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Niche sites play an extremely important role in start-ups. Anyone who wants to gain a foothold in internet marketing will sooner or later be confronted with this concept and can also benefit from it for themselves. But what exactly is a niche website and what is its purpose? How can I create a profitable business using niche websites?
In this article we will take a closer look on niche sites.
Niche Website Definition:
Niche sites deal with niches – that much is clear. But what exactly does a niche mean? Niches are a branch of the economy that deals with a very specialized product or a very exceptional service. Most of the time, these are products that are part of a certain product group but differ in certain characteristics. You can always go one step lower when it comes to finding products.
|Niche||Niche Product||Niche Sub-Product|
|Drinking||Drinking Bottles||BPA-Free Drinking Bottles|
|Sport||Golf (Accessories)||Golf Bags|
As you can see, it is not enough to devote yourself to one topic or one branch of industry and to supply customers with all sorts of products on this topic but to go even deeper and take out a special part product and become an expert on the niche side do.
The more special the product is, the easier it will be to win customers because you stand out clearly from other providers. You only offer very few solutions to a very specific problem and leave it at that. If you want to occupy a niche, you cannot go deep enough in the selection, provided the niche still appeals to enough people. The deeper and more specialized the product, the better. The fewer deviations among the products, the more lucrative.
Essential Things Before Starting a Niche Website
From an economic perspective, niche sites have unimagined potential. The aim of a niche site is to make money sustainable and keep the effort as low as possible. The following points must be dealt with very carefully.
1. Focus On One Topic
As already mentioned above, it is very important to focus on a specific sub-area of a niche. Two indicators are extremely important: firstly, demand and secondly, the competition in this area. The greater the demand and the lower the competition, the better.
This means that not every niche necessarily has to be lucrative. If you want to specialize in yellow pens, you will probably have very little competition on the market, but also very little demand. It’s different when it comes to fitness. The demand here is exorbitantly high, but the competition is extremely strong. Of course, you can also get deeper into different parts of the fitness world here, but even that would face enormous competition.
2. Identify A Target Group
Whoever wants to occupy a niche site depends on their target group. Before you approach a niche site, the first step is to know which target group you want to focus on. The target group will be as special as the product.
For example, if you want to sell water bottles, the target group is very large and diverse. Almost everyone needs drinking bottles, but if you want to sell BPA-free drinking bottles, the number of potential customers is very limited. Not everyone knows that BPA-free water bottles are healthier, and not everyone cares. But as soon as you reach the customers who are interested in the niche product, it is very easy to have recurring customers and to win more customers.
A target group is easier to bind as soon as you address only one target group. Also, it is much easier to tailor page content and information to the target group, and it is much easier to find resonance. To build a profitable niche website you must know your target group as much as you can.
3. Effort In Small Style
A niche site does not need a lot of work that does not relate to the essentials. Those interested in a niche site want quick information, good advice, and a clear recommendation or direct access to the desired product. Therefore, you should not find any information on a niche page that has nothing to do with the topic. you will want to show product comparisons, product presentations, your shop or affiliate links, clear recommendations.
From an economic point of view, more effort would not make much sense, since the higher effort is of no use. In this case, customer loyalty is more specific. Once you occupy a niche site, customers won’t deal with you and your brand, but only take advantage of your service (i.e. your advice and recommendation). Customers are rarely fans or ambassadors.
What Does Niche Websites Require?
Niche websites are structured in such a way that they do not have to meet many criteria to be profitable. However, the few criteria must be met extremely well.
Niche selection often requires a lot of creativity and good market analysis. There are several tools for this, such as Google Adwords. Internet markets can be opened up here by analyzing the search queries and the associated competition. and it is priority to do a market research a niche sites can also fail because no precise target group analysis has been carried out.
Competition In The Niche Sites
It seems like a lot of people have read or heard Timothy Ferriss’s Book ” The 4 Hour Week: More Time, More Money, More Life“, Giving various suggestions to lead a life with more free time.
Because the competition among the niche sites is getting bigger and bigger. It can be seen that many people not only have the dream of a passive income, but more and more people are trying to realize this dream. The passive income streams of the niche websites should do their part. But it is also very easy to determine who understands something about the topic and hangs out. A carelessly built niche website will not bring the desired results and may only result in costs. Pages that do not run as desired are often offered for sale when you move around the scene.
Note: If someone offers such a page for sale, all statements should be checked very critically. Because in the meantime, there are also lots of black sheep. – Why should someone simply sell a well-functioning site that hardly makes you work and brings a residual income month after month? Either such niche sites are sold overpriced or they simply don’t work as desired. Another possibility is of course that it is an emergency sale since the seller is urgently dependent on money.
Don’t Back-Off By The Competition!
Nobody should be back-off by the competition. Workload, working hours and costs will be significantly higher, but there has always been and will always be competition.
If you have a lot of competition in one area, you can also assume that the demand is usually high. Here, your aspiration must stand out from the competition and be significantly better than the competition in this area. This requires creativity and a little brain paint, but it’s fun as soon as the first successes become visible.
Do Niche Websites Cost Money
You can’t build niche sites without money. Even if someone knows to take care of everything themselves and is not dependent on the help of other people or agencies, it will not work without taking money in hand. Because at least for the domain, the hosting package, the theme there are costs. Not to mention pictures, plugins, link building, etc.
The costs for registering a business and the tax consultant have not yet been considered here either. Because those who generate income with a niche website must also pay tax on it!
Anyone who works as an employee even has to ask his boss for permission, because there is no getting around registering a sideline. Anyone who generates income through niche sites and does not state this in income tax is actively committed to tax evasion and can be punished drastically.
Niche sites – the conclusion
Niche sites are a very economical way to start a business. Anyone who meets all the criteria will inevitably achieve high sales. But it takes a lot of work and patience to get a niche page rolling. Once that happens, however, it will mutate into a bubbling source of residual income.