Lesson 2: Finding Your Niche Market
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- Todd Hart
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2 Lesson 2: Finding Your Niche Market Now, it s time to conduct your niche research, so you know you have a viable product to sell. There is no sense in creating a product, unless there is market of buyers waiting for it. With that in mind, here is the niche research lesson. You don t want to go into a market where there are no buyers like underwater basket weaving. That might be a passion but it is nobody else s passion. You want to make sure people are buying already, and there are ways to find that out. We ll show you in a second. You want to start with low hanging fruit. A lot of people have credentials and have experience, and have things that they ve done that people will be willing to pay for but they want to focus on something completely different. You got my wife for instance. She has 20 years in human resource management. I m telling her, Why don t you teach people how to improve their interview skills and help people with cover letters, resumes, and things like that? That would be a good first product because it s easy. It s low hanging fruit for you, but no. She wants to do something completely unrelated to that. She wants to do something about health and juicing. She s not an expert at that. I guess she knows it but she doesn t have the credentials. Your first product, start with the low hanging fruit. Get some sales in. Get your confidence up. Then you can venture out into stuff that you have no experience in and create products about that as well. Tools for Conducting Niche Research Online tools that you can use, Magazines.com. Magazines.com, if there s a magazine for it, more than likely there is also a bunch of buyers, people buying those magazines. 2
3 There are also ads in those magazines. You can see who is paying money to show their ads in those magazines. That gives you an idea of types of products that are out there. Right. What topics should we use? We re just going to pick one topic, one market and use that as an example for all this stuff. Do you want to go for golf, dieting, weight loss, or what do you think? Weight loss sounds great. I m sure you ll find something under that. Weight loss, you got all these magazines, Shape, Yoga, Self, so of course weight loss is a topic. That s not really a niche topic. That s just a market. A more niche topic would be paleo. Let s go with paleo. That s more of a niche-y type topic. What we just did there, we found a market that we re interested in which is weight loss, and we picked a niche within that market which was paleo, paleo dieting and clean eating. You I don t see a paleo magazine. I m sure one exists somewhere but not on Magazines.com. Including free, clean eating. At least these come up. I m sure there s paleo articles in these as well. 3
4 Yes. Or you want to do gluten free? You can t go wrong with gluten free. That s big. Gluten free is a big topic. Let s go with that. As a PLR seller for topics, I ve done paleo and gluten free beats the pants off off paleo. People want to be making stuff on guten-free more. Gluten free is the topic. It s a hot topic too. If you wanted to create a gluten free dieting guide, that might be a niche. There s a magazine for it. That means people are interested in that topic and people are buying it. What else do we have? Clickbank; let s go to Clickbank. Search the Clickbank marketplace if we can find it. You want to go down to the affiliate marketplace. Clickbank is a network where people go to find product to promote. If you go to the affiliate marketplace, you can find products to promote. Let s do gluten free. You want to sort this by popularity. Clickbank has these metrics. I don t see anything specifically gluten free, paleo hacks. 4
5 I ve noticed there s more paleo on Clickbank. You see different things. Nothing really specific but that s popularity. If you search keyword relevance, it looks like the gluten free market is pretty up for grabs in Clickbank. If you look at these sales gravity, gravity means the number of people that have made a sale with this in the last six weeks or so. This particular product, shows a gravity of Gravity is based on people promoting the product it s affiliate sales, right? So it s an indicator, but not a totally foolproof way of seeing how much they ve sold. Right, the number of affiliates. You can look at the average sale and the average rebill total on these. When you do your product research for information products, that s one of the things you can look at, gravity and average sale. 5
6 It looks like gluten is up for grabs. That s Clickbank. What else do we have? Amazon.com, you can t go wrong with Amazon. Amazon is so crazy because it s nothing but a buyer s market. Nobody goes to Amazon to research, expect for us (both laugh). That s why I mostly go there. Gluten free cookbook, gluten free health and personal care. You got all types of gluten free. Those are physical products. Amazon is mostly physical products mostly. Gluten free books, Gluten Free for Dummies. If there s a for Dummies for it, you know that it s good. They do their research. This is a viable topic. There are all these books. As part of your research, you can look at the comments to see what people are saying too. We re going to go over that a little bit more. 6
