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RG: I’ve kind of touched on it already—just not really being familiar enough with a topic; going for the money instead of going for the love of a particular topic, I think, is a really big mistake, because the first objective should be to help other people and that’s how you make money, by helping other people. You don’t make it by wanting money.
GC: It’s a mindset thing and easy to fall into the trap of chasing the dollar and promoting everything under the sun, but as you say, you’ve got to provide value to your blog readers or your customers so they’re getting value and it’s a reciprocal kind of thing.
How do you research niches to find out of they’re likely to be profitable or not? You touched on that a little bit with looking at the Google results, but is there anything else specifically you might do?
RG: Checking out the products that are available, seeing if potential competitors are actually selling, finding out how much those products sell for, and then what the commission rates are. You can do that by getting a Commission Junction account or LinkShare, or if you’re going to sell information products, going into ClickBank and seeing how much those merchants pay.
That, I think, is the first consideration. The other one would be are there recurring sales, meaning, do people buy this product over time? Do they keep buying it? With dating services, a person doesn’t just buy a one-month membership and meet somebody and marry somebody; generally speaking, they hang on to a service membership for between four and six months.
If the merchant pays commissions not only on the first month’s membership, button each of the subsequent months as well, that means you’ve only had to attract that customer once but your commissions are recurring month after month as long as they hold that membership.
Another thing I particularly like is any niche that is evergreen, like business opportunities being one thing that people are always interested in, dating is another one, travel is another one. I like to work in big markets. You know there are always going to be people interested in those particular topics.
Then you can hone it in by doing research by watching the news, reading the newspapers and magazines. See what other merchants are advertising and what gets advertised over and over and over again in the back of magazines? Those things are obviously making money because money is being spent on advertising.
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