FansThis article explains how to select a profitable niche for your membership business.

First – Look for Fanatics

If you want your membership business to be profitable, you have to find a marketing with fanatics in it. Fanatic is defined as someone with an irrational enthusiasm. These are the people you’re looking for because they are so enthusiastic they’re willing to spend money on their topic of fanaticism. Here’s how to find fanatics:

  • Here’s something you may not have considered – magazines! We’re so internet-based these days, it’s easy to forget about them. It’s becoming increasingly difficult to run a print magazine. So if you see one on the shelves you know they are making money, which means that there are enough people interested in what they’re saying to make it profitable. If they can make money in a print version, you can probably make money with a membership website.
  • Watch and listen for fanatics in your daily life. Pay attention to conversations, social events, TV, restaurants, public places to see what people are talking about. If people are talking about something, they probably want to know more about it. Which means you can start a membership business providing information on it.
  • Conventions, clubs, and organizations. Once again, if there are enough people interested in a topic to create a club or organization, then there are enough people to build a membership business around it. Likewise, if there are enough people to hold a convention, there are definitely enough people to fill your membership website.
  • Think about the things that you are interested in. There’s a good chance that others are interested in these things, as well. And, as an added bonus, it’s much more fun to build a business around things you’re interested in.
  • One simple and easy way to find out what’s hot is Google Trends. Google Trends tells you the most popular current search terms. The reason people are searching Google for info on these topics is because they are interested. And the fact that it’s made it into Google Trends tells you LOTS of people are interested. Building a membership business around things people are actively searching for is a great way to ensure your success.

Next – Figure out if there’s money in it

After selecting a possible niche to build your membership site around, the next step is to find out if it’s a profitable niche to be in. The quickest way to find out is to determine if others are profiting in your potential niche.

OK, how do we figure that out?

  • First go to Google and type in the name of your niche followed by “blog” and “forum”. If there are blogs and forums related to it, that’s a good sign. This means there is a large group of people already assembled for you to market to.
  • See if other people are creating and selling product in this niche by searching in Google Shopping, ebay and Amazon. It’s a good sign if there are because it tells you people are making money here.
  • Look at Google Adwords for the same ads are running over time. If people are running the same ad over time it means they are making money in the niche. They would not continue to spend money on the ads if there were not making a return from them.

Finally – Figure out your barrier to entry

After figuring out a good niche and determining that other people are making money in it, the last thing to do is decide if you will be able to enter the market. Here’s how to make this determination:

  • Product types. What kind of products are being sold in the niche? You’re looking for a niche that sells info products. The easiest membership website to create and maintain are information membership sites.
  • The next thing to look at is the competition. You don’t want to try to break into a saturated marketing, so figure out how many people are already selling in this niche.
  • Size vs. Competition. Some competition is good. It means that this is a profitable market. And as long as the size of the market is large enough to support the competition, you’re fine.
  • How quickly do people in this market make buying decisions and are the ready to buy? Every market is different. Sometimes people are looking for information and are ready to pay for it right now. And sometimes it takes weeks, months or even years for them to make the decision to purchase.

Summing it all up

OK, now that you’ve figured out what niche you’re going to go into. Determined there is money to be made and that the competition is not too strong to break into it. You’re ready to start your membership business. If you’ve done your homework, your business will be a success because you already know your market is a profitable one with room for you. Learning how to run a membership website is a topic for another article…

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