I was thinking the other day about the niche of Internet marketing. It’s one of the most crowded niches on the Internet, yet so many people generate an income selling products related to making money on the world wide web. The reason is obvious – there’s a hungry crowd out there eager to make money and more and more budding web entrepreneurs are born each day.
You can segment the market into many sub-niches. There’s the AdSense expert, the pay per click expert, the affiliate marketing expert, people who buy and sell websites, email list builders, and of course the professional bloggers who use blogs to earn a living – and that’s just small handful of the areas people are making money in.
The laws of marketing dictate that these crowded industries will further segment into smaller sub-niches with the hope that you can carve out your own little piece of the pie by breaking things down to distinguish yourself from the rest. For example there’s no specific expert I know of who focuses on being the expert at affiliate marketing just with blogs or the professional website trader who only focuses on buying and selling a specific type of site, like forums.
For beginners, the issue of choosing what to sell, or in the case of blogging – what to write about – is the hardest choice. I know the thoughts that go through your head –
- I’m not good enough at anything to be an expert
- That guy or girl already dominates that market
- I’m not entering the make money online niche – it’s too crowded
The problem is about positioning and until you get comfortable with what you want to be to other people, it can be a very confusing time in the life of a young start-up business or a new blogger.
What Really Is Unique?
Existing in the market I operate in I see a lot of people who effectively sell to the same audience – people who want to make money online – but everyone has an angle.
On the surface, the angle appears to be positioning based on product or system, as I mentioned above, an expert at one specific way of making money. However, when you look closely you note that any one method for making money is taught and sold as product by many people, yet certain leading figures stand above the rest.
There are a lot of people who make money using pay per click advertising and affiliate marketing, spending money to drive traffic to affiliate offers and earning more than $1 back for every $1 spent on traffic. There are also a lot of people who teach this method and while they all no doubt have a slightly different spin on things, when you look at it on the surface, especially as a newbie, it’s really hard to tell the difference.
If you look at things from a macro level and take a person just about to enter the realm of Internet marketing, when presented with all the options they all look very similar. Every marketer is pushing an easy way to make money, throwing pictures of their bank accounts and paypal balances, testimonials and claiming that the system is so easy, anyone can do it. To someone who doesn’t know their PPC from their SEO, it all appears the same – opportunities to make money online.
If your customer can’t understand what makes you different and unique, how can you differentiate yourself?
A Unique Relationship
As I’ve grown an Internet business based on my profile and interacted with other businesses driven by a specific well known and respected person, I’ve come to realize that as always, it’s the relationship that counts the most.
To a person about to make a purchase they are faced with many options. If by chance you happen to convince them to at least try your free resources, which could be by downloading your report, or joining your email newsletter or even just reading an article on your blog, this is your first chance to make an impression and begin the relationship building process.
If the prospect studies your output and benefits from it, you have successfully completed the first step – you have a tiny piece of mindshare. Hopefully your first introduction to this new person led them to bookmarking your site, or staying subscribed to your email list or adding your RSS feed to their reader. They made the choice to continue to know you, which is something you cannot underestimate the value of in today’s attention deficit online world.
From there it’s up to you to foster the relationship and become a source of value in that person’s life. If you can master that, then it really doesn’t matter if what you sell is similar to what other people sell because you have the relationship. Essentially – your prospect likes you – and if they like you, there’s a much greater chance when it comes time to make a purchase decision, it’s you they choose.
Unique Methods of Communication
For businesses driven by personality and expert status the key to being unique is using unique communication mediums to deliver your unique persona to the market.
One of the best examples of this I have seen is Andrew and Daryl Grant.
You may remember Daryl from the two part podcast interview I did with her years ago, where she talked about how her and her husband Andrew made $250,000 in their first year selling ebooks online. This is still one of the most popular podcasts I have done on this blog and Andrew and Daryl have gone on to become multi-million dollar Internet marketers since then.
Andrew and Daryl are unique. They present as a typical Aussie couple who use common sense and a step-by-step system to make money. As a result, they really resonate with the audience back here in Australia and have thousands of customers.
I can’t claim to know where the majority of their customers come from, but I’m pretty sure one of the main sources is speaking gigs. Andrew and Daryl do a lot of presentations at big conferences and especially in Australia, their unique personalities convince many people to join their programs.
The method of using ebooks to make money online is not unique to Andrew and Daryl, but through their unique personalities, the quality of the information they provide and the communication methods they use to market to people, they have carved out a well positioned Internet business. Obviously there is a lot you need to get right to do what Andrew and Daryl do, but the key point is how they differentiate themselves is not through product, it’s through personality and relationships.
