LESSON #19: How to Choose a Niche (Part 1)

Back in lesson 7, we established that the type of online business model I’m going to be teaching is primarily an information publishing business.

In other words, you’re going to sell your own information product (also known as an infoproduct). But before we can create an infoproduct, we need to choose a topic for it.

(Watch this video…

NOTE: This niche selection process applies to virtually ANY type of online business– not just infoproducts!)

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Main points:

  • A niche is essentially a specialized market containing a group of people who share a common interest or quality.

  • Reasons newbies get stuck at this point:

    1) They think they’re going to be married to it (so they stress out and procrastinate making the choice)
    2) They’re afraid it’s going to fail and not be profitable.

    (both reasons are basically that they are afraid of choosing the wrong niche)

  • We can start with one of two possible branches:

    1) Something you know
    2) Something you don’t know

  • There are pros and cons to both of those sides, but I prefer starting with something you know and are passionate about because:

    1) Your enthusiasm will help sell it
    2) It will be a better product
    3) You can relate to your market

  • Try not to fall in love with your product idea, as it could become a stumbling block if you’re attached to it.

  • Consider the possibility of developing several products in several niches over the long term (multiple streams of income add stability to your business), but start with ONE.

  • The key is research. (make sure it’s a good niche BEFORE you invest additional time and money into the business)

  • Some questions I answer through research:

    – How big is the niche?
    – How competitive is the niche?
    – How profitable is the niche?

  • Is there potential for back end products? (If not, you may want to reconsider)

  • Trends and fads can be VERY profitable, but you should consider an evergreen topic if you want to build this particular business for the long term.

  • People are looking for information to ease their pain or fuel their pleasure. That’s the kind of information they’re willing to pay for.

    Action step:

    1) Brainstorm some topics that you would be interested in turning into a product. Write them down.

    Don’t worry about details of the niche market for it yet…we’ll be doing the research in the next lesson.

    If you don’t already have some ideas in mind, and don’t know how to start brainstorming, here are some places to look for ideas (starting points)…

    1) What’s hot on Ebay (updated each season)

    2) Ebay Popular (dynamic popularity rankings)

    3) Best sellers on Amazon (updated hourly)

    4) Shopping.com Consumer Demand Index (updated every 2 weeks)

    5) Most popular goals on 43things (updated daily)

    6) Google hot trends (updated throughout the day)

    Special Offer:

    Today I’m offering an ebook which explains how to have your own product online and making sales within 30 days.

    If you’re interested in discovering all the details about the niche selection process, or in getting a jump start on the rest of the product creation process, this ebook is for you.

    It is a brand new exclusive ebook created for Eric’s Tips.

    How to Have Your Own Information Product in 30 Days“.

    InfoProduct in 30 Days Ebook

    Click here to get more details and download this ebook

    (Resale Rights also available)

    As always, you are welcome to post your questions and comments below. Feel free to let me know if you’ve got some topics in mind, or if you’ve already chosen a niche.

    Have a great day!

  • 279 comments on “LESSON #19: How to Choose a Niche (Part 1)

    1. Eric Post author

      Hi Alan, it looks like your make money site doesn’t have much content, so you’ve not given enough of a chance at success. I’d recommend trying out our coaching club if you’d like some in depth advice on this, we can help you on oour webinars. Garden sheds is a potentially good niche. It’s competitive, but I think it’s big enough for new players to enter the market.

      Reply
    2. Mark Lewis

      Thanks Eric for the good tip. Most important stuff here.

      Mark

      Reply
    3. Brenda McFadyen

      Hi Eric, I’ve decided to cancel the gift store I was supposed to be opening in a few days. I am extremely discouraged. Why can’t companies just be honest from the start. Every time I called this company I would talk to a different person in management, and then they would proceed to tell me about new charges I was looking at. It was ridiculous. I just kept saying that I thought I’d paid for the whole thing the first time. Reply: Well when you pay this that should be it. HuH!!Finally i decided to just cancel and be done with it as I could not afford anymore. I don’t think I’ll be going into any other business so I feel that I probably don’t need your lessons anymore. Thank you for what I’ve gained so far. It has been incredible

      Reply
      1. Michael

        Hi Brenda,
        I hope you don’t mind me butting in here, I can’t help but feel you are giving up too soon-yes I hear you regarding the company you had this unfortunate experience with-but this is not the only game in town, Internet Marketing covers a huge range of business from selling physical goods, to coaching, information products, blogging, I hate to see someone get discouraged by the bad attitude of a few people-I reckon you should give Eric’s lessons another go and also look around for another avenue-it just might change your life.

