4 Powerful Ways To Do Market Research and Uncover a Profitable Niche for Free
How To Conduct Market Research And Uncover Niches
Entrepreneurs and those who own small businesses, are often misled by the market research they have done. While they receive a degree of information, their efforts do not uncover a profitable niche, and the result is them being stuck with a series of websites that don’t maximize their earning potential.
One of the first places these entrepreneurs turn to for insight on their market research, is a keyword tool that they hope will guide them.
This isn’t an effective way to uncover a profitable niche. As an individual who has done considerable keyword research, and a founder of one of the leading website tools, I can tell you from experience, this isn’t the place I would begin or even recommend.
The primary keyword databases online only account for about 1% – 2% of the actual searches that are being done by individuals across the globe. Since they can only do an actual prediction, this market research tool pulls what it can from Google, MSN, Yahoo, AOL, and even ASK.com and provides the data from these sources.
This doesn’t mean people are actually buying these items. Rather, this is phrases that are being searched. So if someone is searching a specific brand name, it does not mean they are interested in a purchase. They may be comparing key ingredients, or taking information and working something else. They may also simply be keeping up with competition, and that is something you need to consider as you uncover a profitable niche.
Instead, your focus should be on a larger niche marketplace, and look at what people are genuinely hungry for. See what people are spending their money on, and understand that even if you have the best product in the world, if you don’t have an audience for it, you aren’t going to move it.
In order to further assist you with your market research, we’ll explore a few resources that can help you to uncover a profitable niche. As we do this, you’ll note that there are ways that go beyond the basic keyword tool and deliver some exceptional results in the process.
As soon as you understand your audience and the market, you can begin to set things up so that you are able to maximize your profit. This would be the time that you have determined your niche, and you begin to cultivate keywords in order to maximize the amount of exposure that you have.
Let’s begin exploring how to uncover a profitable niche.
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A great market research tool that will give you insight into what is popular and selling is the magazines for an industry. Publishers take the time to print and sell color magazines that are filled with advertisements for the items that people want. The goal of the magazine is to promote these products so that they are able to achieve actual results and with happy advertisers comes in greater income for the magazine.
When you uncover a profitable niche, you’ll notice there is a lot of competition during your market research. While some would be discouraged by this, you should take it as a very good sign.
This heavy advertising suggests that there are many customers that are interested in purchasing items within your marketplace. If the competition were small, you wouldn’t have the customer base you need, and the marketplace would be difficult to break into. So when there is a larger niche to work in, you can grab some of what is there, in order to achieve a portion of the revenue.
Some of this research can be done without even leaving your home. Try Magazines.com where they will list different magazine categories. This will give you some insights into the different industries and it is a chance for you to determine what options you have.
Pay close attention to the number of subscribers each magazine has. This will give you a potential audience number, while the length of time they have been in business will show whether there is any longevity or not.
Make a list of these magazines, and begin to look at newsstands to find these titles. You should find around them similarly themed magazines on every topic that you can imagine.
When you look in the real world and see what is there. It is your chance to better understand the digital and physical products that you may want to carry and to make a profit from.
Online, there are two massive markets that have more traffic than you can imagine. This is where people actually are spending money, and are great places for you to do your market research so you can tell what is selling.
The first is a great place to uncover a profitable niche for your website.
Through eBay, you have the chance to browse what products are the most popular in auctions. This will give you a chance to gain a deeper understanding of what you can expect. It can also give you some insight how certain products are listed so they are easily found, and this will help you to become more effective with your online efforts.
While it was originally a large bookstore, Amazon has become a place for all the products you need. This is a place for you to see what is out there and to gain an understanding of how certain products sell in each category. That information can help you to invest in products that will sell within your niche.
There will be times when selling digital items will benefit for you. In this case, you do not need any kind of inventory and you can help to boost your profit margin at the same time. Clickbank is a place where you can sell digital items, and it will rank the top to lowest sellers for each of the different categories. This is a great place to do some market research as you do uncover a profitable niche to sell in.
Take the time to browse all the areas of the website, and determine what subscriptions and software people are looking for. You can then expand the information so you can obtain more details about the items to gain a deeper understanding of how they can benefit you.
Once you have the market research you need, you’ll be able to do the following:
• Open a website so that you can ship out physical products and merchandise (requires inventory)
• Sell your items online with eBay auctions or through your website’s store (requires inventory)
• A website that allows you to represent vendors (requires no inventory)
• Have the ability to create your own product, service or software for a digital product (requires no inventory)
If you have at least two of the four places above, you will have enough market evidence to help determine what is selling. That way you have evidence to support the niche you are in is a profitable one.
With the information you can then create a non-complex site that will allow you to offer more products. All while using the low cost keywords through AdWords. This is a chance to test the market further and ensure that you are having incredible results.
Should this pan out, then you will begin to generate a greater profit. You can then utilize the saved time and energy to expand on these proven websites, so that you maximize the effectiveness of your advertising dollars.
It is critical you take all the information you can when deciding to open a business. That way, you can avoid ending up in a situation which doesn’t deliver results.