Forget Niche Markets
It’s always important that you genuinely provide value to people, but I think, especially for individuals just getting started in business or blogging, that you focus your efforts on relationships more than the niches.
When I first started my email list I knew I had something to teach but I wasn’t sure what I had to sell. My product wasn’t defined yet, but I knew if I spent time helping and providing value then the key ingredient would develop – I’d begin more relationships with more people.
Down the track, when I finally had something to sell, I already had a loyal following, people who trusted me and some of whom were willing to give me money to buy from me. What I eventually sold wasn’t necessarily all that different from a macro viewpoint – just another way to make money online – but thanks to the positioning established through relationships, I had a market that trusted and purchased from me.
If you are about to embark on a business or blogging project but you are not entirely sure what you will sell or what you want your blog to be about, begin by simply providing value and open a dialog with people using whatever mediums you have available to you. In time, you will solidify the “what” you sell, but without the relationships in place, it won’t matter what particular niche you end up in.
Yaro
Building Niche Relationships
That’s very well considered post Yaro. I’ve always felt that you can succeed in pretty much any niche providing your product is good enough. And by good, I don’t necessarily mean better than the leaders, just good enough to take advantage of an opportunity.
It seems strange that in one market you’ve got coffee shop owners eagerly opening up next to Starbucks but on the other hand you’ve got bloggers scared to enter into crowded niches. Surely the bigger the niche, the bigger the market, the bigger the audience, and the greater the opportunities?
I don’t think you need a unique niche, but I’m also not raking in thousands from my blog or seeing 10,000 visitors a day….so, maybe you do need a unique niche. hehe
When I started my blog, I didn’t know what to write about so I left it wide open to really talk about anything. I liked web design, publishing, web entrepreneurship, and the like, so I knew I wanted to write articles around that niche, but what if I wanted to talk about something else? I didn’t want to feel tied down I guess. I named by blog Random Jabber and although I do try to keep on the subject of things dealing with the online world, I have the flexibility to write about whatever I want in whatever niche that I want. That may not be the best way to go about it, but for me, I think it’s the only way. I just don’t think I could keep pumping out articles on the same topic all the time. As much as I love web design, it would still be difficult. I have to many things/ideas bouncing around in my head to stick to one. 🙂
Yaro,
Do you think that most people who do blog and make money like yourself are in the Internet Marketing Niche?
It seems to me that most of the money is providing people with the “gloves” and “boots” to go mind the gold — rather than in the mining of the “gold” itself. Is this a fair statement?
Are there people on the web who have other niches and are seeing an income like your own, but who are not focused on Internet Marketing? I remember when you first started your blog, it was interesting — as it was you, talking about your online project and offline businesses — over the past year, it has turned out as more of a review site of people’s marketing programs and such of which you simply link to.
Just wondering if you know of other who are not in the Online Marketing niche who do bring in a 5k+ monthly income from their blogs.
J
Hey Yaro
Yeah, very good point about the personality thing. And I think it’s even more important in an online business to focus on your personality and along with that the importance of building solid relationships.
It just seems so much harder to trust someone online than it is to trust someone offline. And I suppose that is why blogs are such good tools for building those strong relationships and gaining credibility.
Of course, there are many other ways of gaining credibility and trust, which I’m sure you have talked about heaps on your blog as well. But just to refresh the minds of perhaps new readers, here are some more tips for gaining credibility and building that all important trust with your website visitors, and hopefully later, clients:
1. Interview experts in your field and place their interviews on your website.
2. Get pictures taken with celebrities in your field and put it on your website in a visible place.
3. Make use of social web media to give you social proof – ie, evidence that other people find your information helpful as well.
4. Get audio and video testimonials from people who visit your site. You could easily use YouTube for this – doesn’t cost a cent!
5. And then of course the normal community building stuff like responding posts for example.
etc etc…
Just a few ideas…
Chat later!
Gideon Shalwick
Yaro,
I definitely agree. Just because a market seems saturated does not mean there is not room for competition.
There is always room for competition. There are very few companies, blogs, websites, or whatever, that can claim true natural barriers to entry.
With blogs you are first selling yourself and your personality. Besides having good content people read your blog because of who you are.
Anyway, very insightful article.
Beau Hooks
While not obsessing about having a niche is good to get your started, there comes a point where you must give people a reason why you are different from the hundred million other blogs out there. What information or perspective are you providing to your readers that is valuable or interesting?
