Building a business on quicksand
February 3, 2008
Is your business built on quicksand?
FORGET ABOUT YOUR PRODUCT IDEA.
Seriously. Wipe it right out of your head.
Now, I’m not saying that product idea is going to doom your business to failure.
But what I AM saying is this:
When it comes to Internet marketing, it’s not WHAT you sell that counts — it’s WHO you sell it to!
If you don’t take the steps necessary to make 100% sure there is an easily reachable market of people online who WANT TO BUY something you can sell them, then there’s a strong chance you’re building your business on QUICKSAND.
That’s why in all of our programs and courses, the first thing we always, ALWAYS urge you to do is…
I often get emails from people who are psyched to get started online, and have a KILLER product idea they want to base their business on.
Their emails go something like this…
Hi Derek, thanks for all your advice! I know with your help I can make great money online. I want to sell [INSERT PRODUCT IDEA HERE] because it’s my passion — any suggestions on what to do first???
MAKE SURE YOU’RE SELLING TO A NICHE MARKET WITH REAL PROFIT POTENTIAL!!!
By "niche market," I simply mean, a group of people who have a certain problem, and are ACTIVELY looking for a solution online without much luck.
(And of course, they must be willing to pay good money for that solution!)
If you can provide that group of people with a product or service that solves their problem, then your business has a good chance of making money.
BUT: No matter HOW fabulous your product is — if no one is looking to buy that product — or something like it — online, then your business will collapse like a pack of cards.
It’s just that simple.
This isn’t just for beginners, either… Even if you already HAVE an online business, you STILL need to make sure that you’re targeting viable niche market. It’s the only way to make sure your business is built on a solid foundation.
How do you make sure you’ve identified a market with great profit potential?
Simple! Once you’ve done your keyword research with a tool like Keyword Discovery or Wordtracker to identify a potential problem shared by a significant number of people online, you need to research your market online and find the answers to these four important questions:
- Is the market easily defined and reachable?
You need to know where they hang out, what publications they read, if they have clubs or events that bring them together, and where they look for or share information online.
Most potential markets will already have places where they congregate. Look for groups, forums, discussion boards, clubs, and special websites — a simple Google search should bring up places to start. Links on any promising sites you find will point to other useful sites.
- Is the market small enough that there are not many competitors — but large enough to allow you to make a profit?
You want a small pond, but it still needs enough "fish" in there to make it worth your efforts.
If these competitors look well supplied and well funded, it may be more difficult for a small business to compete for eyeballs, traffic, and PPC keywords. Too much heavy-duty competition is a sign that you should look for a smaller, more precise niche.
- Will this market actually have and spend money?
You need to know if these people actually buy stuff!
It’s actually a good sign if there are sites selling products for the market. If related products are being sold profitably, you know there’s a viable market and you should consider these businesses as potential joint venture partners.
- Does the group have a ridiculous amount of passion for the hobby or topic?
A motivated market eats, sleeps, and breathes their hobby.
You’re looking for prospects who are so passionate that they must have all the information related to their subject. Think about video gamers or collectors… their obsessive passion is a big reason those markets are so huge!
Admittedly, this is just the tip of the "niche market research" iceberg.
There’s a whole lot more you need to know, in terms of doing quality keyword research and how to find your niche market online. But no matter where you’re at with your research, you always need to keep these four questions in mind.
They’re the questions that will help you determine whether you’re sitting on a sand pit… or a gold mine!
To your success,
Derek Gehl
P.S. Next week I’ll be discussing another one of the the important steps you need to set up your business for success… and I’d like to know what are the three biggest challenges you face.
Loading ...
Hi Derek,
Great article - I now get why it’s important to do research before I get going..
My three chllenges are:
1) Site design
2) Copywriting
3) How to set up for orders
Thanks,
James
OK, so you find a possible niche.
But how can you find out if the market is saturated with eager suppliers? How do you know if it actually will spend money?
I get the feeling that just about every possible niche reaching your 4 criteria is over-supplied already.
Found the market - product only has one competitor. Advertising in trade journals very expensive & direct mail for the whole country is out of the question.
market very large, just product knowledge needs to be out there and reached????
Good morning Derek,
Praise God that someone has a heart in these “shark infested” marketing waters. Although I am failing miserably in my first month and a half of internet marketing, I’m committed to making it work because of my hope in the Lord. (isaiah 40:31)
Hi Derek!
I just read your newsletter, and I read almost all of them.
You are very right. You are my reason to borrowing your inhouse expertise. The day I will have my first website, I do not want to have it on a sandslide foundation.
I like to hear you.
How do you know if your market niche is willing to spend money?
Derek,
Your 4 questions are very good ones, the ones that reputable mentors give to possible clients. What I would like is a concrete tip such as a market to pursue without having to join your membership site.
