What is Niche Marketing and Does it Really Matter to Me?

In the field of ecology, a niche denotes the place where an organism occupies within an ecosystem. It is what defines the role which this organism plays in the environment as a whole and is important in determining whether an organism will thrive or become extinct.

In the marketing word, niche means the market sector targeted by a product or service. It is this small piece of the market where a product meets a need of a certain market. To attract a good market share, companies must have a product which meets a need which is being unmet in the target market.

Niche marketing has to do with finding small market segments which are potentially profitable due to an unmet need. To make enough sales to be viable, a business must build brand loyalty in this niche market. The product or service must meet or exceed customer expectations and thus foster customer loyalty. The end result of successful niche marketing is the establishment of a loyal customer base which trusts the product and the company behind it.

One of the best things about niche marketing is that it lets those who engage in it be creative and encourages them to stand out in their chosen area. Marketers are not forced to compete against industry giants by can instead operate with minimal competition in their own small pond instead of having to dodge the corporate sharks waiting in the deeper end of the pool.

If you’re looking to get into niche marketing, the most important thing is to know your niche intimately. You need to know as much about the niche as possible in order to be successful in reaching your target market.

You need to know how to best reach your niche market. You will have to know the keywords which people in your target demographic will be using to find the sort of product or service which you have to offer. Targeting the right keywords can make all the difference between success and failure in niche marketing.

You also will have to know the potential of a niche market before taking the plunge. If there is no money to be made there, it won’t matter how much work you put into it – you will still fail to make an impact. Identify a customer need which is going unmet and find a way to meet it. This should be your first step in niche marketing, even before building a website. After this, figuring out the best way to reach your target market is the next step to achieving niche marketing success.

Do you need niche marketing in a business climate where there are hundreds of different ways to make money online? Those who are familiar with niche marketing will answer with a resounding yes. Niche marketing is the only way to tap into the potential income to be had by meeting a need which no one else currently is. Best of all, you will not have to compete with corporate behemoths and can make a good income while dealing directly with the people who really matter –your customers.


  • Luis

    Reply Reply November 19, 2008

    thanks Reed for the great post.
    I always enjoy your post.

    Luiss last blog post..Why is list building so important For Making Money On The Internet.

  • Michael

    Reply Reply November 19, 2008


    Profoundly accurate article and imperative to learn. Keep up all the good work.


  • Claude Pelanne

    Reply Reply November 19, 2008

    The hard part to grasp in niche marketing is the idea that in a highly competitive area like affiliate marketing or internet marketing where competition is stiff and some many super affiliates ply the waters, there is a little piece left to develop a business. You are proof that it can be done. Great article and congrats on getting your Dad in on the business. I just read his ebook on list building and it was helpful and inspiratational.

    May your travels be even more prosperous!

  • Pat Gunning

    Reply Reply November 19, 2008

    Another great article Reed. many businesses could benefit from marketing their products individually using the techniques you have outlined.

    It is often the one-sized-fits all marketing mentality that kills sales, thus income.


  • Timothy Millar

    Reply Reply November 19, 2008

    Hey Reed, Love that analogy,Organism occupation
    sounds real accurate sometimes. It’s a tough Market out there unless you find the right niche
    at the right time with the right product which in itself is the Ultimate Goal of all Marketers.
    Have a wonderful day, Timothy Millar

    Timothy Millars last blog post..Paid to Read update #3 Jacob mails

  • Paul Livingston

    Reply Reply November 19, 2008

    Reed, I’ve been reading your blog a while now. Always good stuff, but I have a tip for you.

    How can I contact you privately?

    Paul Livingstons last blog post..Wow, 34 Targeted Leads in 18 Seconds!

  • Talmage Shipman

    Reply Reply November 19, 2008

    Dear Reed:

    The analogy, definition and admonishments are all accurate and sadly unlearned by too many. Except for a few products like drugs, gasoline, electricity, telephone and internet connections few products have universal appeal which makes all of us niche marketers. The sooner we start thinking like that the sooner we make money.

  • John Austwick

    Reply Reply November 19, 2008

    spot on Reed know your niche have a passion work the system the rewards will follow.
    very sound advice good article.

    John Austwicks last blog post..Game On Saturday Nights

  • Saul Maraney

    Reply Reply November 19, 2008

    What a great article Reed!
    Your insights are fantastic.
    Saul Maraney
    Johannesburg, South Africa

  • John Bandy

    Reply Reply November 19, 2008

    Hi Reed,
    you can explain it better than most I have heard. I am promoting others products now, but I hope to venture on my own before too long. Thanks for a great article.


  • Asher

    Reply Reply November 19, 2008

    Hi Reed,
    Good stuff about niche marketing. Quite a few people I’ve come across keep getting it wrong – they think everyone will want to buy something in any niche but it may not be true…

    Some niches just aren’t profitable at all.

    Thanks for voicing it out.


  • Jonathan Ofei

    Reply Reply November 19, 2008

    Hi Reed,

    An absolute resounding article,well-thought out
    with an appetite for ”food for thought”
    You make a rather difficult topic look so trivial.Please carry on the good work.