I do agree with Jason above a little, there are a few of gold pan salesmen out there making a good living, and a lot of miners earning $1 a day.
It’s all about evolving your niche over time, get started, make contacts and share the information that you learn and acquire over the journey
Yaro, yesterday while browsing through my blog archives, I came across a response I wrote to one of Seth Godin’s ‘Meatball Monday’ posts.
It was a question about what you’d do differently if you start marketing in 1947 – knowing what was in the future.
http://moneypowerwisdom.com/purple-cheese-fondue/
My answer: I would change the way I built my client/customer database.
And I would make the NAME of my client/customer the central piece of data, the one around which everything else hinged.
That’s who is important. Not other things. At least, not in this age.
Attention – Trust – Influence.
That’s the continuum we strive for – and it begins with the relationship with our audience.
Nice point, thanks for highlighting it.
All success
Dr.Mani
Great post, Yaro!
It is funny because this post describes exactly what I am going through right now.
I recently launched a blog and at first I wanted to write about personal development. Then, I wanted to include a marketing twist, partly because I love marketing, and also because I wanted to have a medium to convey my value on the internet.
Then, I decided after much deliberation that I would have to tighten up the focus of my blog to marketing only. I felt that a marketing only approach would be more aligned with my goals and what I wanted to accomplish with the site.
Now, just like you described in your post, I am forming tons of great relationships with other amazing people, and waiting to see how the rest will develop.
I definitely agree that the most important part of blogging is the relationships and networking. They are more valuable than (and a prerequesite to) money.
I think this year will be a great one for you! I have really been enjoying the posts describing how you made Blog Mastermind a success this past year. It is an inspiration to the rest of us.
Keep up the great posts!
You’re all wrong!
Those commenting here about “attention, trust, and influence…” are seeing their perspective inside the blogging niche. You’re relating your grief applicable mainly to other affiliate and blog savvy online entrepreneurs.
Remove yourselves from this tiny blogging niche and know that the majority of online users aren’t tech savvy at all and least of which business savvy.
If you don’t know what I’m talking about, try doing a search of how many times the keyword “blog” and it’s related phrases are searched for by average people. Like I said, the blogging niche is super small.
In comparison the celebrity niche is huge and I’m pretty sure the authors of TTZ media don’t have to promote “attention, trust, and influence…” for us to appreciate their work and to open our purses.
Just step outside the world of blogging for second and see things the way the other 95% of the world sees it, as infotainment.
I’ve studied Yaro’s style for almost a year now and believe me I was once like you Jason, always questioning him here in the comments as if to expose lies and falshoods.
What happens is you realize to each their own, and better to just be in a constant state of change adaptation. Feel good when others make money. It’s a sign of self confidence and that you aren’t any less of a person then they are.
Yaro’s a human being just like us God damn it!! lol
Jason, you’re a winner! That’s all you need to know. 🙂
I just feel that many Online Marketers, don’t have “real” online businesses — except for selling the herd information on Internet Marketing.
I guess, what I am saying is I enjoyed ready Yaro’s blog back when he first started because he actually talked about his online businesses that he had at the time like BetterEdit.
Yaro, you mentioned that those who sell t-shirts only need to market that their t-shirts are good, not tell people how much they make, which is true. However, it is interesting to read a online business blog that actually dissects and tell the story behind said t-shirt business, more so than just promoting Internet Marketing information.
I miss the old days of your blog Yaro… where you talked about BetterEdit or even the making of the Magic The Gathering Forum.
If I may get involved in the discussion briefly…
I think that this is simply a perfect example of the fact that everybody likes different things, everyone has differing tastes, and not everyone is going to enjoy the direction that a blog takes.
Yaro’s changing content, topic, and style are reflective of his growing experience and expertise.
It is not better or worse than when he wrote about his businesses everyday, it is just that he has become more of an authority (and more succcessful) and therefore must talk about a broader range of topics. Besides, he is no longer a struggling entrepreneur like back then…he now makes several hundred thousand dollars per year from this. Of course he will change his content to match that.
Also, I think that Yaro’s latest series still displays his personal writing style, just now its a reflection of his current situation.
I think it is good to remember (especially as a blogger) that it is not important to please everyone.
Simon mentioned coffee shops opening up next to Starbucks. I know people who order Peet’s coffee and have it shipped thousands of miles rather than visiting a convenient Starbucks location. Not being a coffee fan I can’t exactly understand this, but I know it has to do with being unique. Why be afraid of a crowded market when you’re original and addictive?
