But it’s all a matter of perspective. Spending time and money on customers who are lukewarm to your offer is like constantly filling a leaky bucket with water. Lukewarm customers are NOT loyal and hence not profitable. Real profitability comes from existing customers who purchase more and more from you over time. Lukewarm customers are taking up space that could be filled with a loyal, profitable customer. So get over your fear of saying no to customers who just aren’t that into you.
For some businesses identifying a targeted niche market comes as naturally as breathing. I’m thinking of businesses such as muscle car restoration or embroidery hobbyists. But for the rest of us, finding a solid, unique and profitable niche takes some real effort. If you were to look for advice on how to identify a great niche, you’d find advice like “pick your passion and become the authority.” This kind of advice sends me through the roof! That’s probably because it’s being given by someone who naturally knew what their niche was and could only tell you the basics of how they got there; kind of like asking Mozart to teach you to become a composer. Not effective.
Mike Mindel, the mind behind WordTracker came up with this easy niche-generator that I’ve put my own spin on and have been using for the past week and I love it! All you will need to get started is a spreadsheet, an open mind and your favorite keyword research tool.
- Open your spreadsheet and create the following column categories: Passion, Audience, Niche, Frustration and Opportunity
- Start brainstorming on the different areas that you are passionate or knowledgeable about. Then identify an audience that you resonate with.
- Then combine the passion with the audience and create a brand new target market.
- Now that you have them in your mind, what is their biggest frustration?
- What can you provide them that is of value and will solve their frustration?
Once you’re done with your brainstorm, it’s a great idea to head over to your favorite keyword research tool. Here are some popular keyword analysis tools to try: Google Insights, SEO Tools Keyword Suggestion Tool, WordTracker, NicheBot. Type in one relatively general word (I used the word “niche”) and then see what unique combinations the tools come back with. You will find your niche with keyword phrases that are growing in popularity. In my “niche” example, I would explore opportunities around “ecological niche” or perhaps I’d write an article or e-book with the words “Niche Creator” in the title.
Finding a fun profitable niche isn’t as hard as you think. In fact it’s actually a lot of fun – especially if you approach it with an open mind and a creative spirit.
Take the time to create at least one new niche each quarter and see what new opportunities present themselves.