Testing Your Prospective Niche

Many internet marketers will find a niche that they think will be profitable, they then spend a lot of time and money to developing a product. The key word here is “think” will be profitable. Few marketers will take the time to actually test the market before they develop the product. By testing the market you can determine three key factors about your niche. First, is there demand for your product, two are people willing to pay for the information and three you can determine what clients are looking for.

The best way to test a market is by creating a creating a 10 to 20 page report that you will giveaway. The report should contain summary information that you believe your niche will find useful. You should include some affiliate links in the report. You can use the response to the affiliate links to see if the prospective clients are willing to pay for information.

You need to set up a squeeze page to collect the names and addresses of the prospective clients who are requesting your free report. The best way to drive traffic to your site fast is by using PPC. I recommend using Adwords, Yahoo and MSN as your goal is to build the list as fast a possible. Article marketing may also help, but nothing is faster than PPC. You should understand you will loose money during this phase. However, this will save time and money in the long run as you may find out a niche is not profitable and you can then look for another one.

You should send a survey to your list to see what information they want and need. What value they found in your report etc. They will tell you what information to include in your final product that you intend to sell.

Although every niche is different, most marketers will not launch their product until they have at least 5,000 subscribers. With the information you collected from your survey you can create your product and you already have a list of several thousand prospective buyers.

Following this process also lets you investigate more than one niche at time. This would be impossible if you were spending the time to develop a product.

Like this post? Subscribe to my RSS feed and get loads more!