7 You can do the same thing on Udemy. Udemy gives you some specific information product ideas that people are already selling, gluten free. Tip: Don t Worry So Much about Competition While you re looking, one thing people might be thinking, there s a Dummies book. There s a lot of competition or there are big names out there selling products, but the thing to remember is there is so much room in the online market. There are different ways you can approach your product, maybe do something a little differently than other people are doing. We re talking information products, not just books so you have so many options on how you ll deliver the content, whether it s through video or written content. There are so many different ways. Also remember as you re growing your list of people who are interested in your topic, they re still interested in you like we said before. They want to know from you. The fact that there is that competition out there should not worry you because you re going to do something so different that s going to appeal to your exact target audience. Yes, we re going to talk about coming up with a product angle. The same thing with JVZoo, if you re selling information, Internet marketing, 7
8 and make money online and the WordPress plug-in related products, JVZoo is the place to look because JVZoo will tell you how many sales. Do we have a problem with people seeing our sales? No. Okay. JVZoo, we ll actually show you this product that took us two weeks to create. Don t open that because that will give the customers - we don t want to give out addresses. I m not going to do that. It shows you we made over 11 grand on that. We gave it away as a bonus too on another product launch that we were promoting, so a lot of people got in on the bonus and paid over $150 for it as well. That s just two weeks. Let s look at the JVZoo Marketplace now. 8
9 I see they still have vegetarian spelled wrong. I told them they have it spelled wrong, and they told me they would fix it. That was a year ago. Actually, vegetables is also spelled wrong (laughs). Vegtables. Oh boy. What I wanted to show you about this marketplace, if you have an account with JVZoo, you can get a free account with JVZoo. Then you can look at the fine product section. Then it tells you. You can pick a category. It tells you how many sales all these products have done. If you look at Five Dollar Posts, this is public information. Yes. 9
10 I ll show you Five Dollar Posts. In order to see this though, can you see this totally publicly? You just got to log in. As long as you log in and have an account, you can see this under Affiliates -> Find Products. You can also look at the top sellers. You can see today s top sellers, from the last 7 days and the last 30 days. John says it s a great way to find things to promote as well. Yes, just because you re making your own product, like John said, you re going to sell them more things. You can t possibly provide everything that your audience needs. Finding other things to promote is good. There was my launch. Last month, it launched on the third of September. Over 4000 frontend sales, 10.2, 5% total. This is the total funnel with all the products, average price $ Look at that, 3.1% refund rate, really low for an information product. 10
11 Those are stats for that. You can see the earnings per click, $2.90 (currently $2.83) earnings per click is what people got on average. If you look at Info Product Mastery... Do we want to explain any of those numbers, what the conversion means? Earnings per click is pretty obvious, but why we re looking at those numbers. Understanding the Sales Statistics Conversion rate, the percentage of people that buy based on how many people go to the page. You got a 3.17% earnings or conversion rate, that means three people bought for every 100 people that visited or 3.17 people if you can split people into.17, For everyone that visited the page, on average we earned $4.21 for everyone that visited the page. This is cool because some people paid on a two payment thing. Those payments haven t even come in yet which means this earnings per click is going to be significantly higher once the second payment comes in. Average price, $132; these are combined of people that paid for the product in full and the people that did the two payment option. We had a couple refunds of people who couldn t attend the live training, which we gave them. That s cool. That s JVZoo. It s a really cool research tool. You can sort that by category. You can put different keywords. This is gluten free, just out of curiosity. 11