        Reply
    4. Kriangsak Charanyanond

      HI,Eric,

      This is your straight foward to niches.It’s easy to understand.Thus,some comments from your friends are useful.Thanks for your contribution.

      Reply
    5. Joseph Medina

      Hi Eric! Since I already have a domain name and a niche chosen, could you take a look at my blog and advice me as how can I monetize it properly?

      Reply
    6. Micah

      Hello Joseph,

      It appears that there are displaying errors at your blog above.

      You might want to try the Socrates Theme, which will take care of those errors for you.

      This is a great WordPress theme that enables you to set up a website in a matter of minutes with built-in monetization.
      http://www.ericstips.com/instantwebsite/

      Reply
    7. Dave

      Eric, i am somewhat disappointed. I bought the ebook and discovered it is written by someone in England and is very dated. the reference to spyfu is totally different from what the actual site displays. What gives?

      Thx

      Dave

      Reply
    8. Micah

      Hello Dave,

      Websites and services like SpyFu often get a site makeover. But, their same basic service is still being offered. Trying to keep up with changes at Google can be even more difficult.

      I’m not sure what how an author’s home country has anything to do with the validity of the information? We personally know a number of highly successful marketers in England!

      Reply
    9. Andrea Olivas

      Hello Eric,

      Is there an alternative to spyfu? This is no longer free. Thank you!
      Andrea

      Reply
    10. Micah

      Hello Andrea,

      There are alternatives like SEMrush, but they cost money as well.

      Reply
    11. Alan

      Speaking as a Brit i think we would know how to pronounce our language better than anyone else, it is pronounced neesh:)

      Joking aside i have purchased a few of your products and you are a great teacher.

      cheers Alan

      Reply
    12. Annalisa Hedberg and Roger Nylen

      Thanks a lot for your lovely lessons! I have been thinking a lot about niches and I have some ideas. I will try to do some research and see what that looks like.
      Annalisa,Sweden

      Reply
    13. joyce lim pin geok

      Dear Eric,
      I’ve got a domain n webhosting names, ebooks and softwares bought in Dec.2012 but have yet to start my business. Where and what website to click lst?

      Reply
    14. Eric Post author

      These lessons are a good place to start. Go through them step by step.

      Reply
    15. Vada

      Write more, thats all I have to say. Literally, it
      seems as though you relied on the video to
      make your point. You definitely know what youre talking about, why throw away your intelligence on just
      posting videos to your site when you could be giving us something informative to
      read?

      Reply
    16. Micah

      Hello Vada,

      Thank you for your input. It actually takes more work to create, and edit the videos.

      But, they are actually the format that most people prefer. A lot of people have different learning styles. Getting to see what it is happening on the screen is helpful for many people.

      Reply
    17. Gary Hogan

      Thanks Eric – getting keyed in – Have a great weekend — Gary

      Reply
    18. Pat Volk

      Mary, I agree with you. I do want to make make money but more important is this is information that I am passionate about and have a mandate to follow my passion.It has to do with health, climate change, and of course, the horrors of factory farming. I think we are on similar paths.

      Reply
    19. Pat Volk

      I totally agree with you, Paul. I need to have it made clear step by step, and not telling how to get from point A to point B.sometimes you have to keep bugging support.Eric does a great jo!

      Reply
    20. Pat Volk

      Dot, from what I hear of New Zealand that might e a great niche/My son spent a few weeks there and now my grand daughter is going there to observe a sheep farm as part of her veterinarian studies,

      Reply
    21. Pat Volk

      Cheryl, what is a “wellness expert” Do you have a certificate or degree or do you just call yourself that? A significant fact is that our diets are killing us. Please read, “The China Study” by Dr. Caldwell, the best book on nutrition. (Let thy food be they medicine)
      Have you heard Dr. Fuhrman or Dr. Amen lecture on PBS?

      Reply
    22. Pat Volk

      J. Al Powell -It is perhaps the number 1 niche and since you are young you should do very well with this niche.Shakespeare said something about there is a time in the affairs of men, when,if taken at the right time, will lead to fame and fortune.We must take steps to fix our planet and take care of energy needs.

      Reply
    23. moemoneymoe

      These are some very great lesson! I should have found you years ago.

      Reply
    24. Alison

      Hi Anonymous!
      I’ve had that problem a couple of times too.
      I found it was more to do with my own browser, and if I refreshed the page or closed the window & clicked on the link in the e-mail to open the page again then it would play without any problems 🙂
      Hope this helps!

