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Let’s talk about niche selection. This is very important to ensuring the profitability of your membership website.

Step 1 – Find a Fanatical Market

The number 1 thing you have to do is find fanatics if you want a profitable membership website. Fanatic is defined as someone with an irrational enthusiasm. These are the people you’re looking for because they are so enthusiastic they’re willing to spend money on their topic of fanaticism. Here’s how to find fanatics:

• Look at magazine racks. This is an often overlooked, yet extremely simple way to find niches that people are interested in. It’s becoming increasingly difficult to run a print magazine. So if you see one on the shelves you know they are making money, which means that there are enough people interested in what they’re saying to make it profitable. This is a very good indication that it’s a good niche for you to go into.
• Watch and listen for fanatics in your daily life. Pay attention to conversations, social events, TV, restaurants, public places to see what people are talking about. If people are talking about something, they probably want to know more about it. Which means you can start a membership business providing information on it.
• Conventions, clubs, and organizations. Once again, if there are enough people interested in a topic to create a club or organization, then there are enough people to build a membership business around it. Conventions are expensive to hold and attend, so if one if going on that’s another strong indication of a good niche to go into with your membership website.
• And of course there are all the things you have an interest in, too! If you’re interested in something, it’s highly likely others are, too. The icing on the cake here is that you get to build a business doing something you love.
• Google Trends. This is a great way to figure out what people are interested in. Google Trends tells you the most popular current search terms. These topics are the hottest topics because lots and lots of people want information about them. Building a membership business around things people are actively searching for is a great way to ensure your success.

Next – Figure out if there’s money in it

After selecting a possible niche to build your membership site around, the next step is to find out if it’s a profitable niche to be in. The quickest way to find out is to determine if others are profiting in your potential niche.

Here’s how to determine if you can make money in your chosen niche

• Find out if there are blogs or forums related to it. Just search Google for “YourNiche blog” & “YourNiche forum” and see what comes up. This tells you there are people who are actively interested in your niche.
• See if other people are creating and selling product in this niche by searching in Google Shopping, ebay and Amazon. What you’re trying to figure out is if anyone is making money in this niche, and if people are selling products it means they are making money.
• Look at Google Adwords for the same ads are running over time. If people are running the same ad over time it means they are making money in the niche. They would not continue to spend money on the ads if there were not making a return from them.

Finally – Figure out your barrier to entry

OK, so you found a hot topic and you know other people are making money on it. Will you be able to get involved and do the same? How do you gauge the ease of entry?

• Product types. What kind of products are being sold in the niche? You’re looking for a niche that sells info products. That’s because it’s much easier to build a membership business around information vs. any other kind of product.
• Competition. How many other people are trying to sell to this market? You want to start in a market that’s not completely saturated with competitors.
• Unless the market is just so big that it doesn’t matter how many competitors there are, you want to limit the competition. So evaluate the size vs. the competition.
• How ready is the market for marketing messages, and how willing are the fanatics to buy. Every market is different. Sometimes people are looking for information and are ready to pay for it right now. And sometimes it takes weeks, months or even years for them to make the decision to purchase.

In Summary

OK, now that you’ve figured out what niche you’re going to go into. Determined there is money to be made and that the competition is not too strong to break into it. You’re ready to start your membership business. If you’ve followed along with these steps you’re success in practically guaranteed. The only thing left to cover is exactly how to run your membership business…