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Niche Marketing

Niche marketing is finding a small niche area of interest that hasn't become over-saturated or does not have  a big enough market for the big guys to bother with. For instance, if you have a hobby or interest you could develop a niche web site dedicated to that interest. You would then provide a lot of content (information) specific to that niche interest, which would attract visitors to your web site. You can earn money by either direct selling of your own products, or you can promote products related to that niche as an affiliate.

Niche marketing is a natural for home based businesses

Niche marketing is a very good market for the "little guy". And, as you will probably be able to tell, niche marketing is the area that I personally favor as a business model. Combine niche marketing with affiliate marketing and I feel you have a winning combination. If you use niche marketing and affiliate marketing together there is no need to worry about buying inventory or payment services and many of the other hassles of internet marketing. The merchant will provide the product or service, handle customer service and the payment processing.

If you have a hobby or interest and you can find a high enough demand, you can expand that hobby into a money-making niche web site. Not all of us have hobbies that will convert profitably, but we all have interests. There may be something you have an interest in, but haven't as yet involved yourself in it. This is okay, the main thing is to have the interest. You will work much harder on something that is of interest to you.

Now, before you go getting nervous about your level of expertise, understand that you do not have to be an expert in your niche at the beginning. You can become an expert. The whole internet is just waiting out there to inform and teach you. And don't forget the public library. A free resource of information on a wide range of subjects and possible niches.

Niche markets can be found inside broader high demand markets

With niche markets you want to break a broad market down. Say if dogs were your interest, you would want to break the category down to maybe one breed of dogs, or maybe to training dogs. Dogs as a subject is just too diverse. If the market you choose is targeted to only a specific group, it already might be an ideal size to target as a niche, meaning it has enough demand to be a profitable niche, but isn't overloaded with competition. This is a balance thing. You want enough demand, not overwhelming competition, and yet some competition is good because it indicates there is interest.

Another way to think about niche marketing is this. It isn't always just about the product itself. The niche can be in the way the product is marketed. Finding a really unique twist in how the product is marketed, or perhaps marketing a product to a different group of people to be used differently than originally intended. Niche marketing has become a very common way to develop money making home based internet businesses.

As always in order to make this type of niche marketing effective, you have to determine that there is a market demand.

To go a step further in niche marketing, the trend today is leaning to micro-niches. Which just means going deep into a market and finding a smaller segment with all the attributes already mentioned, but even more specifically targeted.

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