche research gives you the right keyword phrases for both demand and supply in that particular niche. They are tools that can do this for you.

Graphs showing demand and profitability of niche:
this graph is commonly called the yellow tail graph. This is a theoretical part of niche marketing that is worth knowing, cos with this excellent decisions can be made when choosing a niche. The long tail is a retailing concept describing the niche strategy of selling a large number of unique items in relatively small quantities. This technique is what is used by major online stores and businesses like Amazon. In plain english, it is the strategy of selling many hard-to-find items to relatively low number of customer per item. The total sales made from this is what is called the long tail.
From the power law of economics, this long tail section contains over 80% of that particular niche, while the head is about 20%. When internet marketing is considered we can imagine the long tail as the uncommon niches or keyword phrases that internet users query search engines with and is actually where 80% of internet sales are made.
In conclusion your knowledge of the long tail graph is what differentiate between an internet marketing guru and a newbie. If you're interested in knowing more, visit wikipedia.

Price range of the niche:
believe it or not shopping on the internet is like your routine shopping in which you make budget for. Choosing a price range for your niche depends on the kind of people your niche marketing campaign is focusing on.
Take for instance, if my niche is used shirts which cost within $10- $15, i'll be expecting an affiliate share of $1- $6. Whereas if i was marketing car stereo with price range of $100- $180, then i should be expecting an affiliate share of $10- $180 or more depending on the affiliate company. Merely looking at these examples, your human instinct will tell you to go for high price range niches and that is where you make your first internet marketing error. This because those high price range niche market have being highly populated that breaking into them is an unrealistic task. My advice is for you to in for the low price range niche market. Be focused don't be tempted, it might take a while but you'll certainly have your slice of the internet marketing cash.

Watch out for part 2.