Membership Niche Selection Tips

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

Step 1 – Find a Fanatical Market

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. OK, so we know what a fanatic is, but how do we 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. 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.
• Don’t forget about clubs and organizations. If there are enough people to to build a club, there are certainly enough people to start a membership site on the same 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. Building a membership business around things people are actively searching for is a great way to ensure your success.

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.
Here’s a punch list for figuring out if anyone’s making money in your niche:

• 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 tells you there are people who are actively interested in your niche.
• See if other people are creating and selling product in this niche by searching in Google Shopping, ebay and Amazon. If other people are creating and selling products in this niche, it means there is money to be made.
• 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

OK, so you found a hot topic and you know other people are making money on it. Will you be able to get involved and do the same? 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. 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.
• Unless the market is just so big that it doesn’t matter how many competitors there are, you want to limit the competition. So evaluate the size vs. the competition.
• 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.

In Summary

At this point you’ve figured out what niche you’re going into. You found your fanatics, you know they spend money and you’re confident there’s room in the market for you. If you’ve done your homework, your business will be a success because you already know your market is a profitable one with room for you. Learning how to run a membership website is a topic for another article…