I know I’m asking a lot, I want to get moving on something, not do more training. Come on Derek, give me a couple real niches to work on, that have a chance.
My current mentor tells me to avoid The IM market because I have no creditability. He may be right to a degree,so what else do I have?
My interests are hunting,fishing,gardening, coaching youth baseball, fantasy baseball, and football.I have been construction electrician for 20 years.
I love to help others with positive mindset and gratitude, because in this business if you don’t have those you are sunk! I have also been a member of a recovery program for over 25 years.
I love to write articles even though I am a slow typer with no background in english.
Derek, I know I am supposed to be proactive,and not expect others to do it for me, but throw me a bone. You are a guru and don’t have to help me. I do respect your views or I would have opted out a long time ago.
Thanks Chip
mail me more details about this .
Thanks for the reminder! I use my website too much for a hobby and need to
start earning some cash to keep my hobby rolling…Time to niche it in the bud!
Derek’s right - especially #3 & #4 account for about 99% of those who we see looking to help boost sales for a product that just doesn’t hit the mark in terms of “are people ready to (or already) spending money on information and are they passionate about this area so they will continue to spend money in the future”
There are many techniques you can use to research these two questions, but think of it this way…
What services online allow you to look at sales rank, popularity, top products list, or rankings of product by popularity?
Hmmmm….
How about Amazon, Clickbank, eBay, top selling book lists, just to name a few.
Folks, the internet is a GOLD MINE of places to search buyer behavior, you just have to search a little to find it…
Jeff
Dear Derek,
Do you have an effective survey of poignant questions that I may use to find out
what it is that my list of subscribers have a problem with and need a solution to?
My list never respond to any offers or bother to purchase any thing from me. My
success in internet marketing is going no where. I can certainly see the need to determine who it is I should be marketing to and how to identify my niche market.
If you are able to spare the time to provide me with a survey, I would appreciate it
very much.
Thanks.
It’s interesting reading what folk say in reply to Derek’s article above.
I did the mentoring course 2 years ago and my site went live last year; although it’s not performing as well as it should, it is getting quite a few hits and there are sales.
The subject I chose - IBS - was very different to the ones I started with….but after doing quite a lot of screening with Wordtracker, I decided to go for this subject and my mentor gave me the confidence it would work, and told me not to worry that I didn’t then know anything about the subject of IBS, as I could learn.
So my experience in finding a subject for a niche market is that one has to initially go for a topic one really likes, then do lots and lots of screening with something like Wordtracker to see if it stacks up.
Good luck
Vance
Hi Michael,
A few years ago I signed up for an affiliate site. Paid for the business but did not make any money. I advertised the business through different search engines and other ways. I did not profit from this business. Whenever I needed to email or talk to someone pertaining to the business I never got a response. I promised myself to never do an affiliate business anymore.
——————————————————————-
Now I really don’t know why I changed my mind and joined another affiliate business a few months ago. I must say that this one is much better than the first one at least I can try my best to work this one the right way. Sometimes I feel discourage about it. I really want this business to work for me. Sometimes I think that these affiliate business are so overwhelming. Your information is very helpful. Please help me with different ways for me to work this business. Thanks
Great primer article on why choosing a niche market is essential to your online business success! Too many entrepreneurs approach it the other way around. Thanks for the reminder to focus our efforts before we get started.
Hi Derek,I have my own website supplement and Nutrition .How can I make
money online? What should I do
Can you help me
Thank you
Nelly
Whats up Derek
I’ve been in this business about five weeks now training to be a CMPS with Mary Gersten. When you have been building houses and remoldling for a living for 28 years or more starting to learn the computer world in about 6 months is a challenge in its self. But I do have to say between you and Dan Kuchell and Joshua Shafran there is alot of info out there to take in. I just have to figure out how to implament this stradegies. thanks for all the help.
Tracy Matthews
I’m a bit confused…. I remember suggestions on how it is important to find something that you’re good at or very knowlegable of (aka: an authority on) and then find a niche market in that field.
This article seems to state the opposite. First research to find a viable niche and then build your web biz around that?
What are the chances that this niche will be ’something you know enough about’?
I’m like some of the others above… I greatly value your insite Derek or I would have opted out a while back also. Maybe I’m too new at all of this to see the bigger picture?
I learned about SEO, researching key words writing content around those key words and in three months launched two web sites, one with 52 pages of content info and the other 15 pages of content info. I have dabbled a little with AdSense on one site and have submitted and had accepted 35 articles @ Ezine and have been given platinum status for my submissions. I would be grateful to know if I am exactly in the right direction for success and what else do I need to do.
Best
J.
Derek.
