The Internet Marketing Lounge

Come Chill Out in the Lounge & Learn about IM

Archive for the ‘Membership Sites’ Category

Aug
09

Membership Niche Selection Tips

Posted under Internet Marketing, Membership Sites

This article explains how to select a profitable niche for your membership business.

Step 1 – Find a Fanatical Market

The first step in developing a profitable membership business is to find a market with fanatics in it. What’s a fanatic? It’s someone who is so excited about a certain topic that they will spend their time and money on information about it. Now that we know what we’re looking for, let’s talk about how to find them…

  • Here’s something you may not have considered – magazines! We’re so internet-based these days, it’s easy to forget about them. It’s becoming increasingly difficult to run a print magazine. So if you see one on the shelves you know they are making money, which means that there are enough people interested in what they’re saying to make it profitable. If they can make money in a print version, you can probably make money with a membership website.
  • Watch and listen for fanatics in your daily life. Pay attention to conversations, social events, TV, restaurants, public places to see what people are talking about. If people are talking about it, they are interested in it. And that may also mean they’re willing to pay money to learn more 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. 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! There’s a good chance that others are interested in these things, as well. Making money is fun and it’s even more fun if you can do it in a niche you’re excited about.
  • Another fantastic way to discover what people are interest in is Google Trends. This service shows you the current most popular search terms. These topics are the hottest topics because lots and lots of people want information about them. These are the niches you want to be in – lots of people actively searching means lots of opportunity.

Step 2 – Determine the financial feasibility

OK, so you’ve got a great idea for your niche membership business with lots of fanatics. But will they actually spend money? One way to figure this out is to see if other are making money in it.

OK, how do we figure that out?

  • First go to Google and type in the name of your niche followed by “blog” and “forum”. If there are blogs and forums related to it, that’s a good sign. This lets you know there is a market (a group of people actively interested in the niche.)
  • Check Amazon, eBay and Google Shopping to find out if others are making and selling products in your niche. If other people are creating and selling products in this niche, it means there is money to be made.
  • Monitor Google Adwords to determine if people are running the same ads for weeks in a row. If they are, this means they’re making money on these ads – otherwise, they’d stop running them. Which means there is money to be made in your niche.

Finally – Figure out your barrier to entry

Once you’ve found a niche and figured out that there is money to be made in, you need to determine if you can break into this niche. How do you gauge the ease of entry?

  • Product types. What kind of products are being sold in the niche? You’re looking for a niche that sells info products. That’s because it’s much easier to build a membership business around information vs. any other kind of product.
  • The next thing to look at is the competition. You don’t want to try to break into a saturated marketing, so figure out how many people are already selling in this niche.
  • 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.
  • Market readiness. Are people ready to buy? Are the receptive to marketing messages? 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.

Putting it all together

OK, now that you’ve figured out what niche you’re going to go into. Determined there is money to be made and that the competition is not too strong to break into it. You’re ready to start your membership business. 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