The first step is to select profitable market by considering the factor of long term profitability. It’s important to do so as it ensures sustainability of a business operation and cash flow.
Make sure that you do it right before you proceed to the next step or you won’t be expecting continuous profitable commissions
Let’s do it right now or you will suffer later.
Here’s the process of selecting a market:
Step 1 : Brainstorm Markets
List down all the markets which you think are potentially profitable. You may come up with a list of potential groups of people that you may want to target.
The ideas can be based on your interests, the interest you observe in others or anything that you can observe around you. Ask yourself a couple of questions as below:
- What are your expertise or interests?
- What are your favourite pastime?
- What do you spend your money on?
- What kind of movies do you watch?
- What do you plan to do in future?
- Where do you like to travel?
- What do you want to do to help others?
Answer all these questions and from here you’ll be able to come out with a list of potential markets. As this is the first step, it’s good for you to come out a large list of potential markets so that you won’t miss any of the big profitable markets. Once you have done this, you may proceed to the next step.
Step 2: Perform Market Research
You already have a list of potential markets and what you need to do now is narrow down the list. To do so, you need to do market research. That’s where the factors of popularity, accessibility, types of products and services are taken into consideration.
Follow the steps as below:
Run a general Google search for your keywords.
Your keywords are those words most associated with your prospective market, such as “internet marketing”, “forex trading”, “electronic cigarette”, “bodybuilding” and etc.
Here’s what you’re looking for:
- Evidence that there are a lot of sites in this niche, such as blogs, forums, regular websites and etc. When there are a lot of marketers competing in a market, it shows that the market is large and profitable.
- Evidence that people are buying things in the market. These sites you encounter should all be selling products. Take note of what they’re selling.
- Evidence that marketers are spending money in the market. Look for the sponsored (paid) ads alongside the regular search in Google. Look for advertising on the niche sites themselves. Look for advertising in other places, like Facebook, twitter and etc. If marketers are investing money, it implies that the niche is profitable.
Look in marketplaces like clickbank, jvzoo, amazon and etc.
Run a search in these marketplaces to see if the products are being sold in large quantity or otherwise. At the same time, observe the number of marketers, affiliates as well as the buyers of the products.
In most cases, the more products being sold in a market, or the more the number of marketers, affiliates and buyers of a product, the better it is as it implies large market size.
Look for trends
Look for trends in order to determine the current hot markets. You can use tools like Google Trends to search for the latest market trend by entering your keywords.
What you should look for is big markets that have staying power, but not emerging markets that don’t promise long term profitability in their business unless you have experience dealing with such markets. If you’re in doubt, just choose “timeless” markets— that have been around for many years, and will likely continue to be around for many years.
Step 3: Select The Best Niche Market
At this point, you should have filtered out markets that don’t show signs of being profitable from your list. Depending on how big your list is, you may have whittled it down to just a couple of choices, from which you can pick the one that appeals you the most (assume the remaining markets on your list are profitable).
You don’t have to target on a big huge market, like “internet marketing,” simply because you’ll have hard times overcoming the competition. Instead, what you should do is target on a smaller segment of this market, which refers to niche market.
For example, you may just focus on affiliate marketing, e-commerce, blogging or etc.
Not only will you still have a profitable market to work in, but you’ll be facing less competition… AND you’ll attract even more people to you, simply because your marketing speaks directly to this segment of population. Take a look around, and you’ll notice that all successful companies do as such.