You can create the coolest, best looking, most exciting online store or website ever created, and fail miserably.
Because you probably did not choose a profitable niche!
Niche selection is so important that it can literally make or break your success.
A good niche should:
Have a moderate to large audience
Have some moderate competition highlighting the fact that money
is already being made.
Have buyers who are passionate about the niche or need help
with their own personal problems
Have products that are priced high enough to be profitable and
can be promoted as an affiliate
You want to make sure there are enough people who are interested in the niche to support a good number of sales, but you don’t want the niche to be so saturated that it’s difficult to make a profit.
You want a market in which the buyers are passionate, or have a real need for the product. It’s going to be difficult to make good money selling ordinary products unless you have a very unique selling point, such as a drastically lower price, or some sort of value added selling point. You want to sell products people will be excited to buy, and that they will keep coming back for.
You want to make sure you have products that can be priced high enough to make you a good product without pricing you out of the market. You probably won’t make a lot of money selling products priced very low because you won’t be able to build a large enough market quickly enough. Of course, there are people who have made fortunes with very inexpensive products, but it takes a bigger turnover volume than a beginner could likely manage.
Finding Your Passion
It’s not enough to choose a niche that is profitable. If you choose a niche you aren’t passionate about, or one that you find you truly dislike, your business is likely to turn into a drudgery very quickly.
A good starting point for niche research is to simply make a list of your own hobbies, interests, areas of knowledge, and needs. The more you know about a particular subject the better. You do not need to be an expert but some knowledge will help give people confidence in that you know what you are talking about.
It’s possible that you won’t have any interests that would be profitable, but it’s highly unlikely. Even if you like some relatively obscure things, there will usually be at least a decent number of other people who are also interested in it.
Once you have found a niche you believe has a lot of potential for both profitability and passion, you should try to drill down even further to create the tightest niche possible.
For example, let’s say you’ve decided you want to concentrate on the outdoor hobby niche. This might include things like camping, backpacking, hiking, hunting, and fishing.
This is a broad niche and it would be a tremendous amount of work for just one person, or even a small team.
Instead, it’s good to focus on a single area. It could be the area you are most interested in, or the one you believe will be most profitable (as long as you’re still interested in it). But it’s important to drill down to the tightest niche you can without going so tight that it would be difficult to find an audience or source products.
For example, instead of “outdoor hobbies”, you could drill down a bit to fishing. This may still be too broad, so you could drill down to fly fishing. This is pretty good, but you might even go a little further to specialize in a specific type of fly, or maybe into fly tying supplies for people who want to tie their own flies for fishing.