A Major factor in people failing in their online business venture is that they have NOT taken the time to identify whether there is a market for what they want to sell.
So – the first step in any online business has to be researching a market to determine if that market is viable.
What is a market?
“a community of people who share a common interest in a particular subject or activity”.
Example: “Brides to Be” is a market. Their area of interest is “weddings”. They have their own language (eg “FMIL” – future mother in law (who knew!!)).
What is a Niche?
Within a market, you will find lots of niches. A niche is:
a subset of a market that relates to a specific topic.
Example: Within Brides to Be market, there are niches like:
- wedding flowers
- wedding photography
- reception venues
What is a Micro Niche?
niche within a niche
Market: Brides to be
Niche: Wedding Photography
Micro Niche: Wedding Portrait Photography
Why are micro niche’s important? Because they have less competition than niches!
What are Keywords?
Keywords are the words or phrases that members of a market type into a search engine in order to explore a particular niche.
People within a niche use different keywords to search on the web. For example:
“wedding photography tips” vs “wedding photography pricing”
So even though they are searching the same niche, they will get different results and so see different websites.
each phrase is literally a key that unlocks a specific door to provide access to a market niche.
The no of people using each keyword phrase varies greatly. For example:
- “wedding photography tips”: 217 searches per day
- “wedding photography pricing”: 5 searches per day
Obviously, “wedding photography tips” is a far more valuable phrase than “wedding photography pricing”.
Why Does All This Matter?
Research by those associated with The Challange has demonstrated that:
…it takes the same amount of time and effort to build an unsuccessful business online as it does to build a successful business.
The biggest determiner of success or failure are:
- The market you choose.
- The keywords you target.
If you get one of these factors wrong, it is highly likely your internet business will fail!
In our experience, the main reason people fail is that they do not spend the time upfront to do the market research necessary to check if their business idea is viable. Instead, they rush in, they select a random niche, they target random keywords (or worse, they don’t target keywords at all). And then, they just hope for the best.
If you want to succeed then you need to:
- Research markets carefully.
- Target specific keywords.
- Follow a proven plan.
Spend some time exploring online markets (on Google) to try to identify three examples of the market, niche, micro niche hierarchy.