      Reply
    25. Anonymous

      Thanks Eric,
      Very helpful after listening this lesson. I was always thinking what business I should carry on.Now I am not struggling for it and more relax to choose one to start.

      Reply
    26. June

      Thanks Eric,
      Very helpful after listening this lesson. I was always thinking what business I should carry on.Now I am not struggling for it and more relax to choose one to start.

      Reply
    27. Benn

      Good day Eric,
      Is Affilliate Marketing of Anti Wrinkle Creams a Niche?
      Benn

      Reply
    28. Micah

      Hello Benn,

      Yes, that would be a niche. You might also expand it into a few other anti-aging products for more earning potential.

      Reply
    29. Benn

      Hi Eric,
      I am going ahead with wrinkle creams and lots of other anti-aging products in the back end so it should work well yes?
      Also, I would love to rebrand and sell the Easy SEO Ninja but I dont have the know how… so can you tell me this. how do I know what keywords and what to research to find out if the rebranding to SEO Champion would be good?
      Looking forward to hearing from you.
      Thanks Eric!

      Reply
    30. Eric Post author

      Yes that sounds like a good niche. I haven’t researched it, but I think anti-aging products will always be in demand.

      Typically when I rebrand PLR products, I do not worry about keywords. It is difficult to get sales pages ranked well on Google anyway, so I focus more on what is a product name that people will like, and I use methods other than SEO to drive traffic to it. In that regard, I think SEO Champion is a good name.

      If you ARE going to use SEO and looking to rank the name itself, then SEO Champion is probably not a great keyword, because no one is searching for it. You would want to do some keyword research and see what SEO-related terms are being searched for. For example, SEO Keyword Software. In which case you could call it SEO Champion Keyword Software. However, SEO is so much more than the title of the product. For example, “Traffic Travis” is ranked #2 for “SEO Software”. Obviously they’ve done some good SEO on it.

      Reply
    31. Benn

      Hi Eric,
      Really great to hear from you – you are a very trustworthy teacher so thanks for that.
      I have gone ahead with the rebranding idea of the Ninja series.
      What I have done is buy the domain for THEMARKETZOO.COM (Hey There, I know it’s a zoo out there for you humans…”) through LIFEDOMAIN and within this site I am creating products (and also got Domain names)called:
      Word Press Rhino – Charge Through Word Press Like a Rhino.
      Expired Domain Gator – Snap Up Expired Domains like a Gator
      Pin Traffic Gorilla – Get Gorilla Grip on Pin Traffic.
      Easy SEO Elephant – Bring it in Big like an Elephant
      Tube Traffic Tiger – Rule Youtube Traffic like a Tiger.
      Viral Traffic Wolf – Hunt down Viral Traffic like a Wolf.
      The site is pretty simple – I will try get it done today so you can have a look at it on the next RealCoachingClub Webinar.
      Its the re-branding that will be the big challenge for me so I do look forward to communicating with you and your team through this challenge.
      Thanks Eric.
      Benn

      Reply
    32. Benn

      Gday Eric,
      As far as the anti-wrinkle cream thing goes I dont know how to make an info product for it as I dont think I will have the product to sell… can I go ahead with an info product and assume that I will find a way to sell affilliate prooducts later.
      I am only upto Lesson 25 at this stage.

      Reply
    33. Eric Post author

      I talk about how to create an info product in this lesson series. Also it can be outsourced, or partnered with someone who is an expert. And yes, a good strategy is to sell infoproducts, and then promote the physical products as an affiliate.

      Reply
    34. Don Karp

      What do you think about starting a Facebook page as a project prelude to a full launch with web presence and etc? Might this be a way to test the market without doing as much work?

      Reply
    35. Eric Post author

      Possibly. It’s not a bad idea, but if it’s your first product I would be very cautious about doing any side projects. It tends to become a form of procrastination that slows you down from the actual launch. It’s usually best to just get your first product out there, even if it’s under sub-optimal conditions. So I’d say do it only if you’re truly not going to spend much time on it.

      Reply
    36. Andrea

      Eric, I’ve been following your lessons step-by-step and after previous attempts @ online systems, I can only say what an anointing you have in your chosen “niches”. I feel a great peace and safety and have also learned to ignore the constant barrage of email ads. What a kindred spirit you are-you have others best intentions in mind (long-term). Trying to get through this before classes resume in the fall- Much appreciation & blessings to you & your family

      Reply
    37. Signe Seiersen

      Will it be a bad idea to have selfimprovement, with coaching as a niche?

      Reply
    38. Micah

      Hello Signe,

      No, that can be a very profitable niche. You might want to get a little more specific though, as there is a lot of competition in the arena of general self improvement.