  • Anna Kindler

    Reply Reply November 19, 2008

    Hello Reed, Another very informative article.I agree with John, you do explain the niche marketing better than most. You are gonna laugh when I tell you when I first started this affiliate marketing business, I thought a niche was an indent in the wall. Took me a long time to figure out how a niche in the wall would have anything to do with marketing. Then I realized niche meant a product or service. Oh well. Thanks Anna

  • Jan Verhoeff

    Reply Reply November 19, 2008

    Niche marketing is like food. Everybody wants their own choice, not the random exception.

    Thank you for sharing this bit of information and these concepts. Well written article!

  • normz2

    Reply Reply November 19, 2008

    Good post. There all kinds of niches. For most of them there are thousands 0f others using that niche. The problem is to find a niche market that is not saturated yet and take advantage of it. I have a friend that has an ideal niche. He does not get many hits, but his conversion rate is very high as there is very little competition and he does not have to promote.

  • Ricky G. Davis

    Reply Reply November 19, 2008

    Great post, Reed!

    I work at three niches; Online video, video games and anime. I am very passionate about all three, and I still am!

  • Ricky

    Reply Reply November 19, 2008

    Thanks Reed, you have explained what I have done all these years. Niche marketing can be a good income if you know how. I have spent years in a niche and have no regrets doing so. Most people who are into niche market would usually earn a recurring income through their membership sites. Unlike other affiliate marketers, you don’t have to worry much about competition, SEO, traffics, etc…

  • Graham Price

    Reply Reply November 20, 2008

    Yes but there lies the problem Reed – You have heard the saying ending in “Master of none” wish I could remember it, maybe “Slave to all things – Master of none” anyone help ?
    Anyway the point being – I have heard it said that Your niche must be something that You are passionate about, whatever that might be. Well I am sure that I am not the only One with a broad interest in lots of things but no individual subject really floats my boat so where do we go from there ? Great article as always though, thanks – Graham.

  • Ari Lestariono

    Reply Reply November 20, 2008

    Niche market is essentials, otherwise you will go blindfolded and heading nowhere to it’s course, one of the reasons we live in different world yet dynamic is to variety of different things, niche market do not stand alone it has very much a like culture and will stay there forever, and it’s existence will be looked upon by people whom need the requirements

    Ari Lestarionos last blog post..7 Secret Benefits of Tomato as Natural Remedies

  • Geoff Dodd

    Reply Reply November 20, 2008

    *Jack of all trades, Master of none! There it is, Graham. The generalist. But a niche is the opposite of the general. A very narrow, specific area like ‘red and green parrots in Western Australia.’ Not birds, NOT pets.
    Identify a customer need which is going unmet and find a way to meet it. So these parrot owners want a special ‘red and green W.A. parrot food?’

    Aha! A narrow niche there for the taking? A niche is really defined by a ‘long tail keyphrase.’

    Geoff, Western Australia

  • Jane

    Reply Reply November 20, 2008

    And sometimes it is the most obscure and unapparent niches that become the most productive and profitable.

    I often find niches based on my own personal life experiences. When trying to help my mother rid her yard of moles, I recognized there was not a lot of helpful information available online! Light bulb idea for an adsense website to provide useful solutions!

    Or how about this. One of our rental properties recently developed mold and mildew in the bathroom due to a broken base on the shower floor. What did I do…starting looking online for solutions to rid ourselves of the mold AND then went on to build a niche site.

    Sometimes we tend to think too generally in regards to finding niches and don’t dig deep enough to recognize the need for smaller (yet profitable) niches.

    And yes..keyword research (and lots of it) is vital when building your niche.

    Think out of the box and you’ll be able to find many many online niches rattling around in your head.

    Good post Reed,
    200 Niche Adsense Ready Templates

  • Timothy Aaron Whiston

    Reply Reply November 20, 2008

    Very thorough post Reed. :o)

    I like to think of niche marketing as a means for making the most money with the least effort. This is true of course due to the research and targeting measures involved.

    Another way to look at it is as “real marketing”, because it’s about knowing the game and not just hoping blindly to score some sales.

    And it’s interesting to note that niche marketing is popular in all industry, not just IM. Inventors and product developers, landscapers, doctors, the whole range of entrepreneurs are today spending more effort on finding a tight, profitable niche.

    Timothy Aaron Whistons last blog post..Niche Marketing: Your System Is Everything!

  • Jean Qld

    Reply Reply November 20, 2008

    Hello Reed, I was also told to choose a niche that I was passionate about, but the marketing is hard going for an elderly newbie.

  • Jussi Koiranen

    Reply Reply November 20, 2008

    Great points! “You need to know as much about the niche as possible in order to be successful in reaching your target market. ” Choosing a niche that already is “your” means easy start! If you’re a passionate self learned guru of a certain niche it is easy to create a following in that niche and thus make money with your chosen niche!

  • Free Investment Advice

    Reply Reply November 20, 2008

    Getting into a niche is the almighty important rule for any business, and I think it resonates particularly for the Internet Marketing niche.

