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Membership Niche Selection Tips

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

Step 1 – Find a Fanatical Market

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. 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.
  • You’ve got lots of opportunities every day to see what people are interested in. Just pay attention to what people talk about on the radio, at social gatherings, at the store or restaurants and anywhere in public. If people are talking about something, they probably want to know more about 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.
  • Think about the things that you are interested in. 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.
  • One simple and easy way to find out what’s hot 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. Hot topics that people are excited about make great niches for your membership website.

Second – Analyze the “commerciality”

Once you found a potential niche or topic to center your membership site around, you need to figure out if you can actually make any money in it. One way to figure this out is to see if other are making money in it.

OK, how do we figure that out?

  • Find out if there are blogs or forums related to it. Just search Google for “YourNiche blog” & “YourNiche forum” and see what comes up. This means there is a large group of people already assembled for you to market to.
  • See if other people are creating and selling product in this niche by searching in Google Shopping, ebay and Amazon. What you’re trying to figure out is if anyone is making money in this niche, and if people are selling products it means they are making money.
  • 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?

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?

  • Look at the product types in this niche. You want to find a niche where information products are being sold as the norm. 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.
  • Market readiness. Are people ready to buy? Are the receptive to marketing messages? 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.

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