How do we choose a viable market?
As far as, I am considered, I only go for markets that are large enough and have the potential to sustain a long term business model.
For now, I’ve worked in around 5-6 different markets like Weight loss, Relationships, Self-development, Internet Marketing and Health & Fitness and to be honest I’ve found every single niche to be as profitable as any other.
Yes, you will find a lot of markets that pass the viability test and to be honest, each of those markets can be as profitable as any other. You just have to take care of the rest of the steps followed by market research, in the right manner.
What defines a viable market?
Personally, for the sake of simplicity I just take 2 factors to test a market, which are:
Getting into the details..
Scale is the volume of your potential client base. It is the upper value of the number of people you can sell to.
For example, let’s take two different niches :
1. Weight loss and
Now taking the highest searched keyword in the weight loss industry (i.e. How to lose weight fast) there are more than 200,000 people searching for this single “Exact” keyphrase and now taking the acne niche into consideration the higher searched keyword (i.e. how to get rid of acne) gets close to 90,000 searches per month for the keyword.
As you can see the potential number of clients in the weight loss industry is more than double to that of the acne industry. Thus for me, it would be a better option to invest in the weight loss niche if I already posses the required knowledge and capital to establish myself in that market as it would generally provide better long term returns.
Now to test scale, you can use the Google Adword’s Keyword tool which will give you a good idea of how vast is your potential client base.
Once you know that there are a good number of potential clients in your test market, we can go ahead to see how profitable is a particular niche.
For this we can use a couple of systems to see the current profitability and the number of quality offers we can make to our audience.
First, you need to use Google Adwords Keyword tool and Spyfu to check the CPC (Cost per click) and the number of advertisers for a particular keyword, respectively.
If you find the cost per click to be high and a good number of advertisers then you can be rest assured that there is plenty of money to be made in this market as people are already spending money to generate revenue or sales.
Now once you’ve gained enough data, the next thing you need to do is search for a selected keyword in google and see if there are any advertisements being displayed on the search page itself.
This is one of the biggest indicators of the monetary value of a market.
The next step is to head over to clickbank or commissionjunction to see how many offers/products do you have to market to the targeted list that you’ll be building. If there are around 10-20 products that can cater to the needs of your audience then you can make money even from a small e-mail list of targeted subscribers for over an year.
Types of Markets : Which one to go with?
Fundamentally, there are two types of markets that you can serve :
1. The Passion-driven market and,
2. The Solution Seekers
The Passion-drive market…
…is one in which people are looking for a answer that will help them live a better life and feel good about themselves.
In this market people spend money in order to add fulfillment into their lives and experience personal satisfaction.
Some passion driven markets are given below:
2. Muscle Gain
3. Computer Games
4. Learning Language
5. Playing Guitar/Drums/Violin
6. Learning to Design/Code
Now that you know what a passion-driven market is…let’s move forward to…
The Solution – Seekers
In this market, people have a major problem that has to be solved in the least time and putting in the least effort possible and saving them as much money as possible in the process.
This market is majorly looking for a way to attain instant gratification and providing instant gratification has proven to be one of the best way to huge amount of money.
Now even though at first look, this market might seem like to be optimal for one-time hit it appears that once the potential clients receive the solution they do not have the need to buy more products from you.
But the truth is just the opposite, the solution seeker’s market is an evergreen and a highly profitable one. This market has existed from the beginning of the time and will stay for a long time to come and thus you can experience a much higher ROI over a long term scenario.
Some examples of this type of market are:
2. Weight loss
4. Yeast infection
6. Making Money
Understanding the difference between both of these markets is pretty crucial for a marketer because the way we communicate with a particular market is much different than the other.
We’ll talk about communicating with our audience in the later sections but for now, all you need to understand is the basic difference among the two markets.
Now moving on…I’ll be picking out one viable niche to run my affiliate marketing campaigns in, so that you can actually see the valuation process and how to go about it yourself practically.
First we head over to clickbank and skim through the marketplace to find products that are already selling well and then head over to the Google Adwords tool to validate the scale of the market.
So, to start with..
I’ll head over to the first section in the clickbank marketplace i.e. Art & Entertainment and one of the products that really catch my eye is “Dubturbo”. It’s a software based product created for people interested in creating beats and editing music.
Now the gravity does indicate that the product is selling very good and even the payout is pretty much what we’re looking for here.
Note: In this case, I will not look into the sales page as the gravity speaks for itself, but just in case you find products with lower gravity but a good converting sales pitch, I would definitely recommend you to promote it.
Some marketers take gravity as the only metric while choosing products to promote. This notion might limit you from promoting good, highly converting products that your customers might really like.
Now that I’ve found my first test market that seems to have some good potential, it’s time to verify it with strong data.
So, we’ll be heading over to the adword’s keyword planner and just check how big is our potential market for this very product.
As per the data given above we can see that we have around 30,000 potential customers looking for what we have to offer to them.
I would personally go with this niche, but I’ll perform just two more validation steps so that everything is right on the checklist.
Now that the market seems pretty much scalable, let’s hit the serps and see what we get.
Now yes there are a LOT of advertisements, which really indicates that there are a lot of people already making money in this market and thus it is a viable market where we should definitely run our campaigns.
Personally, if I have come this far with a market, I certainly choose to go with it but we do have just one more step left to see how can we get more out of our marketing efforts.
So for just one more time, I’ll visit clickbank marketplace and see what all other “related” products exist, which my audience might find interesting.
Note: You can always go with other platforms like amazon and cj.com to find good products and offers to promote.
Here I was easily able to find four products that are targeted towards my market and seems to be selling at a good rate.
So that’s all for this module, Please make sure you bookmark this module for future reference.