Suggestions for Choosing A Target Market

What skills have you picked up through education or your current line of work? Can you market these skills online? For example,

- Programmers and Engineers may be able to write custom scripts and sell licenses for their use.

- Stay At Home Parents may be able to offer child-care tips, information on how to evaluate a daycare, or advice on finding the right school.

- Construction workers may be able to create a series of booklets on "inside information" prospective home owners should know before selecting a builder.

Are you a hobby gardener? A fan of rhythm 'n blues music? A proponent of wiping out home business scams? One thing to be aware of is that turning a hobby into a business may "ruin" it for you. You may not like the feeling of being "forced" to come up with new content, new products, etc. You may simply prefer to keep your hobby exactly that: a hobby.

Then again, you may adore it. Imagine getting paid doing something that you love! I know several people who have turned their passions into a business, and not only do they make money, but they also have a good time while they are engaged in it.

Can you think of a product or service that you wished existed, but you have not been able to find it anywhere? If so, chances are that others have as well. The question is whether or not there is a market large enough for you to tap into and make a decent profit. For instance, doggy bakeries that offer gourmet doggy treats never existed until a few years ago. Now they are popping up all over the place to fill the demand.

Choose an existing market and improve what is being offered.

There thousands of website that claim to have the answer to finding a home-based-business. If you were to try and break into this market, you could "specialize" a bit more: do you want to cater to work at home moms? What about work at home dads? How about freelance writers? Technical jobs?

Take a look at what your competitors are doing. Can you offer something unique or improve upon what is already being offered? Can you offer better service, more personalized service, extras, that no one else has? The more saturated your market, the harder it will be to make money.

Regardless of what you choose, consider whether or not you can stick with it for a long time. Do you have the motivation, knowledge, and interest to offer up-to-date content to your audience? Do you have the skills and desire to create new products, or are there good affiliate programs available? Will you be able to sustain your interest and motivation in your business of choice?

The internet offers an amazing opportunity for the "average" person to make money selling products and services (whether his own, or those of another company's). However, not all products sell equally well online. As yourself these questions:

- Is there a more convenient alternative? Products that aren't easily available at a local store have a better chance of selling online. Not only is it often more convenient to simply drop in and pick up whatever you need, the customer isn't going to be hit with additional shipping and handling charges (which can be quite expensive when shipping heavy products).

Here is a simple illustration. Suppose you have a household of pets. You are often running to the pet store to pick up more food. At one point, you had investigated ordering the products for your pets online. Imagine, door-to-door delivery! But, in the end, you decided against it. Not only would you have to wait for it to be delivered, but the shipping costs were nearly as much as the cost of the food! It was easier and cheaper for you to just pop into the store.

- Is the product something a customer needs to feel or see before making a purchase? An example would be a wedding dress. Most women want to try it on, walk around in it, and see how they look and feel in the dress before they make the purchase.

That is not to say that you cannot sell something that the customer may prefer to see/feel; if your marketing is good enough, you might actually make a great many sales. However, you run the risk of higher return rates from customers that discover that the product doesn't fit or didn't meet their expectations; which means less profit and more hassle for you.

- Are customers normally cautious about buying your type of product, even offline? Many people are still naturally hesitant to purchase anything online. So, if you are selling something that they normally hesitate to buy in the real world, then your challenges are compounded.

For example, some people don't think the services of a financial planner are necessary. They might only make one appointment with one due to persuasion on the part of family or friends. They discuss their situation with the financial planner and make a decision about whether or not they feel they can work together.

Now, if the financial planner sets up shop online, he claims that he is very successful and offers to help manage your money over the phone or by email. Most would probably hesitate to take him up on the offer without actually meeting him, viewing his office, etc. It is harder to gauge his honesty or credibility from a distance.

Some websites sell brand name items to try to establish a sense of credibility. These sites have the advantage of name recognition, which helps to inspire trust in the customer and sales.

- Is there a market for your product, at the price at which you intend to sell it? This is what it all boils down to. There has to be sufficient demand for your product at a price that allows you to earn a reasonable profit after all expenses are paid. For instance, if it costs $10.00 to manufacture a product and your optimum price ( the price that allows you to sell at maximum profit) is $10.50, is it really worth the effort?

- Is your target market likely to use the internet? Be aware that some audiences just don't intend to use the internet much or they use it sparingly. For instance, you are going to have a difficult time if your target market is retired folks who are terrified of technology, or low-income families who may not have access to a computer.

Researching for Your Target Market

Because of the changes that occur so often and so quickly, particularly online, businesses have to keep up-to-date with changing customer wants or trends. This is where researching your target market plays an important part in your business:

- Learn about your market: What do your customers want? Where do they congregate, and how do you contact them? Do you prefer contact by postal mail, email, flyers, or trade shows, etc...?

- Determine the demand for a product or service: Every business contains an element of risk, but with proper research, you will get a good feel for the type of product or service your market is looking for. Find out what your market wants, then create a product that satisfies that want. Don't create a product first and then try to find a market for it. That is a common mistake that can lead to wasted time, effort, and money.

- Adapt and thrive: New opportunities present themselves all the time! As long as you see changes happening, you can adjust your products, services, or business practices to work with them.

There are tools that can help assist your with determining who your target market should be and what exactly your market wants and needs. I shall talk a little more about this in subsequent trainings.