Any product, whether sold online or offline, is developed to address a particular need in the market. This can be applied to a simple product like Tea, or a highly customized product like golf apparel.
Wikipedia defines niche market as: “A niche market is the subset of the market on which a specific product is focusing; therefore the market niche defines the specific product features aimed at satisfying specific market needs, as well as the price range, production quality and the demographics that is intended to impact.”
Niche products address needs that a generic product cannot satisfy, and they require special marketing needs. The customer base for niche products is generally highly aware of the product features and will always ensure that they get high value out of the product.
A lot of people starting in internet marketing wonder why to go for niche marketing. Why limit your customer base by marketing a niche product rather than target the masses? The answer is simple. Niche marketing usually give more ROI (Returns on Investment). This may not always be true, but since in online business, your biggest investment is the time you put in your online store, niche marketing gives you relatively easy returns with minimal time (and development) efforts.
However, it is critical that the niche product is carefully selected so that it has more customers and less competition. If you’re able to achieve this, you will easily convert your website visitors into actual customers.
The most common form of niche marketing that online entrepreneurs select is via affiliates. Affiliate marketing means marketing a product that is developed, maintained and delivered by another company. You therefore, just act as a sales channel and receive commission for every unit sold through your website.
Affiliate marketing is the simplest to set up and if the right strategy is adopted, can also start making money very soon.
Some of the strategies of affiliate marketing are as follows:
1.Find a Unique Niche
The mistake that many affiliate marketing hopefuls have in common is that they try to offer everything under the sun rather than focusing on a specific niche market. Do not scatter your efforts, focus on your niche, promote it, and sell it well.
2.Search Engine Marketing
Once you’ve built your affiliate storehouse you will need to promote it. Many affiliates use pay-per-click engines. I suggest that you learn how to achieve organic search results or hire a search engine marketing company. This will save you from spending all your profits on pay-per-click engines. Only use pay-per-click engines if you know what you are doing, otherwise all your profits may end in the hands of Google AdWords or Overture.
3.Know Your Product, Know Your Audience
Create a resource. By taking the time to learn about the products and/or services that you are offering you can create information that builds your credibility. That credibility builds trust. If your viewers do not have trust in you more than likely they will not purchase from your storehouse. If you want more information on the psychological process that an online buyer goes through I suggest that you read my article on the Five Levels of Internet Marketing and the Sales Process. This will help you in creating a web site that converts well, which in return will increase your cash flow.
4.Don’t Put All Your Eggs in One Basket
Promote products from different merchants. This way if you have a problem with receiving payment from a merchant, or their products do not convert well the effects on your business will be minimal. Watch out for exclusivity agreements; remember this is your business. Protect yourself and diversify so that you do not feel the famine effect if something goes wrong. There is absolutely nothing wrong with promoting niche products from different merchants.
5.Seek Knowledge and Embrace Change
If you are familiar with Internet marketing at all you know that what worked three months ago may not work today. Stay on top of the trends. Seek knowledge, start by learning something new about affiliate marketing daily. For example remember those marketing tools called “banner” that use to drive sales at an astronomical rate a few years ago? Well those banners developed a term called “banner blindness.” That means most online viewers will not click on banners even if they do pertain to what they are looking for. To be a “super” affiliate you must always spend time reading, learning, and embracing the changes in Internet marketing.
6.Don’t Give Up
It’s hard to do, and most of the time those dabbling in affiliate marketing give up way too soon. Monitor your statistics, watch to see what is working and what is not. Make changes when necessary. Do one thing daily to promote your storehouse and be patient. Before you know it you will start getting payments.