Membership Niche Selection Tips

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

First – Look for Fanatics

The first step in developing a profitable membership business is to find a market 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?

• 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. People generally talk about things they are interested in. Which means you can start a membership business providing information on 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! If you’re interested in something, it’s highly likely others are, too. The icing on the cake here is that you get to build a business doing something you love.
• Google Trends. This is a great way to figure out what people are interested in. Google Trends tells you the most popular current search terms. These are the things people are actively searching for in Google. They’re searching because they want information. 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

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

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.
• Search Amazon, Google shopping and eBay to see if people are creating and selling products in the niche. 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.

Last, but not least… How hard will it be to break into this niche?

After figuring out a good niche and determining that other people are making money in it, the last thing to do is decide if you will be able to enter the market. Here’s how to make this determination:

• 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.
• Competition. How many other people are trying to sell to this market? You want to start in a market that’s not completely saturated with competitors.
• 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.

Summing it all up

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. Now that you’ve prepared properly, you’re success is 99% guaranteed. How to actually run your membership website is the only thing left to talk about…

Tags: internet marketing, membership business, membership website, online marketing