Membership Niche Selection Tips

In order to make sure your membership business is profitable, you have to select the right market. Here’s how.

Number 1 – Discover Niches with Fanatics

The number 1 thing you have to do is find fanatics if you want a profitable membership website. Simply put, a fanatic is someone who’s willing to spend time and more importantly money on a topic they are interested in. OK, so we know what a fanatic is, but how do we find them?

• One simple idea that’s easily forgotten is to scan the magazine racks when you’re out and about. Because it’s becoming harder and harder to keep print periodicals profitable these days, if you see a magazine on the shelves, you know it’s making money. And that means there are lots of people interested in it. If they can make money in a print version, you can probably make money with a membership website.
• Pay attention throughout the day in your regular activities. See what people are talking about on the radio, TV, at parties, in public, etc. People generally talk about things they are interested in. Which means you can start a membership business providing information on it.
• Again, looking in the physical world for clues you can tell there are lots of people interested in something if there are clubs and organizations around the topic. Likewise, if there are enough people to hold a convention, there are definitely enough people to fill your membership website.
• What about your interests and hobbies? Chances are that if you like a certain topic or hobby, other people do, too. The icing on the cake here is that you get to build a business doing something you love.
• One simple and easy way to find out what’s hot is Google Trends. Google Trends tells you the most popular current search terms. These topics are the hottest topics because lots and lots of people want information about them. Building a membership business around things people are actively searching for is a great way to ensure your success.

Second – Analyze the “commerciality”

OK, so you’ve got a great idea for your niche membership business with lots of fanatics. But will they actually spend money? One way to figure this out is to see if other are making money in it.

Here’s how to determine if you can make money in your chosen niche

• Are there blogs or forums in this niche? Take the name of your niche and search for “niche name blog” & “niche name forum” in Google to see if there is an active group of people talking about and interested in the niche. This lets you know there is a market (a group of people actively interested in the niche.)
• Search Amazon, Google shopping and eBay to see if people are creating and selling products in the niche. If other people are creating and selling products in this niche, it means there is money to be made.
• Monitor Google Adwords to determine if people are running the same ads for weeks in a row. If they are, this means they’re making money on these ads – otherwise, they’d stop running them. Which means there is money to be made in your niche.

Step 3 – Determine ease of entry

After figuring out a good niche and determining that other people are making money in it, the last thing to do is decide if you will be able to enter the market. Here’s how to make this determination:

• Product types. What kind of products are being sold in the niche? You’re looking for a niche that sells info products. The easiest membership website to create and maintain are information membership sites.
• The next thing to look at is the competition. You don’t want to try to break into a saturated marketing, so figure out how many people are already selling in this niche.
• Compare the size of the market versus the number of competitors. Some competition is a good sign – just make sure the market is big enough for you to join in.
• How quickly do people in this market make buying decisions and are the ready to buy? Every market is different. Sometimes people are looking for information and are ready to pay for it right now. And sometimes it takes weeks, months or even years for them to make the decision to purchase.

Putting it all together

OK, now that you’ve figured out what niche you’re going to go into. Determined there is money to be made and that the competition is not too strong to break into it. You’re ready to start your membership business. If you’ve done your homework, your business will be a success because you already know your market is a profitable one with room for you. Learning how to run a membership website is a topic for another article…

Tags:internet marketing,membership business,membership website,online marketing

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