Using Web 2.0 to Research Niche Markets

Researching new ideas to turn into Ecommerce sites has been around for a while now. Most go the standard route of doing their keyword research based on past demand. I say you should stretch yourself and consider the fact that Web 2.0 elements can help you determine new product lines to carry and produce.

Traffic versus conversion rate, this age old question is almost as old as what came first, the chicken or the egg? On one hand you need traffic in order to get conversion. On the other hand it's easier to get traffic than it is to increase your conversion rate. So which factor do you use to determine a target audience for niche websites? The answer is both plus one other surprising factor.

What does it mean to have a niche-based website and business? It's simple. Basically, when you're working through a niche, you're marketing to a specific group of consumers. They are more likely to buy because their needs have not been met by competitors against your business. Indeed, if you learn the secret to niche-based marketing, you will be able to acquire hundreds of customers with just minimal amounts of traffic. So lets combine an old technique with a new technique and see what happens.

This next part is where I part company with most standard research ideas. In today's market you have to flex and move with change. One of the biggest changes in the Internet is the wave of social marketing. So it would naturally make sense for you to ask yourself, does my niche market idea condone itself to social marketing?

• Can you Blog about it?
• Are there groups out there that already focus on it?
• Is it a hobby or activity that people like to talk about?
• Is it common?
• Is there any video content on You tube or other video sites?
• Are there books written on the subject?
• Are there articles written on the subject?

Blogging is huge right now, and if you have a blog you know what I mean. But more its important to know that blogging is a tremendous tool in building links to your new niche site and sending traffic. If you can blog, (like for a year consistently) about an industry related to your niche product, then you have a winner. Notice I did not say blog about your product, nobody wants to read about that.

Today you can find groups and communities about anything. Specific subjects are out there. If you are a frog lover and love to photograph frogs, there is a blog or group out there for you. Knowing about these groups is key also, because they can be used to harness power and build a customer base over time. You don't market directly, but you realize the fact that if they are gathered, then there is a reason they are gathered. For any gathering there is a potential market. This is great information for determining a niche.

Why say it when you can show it? At first it did not make much sense online, then You tube got bought for some crazy amount of money and the world is a buzz with video. Video is the key to the future. Video is an amazingly powerful marketing tool. If you can figure out how to incorporate video into a product plan, than that alone can make you stand out among your competition of a potential niche market. One of the best things you can do is make a video for each one of your products, not a commercial, but a video that shows the product in use. This alone increase conversion and it's the other part of the formula when you are thinking about traffic.

A great way to find data, other than keyword research is by going to Amazon and looking at how many books there are on the subject. You can become an expert in this field and see how much demand for the books there is at the same time. There is also the consideration of creating your own hardcopy book or even a digital e book on the subject to test the waters.

One of the biggest factors that I make for a new market is content availability. You can either get your content by writing it yourself or buy outsourcing it. However if the topic is so narrow, you might have a hard time finding writers that are knowledgable about that particular field. After a while there is only so much you can write about the subject before you start to run out of ideas. If this is the case, then I take a step back in my considerations. Content is king, a site that offers a lot of content does much better than a site that just sells product. Put the two along side each other and there will be a run away difference. However content that supports content is just as important. If its hard to find, or no one is writing about it, think it over.

I would much rather find that there is some competition out there, that shows me that there is some demand. My next thought would be to look at that competition and determine if I can optimize my site better than theirs. If I can, then it would be a contender to start a site on the rest of the data if its strong. Lots of times, my main idea turns into something else based on my keyword research and looking at competition. Then of course I look at the social implications and go from there. My personal favorite is to find "some" light competition out there, that I can use my knowledge and skills to overpower.

Keyword Research

Good and thorough keyword research is still the backbone of the website development system. I always start with my idea and the "gut feeling" I get from that idea. I then do the research to back up my "gut feeling." Everyone at one time has a good idea that did not turn out so good, myself included. If you remove the emotions from the equation, it really helps not to influence your thinking. Keyword research is crucial here, and you can use programs to find the keyword phrases that are in demand or you can use Google' Keyword Tool. I like this tool since it gives me suggestions to consider that I might not have thought about. To find a niche market, you must utilize keywords that have at least moderate amounts of traffic and very little competition.

So if you combine the traditional keyword research techniques with some of the web 2.0 elements we mentioned earlier, you may found deeper reason for keywords with no competition and no social markets behind them. It could very well be that there is a group of people out there just dying for you to create the environment in which they are seeking. The key is combining the two for a thorough answer.

Research is not easy, and its not always everyones cup of tea. In fact, there will be people who try to short cut the process and end of falling on their face. Take the time, document your research and be thorough. If you are smart you can include this research into your exit strategy. Showing this type of planning on paper is smart and makes it more real, treat it like gold. Someone will find immense value in it and you will be better off because you combined traditional research with new techniques