1. Are your customers accessible?
This comes down to niche marketing your product for the right people in the right space.
Demographics, age, income and gender all play an important role in this.  Advertising a feminine product in an all-male gym in sounds crazy in the “brick and mortar” world but is easy to blunder on online if your targeting is not carefully planned out.

Let’s say you have a product that will help farmers grow more crops. You need to somehow figure out a way to communicate this product to them. There’s no point in advertising on billboards in big cities that farmers hardly ever frequent.

Make sure you have a clear niche marketing strategy to easily attract your customers.

2. Does the niche have potential to grow?
Does your niche product have the potential to grow into something  bigger and better or it is a one-time phenomenon? What about business in future? When niche marketing your product, you need to consider the lifespan of the product. Sometimes niche marketing isn’t the best way, especially if your product is a one-time thing. Remember the reason for niche marketing is not to “hit and run” make a samll profit and move on, the objective is to be a first entrant in a space where rapid growth in demand will make your website the authority in that arena.

Niche marketing is great for those products directed at a targeted group with their individual needs as the focus. However, make sure your niche product has the potential to grown into future sales through repeat business or as the niche idea catches on with others.

3. Is the product already established in the market?
The key is to take an already existing product and transform it into something a niche market would use. Or, develop something that does not exist, but should. A little competition never hurt anyone but if a large and well-known company is already selling the same product in the same niche market, it is going to be hard to convince your audience to switch to your product.

As an example, the Swiffer Sweeper combines sweeping and mopping into one easy motion. It is well known and trusted by everyone. Niche marketing this same product under a different name to a specific group of people, say, university students, is not going to help you much. However, changing the Swiffer into a smaller version, one that fits inside a dorm room desk drawer, might just work.

So, before you jump into niche marketing, ask yourself these simple questions to find out if your
product is niche marketing worthy.

However, keyword research is not the end of your work. After identifying suitable keywords you have to dig deeper to expand your search:

• Check websites that unite people according to their interests. You will see patterns of niches you never thought of.
• With a broad niche in mind search for news on this topic to narrow down the niche.

The key is to remain a step ahead of other niche marketing competitors by being creative and innovative.

Niche marketing allows you to tap into smaller defined markets which large marketers cannot target. This leaves open a wide opportunity for niche marketers to capture market share with relative ease and far less cost.

The successful niche marketer needs to constantly look for the right balance between competition and search volume. They also need to analyze the nature of the niche to determine how much potential it really has before they enter it. By doing this they find markets that can make them profitable very quickly.  Throguh constant effort and application it is very possible to make a comfortable living online using niche marketing.

Now this may seem easy enough in theory, but make no mistake, optimizing for the wrong set of keywords can do you a great deal of harm.  For example, the name of a product your promoting is also the name of a popular library in New York City – and instead of receiving targeted traffic who are looking for information on the product, you are receiving hundreds of hits every week with people looking for the architectural history of this library!

So how do you find the right keywords to target?

Well the most common tool used for uncovering profitable keywords is Wordtracker.  Their keyword research tool allows webmasters to dig deep within the databases of several popular search engines and reveal the exact phrases that people type into the search engines when they’re looking for something.  Take a look at the screen shot below:

I’ve typed the word “tattoo” into Wordtracker’s Keyword Research Tool, and I am shown the results taken from the databases of Google, MSN and Yahoo.  Having this power gives you the ability to not only see how many times a certain phrase is “searched for” but also how many existing websites are competing online for the same keyword.

With relation to niche marketing, you want to optimize your website and marketing efforts towards keywords which have a good demand (searches per day) with reasonably low supply (competing websites).  Targeting these phrases which have high demand and low supply will ensure that you rank on the first page of search engines when these specific terms are typed into the search query.  And with all that free targeted traffic coming to your website, the money will soon follow!

Once you’ve mastered the process of building keyword lists and knowing which keywords to target, you will notice immediately that your niche marketing efforts will begin to translate into clicks and dollars.  With a little bit of trial and error you can be on your way to dominating any niche regardless of its size!