@Jason – I hear comments like yours a lot – it’s the guys who sell the shovels to go mine the gold that get rich, not the miners, or today, it’s those who teach and preach Internet marketing who get rich, not the people who attempt to start businesses.
I do not think this is the case with what is going on online today, or with blogs either. There are way more Internet businesses and blogs making money in non-IM niches for sure, however, these people don’t talk about it.
Making money is a profitable topic, it always will be. People who teach how to make money online need to talk about how much they make in that niche in order to establish credibility.
People who sell t-shirts online don’t have to talk about how good they are at selling t-shirts to make sales. They just have to talk about how good their shirts are.
This brings to mind what I read over at Liz Strauss’s Successful-Blog.com. She says “Relationships are everyone’s business, and every business is relationships.” As a new blogger with a monetized WordPress blog I really appreciate voices like yours and Liz’s who stress the importance of building relationships. I have not really found a unique niche for my blog yet, but that’s ok. I’m still learning how to blog and just letting the whole thing flow as it will. I think by doing this my readers will come in time and my place in the ‘blogging for income’ world will develop naturally.
That’s a real good point Yaro…
A while ago I suggested to set up a blog for one of my clients, upon which he replied:
“I don’t even know what a blog is, and besides, no one else in my industry knows what a blog is…”
And therefore, he was not interested in getting a blog set up and using its powerful features for driving customers to his business and creating more credibility for him
I don’t quite understand that way of thinking, but hey, the customer is always right, right? Or perhaps, even if the customer is wrong, they should be made to believe that they are right?
I dunno, still trying to figure out what the best way of dealing is with customers who want to do stuff that is in essence detrimental to their own business!
Any ideas would be most welcome! 🙂
Gideon Shalwick
Hey Gideon, if I may be of assistance….
I definitely agree with your point about most business owners not being open to new forms (especially blogging) of promoting their business.
This is the exact reason why I chose to write an article on my blog called Why You’re Nobody Until You Have a Blog. You can find it as the second post down on my blog.
This is not self-promotion…I really believe that if the next time you try to talk to a client about blogging for their business and they say no, that this would be an excellent article to give them to read. It will really put things into perspective for them, and tell them all the reasons why blogging would be great for their business, and not blogging could be their end.
Hope this helps!
Hi Conrad
Thanks for the extra information. It’s JUST what I’ve been looking for.
I love your website – the layout and the content is very well done!
Thanks for the great article – I’ll give it to my clients!
Gideon
Hey Gideon,
No problem and thank you!
Conrad
Conrad pretty much sums up my take on this.
I enjoyed writing about BetterEdit and my Magic days too, but as always, this blog is a discussion of my journey and I have moved on from those days.
I may mention lessons from back then now and again still, but with my focus now in the blogging niche, that’s where I place my attention and thus my article topics are concentrated there too.
Jason – You are right, it would be a good thing to have a t-shirt shop owner blog their journey as a business owner and that will help spur more sales of their t-shirts thanks to increased exposure, but most business folk don’t “get” that part of blogging, so they focus more on marketing their shirts and running their business rather than writing about those things.
How about this? When you are starting, build relationships in your main niche market to grow faster.
Find some non-competing partners who serve the same niche market and join forces to generate more value and visibility for each other.
Create first-ever offers, bundled product packages or events.
That may be the best way to attract more customers, per-customer spending and media coverage. – Kare Anerson, Walk Your Talk & SmartPartnering
Webdesign is a great niche that is often forgotten about. A friend of mine designs websites and runs adsense sites – he makes far more from web designs than he does from other money making schemes.
When you work online, you tend to know how to make websites, so you should use this skill as well as other money making opportunities.
I found the comment above about blogs interesting – this is not something I would consider for my industry, but I might now!
Yaro,
I think anyone who make money from blogging is in marketing niche because they must find out the best and suitable ways to monetize their blogs.
Yeah, this post describes what I though before opening my blog, that’s why its a general one 🙂
To reply to Jason, there are many people who make thousands of dollars with their blogs and are not in the Internet marketing niche.
I’ve just read a case study, a blog who earn $200K per year in the Gadget niche.
And there are many others.
Like Yaro said, these guys are underground! It’s not because you don’t see them that they don’t exist…
Peace man.
Franck.
The Body Guard marketer.
Connection with your readers/visitors through any communication medium will make them comming back. So if you cannot connect to your visitors then no matter how unique is your niche, you wont be a successful business.