You can imagine how many “gurus” bombard us daily, and to your credit, you are one of the three that come across as sincere and honest. I think multiple sites for different niches is a safe strategy if one has the time to energize each and has a few varied interests, and can write ebooks to sell through affiliates. What comes with you $497 offer and how much is your onbe week course in Vancouver, and do you run the same course in Texas?
Thanks for all your info. I read it all and will make 2008 my breakthrough year. Earl
Hi Derek,
This is my website that I use from Tim Knox - it is an affiliate site and I thought this would be a good way to “learn the busines”, so to speak. Now I need to really concentrate on getting traffic to this site and I am not not overly enthusiastic about EBay. Should I start with email companies and try and target people like me who really want to make internet marketing work?
Thank you very much,
Betty
Derek I am in the process of building a web site and as I enjoy learning about all that intrest me your site has given me a insight into network marketing that I have not experienced before. While I am new to using a computer for several years teaching myself to use them this is one area that sometimes we beginers bo not understand the finer details.
I have not regestered for your 5 day course as yet being an Australian pensinor there is little money to travel. There is a possibility that I will be in Portland Oregan latter this year dates to be set and if a course was available at that time I would be excited to do it.
Hello Derek.
i am a newbie from Nigeria with limited access to online facilities like paypal and all.
I have been following your posts before Corey died in an auto crash, but stopped after i discovered it would be diffcult to do much from my geographical location.
i just started two blogs http://memory-and-grades.blogspot.com/, http://law-of-attraction-for-christians.blogspot.com/ hoping to use adsense to make some profit since they do not require paypal but home address any where in the world.
How do i pull traffic?
Thanks alot
Ricky
Hi Derek,
Mark Battalini here.
I just wanted to say that this information is awesome and that I am comming to Vancouver for the the 5 day Clinic at the end of Febuary. Everything that you stated in this blog is *EXACTLY* the reason I signed up for the clinic.
This is all the information and strategies that have been eluding me for some time now and I’m totally excitied to begin that course and have “REAL” internet marketers teaching me the ropes.
Your information as always, is dead on accurate, and I look forward to being in the course very soon. Thanks for all the nuggets that you forward us beginners regarding internet marketing on a daily basis, it is always a pleasure hearing what you have to say.
p.s. It would also be a pleasure meeting you if you have the time between Feb 25th to Feb 29th at the Pinnacle. Stop by and say hello if you get the chance.
Sincerely, Mark Battalini
Sir: I am still in the process of setting up something. I had looked at sales of watches and clocks but so far have run into dead end. There seams to be so many wanting to do the same thing. Or I seem to get blocked in any thing I try to get started. Probley am going at it the wrong way. I am a novice computer buff but am trying to learn as much as this 75 year old nut can and retain in the process. I live on a fixed income so I want to be careful how I get involved in these expensive never ending program costs. Thank you very much for any way you can help me Glen Schultz 530-743-1024
Derek,
I write from Kenya, Africa. not many people do business online here. I am a youth leader and currently working on building stronger social networks for the youth and the business community.
Tell me how to go about it online.
This is brilliant idea
Yours in business
Ken Auma
Great advice Derek!
So true you need to know who your selling it too. A product should
be based upon a customers needs. A solution to a problem, thats why
information products are so great.
Sincerely,
Jamie Boyle
Hi Derek
I have so many beautiful things for sale from Kenya which l could market - but honestly l dont have a website!!!! helpppppp
helen
Hi Derek
I am new to internet marketing. I don’t really know how to get started. Need some guidance. I know that I have to work for what I earn. I just need some advice on how to get started. I am getting ready to start selling on E-bay. Need some extra cash like yesterday.
thanks derek for that video
i’ve been dubious to check out your info because , until i saw your video today , i thought it might be a scam ! sorry about that . i can buy laundry powder wholesale plus 10% discount . also , home cleaning products and personal care products as my wholesaler has sole distributorship in australia . their home cleaning products are manufactured here , by them ,it’as afamily owned company in adelaide in fact . i also have a website domain name , but don’t know how to keep that name or set up the webpage . i need all the help i can get . i’m a nurse , but have neck and arm pain from driving buses and just don’t want to go back to those industires . also , i’m 53 own nothing and time’s running out ! uniqueone.com.au and uniqueone.us.com i think are my domain names . i’m going to probably be doing a hypnosis course , don’t know why now ! can you help me , what should i do ?
Hi! We have a website www.allstarsportvehicles.com There seems to be a demand for it but people don’t seem to be buying these high priced items online. Should we try selling something else that is not so expensive?
Thanks for your input.
I used to think that this finding niche is one of the most complicated process. In fact it is, if you are newcomer in this field, you’ll miss so many subtle clues for not so good niche ideas… Of course your 4 tips help a lot but I have adopted a very simple philosophy of finding markets. If people are buying, I am selling. Simple.
On internet, the pie is big enough for all of us, if you play right.