12 One of our students wants to know what a funnel is. I know we re going to talk about it later but do you want to give a brief explanation? It s just all the products that are sold as an upsell. Understanding the Product Funnel What s a funnel? That s people come to your page, they buy one product, and then after they buy that product, you make them another offer for an additional product that s going to enhance the first product, or say for instance you go to GoDaddy and buy a domain name. Then as you re checking out, they offer you, Do you want to get hosting for that domain name as well? Do you want to get our Web site builder software with that as well? They re offering you products that enhance what you just bought. That s a funnel. GoDaddy is probably the most notorious for having funnels because they put you through this long process of one order after the next. Yes, and it s how you get those looking at earnings per click, and you want to maximize it. It s really how you do it. We did not have a funnel for this product. Yes, this product, no funnel. Some people appreciate that, You didn t try to sell me anything else. My thought on having a funnel is as long as you give people exactly what they bought, like the initial product. As long as it does what it says, then your upsells or additional products that you re selling are separate but make that experience better. 12
13 You don t want somebody to come to your restaurant and sell them a hamburger, and then try to upsell them on the bun, Oh, we just sold you a hamburger but now if you want to eat it, you got to buy the bun. No, you want to keep it separate. You want to sell them a hamburger, and then sell them French fries, and then sell them a drink, something additional so they can t say, Why did I buy this first product? The second product, I have to buy the second one just to make the first one work. That s what you don t want to do. Right. Niche Research Questionnaire Let s look at the niche research questionnaire. This was actually a free handout that Eben Pagan gave years ago. I give him full credit for that. 13
14 Serve Your Market s Emotional Needs: Examples This questionnaire, you can use it, it says, Good niches start with emotional needs that people are having, which is true. We talked about that, passionate needs. You can use it as inspiration to create great products and services to solve them. This niche test here sounds like that 100%. Is my prospect experiencing pain, urgency, or rational passion? A perfect example of that is a product my friend Travis Sago had that s called The Magic of Making Up. I can t think of a more passionate market. People going to that site probably found him in the search engine somewhere, and it teaches them how to make up or how to get your ex back. They re in such an emotional state whereas they feel like their world has just come to a crashing halt, and they want to get their ex back. It s so upset and passionate. When they come to the site, he calms them right down, Hey, first thing, relax. This is going to work out. Don t text them. Don t call them. I m going to show you what to do. He just pulls you right in. If you re in that emotional state and you see his video, you re going to be like, Wow, I got to buy this product. It s such a passionate market. There are other passions. People are passionate about a lot of different things. People are passionate about their hobbies. People are passionate about making money. People are passionate about becoming a better golfer in sports and things like that. There are all types of things people are passionate about, losing weight. Maybe someone just went to the doctor and the doctor said, Listen, you got to lose, this just happened to my aunt actually, my wife s aunt, my Aunt Laura. She went to the doctor. They found a growth on her kidney and she s got to have an operation to remove it, but she s a little overweight. They told her she needs to lose 20 pounds within the next few months in order to have the operation. It s kind of urgent. She s already lost 10 pounds. I saw her last night. Those types of things are a passionate, urgent market for these types of products. 14
15 Are They Proactively Looking for Solutions? Question two, is my prospect actively looking for solutions? Are they out there actually looking? Do they know they have that problem and are they actually looking for those solutions? That s another thing you need to consider. You could use, if you find books on Amazon about it and people are giving reviews, you know people bought it and are looking for solutions, like the same thing we just went through. If it checks out, then you know people are out there looking for solutions and buying. Are people buying? Does Your Market Have Options? Do they have few or no perceived options? I don t know if I agree with that one so much. Does my prospect have few or no perceived options? If you can find a market that reaches at least those first two, and then they don t have any options, then yes, that s ideal but it would be pretty tough to find with no competition out there and no options for products. I like to say if there is competition and they do have options out there, that s an indication that people are buying, and there s room to make money. Yes, unless you have your own list and audience where you know, you have those buyers ready that you know there s something that s not out there and they need it, then that makes sense but if you re going into something brand new, then yes, that s tougher. Are 1 in 1000 People Looking for This Solution? Yes, or at least one in 1000 people looking for this solution. You can go through this checklist, fill it out. It s in that area for you guys to download. That s the niche research checklist questionnaire. That marks the end of Lesson 2. Next is Lesson 3, Developing a Good Product Angle. 15
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