Last week I stumbled upon a niche that was perfect for the basis of a new business. I was looking for something and noticed I wasn’t quite getting what I wanted so I started to wonder if other people were having the same problem. So today I wanted to share with you a quick way to work out if a new business idea is viable.

Here is a quick formula that Eben Pagan talked about recently. I think it’s a good way to test a potential business so here are the 3 questions he asks about a new niche and the tools I recommend you use.

1. Is my prospective client experiencing pain and urgency or irrational passion (or both)?

If they aren’t, then you need to motivate them to buy your products. So it’s a lot easier if the motivation comes along with the client. This is basically a judgement call on your part, how motivated do you think the market are?

In my case, I was sure the market was extremely motivated based on the niche and past experience with similar areas. So tick.

2. Is my client proactively searching for solutions?

If people aren’t searching for a solution then you have to track them down and motivate them again. So you need to work out how many people are searching for solutions in your potential niche.

Luckily there are tools for this, so go straight to the Free Keywords Tool at Word Tracker. If you have an account, even better, but this will give you a good indication of how many people are searching for your potential keywords.

Make sure the number of searches is at least 15 per keyword (preferably a lot more!). You have to make a judgement call on how much traffic you need to make your business model work. Also allow for very low conversion rates in your analysis. A 1% click-through rate to your website and 1% sign-up rate should not leave you overly optimistic. Of course you should be able to do much better than that!

3. Does my prospect have few or no perceived options?

Searching for your terms in Google, how many both organic and Pay-per-Click (PPC) competitors do you have? At this point you probably want to remember that ranking well for your keywords will probably take a year or longer so you’ll be competing in the PPC section on Google.

If there is weak PPC competition you may be on to a winner. Remember there are a lot more ways to market your website but Google Adwords gives you a cheap and easy way to buy traffic at the start.

Now it’s time to test your niche.

How to Test Your Niche

The quickest and easiest way to test your niche is to start a PPC campaign for the keywords you’ve uncovered. The step-by-step process is:

1. Buy a new domain or use an old one.
2. Create a simple landing page with an email sign-up offering something of value.
3. Create a small guide or a few web pages that would be valuable for your niche. Preferably in the vain that your product would be.
4. Create your PPC campaign and point it at the new page.
5. See how many click-throughs and sign-ups you receive.

After a week or two you should know whether you have a viable business on your hands. My PPC campaign went live on Saturday and on Sunday I knew I had a strong potential market. For an idea, here are my first day figures. On two similar keywords:

• 535 people had seen my ad (impressions)
• 34 people had clicked through (6.35% click through rate)
• 2 people had signed up for my ‘newsletter’ (5.88% conversion rate)
• A 2.24 euro cost per conversion (0.16 euro cost per click)

So, based on no optimisation these figures looked pretty good to me. Also, the landing page I made wasn’t very strong either. At this point I need to sell an ebook or similar for 27 euros to 1 in every 12 people that sign up to break even on the first sale.

But of course I have plans to increase the lifelong client value with more products and a membership website with a monthly fee. As long as I offer great (valuable) products then I’m sure I can keep most of my clients as the competition is very weak.

Other Important Notes

I thought this might be useful to those people who want to set up an Internet business. It’s also a good method of research for those with existing businesses to do market research. Don’t take the figures to heart as they’re only an example of what I thought was a good opportunity.

People will have success with better and worse figures. The moral of the story is they got out there and did it. This provides you a quick, cheap, and easy method to test your new ideas and see which one you want to pursue.

And, as always, a good business has a solid passion and purpose (see the recent video blogs below). I’m not encouraging you to go out and use this system as a get rich quick scheme because those will ultimately fail. Two other important questions I always ask myself are:

1. Am I passionate about this subject?
2. Does this business have a purpose that will last 100 years or does it fit within the purpose of my  existing business?

Feel free to ask any questions in the comments, I’ll be only too happy to help.

If your small business sells tiddlywinks, it may be easy to assume everyone in the world knows a lot about tiddlywinks as well.

This may come to a shock to you…but they don’t!

It’s easy when we live and breathe an industry that we just assume the consumers know what we know. The brand of tiddlywinks all the professionals use and the different air resistance factors that can affect a match.

But people don’t. So you need to teach them. And if you take a pre-emptive strike and answer all their questions before they’re asked…well you might just be on your way to building a relationship.

Why

In the physical world it’s easier to explain to a client why they should choose this product over that product. And if the client trusts you they will usually take your recommendation. If you say that X brand of tiddlywinks (really I just like using the word) is going to splinter and give you nasty thumb injuries, they’ll believe you.

The same needs to apply with your website. You need to educate your visitors so they can make an informed decision with your products. They need to walk away from the experience feeling they got the absolute best result for their time and money.

And if your products aren’t suitable for them, let them know! Nothing will impress a potential client more and gain more loyalty than pointing them in the direction of a different solution that will give a better result. Because the next time they need something from your industry…who do you think they’ll come to?

How

Write guides on how to select the best product for their needs. Teach them everything they need to know about the products they’re looking at. Those that want the information can go over it in great detail, while the rest can just get what they need and make the purchase.

