There are two different ways of ideas about niches. One takes the target audience into consideration first, which is the product centric model, while the other takes the product into consideration first, the audience centric model.
Actually, both of these ideas are identical but one of them will allow you to have more advantage. So which one is that? The product centric based idea.
The product centric model
The product centric model carries a time-tested rule of marketing: if you want to get into profit quickly, sell what people are already buying! There is plenty of information about things that sells well. Niche marketing is just a job to identify the gaps in the market which haven’t got dug yet, and build a business around it.
If you realize, books account for a huge portion of online revenue. Nevertheless, how do you grab a slice for yourself without competing against the huge companies like Amazon.com?
The answer is simple, you specialize. No matter how huge Amazon is, sometimes you still wouldn’t be able to find books that you want. What types of books are people searching for that they can’t find through the mainstream booksellers?
Another way you can build a niche around hot-selling products is to add some spice by customizing or personalizing them. In summary, the product-centric model is based on giving a twist to existing markets and trends.
The audience centric model
On the other side, an audience centric model takes a subject matter, special interests or information more importantly first. Basically, you start off with no idea on what to sell. You don’t have a product in mind. You only know your target-audience.
The great thing about the audience-centric approach is that you can create whole new markets out of thin air. This is the model preferred by most e-book authors and information marketers.
Where do we start?
So where do we start? You need to assess your own interests and strengths before you begin, especially if this is your first time starting a business. What are you already interested in? Do you have any background or expertise on a particular subject? Start with what you know, you’ll have more advantage because your prior knowledge will allow you to narrow down your niche quickly. In other words, you already have a good idea of how the topic breaks down.
If your passion is music, for example, you know there is an almost endless supply of potential products and potential buyers in areas as diverse as:
• Instruments/instrument sales/instrument repair/vintage instruments
• Techniques and lessons on how to play a certain instrument
• Memorabilia – shirts, hats, tickets, stickers, posters, autographs
• Audio production, recording, CD labeling, booking, promotion etc
You also know that any or all of those can be tailored towards: solo artists, bands, fans, managers, engineers, agents and the list go on.
Now that’s a great thing for you, but what if that’s not you’re interested? What if you are just not into creating a business out of your hobby, or you don’t feel any passion for your current expertise?
The good news is: It’s Fine! You don’t need to give up hope or bang your head against the wall for ideas. You will however need to do some extra work. This brings us to the second reason I suggest taking stock of your strengths.
Here’s a secret about most internet marketers. Ready to know? Here it is: Most of the famous niche marketers you’ve heard of create products for niches they know absolutely nothing about.
How do they do that? Easy, they either hire the research and writing to someone else, or hunt down an expert for an interview, just a combination of outsourcing and “branding”. Also, this type of marketer has his or her own set of “reasons why” for motivation.
• Pride of ownership
• Love of the creative process
• Need for variety and breadth, rather than depth
It doesn’t matter as much to this type whether the market personally interests them. His or her goal and passion is to hunt down as many overlooked niches as possible, dive into them quickly and start profiting.
So, if this sounds like you, you’re in good company! Once you learn the basics of niche research, you’ll have your pick of dozens of potential business ideas.