Questions to Ask
When you think you’ve found such a niche market, ask yourself these important questions:
- Do you have an interest or passion for the niche? If not, do you think you can develop one? Or will you get bored with it quickly?
- Are other people passionate about your niche? If not, do they have a desperate problem they want to solve?
- Is the market big enough, but not so big you’ll have too much competition when you’re just starting out?
- Do the people in this niche spend money?
- What products are being successfully sold right now to this niche? Can you sell something similar? Can you improve it, give them something they want that all other products of their kind are currently lacking?
- What are these existing products in your target niche being sold for? Could you be profitable selling a similarly priced item? Or are your potential competitors selling cheap on the front so they can upsell, cross sell, or make their money on the back-end?
What Are the Differences Between Upsell, Cross Sell, and a Back-End Sale?
Upsell: After they make their purchase (but before they pay), you attempt to upgrade them to a premium version of the offer for more money. (e.g. A fast food restaurant might ask them whether they’d like to “supersize” their order. A movie refreshment stand might ask whether they’d like a large soda for only 75 cents more instead of a medium one)
Cross sell: After they make their purchase (but before they pay), you attempt to sell them complementary products. (e.g. a Fast food restaurant might ask “do you want fries with that” when only a sandwich is ordered)
Back-end sales: After they have purchased your product (and paid for it), you follow-up with them at a later date and attempt to sell them a more expensive product that they may be interested in, usually, but not always, complementary to the original product they purchased (e.g. Someone purchases the soundtrack to the Sopranos from Amazon. When the Sopranos mega-anniversary platinum entire DVD collection comes out, Amazon sends you an email to let you know about it and how you can get a discount if you buy from them)