Have solution assessment flowcharts, have product demonstration videos. Collect questions and make the responses into a Frequently Asked Questions (FAQ).

Homework

Choose a problem your visitors face and write a guide to help them find the best solution.

I fell of my chair the other day when a client told me this:

“We have a newsletter mailing list, I think it has about 3000 names on it.”

What were they doing with this list? Nothing…they had STOPPED sending out an email newsletter. Quite frankly, I don’t blame them…when I saw the newsletter, it was full of ads. In fact it had 6 large ads for about 4 small pieces of useful content.

So they’d basically killed the list anyway. This left me lying on the ground crying because of all that precious money they’d just set on fire…and because I’d just fallen off a chair and it hurt.

You must keep communicating with your audience.

Why

These people have decided you’re worth talking to. Imagine you’re standing at a party. You start telling one of your best stories, I mean it’s just amazing. As the people around you start laughing at the story, others become interested and start listening. So soon you have a large group of people around you, hanging on your every word…

And then you walk away. That’s right, mid sentence, you get bored and walk off.

How do you think that makes the people feel? Do you think they’re want to listen to you again?

So start telling great stories…and never stop mid sentence!

How

If you have their email address, email them. If you have other contact details, use them. Just make sure you’re sending them something of value…and then keep sending it.

Wow…that was a complicated business strategy. You might want to go and reread that a few times to fully grasp it…

Homework

Umm…work out what your audience wants and start talking to them.

Oh…and make sure you sit properly in your chair. Safety first kids!

Small businesses tend to forget just who their website was created for. It’s not your business, it’s not your shareholders, and it’s not your mother.

Your website exists to serve your customers, first and foremost. It may serve them by helping them buy your wonderful products, but your website experience is all about the visitor.

Why

People are selfish *shrug* They want to make themselves feel good above all else. Some people do this by hurting others, normal people do this by searching for experiences that add to their life. The sooner you realise this fact, the better your website will become.

So when a visitor comes to your website you want them to get the best experience possible. So good, that they might even buy some of your products…don’t faint yet…stay with me…

Surprisingly, the best approach to selling your products is not getting right in a person’s face and yelling “Buy my damn product!!!” Salespeople, advertisers, and marketers have tested this technique thoroughly and finally the results are in.

People don’t like being sold to.

So why would you make your website all about your business and your products? No one wants to read a sales brochure on the Internet. It’s just boring and doesn’t add anything to their life…unless they buy your product.

We need a new approach.

How

Your website should help visitors with what they seek. You should earn their trust by providing quality information that can help them out first. If what they need leads to your products, then that will happen in good time. But there’s no use jumping out from behind a flashing banner ad and yelling “Buy my product!”

Because we know that doesn’t work.

Instead, ask yourself how you could add value to your visitor’s life. Make their visit to your website worth something even if they don’t buy your products.

You’ll quickly find the more satisfied visitors you have, the more clients will appear wanting to buy your products…if they have a good reason to.

Homework

Look at your website and list the benefits a visitor gets from it. If there are none, make another list of what benefits you could offer visitors. Then go do it. If you already offer some benefits, add some more!

I was corrected recently in a forum and told that in business you should appeal to as many people as possible. This was in response to a comment I made:

I’d rather be hated by 50% of people and loved by 50% than cause no feelings in 100% of people.

Well I stand by my comment and I think it’s a good guideline for your website.

It’s also interesting to note that all that ‘free’ advice you pick up in forums can be more costly than paying someone who knows what they’re talking about. After all, how many millionaires are going round forums giving help?

Exactly. But I digress…

Why

It’s hard to differentiate your business while keeping everyone happy. It simply doesn’t work. A grandmother isn’t interested in the same things a teenager is. A hardcore environmentalist will have conflicting views with a capitalist. We’re all different, that’s just life.

We’ve heard so much about product niches recently, especially online. Well don’t forget the emotional niche as well. If you’re too busy trying to impress everyone with the same thing you’re missing out on taking your business to the next level.

How

Now you don’t really have to go out and try to make people hate you. You can if you want, it’s worked for quite a few people. But you can differentiate yourself in other ways. The important part is you don’t worry about keeping everyone happy. Pissing off a few people can be a good thing.

One thing I use is going after bad web designers. I’m quite happy to state that most web designers have no clue how to make money on the Internet. They may make pretty websites but when they start giving advice where they aren’t qualified, I get a little *grrr*

Can you be an advocate in your industry? Can you use your personality to make you stand out? Can you berate and anger 90% of the world while 10% will walk over hot coals to support you and buy your products?

Homework

Based on what was different about your business, how can you take it to the next level? How can you make your website take the high ground…or the low ground? Though, whatever you do, stay away from the middle ground. That’s where businesses go to die!

And for those that want more, there’s another 4 pages about this is the free Members Only Area.

If you’re on my email list, you know I don’t mail very often. Only when I have super important stuff to tell you like what colour socks I’m wearing. But the important thing is I keep in touch. Not often, but I hope just the right amount to make you feel loved.

