How to Choose a Niche for Your Next Sales Funnel
There’s a saying that you’ve probably heard in recent years: “Niches and Riches.”
Although you may have heard the phrase before, you might have missed that there’s a very real insight right under the surface when you think about it.
In recent years, our society has become increasingly globalized and increasingly diverse.
And because of that shift, even large international corporations are engaging in targeting niche audiences to reach new markets more effectively.
Think about it for a second: with the exploration of the Internet, there are more choices than ever before (and even more tools for that matter).
It seems like you can buy almost anything anywhere in the world today.
And so, it’s not enough simply to cast your marketing net and come up with a big haul anymore.
Instead, you have to pinpoint the specific needs of defined demographics.
And yet, while many businesses are launching sales funnels for their niches… we’re going to do the exact opposite.
Instead, we’re going to discover how you can find a potentially successful niche and then launch a funnel for it.
As we’ve been sharpening our marketing skills to a razor-sharp edge, we’ve also been preparing ourselves to dominate the industry of niche businesses.
And now, we’re going to pair those skills with new highly promising niches to reap us, even more, rewards.
The Idea Phase
The first place we’re going to start with on our niche journey is generating some high potential niches.
After all, we don’t simply want to grab any niche.
What would be the point in flying blind? Instead, we’re going to take a totally different approach.
We want to select the niches that are going to be the most favorable for us and give us the most profit.
And that requires a little upfront research.
Basic Brainstorming for Products and Services
While we’re going to look at a few ways to narrow our ideas down, right now, there’s a better place to start.
By brainstorming first, we’re ensuring that we have plenty of options.
In the world of funnel building, we love to have as many options as possible.
And having those options means that we can try the very best ideas and even a few at a time.
It also means we’re able to break out of the box and unearth the gems that others may have overlooked.
Protip: It’s absolutely okay to go with your gut on this one and to write down whatever comes to your mind. Have you been hearing a lot about a new trend? Or maybe you always were curious about an industry? Anything goes in brainstorming.
Consider Under-Served Audiences
At the same time, we can also approach getting niche ideas from another angle.
Beyond just thinking about what products or services the market might need more of, we can also look at demographics.
Is there a new subculture simply waiting for a slew of new products to be marketed to them?
What about a recent shift in a potential audience, spelling out a problem that’s begging for a solution?
These are great examples of niches waiting to be born.
Protip: Demographics groups are set in stone. Always look at how you can reassess your segmentation to find additional niches that no one might even be aware of yet.
Analyzing Periphery Opportunities
This is the step that often generates some of the most prime insights.
Say a new, amazingly popular gaming app was launched recently.
Or what about a well-established industry that’s going through a new revival?
The periphery niches around these companies often experience rapid growth.
And really it just takes someone keen enough to notice the trend as it begins.
Then you can jump right in, choose one of the niches, and launch an award-winning funnel.
Protip: For a great example of how periphery niches experienced a boost with the craft beer industry, check out this article.
Break Out Your Super Search Skills
For another fertile area for niche ideas, look no further than the Googles and Bings of the world.
Armed with sites like Google’s Keyword Tool, you can punch in almost anything and determine if it has niche potential.
By searching for keywords that have low competition, but higher searches, you’re practically guaranteed the perfect place to launch a funnel.
And what’s really cool is that many of these tools suggest related possibilities.
Protip: It might not seem like it at first, but even a keyword with just 1,000 global searches a month can represent a new niche. And once you’ve launched your funnel, a growing market.
Check Out Affiliate Websites
And finally, for our idea phase, you can also browse through affiliate sites.
These are also a great place to funnel hack!
You’re also getting a window into what works, what doesn’t and what you could do a whole heck of a lot better.
And once you put your trusty skills to use, you’ll have the edge over the competition in no time.
Protip: Many affiliate directories offer several ways to filter offers. To get a wide range of ideas, don’t just look at the top 10, but instead, switch it up and try a few different filters. This will let you really find out what other niches are out there.
The Planning and Refining Stage
Now, at this stage, we haven’t actually chosen our niche yet.
But wait a second… didn’t I just say that we were crafting a plan and perfecting our idea?
Well, yes; however, there’s a bit more to it.
By taking a handful of our ideas and putting them to the test, we’ll be able to tell better which to focus in on for the time being.
Then we can choose 1 or 2 of them that we’re confident have the best chance of succeeding.
Reassess Your List of Ideas
So, by now, you’ve probably put together a pretty good list of possible niches.
At this point in our decision, we want to review all those ideas and start pruning.
Although our next steps will help us cut down our list, even more, this step is more about recognizing the obvious dead weight.
It’s totally fine that brainstorming and generating ideas are a freeflow process.
During that phase, we can discover all sorts of interesting ideas.
But now’s the time to get rid of some of the obvious ones.
Protip: There are several criteria you can use to cut down your ideas, and there’s no right way to do it. But some popular ones are the time it might take to get into the niche, the level of expertise, or the size of the team you’ll need to deploy to capture a sizable audience.
Checking the Likely Scope of the Niche
For each one of your ideas that’s left standing, you’re going to put it through a battery of tests.
Our first one is assessing the scope. When it comes to niches, even very small, very unexpected niches can be truly profitable for the right person.
At the same time, reviewing all the aspects of how the niche industry is set up can help identify strong and weak points.
Through this assessment, we’ll be able to whittle better down which of our ideas we should go after first and which ones might not be worth the effort.
Protip: The scope of your niche can be anything from what the potential profits could be for each converted lead to what the investment might represent. Even though we can’t always know these numbers 100%, getting an idea can help us with selecting the best niche for us at any particular time.
Create a Competitor List
Next on our list for choosing your next niche is your competitors.
On the one hand, you might have chosen a niche or two that have few, if any, competitors.
Congratulations, you’ve got the whole industry to yourself! But for many, many choices, there’s going to be some established players.
Knowing who they are, what they represent, and what relationship you might have with them is completely necessary when choosing a viable niche.
But probably the greatest reason for creating this list goes beyond any of these reasons.
Borrowing a term from ecology, we want to go in on “niche differentiation.”
How does this work? Well, if you know what the competitors are offering, you can better position yourself to coexist with them, instead of fighting against them.
First off, that’s smart!
Second, off, you’ve just created some potential allies in your new niche.
Protip: When you launch your funnel in your new niche, make sure you continue to keep an eye on your competitors. Even with “niche differentiation,” you’ll want to know about any developments or changes in the industry.
Without question, professionals and novices alike underestimate the power of niche marketing to generate profits.
What’s the most surprising or novel niche that you’ve ever seen?