Large Market vs Niche Market

9 replies
Okay, I'm pretty sure I'm ready to make a serious stab at online marketing. However, there is still one BIG question I'd greatly appreciate answered from experienced marketers.


Having done lots of research, I note that it is very much the opinion of the general community that it's far more prudent to choose a niche with good potential traffic but little competition as opposed to a big, proven market with heavy competition. I can definitely see the logic in that. However.....


What if you release a product that genuinely, utterly is head and shoulders above all but a handful of your competitors? Now, I'm not oblivious to the fact that a mediocre product with excellent marketing is highly likely to be far more profitable than a first class product with poor marketing. However, if you have a GREAT product, and make at least a decent stab at the marketing, could the product gain its own momentum due to its quality?


An example could be that your chosen market has countless highly skilled affiliate marketers that would be very hard to beat. However, this could be an advantage. Instead of fighting them, let them know about your better product and then have these already established marketers selling FOR you instead of against you. I'm sure there are plenty of other ways a great product could gain momentum from its reputation.


However, since I've not even started these are only thoughts-I obviously have no experience. I'd love to hear from experienced marketers what they think. If required, I'm ready to take that plunge and follow the conventional wisdom of niche with good potential traffic/little competition. However, I keep getting this niggling urge to produce a particular product that:


1. I have a lot of expertise in
2. I am passionate about
3. I believe can be better than, maybe not all the competitors, but 95% of them (and then on a par with, not inferior to, the remainder)


BUT-is in the HUGE, 'saturated' market that is weight loss!


I'd really prefer to go after this if I could rather than go on a relentless search for niches. But, and it's a big BUT, not if I'm going to be hitting my head against a brick wall. If so, I'll just apply myself to the conventional wisdom and get searching for those nuggets! Please advise.
#large #market #niche
  • Profile picture of the author lamberw
    Yes, of course it can gain some momentum. You just need more persistence to bridge the credibility gap for competitive markets where people are jaded because of all the antics they've seen.

    They only question you need to ask is "Is there evidence that people are buying in that market?"

    People need to WILLING and ABLE to buy.

    Do your niche research before you market the product. This could save you time and pain if you do this up front.
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    • Profile picture of the author Matthew Olson
      Personally I like to go after the "low hanging fruit" and target more obscure
      niches that are full of hungry buyers but have very little competition from
      other marketers.

      There are a TON of these niches out there. But it does take a bit of research
      to find one. Once you do it's like hitting the jackpot because you become one
      of the few marketers aggressively promoting it.

      The key to finding these more obscure "hungry buyer" type niches is to think
      of subjects/industries/hobbies, etc. outside of the typical Clickbank and CPA offers.

      I believe its worth your time to do the research because the payoff can be so
      substantial. And in the long run you're actually putting forth less effort because
      you're not struggling to compete with an army of other savvy internet marketers.

      To your success,
      Matt
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      • Profile picture of the author pkaliher
        Hey mr_sceptic,

        One of the key issues with choosing a large competitive niche vs. a small not-so-competitive niche, is how to get the traffic you need in order to build your business to a profitable level.

        In a large competitive niche, it is extremely hard to get the natural search engine traffic and a first or second page position on Google. But, don't let that discourage you from going ahead with something you know a lot about and have a passion for. If you have a passion for something, have knowledge about the subject, and you know there is a profitable market, you have a golden niche that is worth going after. Realize that it may take you a while to become successful though, and don't give up.

        In this case, you can get the traffic you need by:
        1. Joint venturing with experts in your niche. Become an affiliate marketer for their products and highlight them in the free report you write and offer to prospects to get them to opt in to your e-mail list. Contact the experts by phone to let them know you have been following them and have just joined their affiliate program. Let them know you have written a special report that highlights them or their products and offer to send them a free copy of the report. If they like it, ask them to mention it to their list. If they do, you can get a lot of "instant" traffic.
        2. Use Pay Per Click (Google AdWords, Yahoo Marketing, etc.) with an initial test ad directed to your opt-in page to get some immediate traffic and to build your list. Make sure your opt-in page is at least good enough to not be rejected by Google during the test phase. Monitor this test closely to see how much it is costing you to get each subscriber to your list.
        3. Use a well written press release, or releases, to spread the word about your product or website through sites like prweb.com (paid) and prlog.org (free). Prweb.com costs $80 for a basic release, but I have found the exposure to be much greater than the free press release distribution sites, but use the free ones too.
        4. Use free classified ads at sites like usfreeads.com and craigslist.com to get some additional traffic.
        5. Write some good articles on your subject area and submit them to article distribution sites like ezinearticles.com. A link to your site in your signature file can bring some additional traffic.

        Just a few thoughts.

        Good luck.

        Paul Kaliher
        My PERFECT Home Based Business Dot Com
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  • Profile picture of the author Mike Bradson
    I used to be scared of the "big competitive markets" but then I read this thing that said those are the best markets to be in because they are proven money makers. Sure there's lots of competition, but people seem to buy anything these days. Heck, people buy things simply because it's new.

    Not to mention a lot of people will buy products in the same niche over and over again because they are looking for that "magical nugget that will solve all their problems overnight."

    All you need to do is to explain the problem/solution in a DIFFERENT way than how the competition does. Focus on your USP and back it up with a quality product and solid marketing and you should do well.
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  • Profile picture of the author prodigaljoe
    Start small then go big. I spent years doing smaller sites before I went after an extremely competitive market. I used the knowledge I had building small sites to send traffic to my new product. You NEED to be able to send plenty of your own traffic.

    You will NOT get affiliates or JVs without having a proven track record or by saying "look at my conversion ratios". Affiliates and JV guys want to see your product converts well. They will not waste their traffic to test your sales page.

    So start small and use that to roll into something bigger.

    btw you can always use niche traffic to funnel OUT to a more broad market site. It is done all of the time. Many IM guys target niche things in IM but then funnel out to their newsletters or general "how to make money" sites.
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  • Profile picture of the author mr_sceptic
    Some great info there guys-thanks and keep it coming!
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    • Profile picture of the author JohnMcCabe
      Sceptic, I tend to take the Willie Sutton approach. For anyone who doesn't know, Willie was an old time bank robber. When asked why he kept robbing banks, he said, "because that's where the money is."

      Weight loss is a humongous, multi-faceted market with dozens or hundreds of niches within it.

      You want to compete in the weight loss market? Start your hunt for lower competition niches within the weight loss market.

      Instead of trying to come up with the one killer product that would eventually dominate the market, think about the "Chicken Soup for the Soul" model, and customize a series of products for niches within the market.

      Consider as an example a young woman trying to lose the pregnancy weight after her first child and a middle-aged man trying to lose weight after a heart attack. Both are in the weight loss market, but their mindsets, habits and life experience are going to be totally different. Taking the chicken soup path would allow you to tailor your knowledge directly to them, and set yourself apart from the all-in-one solutions.
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  • Profile picture of the author mr_sceptic
    That's a great take on it, John-thank you.
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  • Profile picture of the author ColdFire123
    I think choosing which market to use depends on the product you will market in the future. Saturated products should go with niche as it has low competitions unless you offer viewers something like never before.....on the other hand, products with low competition should go for large market and start making some reputation as to establish a name before any competitors gets through...

    Just a thought....
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    Affiliate Marketing Season Special: Earn Commissions as much as 70%. More Stuff Get Sold and Still More Stuff To Sell.
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