      Reply
    39. joshua mcneil

      Eric thanks for all the information for the products and all your support. You’ve really inspired me with all that you have provided. It really touches other to want to help as well. So I just really want to thank you for your caring, thank you.

      Reply
    40. julie

      Hi Eric! God Bless you and thanks for all this helpfull lessons! I just want to ask you . In affiliate marketing , when you decide that a product its not workong for you ? How many visit with no sales? I just start and no so sure how to mesure that . Like 200 visit no sales its normal? Should I change a campaing like that? m soory! I’m so lost:-) lol .
      Thanks!!!!

      Reply
    41. Micah

      Hello Julie,

      Yes, you would want to either make changes to your ad, getting more targeted traffic, or find something else to promote.

      Eric’s latest product launch had something like 12% front end conversions.

      Reply
    42. Tina Nancollas

      Hello Eric,

      I’ve been following your course with the goal of promoting and enhancing my own website business and selling my paintings. Will you be including information that will help me with this?

      Thanks,
      Tina

      BTW,you have already give me a good deal of insight into alternatives to SEO.

      Reply
    43. Eric Post author

      Yes, although these lessons are geared primarily toward selling information products, they can definitely also be applied to selling other things such as your website services and artwork. Thanks

      Reply
    44. melvin williams

      Because I’m interested in just about everything…my niches will be whatever meets my demand/supply/available products/total ROI

      Reply
      1. bob

        I’m also one who is interested in just about anything that grabs my attention. This has caused me to get stuck in the past when deciding a niche to work in. Sometimes I feel like a “Jack of all trades but a master of none”. I hope there is something in these lessons that will trigger an idea on how to capitalize on this situation.
        Thanks for sharing your comment!

        Reply
    45. Samuel Hutson

      Thank you Eric for the helpful tips.
      I got sidetracked for a while…I began the lessons in mid-June, and I allowed pastoral duties and family duties to push the goal of becoming independent financially into the background. I reviewed the previous lessons, and I have renewed the commitment to become a great internet marketer. Your tutorials are very good, and I am very thankful to you for your commitment to deliver helpful content to average newbies like myself. I look forward to having the benefits of your coaching on a more advanced level when I complete these lessons.

      Reply
    46. Eliza

      Hi Eric,
      I think evergreen niches has to do with technology and environment.
      I am more passionate about environment related niches such as organic gardening,
      healthy diet and living (e.g related to lose weight) or healthy attitude etc.,

      All The Best,
      Eliza

      Reply
    47. alan rennie

      Hi Eric,
      I am and have been passionate about the rebuild of my city , christchurch for the last 3 years after the earthquakes, and now need to let people know how to rebuild correctly ,their dwellings, there are a lot of mistakes being made in the rebuild and I need to capitalize on that.
      Your thoughts Eric,.
      God bless,
      Alan and karen Rennie

      Reply
    48. Joseph Cheek

      Hey Eric,

      I mentioned in my comment to a previous lesson that I am interested in the natural health cures niche. It is my observation that traditional health care is becoming too expensive, as well as pharmasuticals drugs. Besides, these drugs can be dangerous and do more harm than good. What I would like to do is sell an infoproduct related to treating a particular condition naturally with a physical product on the back end. I’m actually thinking that I’d recommend this product with a link to it within the infoproduct. Can you share your two cents on this?

      Reply
      1. Micah

        Hello Joseph,

        Yes, these methods may be used to help sell physical products as well! Typically, you won’t make as much of a commission on affiliate promotions for physical products, as opposed to electronic goods. Is this a product you wish to sell yourself?

        Reply
    49. Harry Center

      How do I jump ahead in Eric’s Tips. I have received tips 1 and 2. I have moved ahead and completed tips 3,4 and 5.
      When I leave the computer and return at a later time, how do I go directly to the tip I want to watch . . . in this case tip #6? Thanks! Harry

      Reply
      1. Micah

        Hello Harry,

        Eric will still be completing 100 lessons. The next lesson will be sent to you soon. You can also visit the following link to see the latest lesson updates and revisit earlier lessons:
        http://www.ericstips.com/tips/category/lessons/

        Here is the direct link to lesson 6:

        LESSON #6: Self Employed or Business Owner?

        You may also simply change the number at the end of the link, to go to a different lesson number (example: /lesson1, /lesson2, /lesson3, etc…).

        If your email happens to block some of the lessons, we recommend that you view this tip on whitelisting an email address:

        How To Add a Sender to Your Whitelist (Safelist)

        Reply

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