In Depth Analysis of a Successful Niche Product

In Depth Analysis of a Successful Niche Product
By Gary
Huynh

The product is about teaching your parrot how to talk. Now THAT
is a niche! http://www.yourparrotwilltalk.com (http://www.
yourparrotwilltalk.com)

There are a few niche information products targeting pet owners.
Creating a product for pet owners is a very sound idea.
People love their pets more than anything else they own.

Frank Kern created a product for parrot owners that is making
him $20,000 a year on autopilot. A search for "parrots" in the
Overture inventory tool at http://inventory.overture.com
(http://inventory.overture.com) returned 88,000 results. That
means 88,000 people searched for that term in February 2004.

Let`s see how Frank is making money on autopilot with his
product. By typing "parrots" without the quotes into Google`s
search box, I see that on the right side of the results page,
Frank`s parrot site is listed in the number one position.

It`s very likely that Frank pays only the minimum of five cents
per click with his Adwords campaign because there are only
three other ads on that page. Let`s say that Frank gets two
percent of people who search for "parrots" to click on his ad.

He probably gets more than that since it`s a very good ad. The
wording of the ad hasn`t changed for weeks so it must work,
I`ve checked.

At two percent click through rate (ctr) that means 1,760 people
visit his parrot site. If just five percent of people order
Frank`s product at $37.77, he`s making $2898.72 per month.
That`s really an exact figure and I`ll show you how I came up
with it.

Frank uses Clickbank as his payment processor. They charge $1 +
7.5% for each transaction, that means out of $37.77, Frank
gets $33.94.

Five percent of people ordered so that`s 88 orders. 88 x $33.94
= $2986.72 Subtract the cost of pay per click advertising of
$88 and that leaves Frank $2898.72 for the month. Multiply
that by 12 months and Frank makes $34,784.64 a year. That`s a
nice income from a one page website using one source of
advertising don`t you think? Frank could spend an hour a week
to monitor his Google ads and that`s all the work he has to do
for his site.

Frank could probably double his income by making a few changes
to his business. Since he doesn`t run an affiliate program, he
could switch his payment processor to one that takes a lower
percentage of his earnings.

Frank could also raise his prices. If he studies his market of
parrot owners he`ll probably figure out how much they spend on
their parrots. Parrots aren`t cheap pets. Also, pet owners
WILL spend a lot of money on their pets. People send their
dogs to obedience school, grooming services, and buy them all
sorts of pricey things.

All Frank has to do is send his list of customers a survey
asking them how much the information that they bought is worth
to them. He could raise his price for the product or create a
version 2 and sell more to his existing customers. He could
also sell parrot supplies to his existing customers.

Another thing Frank could do is have a subscription box on his
site to capture emails and then build credibility with
visitors who don`t buy on the first visit, and in the case
study above, that`s 95% of people!

Having listened to Frank talk on a bunch of internet marketing
teleseminars I know that his aim is not to fiddle around too
much with any one site. His method is called the
"Underachiever Method". His aim is to create 50 sites that
generate money such as the parrot site. What a good idea. 50
streams of income that run on autopilot.

That got me to think. If he can create 50 sites like that, for
me to create just one site is good enough. I started to
research my own niches. I asked myself what other pets could
people be interested in that would create that kind of income?

I searched for the following terms and found how many people
searched for those terms.

Rabbits - 139,995 Humming Birds - 110,692 Ferrets - 76,820
Tropical Fish - 155,579 Hunting Dog - 30,725

Woh! Excellent potential - bling bling. I searched on Google
and didn`t find anyone selling information products on rabbits
or hunting dogs. I did find one on ferrets and tropical fish.
That shouldn`t stop me from creating a product on ferrets and
tropical fish. There`s always room for improvement or joint
ventures.

I looked at "hunting dog" more closely and saw that some
related keywords are:

"rabbit hunting dog" "hog hunting dog" "squirrel hunting dog"
"deer hunting dog" and a lot more.

There are so many niches yet untapped it`s unbelievable. I
think I`m going to create an information product for hunters
and use all those little niches for the chapters. I don`t mind
revealing all this to you because I`ve got a bag full of
niches that I`ve researched.

One method I use to find niches is to type in just a single
keyword into the Overture tool and look at all the related
keyword phrases. Those related keyword phrases are your niche
markets.

If you`re going to create a niche product, set up a Google
campaign to survey the market to see the potential success.
Once you`re certain it`s going to be successful, go to a
bookstore like Barnes and Noble and look up a book or magazine
about your niche. If there isn`t a book about your niche then
you really should look for another niche.

Look through the book to see what kind of content it contains.
Now go to a freelance site such at http://www.elance.com
(http://www.elance.com) and hire freelancers to write your
ebook for you.

Then set up a one page website, hook it up to a payment
processor such as Clickbank and then send some traffic to the
site. This should take you no more than a month working part-
time or two weeks working full-time.

Good luck!

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Gary Huynh is an independent internet marketing consultant.

He works full time researching and implementing new streams of
profit for his existing business and for clients. View his
Niche Marketing Power Zone at
http://www.onesourcebiz.com/niche-marketing (http://www.
onesourcebiz.com/niche-marketing)
http://www.real-internet-marketing-reviews.com (http://www.real-
internet-marketing-reviews.com)

Bobette Kyle is publisher of http://www.Take-Payments-Online.
com (http://www.Take-Payments-Online.com) , an ecommerce
information site. She is also proprietor of The
WebSiteMarketingPlan.com Network, subject-specific Web sites
designed to help you find the right information for marketing
plans and marketing programs. Visit at http://www.
WebSiteMarketingPlan.com (http://www.WebSiteMarketingPlan.com).