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

By | August 10, 2008
279 Comments

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!

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

      1. Simone

        Hi Eric

        I thoroughly enjoy your lessons. While I am eager to start I find I am going back over some of the lessons so I don’t miss anything, this is really good stuff.

        I always look forward to the next lesson and can’t wait to get started, so glad I stumbled upon this information.

        Thanks alot for sharing,

        Reply ↓
    2. Jason Bulmer

      Hi Eric

      I love following your course and want to be able to keep up but I can’t afford this product (How to Have Your Own Information Product in 30 Days)
      Is there an alternative solution please?
      Thanks Jay

      Reply ↓
      1. Micah

        Hello Jason,

        There are other costs to building an online business, such as webhosting, autoresponder host, domain name registration, etc. But, there are free methods that may be used, to get off the ground if need be.

        If you can put together the funds, your best first purchase may be this one:
        http://www.nocostincomestream.com/new/

        Reply ↓
    3. emeka

      hi eric, I’m a NIGERIAN I really enjoyed all the lessons so far, they are so rich that their values can’t be quantified. My problem is that I want to buy your NO COST INCOME STREAM but I don’t have paypal account. Can your direct me on how your subscribers from nigeria get your products

      Reply ↓
      1. Micah

        Hello Emeka,

        Thank you for your question.

        The best solution we have at present, would be to find someone who could make purchases on your behalf, and then send the products to you.

        We’ve heard success stories from nearly every country, but I don’t know any marketers from your country personally.

        We recommend that you view the following inspiring article and user comments:

        Ladan Lashkari: If this girl can succeed – so can you!

        This can help you when there are business restrictions that must be overcome in your country.

        Reply ↓
        1. dale downey

          word tracker is not a free site and from some of the other comments in the lessons other free sites are not free anymore. What are to do, this program was to show us how to start an online business at a low cost. The costs keep piling up. HELP

          Reply ↓
          1. Micah

            Hello Dale,

            A realistic minimum investment for an online business would be about a couple hundred dollars, for web hosting, a domain name, an autoresponder service, and a product to start selling.

            However, there are many different ways to earn money online. Here is Eric’s lesson highlighting 18 different ways to earn online revenue:

            LESSON #4: 18 Ways to Make Money Online

            There are also free methods for running your business as well.

            Have you checked out Eric’s recent product, the No Cost Income Stream 2.0?
            http://nocostincomestream.com/invitation/

            The reason it is called that, is because it teaches HOW to get free traffic and valuable advertising at no cost.

            NCIS 2.0 actually covers 5 No Cost business models: No Cost Product Launches, No Cost Freelancing, No Cost Video Marketing, No Cost List Building, and No Cost Affiliate Marketing.

            The course is filled with countless hours of video training that will help you to do many of your business steps without being hampered by costs.
            http://nocostincomestream.com/new/

            It sounds like it would be a good fit for what you are looking for.

            Reply ↓
    4. Larry Edwards

      Well done Eric! Im am very excited to start moving forward with an online business.
      I cant wait to get started on your next lesson.

      Reply ↓
    5. isagani

      Hi Eric,

      I bought before your trading pro system product. I lost the email that contains information about what can I do about the product and what should not i do ( meaning limitation or rules when i use or sell the product). It would be helpful if you would help me on that aspect on knowing your rules when i sell the product.

      my email is invgoc@gmail.com

      thank you.

      Isagani

      Reply ↓
      1. Micah

        Hello Murri,

        If you have PLR materials in a niche already, you could certainly attempt to sell those, rather than creating your own.

        Reply ↓
    7. Rino

      Hi Eric
      quick question, my passion is soccer, I’m sure I can dig down into this niche even though its competitive.My question is since we are going to create an info product in this training I cannot think of one.Also clickbank has some products for back end but not many but when I Google other soccer / football as the rest of the world calls it plenty show up. Im stuck on the info product.

      Reply ↓
    9. David Hooper

      Hi Eric,
      Thanks for all you are sharing here. I appreciate it. Just thought you may want to know that the 43things.com site is gone. It is just a link page now. Regards

      Reply ↓
    11. Linda Finch

      Hi Eric, I have a shop on ebay for 2 years now self employed/sole proprieter, my niche is clothing, mens/womens all ages/sizes. I have learn that the more I sell the more charges eBay/paypal charge me on final value fees. I don’t have much left at the end of the month in pennies. I will have my own website and look forward to the rest of your lessons, that could help me along the way to success.

      Reply ↓
    12. David

      The only links on this section that still work are #3 and #6. The others are dead ends. Might want to update this article with new places to research since 2/3 of your list no longer is functional.

      Reply ↓
      1. Eric Post author

        Thanks for the heads up! My new and fully updated version of this is in my coaching club, Inner Profit Circle.

        Reply ↓
    13. Ralph

      I have just become aware of “No Cost Income Stream 2.0” and have watched the video covering it to the end. Is it advisable to take on the “No Cost Income Stream 2.0” course at this point in “Eric’s Tips”? If so, should “Eric’s Tips be discontinued?

      Thank you.

      Ralph

      Reply ↓
      1. Eric Post author

        You could work through both of them at the same time, because both of them essentially follow the same business model. The main difference is that NCIS utilizes free tools/services. The downside is that those tools/services are often inferior to paid ones, so if you can afford to invest a few hundred dollars in your business I’d stick with Eric’s Tips, or look for our “Low Cost Income Stream” upgrade to NCIS.

        Reply ↓

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