| If you were going to open a business with your own | | | | If you were to open a deli you would find what the |
| money, which of these two would you attempt? | | | | locals like to eat, when they eat and how much they |
| A mega superstore or the corner deli? | | | | spend. From there you can offer a menu that suits |
| Would you try to battle some of the world's largest | | | | their tastes. Do they like cold cuts? Roast beef or |
| companies, with the most established names and huge | | | | chicken or vegetarian? What kinds of toppings? Side |
| budgets? Or would you try to find a community with | | | | orders? Dessert? What do they drink with it? What |
| relatively few eateries and a sizeable population, then | | | | portions? How would you get the word out? What do |
| try to appeal to that group of people? If you wanted | | | | you want your deli to be known for (bean burritos)? |
| the best chance of success, you would open the | | | | The same is true with an online site. In this example, |
| corner deli. Guess what many people would do when | | | | who buys ship models? What for? How much do they |
| given the equivalent online choice? | | | | spend? For a start, ship models are upscale, luxury |
| That's right. Many people who create web sites try to | | | | goods. I've seen prices of $20,000 and more (imagine |
| build the "superstore" web site instead of the "corner | | | | a commission on that)! We sell in the more affordable |
| deli" site. They join dozens, even hundreds, of affiliate | | | | $40 to $1,300 range. Clients buy them as decoration in |
| programs, create as many categories as Yahoo and | | | | homes and offices. Or as gifts, especially retirement |
| then link to all these programs. | | | | gifts. |
| They're unlikely to succeed. They will not be | | | | What does that tell us? Our target market is older |
| knowledgeable about most of those programs. How | | | | affluent folks who use the Internet (we currently sell |
| can they be? There are only 24 hours in a day. Why | | | | exclusively online) who live in the US or Canada. The |
| would people visit their site? People visit web sites for | | | | recipient is usually a man, though the buyer is |
| information. Don't ever let anyone tell you differently. If | | | | frequently female. |
| a site doesn't have some sort of unique, specialized | | | | Of course, you don't want to pay $0.70 a click for |
| information then it has nothing. | | | | traffic if you can help it. So how would you go about |
| Internet marketing. It's not a niche. It's a mass market, | | | | promoting something like this? By thinking of related |
| like Wal-Mart rather than the local deli. Yet it's amazing | | | | areas or sub-niches. Using a little bit of lateral thinking, |
| how many neophytes try and promote Internet | | | | what else are older, affluent men interested in? |
| marketing affiliate programs. Most likely they do this | | | | Traveling? Golf? Cigars? Wine? Vacation homes? |
| because that's the first thing they are exposed to | | | | Investing? |
| when contemplating starting an online business. But | | | | You could create a mini-site that's strictly about model |
| that's not the right approach. | | | | ships. It'd be like the hot dog stand instead of a deli. |
| The right approach is to use the information about | | | | The bare essentials to service customer needs in a |
| Internet marketing to carve a niche for yourself in a | | | | tightly defined area. Or you could focus on related |
| place where there is not as much competition as in the | | | | things like maritime history, birthday or retirement |
| "gorilla" areas - areas where you have to compete | | | | parties, interior decorating, gifts, travel to coastal areas, |
| with proverbial giants. | | | | a particular aspect of boating or sailing, and link to a |
| You have to focus on a niche you know and love. | | | | few related affiliate programs. There are many |
| Why? Because that's the only way you're going to be | | | | possibilities. |
| able to devote the kind of time and effort to create a | | | | For example, suppose you decide to focus on 40th |
| meaningful site, build up the right traffic, generate | | | | birthdays for men. Your site might include 40th birthday |
| worthwhile income, and enjoy what you're doing. | | | | party ideas, humor, cartoons, birthday cards, and gift |
| Here's an example. I sell display-ready ship models. It's | | | | suggestions (maybe 40 of them). Among those |
| a niche that upon first inspection has a lot of | | | | suggestions could include golfing accessories, wine, |
| competitors. But most are just small shops that have a | | | | vacation packages, and of course ship models. |
| web site. Is there demand? Yes, a search on | | | | There are many, many ways to approach this. The |
| Overture's Keyword tool reveals nearly 30,000 | | | | goal is to find some combination of supply (targeted |
| searches last month for the phrase "ship model" and | | | | traffic) and demand (goods or services) that is |
| thousands more specific searches for a number of | | | | favorable and related to the topic of your site. Choose |
| related items. | | | | the affiliate programs that fit well with your niche. Then |
| What's the top bid? About $0.70, so there's money in it | | | | focus on that niche by developing related content that |
| too. Advertisers don't continuously pay that kind of | | | | visitors want, and consistently promoting it. |
| money without generating results. So there's your | | | | The reality is that putting up a web site alone just |
| answer. Yes, there is demand and there is money in it. | | | | about guarantees that no one will visit your site. And |
| Is there too much competition? | | | | creating a web site takes work. As with bricks and |
| No, you don't see any "gorillas" the size of a Sears or | | | | mortar, it's better to build a thriving deli with a line out |
| General Motors or Amazon in it. When you think of | | | | the door than a mega store with an empty parking lot. |
| model ships, there's no company that you instantly | | | | Keep that in mind as you look to uncover profitable |
| associate with it, like Amazon when you think of | | | | niches. |
| books. That's a promising start. | | | | |