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Tuesday, May 13, 2008

Niche Marketing Strategies - Finding a Market Niche

As any Internet marketer can tell you, there are two ways to rake in maximum profits. Either put a ton of resources against a huge, highly competitive market, OR, employ niche marketing strategies to find a niche within a lucrative market and target those consumers directly. The first option is great...IF you have the resources and the knowledge to compete in a major market. Otherwise, you can easily spend your entire advertising budget before you even making a single sale.

So, unless you are comfortable in diving right in to "swim with the sharks", you need to be able to drill down into those large markets and find sub-groups of people who are ready to buy what you are selling. These sub-groups are what is more commonly referred to as niche-markets, or niches. If you are successful at finding a market niche, you can easily target the people in the market who are most willing to buy a product immediately. Plus, assuming you are capturing the contact information of the customers who do buy from you, you are building a list of people in that niche market who are willing to spend money on related products. That, my friends, is how you make money online.

So, how do you go about finding a market niche or the right keywords to target within the niche? Well, you could do it the old fashioned way, by spending countless hours testing phrases that you think might be profitable and seeing which ones work. Even if you are using one or more of the free keyword tools that are available online, it can still be a hit-or-miss process because you don't have any information on how many other advertisers are targeting that same phrase. In order to be successful you need to be able to immediately identify a good market niche and then quickly determine which keyword phrases are profitable.

The approach that I recommend, is to use a niche finder software product designed specifically to let you drill down into the search history for a market, quickly identify the most promising phrases and then analyze the competition to give you the most profitable, least competitive niches within that market. You can then enter the market knowing exactly how many people are looking for your product and what the level of competition is. Going into a market without understanding your customer base or your competition is a recipe for disaster.

In conclusion, if you're at all serious about being successful in Internet marketing, you really should invest in a good niche finder software product as early as possible. It will help you to learn the right niche marketing strategies and train you to easily identify profitable niches. In addition, it will immediately save you tons of time and take all of the guesswork out of your campaigns.

For an in-depth review of the niche finder software I use to quickly expose lucrative niche markets, go to http://www.squidoo.com/Niche-Finder-Software