The Indispensable Formula That Is Fast Becoming The Only Profit-Model For Creating a Successful Online Business

Most successful internet entrepreneurs use this formula to save themselves time, money and energy. It involves two very critical factors that have a significant impact on the success or failure of any online business -- your niche market and your USP. By having these two crucial ingredients and applying the proper techniques to develop your business, you can virtually guarantee yourself tremendous online success.

Part 1: Your Niche Market

It is a well-known fact that no matter what you're marketing, you'll do best if you focus your efforts on a "niche market." Your niche market is your audience -- a targeted group of individuals who need or want what you have to offer, your potential customers. Additionally, your target audience should be easy to reach and have a reasonable size -- large enough to make a good profit, small enough to fit the resources of a small business and avoid competing with large corporations.

By defining your niche from the start and dedicating time to helping them, you will be able to gear your products and services specifically to your target audience. And, this helps you build credibility as a leader in your field -- a characteristic that goes a long way in making short-term sales and long-term profits.

One very critical mistake most would-be online entrepreneurs make is that they try to reach the entire global population with their offers, and fail miserably. But if they had identified their niche market, they could have been successful.

Here's a little "secret" that most people don't know. Most successful internet entrepreneurs actually get their ideas for their entire business by studying a niche market first, and then developing a product or service to fit the niche. Think about it. If you can fill a void in the marketplace and then build a business around it, you can't go wrong.

Because, defining your niche market will allow you to do four extremely important things to move you closer to success. It lets you --

1. Maximize your advertising budget by targeting only those in your niche market. You'll know exactly where to advertise.

2. Convey to your visitors exactly how and why you can help them solve their specific problems.

3. Develop additional, new products and services that inherently appeal to your niche market.
    
4. Establish yourself as a leader in your industry.

(Here's a resource that has identified 70 various niche markets you can use right now -- http://www.nichemarketwebsites.com)

Part 2: Your USP

Your unique selling proposition -- USP is what connects your product with your target
market. It can help define your marketing strategy. It is the concept that makes your product stand out of the crowd and persuade your prospects that YOUR product is the only perfect solution to their problems.

Think of clearly defining the differences between your product (in the eyes of the consumer) and the competitive product -- on the physical level and on the non-physical character of the product. In other words, what differentiates your product(s) from the competition? Why is it better?

Your USP is simply a concise statement which describes the unique characteristics that
distinguish you from your competitors, and provides people the opportunity to justify their decision to purchase your product or service.

For some businesses, lacking a USP may not appear to pose an immediate problem. However, businesses that are not unique and dont offer special benefits merely get by. Their failure rates are high, ignorance clouds their decisions and they capture an insignificant share of their chosen market.

In marketing, above all else, the USP is only about your customer. As a customer, they dont care about who you are, what you have accomplished or what you can do. The driving force behind their purchase decision is readily summarized by the question "What can you do for me that nobody else can provide?" Your USP should be crafted to answer this question. It should state loud and clear that the customer is important, and they are your reason for existing.

And understand, if a competitor can make the same claim, it's not a "unique" proposition.

Some quick guidelines:

1. What is unique about your product, service or brand compared to your direct competitors?

2. Which of these factors are most important to your prospects?

3. Which of these factors are most difficult for your competitors to imitate?

4. Which of these factors can be understood most easily by your prospects?

It might surprise you, but good service, good selection, fair prices and honest dealing are NOT effective components of your USP. Because theyre "me-toos." Anybody can (and does) say them.

So, do your homework. Come up with a crisp, powerful statement that answers your visitors'implicit question and engages their imaginations and emotions. Feature it prominently in your advertising.

In conclusion, if both key ingredients are incorporated into your business plan, your
chances of having a profitable online business are extremely good.

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Donald Holland has been marketing on the Internet since 2000. You may contact him and also get more free, practical and useful information about niche markets and starting an Internet business at http://www.nichemarketwebsites.com and
http://www.bizoppadvisor.com
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