Some experts like to advocate niche marketing on the
Internet. Yet many still complain that they are broke doing
this on the Internet.
In fact, niche marketing a good way to sell your product and
service to a very special and overlooked marketplace. There
is virtually no competition.
However, there is a chance of failure when one blindly
accepts the concept of niche marketing.
Let us see how to fail in niche business on the Internet.
1. Targeted at a niche marketplace where the quantitative
measure of demand could not support the business.
There are definitely some customers in niche marketplace.
However, it takes a significant number of sales every month
to break even.
When there is not stable flow of income to sustain a
business, it is better to quit before the account goes red.
2. Targeted at a niche marketplace where the Return-On-
Investment per customer could not support the business.
When selling low-priced items to the niche demand, naturally
it requires higher sales volume to break even. This is the
risk.
That is why it is imperative to measure the profit per
customer per month carefully.
3. Sell limited product line to the niche market.
Every niche demand always has many little sub-demands.
Normally, the uncreative minds will only see one product for
one demand. One has to be thoughtful enough to know how to
stretch the buying power of a customer.
An extra dollar spent means more profit per customer.
4. Business promotion is limited.
The niche market on the Internet tends to be in a small
scale. In fact, it is much smaller than the offline
counterpart is.
If you promote a niche business on the Internet, there is a
risk of not having enough prospects. Hence, you cannot
sustain the business.
5. Enter a crowded niche marketplace.
Such phenomenon rarely happens in offline world but it is
more common on the Internet.
When certain events have over-hyped a niche marketplace too
fast and heavy, there will be a sudden surge of interest.
Many entrepreneurs will jump into the same bandwagon hoping
to grab a piece of the market. As a result, the demand is
over-supplied and a niche becomes non-niche.
Therefore, if you can avoid these mistakes in niche
marketing, you are on the right track.
Even if you can avoid these, there are some methods to boost
your business.
Let us study this classic example.
It is about a nutritionist who has gained a major market
share of her field without promoting it directly. In
addition, she learnt the way to Beat the Monopoly of
Corporate Scientists
Does this sound impossible?
Let us study the details.
By the way, she is not a business partner because she
engages our service as her business consultant. She has to
remain anonymous because of the contract. We will call her
Madam A.
Let us begin.
Normally, most people in the niche field think that they
must promote their specialities directly to gain more
exposures for their business.
This is a big mistake because it takes most resources to do
this way. Moreover, it is not advisable for people to use
the Internet search engines to trap targeted prospects for
niche business.
Do you know why?
An online niche business is not for everyone. Generally, it
takes more time or money, or both, to generate sales. This
business model is not for anyone unless one has a way to
endure the long process to build up the publicity of the
business.
Usually, about 6 out of 10 niche businesses on the Internet
are either too competitive or not profitable. Misinformed
entrepreneurs are likely to pick the wrong niche market.
What is the better way?
Channel Your Existing Customers into Your Niche Business
Therefore, you must offer a good reason or excuse to get
customers interested in your niche business first. It is
much easier than getting prospects on the Internet.
Besides, you can easily dominate a niche field on the
Internet when you bring in massive supporters from the
offline world. You can also attract online prospects to your
online business by the glowing aura that your supporters
create for you.
Please ponder these words written by Balthazar Gracian more
than 350 years ago.
Their intrinsic worth is not enough, for not all turn the
goods over or look deep. Most run where the crowd is
because the others run.
The statements prove that the migratory tactic is very
effective in attracting online prospects by the look of
massive supporters from offline world.
Does it make sense?
(Excerpt from the Dose of Wisdom Letter)
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Eo Lim has helped many businesses succeed. He personally
owns 14 business ventures and the number is still counting.
Visit his site to find out how you can get help from his no
B.S. - no hype - the Dose of Wisdom Letter
http://www.eolim.com
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