    In my case I was investing a great deal in my youth and I always looked for niche industries and companies to invest in.

    They usually are easier to pick out and give me higher returns in comparison to general industries.

    Free Investment Advices last blog post..Ten Things All Five-Year-Olds Should Know About Money

  • Slavica

    Reply Reply November 20, 2008

    I have found as most important to me in your saying, a part of keyword research to know what ones are in my surrounding in use./in my country,probably some I’m using here wouldn’t work yet/,i shall keep it in my mind.
    The second part attracted my attention is :to be intimate with your Niche.Besides it is necessary to make your product and market it,there is another key fact:you love your niche and give your best in doing it.

    Slavicas last blog post..Long Live Witches

  • Jay

    Reply Reply November 20, 2008

    Reed, the keywords are…well, KEY to reaching your niche market. Digging into the niche for targeted, well defined, focused keywords reach the most serious participants in your niche.
    (See my latest post at How2Booksandvideos.com)

  • Terence

    Reply Reply November 20, 2008

    That is a good explanation of a niche market. The main reason for finding a niche market is the lack of competition. But make sure that the lack of competition in that niche is not because there is no money to be made from it.

  • Wayne Bell

    Reply Reply November 20, 2008

    Good post and some great advise Reed.
    Research….Research….and more Reasearch…”That’s The Name Of The Niche Marketing Game” and you can quote me on that.

    Regards – Wayne

    Health, Happiness And Success
    Wayne & Susan Bell

  • bet

    Reply Reply November 21, 2008

    Good stuff. It sure is hard to find the right niche. Thanks.

  • PV Reymond

    Reply Reply November 21, 2008

    Hi Reed,

    It’s a great point.

    You always have to narrow down the market to a niche. If you try to sell to the whole market you’ll have a hard time and probably you won’t make any money.

    You have to target a niche because you can position as an expert and you have less competition, therefore you can make more money.

    ^PV Reymond


    PV Reymonds last blog post..Internet Marketing For Newbies… The First Step

  • Jerry Goodwin

    Reply Reply November 21, 2008

    Great article advice.

    You are right on target as usual. I do also agree with Terrance. We need to be careful that when we find something with less competition it is not less because their is really so little interest in it so as to not really have a market either.

    You can avoid that of course with reverse seaches and tools such as that to make sure that your chosen niche is actaully something that you can make at least a minimal amount of money from.

    Also remember that most people have many intereste not just one. Personally I am into fitness and nutrition, but I also love Cycling which would be considered a niche of the fitness and Health part I guess. But even cycling has niches that you could get into such as Road Biking, Mountain Biking, and BMX.Then I enjoy coin collecting, wood working, and computers. I also enjoy helping others find answers to their questions, so I answer questions at allexperts.com on various subjects.

    But with cycling lets say “how to change a flat tire on your bike” would make a great article but is probably not going to be a Niche site. Road Bike Maintenance might be a good niche though, in fact that is one I am starting to work in right now.

  • faria

    Reply Reply November 23, 2008

    Hi Red very well i have learned more from you than our teacher at the university keep writing this goods articles. thank you again

  • I’ve always thought Niche Marketing was a smart thing…though I never spent too much time researching. I’ve “followed my nose”. LOL

    Not “niching” to me is much like trying to please everyone.

    “Who is this for?” Answer: Everyone!

    That may be somewhat true, however when you try to market to everyone you water down your message so much no one notices how what you have can truly serve them.

    Having a Niche allows you to focus your message…and you.

    That’s my 2 cents! Have an awesome day!

    Dream BIG!

    Velma Gallant
    The Queen of JOY!
    Lazer Clarity Coach
    Host of Welcome Changes Radio

    Come to my Virtual Birthday Party!
    I’m collecting Birthday Hugs!

    Velma Gallant, The Queen of JOY!s last blog post..Sharing a birthday present from a subscriber.

  • admin

    Reply Reply November 30, 2008

    @Luis you’re welcome

    @Michael thank you

    @Claude thank you

    @Pat thank you

    @Timothy thanks

    @Paul reedfloren AT gmail.com is my email

    @Talmage agreed

    @John thanks

    @Saul thanks

    @John you’re welcome

    @Asher you’re welcome

    @Jonathan thanks

    @Anna lol 🙂

    @Jan you’re welcome

    @normz2 thanks

    @Ricky going well for you?

    @Ricky membership sites are great

    @Graham one way to figure out what niche you are interested in is look at your expenses see where you spend a lot of money that’s what you are very passionate about

    @Ari agreed

    @Geoff agreed they are the long tail

    @Jane nice to see you take action and do that

    @Timothy thank you

    @Jean keep checking out this blog and you’ll find more information which can help you

    @Jussi yep that can make it a lot easier

    @Free yeah that can help a lot in stock market investing as well

    @Slavica research is important

    @Jay agreed

    @Terence thanks

    @Wayne thank you

    @bet you’re welcome

    @PV agreed

    @Jerry great points

    @faria glad to help

    @Velma agreed it’s impossible to please everyone.

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