Build A Bigger Online Business By Going Niche
Saturday, April 25th, 2009Welcome back!
Bigger Online Business By Going Niche
Online marketers are driven by the thought of generating large amounts of money with their businesses. The problem is that their vision is often too broad. For example, they may be tempted to create a general site 
about “health,” “cars,” or “sports.” A decade ago, that would have worked. Today, large brands are dominating their space and they have the war chest to beat back their competitors.
You must focus on niches. By doing so, you can carve out your territory more easily, speak directly to your audience, and gradually build your business to dominate small sectors. So, unless private investors have given you $10 million with which to build the next About.com, let’s talk about “going niche.”
Carving Out Your Territory
It is far easier to compete in smaller verticals than vying for attention as a general site. First, Google likes focused properties. Their algorithms – both organic and paid search – take the focus of your site into account when ranking your pages or determining your minimum bids.
For example, let’s suppose that you want to build a site about cars. The most potent search engine optimization strategies will not lift your pages to the top organic spots without your domain having significant age and authority. A good example of such a site is Edmunds.com.
On the other hand, let’s suppose you’re building a site about car parts for Honda sedans (a niche). You’ll fare much better in Google’s organic and paid listings. Their algorithms will note the tight focus of your site and rank your pages accordingly. While you’ll never be number one for “cars,” (without a hefty war chest), you can quickly carve out your territory by ranking for niche keywords.
Once you do, you’ll find the audience you attract is much easier to convert.
Speaking To Your Audience
The more targeted your niche, the easier it will be to speak directly to your audience. That results in a higher conversion rate. Whether you’re selling information products, blogging with an up-sell to a coaching program, or generating Adsense revenue, the more tightly segmented your audience, the better. Segmentation lets you directly address your customers’ needs. In effect, it allows you to continue the conversation that is already going on in their mind. There lies the path to higher conversions.
For example, let’s suppose you’re selling an ebook about weight loss. There are a lot of competing information products. If you cannot differentiate your ebook from the rest of the pack, your audience will have other options. Those options will lower your sales. But, let’s suppose your ebook is geared toward women who would like to lose weight immediately following childbirth. Your audience will be smaller, but they’ll have a specific need that you can address. As a result, your sales will naturally increase.
Building Your Online Empire
One of the advantages of “going niche” with your online business is that it perfectly builds the framework for expansion. By moving into related verticals, you can take advantage of your first niche’s momentum.
Let’s return to our “weight loss after childbirth” ebook example. Your customers will likely be interested in related topics. This is a perfect opportunity to expand your business. Ebooks about “nutrition after childbirth” and “fitness after childbirth” will probably sell well. Each ebook should be supported by its own site. By linking your growing portfolio of related sites, Google’s ranking algorithms will note their similar topics. As a result, each of your sites will enjoy an authority boost.
We’ve touched upon a number of marketing strategies and concepts in today’s post. Most are secondary to the main point: if you want to compete and build a bigger business, go niche. Your customers will thank you, Google will like you, and your bank account will show the results.
Below are a couple of more Resources to help you further with Niche Marketing:
Click here for The Power of a Focused Business