So it amazes me when businesses have no email list. No active way of communicating with  potential or current clients. How are you supposed to build a relationship if you don’t talk people? Note: As an equal opportunities supporter, I will accept sign language as an answer.

Now I’m not saying you need to leave people swimming in your emails, quite the opposite. Before you send each email you should ask yourself, “How will this benefit the other persons life?” And no, the answer can’t always be “Because they’ll buy my fantastic products and live happily ever after!” We’re looking for a little more than that…

Now my overwhelmingly witty dialogue has convinced you to start collecting email addresses, you need some kind of opt-in process. Most Internet savvy people go for ‘double opt-in.’ This means they’ve given you their email address (opt-in #1) and then clicked a confirmation link in the first email (opt-in #2).

Then you include an ‘unsubscribe’ link at the bottom of every email so you can be sure they actually want to hear from you. Because, surprise surprise, some people don’t want to be spammed to death by product offers.

There are various services that will make things easy for you. I personally use Aweber and find it good. It can be a little complex to start with but there are heaps of tutorials to teach you how to use it. It also has a high delivery rate, meaning your email doesn’t get marked as spam as often…unless you’re selling Viagra. Shop around, read some reviews, and make an informed choice.

The moral of the story, if you have information that is valuable to your potential market (their definition, not yours), then you should start giving it to them. The more value you can offer, the better relationship you can build, and the happier everyone will be.

Being different sets us apart, especially in business. To many people are afraid that if they stand out they will lose customers. But if you look at the most successful businesses, they all do things differently.

Go and take a look at the other websites in your industry and your competitors. What strikes you about them? Bingo, they’re all the same. You could argue that they’re the same because that formula works, but I blame a lack of creativity and laziness.

Your website should be different and unique. It should make your customers actually take notice and not just file you away with all your competitors. When all the businesses look the same, people decide on price. You never want to compete on price!

I hear the moans of “But we ARE different! We’re way better than all our competitors!” Guess what, saying it doesn’t make it true. Even if you have great customer service, putting that on your website doesn’t mean anything.

Guess what? All your competitors say they’re “high quality, customer focused, and great value.” So where does that leave you?

The solution? Show them you’re different. If you have great customer service…show them! And you don’t have to wait until they make a purchase, get some testimonials on your website. Make them stand out, have photos and videos of your customers. Tell stories the have examples of great customer service in them.

There are so many ways to stand out and it doesn’t take a great amount of creativity to do it. Look at other websites and see how they do things. Steal great ideas from other websites in other industries.

So, the moral of the story: Be Different. And then work out how to show this through your website.

Ok, so I kind of trailed off in the middle of my 5 biggest secrets web designers don’t know about making money on the Internet series.

Christmas was one reason, too much work was another.

But the main reason is I wanted to separate it out as an article you must read. So that’s exactly what I’ve done by revamping my website and adding an articles and videos section.

So head on over to check it out, and read in full, The 5 Biggest Secrets your Web Designer doesn’t know about Making Money on the Internet

And when you’re done, come on back to the blog and let me know what you think or ask any questions you may have.

Talk soon.

Do a search for any product or service you like. What do the results return? Pages and pages of people trying to sell you something.

If an encyclopaedia salesperson knocks on your door, do you let them in?

If you walk into a clothing store and a salesperson asks if you need any help, do you say “YES PLEASE!”

Usually…No! So why would you behave any different on the internet? It’s even easier to reject a salesperson here as you never even see their face.

Your website needs to build a relationship with its visitors. It needs to give your customers what they want. First thing they want? Information. They want to find out as much as possible before making a purchase. They want to know if they can trust you. They want to build a relationship so they know you’ll be there if things go wrong.

How do you build a relationship with these lovely people? Content, loads and loads of content. Useful, informative, brilliant content. That’s how you build a relationship online.

 

 What is branding?: Play Now | Play in Popup | Download

After a long discussion on the UK small business forums about whether branding is important for a small business, I thought I’d talk about it more here. A major problem is the concept of what a ‘brand’ is, so we’ll start there.

First off, a brand is not just a name or logo, or something that Coca Cola has and you don’t. A brand is how a customer or potential customer feels about your business. It is their perceived image of your business. It is created from every point of contact your customer has with your business. From the very first time they hear the name, through to their customer service experience, through to your product quality, and so on. It is everything they think, or more importantly, feel about your business.

Big businesses go as far as using psychological techniques to try and make you feel a particular way about their business and product. They carefully choose colour schemes and language. They make expensive television commercials with just the right music and visuals.

While small businesses usually don’t have access to this high level of expertise, it’s worth starting to at least consider these factors in your business. And the information is out there to find on the internet.

So let’s talk about how this effects your website. Obviously, your website presents a very strong image of your business. It can be their first impression of your business and it can be their main impression of your business. To be honest, being in my industry, I expect great customer service…but a great website really blows me away. You might be able to tell how excited I get by my make it easy for your customers post.

So isn’t it time you spent a little more time on your website? Isn’t it time you started thinking about what customers feel about your business?

Some people will say that branding is for big businesses. The question to ask yourself is ‘do you want to be a big business?’ If you do, maybe you should start thinking like a big business today.