Membership Niche Selection Tips

In order to make sure your membership business is profitable, you have to select the right market. Here’s how.

First - Look for Fanatics

If you want your membership business to be profitable, you have to find a marketing 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…

• One simple idea that’s easily forgotten is to scan the magazine racks when you’re out and about. Because it’s becoming harder and harder to keep print periodicals profitable these days, if you see a magazine on the shelves, you know it’s making money. And that means there are lots of people interested in it. That doesn’t mean definitely that it will make a good membership business, but it’s a good starting point.
• 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. Which means you can start a membership business providing information on 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.
• What about your interests and hobbies? 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. The reason people are searching Google for info on these topics is because they are interested. And the fact that it’s made it into Google Trends tells you LOTS of people are interested. Building a membership business around things people are actively searching for is a great way to ensure your success.

Step 2 - Determine the financial feasibility

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. An easy way to determine this is to figure out if anyone else is making money in this niche.

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

• Are there blogs or forums in this niche? Take the name of your niche and search for “niche name blog” & “niche name forum” in Google to see if there is an active group of people talking about and interested in the niche. This means there is a large group of people already assembled for you to market to.
• Search Amazon, Google shopping and eBay to see if people are creating and selling products in the niche. It’s a good sign if there are because it tells you people are making money here.
• 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. 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.
• 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.
• How quickly do people in this market make buying decisions and are the ready to buy? 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

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…

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Tags:Internet Marketing,membership business,membership website,online marketing

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