Etips is a publication of:
Your Guide to Professional Web
Site Design and Development
Hello,
Welcome to this week's edition of Etips.
In today's edition of Etips, I will be featuring an informative article titled,
In Depth Analysis of a Successful Niche Product, written by Gary
Huynh.
This article will provide you with some valuable information to assist you
in developing products for niche markets.
I hope you will enjoy the publication.
To your success!
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 In Depth Analysis of a
Successful Niche Product
By
Gary
Huynh Copyright © 2004
The following article is an in depth
analysis of a successful niche product that is about teaching your parrot
how to talk. Now THAT is a niche!
http://www.yourparrotwilltalk.com
There are few niche information products targeting pet owners. Creating a
product for pet owners is a very sound idea, as people love their pets more
than anything else they own.
Frank Kern created a product for parrot owners that is making him thousands
of dollars a year on autopilot. A search for "parrots" in the Overture inventory
tool at
http://inventory.overture.com
returned 88,000 results. That means 88,000 people searched for that term
in February 2004.
Let's see how Frank is making money on autopilot with his product. By typing
"parrots" without the quotes into Google's search box, I see that on the
right side of the results page, Frank's parrot site is listed in the number
one position. It's very likely that Frank pays only the minimum of five cents
per click with his Adwords campaign because there are only three other ads
on that page.
If Frank gets two percent of the people who search for "parrots" to click
on his ad, or a two percent click through rate (ctr), that means 1,760 people
visit his parrot site. If just five percent of the people order Frank's product
at $37.77, he's making $2898.72 per month. That's really an exact figure
and I'll show you how I came up with it.
Frank uses Clickbank as his payment processor. They charge $1 + 7.5% for
each transaction, which means out of $37.77, Frank gets $33.94.
Five percent of the people ordered so that's 88 orders. 88 x $33.94 = $2986.72
Subtract the cost of pay per click advertising of $88 and that leaves Frank
$2898.72 for the month. Multiply that by 12 months and Frank makes $34,784.64
a year. That's a nice income from a one page website using only one source
of advertising -- don't you think? Frank spends an hour a week monitoring
his Google ads and that's all the work he has to do for his site.
Frank could probably double his income by making a few changes to his business.
Since he doesn't run an affiliate program, he could switch his payment processor
to one that takes a lower percentage of his earnings.
Frank could also raise his prices. If he studies his market of parrot owners,
he'll probably figure out how much they spend on their parrots. Parrots aren't
cheap pets. Also, pet owners WILL spend a lot of money on their pets. People
send their dogs to obedience school, grooming services, and buy them all
sorts of pricey items.
All Frank has to do is send his list of customers a survey asking them how
much the information that they bought is worth to them. He could raise his
price for the product or create a version 2 and sell more to his existing
customers. He could also sell parrot supplies to his existing customers.
Another thing Frank could do is have a subscription box on his site to capture
emails and then build credibility with visitors who don't buy on the first
visit, and in the case study above, that's 95% of people!
Having listened to Frank talk on a bunch of internet marketing teleseminars,
I know that his aim is not to fiddle around too much with any one site. His
method is called the "Underachiever Method." His aim is to create 50 sites
that generate money such as the parrot site. What a good idea -- 50 streams
of income that run on autopilot.
That got me thinking ... if he can create 50 sites like that, for me to create
just one site is good enough. I started to research my own niches. I asked
myself what other pets could people be interested in that would create that
kind of income?
I searched for the following terms and found how many people searched for
those terms.
Rabbits - 139,995 Humming Birds - 110,692 Ferrets - 76,820 Tropical Fish
- 155,579 Hunting Dog - 30,725
Woh! Excellent potential - bling bling. I searched on Google and didn't find
anyone selling information products on rabbits or hunting dogs. I did find
one on ferrets and tropical fish. That shouldn't stop me from creating a
product on ferrets and tropical fish. There's always room for improvement
or joint ventures.
I looked at "hunting dog" more closely and saw that some related keywords
are:
"rabbit hunting dog" "hog hunting dog" "squirrel hunting dog" "deer hunting
dog" and a lot more.
There are so many niches yet untapped it's unbelievable. I think I'm going
to create an information product for hunters and use all those little niches
for the chapters. I don't mind revealing all this to you because I've got
a bag full of niches that I've researched.
One method I use to find niches is to type in just a single keyword into
the Overture tool and look at all the related keyword phrases. Those related
keyword phrases are niche markets.
If you'd like to create a niche product, you may want to set up a Google
campaign to ensure there is a market for your product. Once you're certain
there is a market, visit a bookstore like Barnes and Noble to find a book
or magazine about your niche. If there isn't one available, you should really
consider looking for another niche, as there most likely isn't a market for
your product.
If you find some books, look through them to give you an idea of how they're
written and the type of content they contain. This will give you a good idea
as to what your product should contain.
Take notes and visit a freelance site such as
http://www.elance.com
to hire freelancers to write your ebook for you.
Your final step will be to create a one page website, set up with a payment
processor such as Clickbank, and start sending traffic to the site.
The entire process shouldn't take any longer than a month.
Good luck!
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