Monday, November 16, 2009

Is This Common Mistake Holding You From Making Money?

Guest Post by PV Reymond

I always ask my students: “What is your target market?” And many times I receive the answer:

“My target market is everybody.”

Then, I have to explain to them how that approach will make them fail and the importance of targeting a small niche. For this reason I want to share with you this article, so that you don’t make that same mistake.

Your product needs to be special. It has to fit the needs of a specific group. Narrow down your potential market or it will become too much. Consider it: you sell glue. OK, what kind? What is it for? Who needs it? Why?

The possibilities are endless. Unless your plan is to establish a huge corporation and you have the funds to put it together, with hundreds of products, you need to find a niche, a spot where you can attract the right customers for your particular item.

Narrowing down your potential customers means you can spend more time focusing on them. A smaller focus allows you to do as well as, or better than, those large corporations. Good profits can come from concentrating on a specific group that can use your product for a special project or need.

Let’s say that you want to go into the weight loss market, as you know it is a very profitable market but with a huge competition so, it is difficult to compete with large companies because they have huge budgets.

But if you narrow it down you have more chances to stand out from your competitors and make good profit. In this case you can target weight loss after pregnancy or weight loss for women between 45 and 60, etc.

The same with the Internet Marketing market, let’s say you want to go with traffic where you’ll find lot of competitors. But if you go deeper everything becomes easier, you can go with traffic using social media or go even deeper, traffic using facebook. The more you narrow it down the better.

In order to narrow down your niche you have to explore the market place and know what it needs. Now, consider the results of the market survey you had done and the areas where your competitors are already doing well. Use a table or a graph to show where there might be an opening for your product or service.

One hard step that needs to be taken is finding the right combination of product, service, quality, and price. Customers need to feel you will give them a better deal and meet their needs. Sadly, there’s no proven effective path to follow to find the right combination. You just have to compare things and see what works best.

Your database should be put together with care, as it can help you sort through the market information and show particular segments that could be overlooked. Which age groups tend to buy your product? What other items purchased? You could find additional products your buyers may be interested in.

Where should you start? Passion is a good starting point, because if the work is focused on something you love, you try harder. With a product you really like, you’ll be more willing to do the hard work to get it promoted and refine your skills.

Look into what you like and see if you can make it profitable. Will people want it? Will they look online for places to get it from? Whatever you decide to sell, there has to be a demand. Lots of places can be checked for this information - Blogs, forums and affiliate networks, social media sites, etc.

I would like to hear your feedback about this.

Author Bio
I would like to invite you to claim the free special report: 'The Hidden Truth About Making Money Online' when you visit my site: StartUp Internet Business.

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