I am sure this post will ruffle a few feathers. But if I don't speak up, people will continue to mislead newbies, who in turn will go on making the same mistakes I once did, and there would be no respite from this vicious cycle. I am not against finding new niches. What irks me though is the superfluous importance people give to *niche competition*. So before you start niche marketing, here are a few points I would like to make on *niche competition*, and what it means for you.
1. Your Niche Consists of HOT, Addicted Buyers: If you are operating in a competitive niche, and if there are a lot of ebooks and/or softwares related to the niche in Clickbank.com and Amazon.com, then it means that your niche consists of people who are willing to pay for ANY type of product you put up; in other words, your niche consists of 'addicted buyers'. I cannot tell you how much you will earn from a given niche. It all depends upon your product, and the way your POSITION it (see below)
2. More Competition=More Buyers=More Money: I am tired of people saying that internet marketing is the most competitive niche. How about niches such as gambling, or sex, or seduction? Are they not competitive? Don't people make money in those niches? Remember one thing that more competition means more buyers; if there is little or no competition in your niche then obviously it is because there are not many "addicted buyers" in it, and therefore you will have a difficult time selling your product.
Take for example the weight loss niche (yep, I have worked in it and still do). People say that it is way too competitive, and no one should venture into it. However, statistics tell me a different story. Every few weeks, I see a new fat loss product popping up in the Clickbank.com marketplace. Every other day, I see several different kinds of Adwords ads selling weight loss products. Do you think that all these people are fools? Are they wasting their money in a 'competitive' niche? Definitely not! They wouldn't be paying top bucks for Adwords (which is really expensive in the weight loss niche) if they were not making money from it.
Lesson: To be successful in niche marketing, sell to DESPERATE buyers.
3. Your Unique Products Count: So, how do you set your foot in a 'competitive' niche? If you can create a unique product that no one else has, and recruit affiliates to promote your stuff, then nothing like that. But not every one can create unique products. Don't be disheartened if you cannot create unique products. You can still make money even if your product is same as that of the 101 other Clickbank vendors. Here is how: take out the number one benefit of your product and use it as a hook. Use the hook to create a headline for your product. Then, write about the benefits of your product with a unique twist that no one else is using. People will still regard your product as new, even if it is not!
Is it ethical? Sure! If the customer didn't need the particular piece of information that your product claims to have, he would not be looking for it in the first place, right? So, you are doing nothing unethical here. I am an addicted buyer of internet marketing products and I cannot tell you many times I have been fooled into buying the same type of products over and over again just because of the unique way the seller has positioned it (if you don't understand how to position your product uniquely, do check out this old but valuable ebook).
I am a big fan of unique products, though. I prefer to create products that are DIFFERENT from what others are offering. :D
4. Sell PLR WSOs: Even if you think you cannot create unique products, or that you cannot create any product at all, no problem. Can you write articles? Then you can choose a mainstream niche such as weight loss, acne, sex, seduction, travel, dating, etc., write a dozen articles on several topics related to that niche, and sell private label rights to those articles in the Warrior Special Offers section. Try to sell plr articles on a remote niche, and you will have a hard time getting customers (unless you are a recognized expert in that niche). Sell plr articles on a hot and mainstream niche, and you will make money in days, if not hours. Why? That is because you are trying to sell what sells, and not trying to reinvent the wheel. :)
5. Your competition is less powerful than you think: If you search for intitle+inanchor+intext:"weight loss", you will be quite surprised to see that your true competitors in the weight loss niche are only 1,270 people – that is, far less than what you believe. Most niche marketers don't know a thing about seo or keyword research, and hence most of the pages that appear in the search results are often not optimized for any keyword. If you know basic seo stuff you have already got a big advantage against your competitors.
Side note: Some marketers such as this guy would advise you to "Follow the money ". It is true: you can follow money and make money but only IF you outsource everything right from niche research to product delivery. If you have to do a single 'grunt work' for a niche you have no interest in, you will soon find it worse than your regular J.O.B. Money will temporarily urge you to work in a niche, but when that 'urge' fizzles out (and it will fizzle out very soon), you will think that niche marketing is nothing better than a tedious J.O.B. So personally, I like to work in niches in which I have an interest in, but I also make sure there are enough buyers in it to make me money. I don't know about you, but if I am really passionate about a topic, I will pursue it regardless of the competition. In other words, passion+money=my ideal niche
If you are working for a cause then that will also help in fuelling your passion. Just as an example, let me assume that you are an overweight person and your aim in life is to teach others about the disadvantages of obesity. Do you think that your suffering is enough motivation to propel you to work even in the dead of night? It sure is! :)
Disclaimer: This post is not for bum marketers; it is mainly targeted toward niche marketers or niche product creators. If you are researching niches for bum marketing, then perhaps you need to read my Nuttiebums report.
Also, this post is in no way a rant against those who want to find and dominate new niches. By all means, find new niches. Who knows, maybe you can find something interesting you wouldn't have known otherwise? My point in this post is that don't let the amount of competition in a niche discourage you from dominating it!