How to Pick the Right Niche
Understanding this chapter is crucial if you want to make money as an affiliate marketer on the internet. If you blow off this chapter don’t be surprised if your business goes belly up!
That’s how crucial it is. Things often go seriously wrong when sellers pick the wrong niche.
Unfortunately, you will only become aware of your mistake when it’s too late to rectify it. You will know you picked the wrong niche when you have spent a tremendous amount of time, effort, emotional energy, and money only to find that you have very little, if anything, to show for it. Remember, never trade your time for money!
One of the most common mistakes that new sellers make is to sink money, effort, and time into a resource that simply does not provide a real service or, if it does provide a service, provides it at too high a cost to justify its use.
I simply can’t emphasize enough that niche choice is crucial to your affiliate marketing success.
A Quick Rundown of What Can Go Wrong?
First, there may be low or no demand for your product or service. When you pick the wrong niche, the demand may not be there. You might think that it’s the hottest thing since sliced bread, but people really could care less about it – what they care about is whether you produce the kind of results that they would pay dollars for.
Another problem with picking the wrong niche is that you may pick trendy niches. This may seem really hot right now, but they may be “here today, gone tomorrow.”
A good example is fidget spinners. These spinners created a rage in 2016. Now, nobody wants to have anything to do with them. A lot of people made money selling these fidget spinners but a lot of people also lost money because they entered into the niche too late.
Trendy niches can mean the end of your affiliate marketing investment. Avoid trendy niches and instead, pick niches with tried and true long-standing sales histories.
Another problem that you can avoid by picking the right niche involves a low return on effort. A lot of people confuse this with return on investment. These are two totally different concepts.
Return on effort is the amount of time you personally invest in something. The iron rule of return on effort is to put in as little effort and time as possible while getting as many dollars as possible.
If you don’t stick by the iron rule and pick the wrong niche, you could end up making some money but only at the expense of your time, mental energy, and emotional resources. Pouring your life into that activity is simply not going to be worth the return on effort.
Of course, there is always the possibility that you would pick a niche that has really no return on investment. This speaks more to the number of dollars that you’re going to be putting into your affiliate marketing business. Maybe you put in this money upfront or at a later stage in the development process.
Whatever the case may be, whatever profit your business produces does not in any way, shape, or form come close to justifying the amount of dollars needed to put up the business in the first place. Sadly, people commit this mistake all the time.
Another danger with picking the wrong niche involves competition. People routinely pick niches that are too competitive. As a result, there are just so many of these niche websites out there that the competition becomes a washout altogether. In other words, the competition is so great that essentially no one wins.
This is a serious problem because if the typical consumer interested in that niche gets the impression that your website is just like everyone else’s website, there’s really no compelling reason for them to go to your site instead of the thousands of other websites that share your niche. It simply is too saturated.
Another danger that you need to avoid involves your mindset. You may be making money off your business. Things may be looking great on the surface, but somehow, someway, you lost interest. You just don’t have the heart for it anymore.
This pitfall is often the true reason that your business is unsuccessful. If you truly lose interest in your niche or your business you will not have the level of passion you need to solve problems as they present themselves.
That is the essence of a successful business. Successful business people solve problems. That’s their job. That’s their calling.
Unfortunately, if you lose interest in whatever it is you’re doing for money, you’re not going to be excited to solve issues. You’re probably not going to be in a hurry to put out fires as they appear. As a result, your business starts to die slowly.
In other words, you find yourself in the pitiful situation of putting in all this time, effort, and money to create a website that pulls in a nice chunk of traffic, only to end up completely empty-handed because you have nothing to sell or promote. Sounds ridiculous, right?
Unfortunately, you can suffer from anyone or even a combination of all of the problems listed above if you do not pay close attention to the niche selection process.
You have to know how to select your affiliate marketing niche in a systematic and methodical way. Otherwise, you may end up creating the wrong business.
How to Pick Your Niche the Expert Way
By following the steps I layout below, you increase your chances of affiliate marketing success tremendously.
Instead of coming up with a “hot” idea and wasting a tremendous amount of time, effort, and money on it, if you follow the steps that I lay out below, you go through a tried and proven niche selection process that dramatically increases your likelihood of success.
Now, this is not a guarantee that if you just follow these steps riches await you in your bank account. Still, it will give you enough of competitive advantage that your chances of success are much higher than if you were to fly by the seat of your pants.
You need to go through these steps. Don’t skip any of them if you want to make sure that you are targeting the right niche.