Niche Market VS Big Market--Which is More Profitable?
Niche Market VS Big Market--Which is More Profitable
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A lot of people ask me whether or not it is better to build websites in small niche markets were a big markets like weight loss and business opportunities. While there really isn't a straightforward answer to this question there are a few different ways to look at it.
The fact is, there is more traffic more money and more exposure in big markets. In niche markets there is less competition and less traffic to gain exposure from. The formula the niche marketing gurus use is simply building a lots of small niche websites and making a few hundred dollars or so for each site. The problem with this can be that in order to make a decent amount of income you'll end up having to build hundreds or even thousands of websites. The cost of managing hundreds of websites is a lot higher than managing one website in a big market.
Although it may be easier to get a little bit of exposure in a niche market it's not really easier to make money. There just isn't as many eyeballs in the little niche markets as there are in the big markets. This makes it more difficult to actually make sales or get advertisers to pay for advertising on your site. Even if you're close to the bottom of the totem pole in a big market you can still make money because of the trickle down effect that comes with being in a really big market.
The best way to address both issues and get the best of both worlds if by actually building websites and businesses in big markets but making them specific to certain groups. For example, you could do all weight loss website for work at home dads. You could also do a weight loss site for stay-at-home moms. Instead of doing a general weight loss site like most people may do that want to be in big markets make it cater to a specific group of people. By doing this you'll get the exposure of the big market while at the same time not having as much competition.
A great example of this is Facebook. There were already other social networks online but they decided to cater to people that were in college initially. By doing this they were able to craft an niche in a huge market while at the same time becoming the biggest social network on the Internet. Going to big markets, focus on a specific group of people, and watch your exposure and profits grow.