Exploiting a Market Niche in Order to Build Your Online Business
Posted by Jesse Willms on July 12, 2010
There is a myth in the online community that in order to become a success, you need to invent. In other words, to succeed you need to create a completely new idea or else you won’t be able to survive.
This has never been the truth. In fact, most new ideas fail and ones that are initially successful tumble in the long run. That’s because the truth is the best way to make money online is to find a product or idea that exists but is flawed, and make it better; to innovate.
Think of Facebook, one of the most successful companies in the world. Facebook is an example of innovation over invention. Facebook was not a new idea at all. In fact, before Facebook there was MySpace – and before MySpace there was Friendster. If originality and new invention were all that mattered, then the creators of Friendster would be rich and the Facebook guys would be out on the street. But that’s not what happened, because people realized the flaws in Friendster and moved onto MySpace. Then, they realized that MySpace was also flawed and instead flocked to Facebook, which took the good elements of both Friendster and MySpace and eliminated what didn’t work.
That’s the way most profitable companies on the web operate. So, if you are looking for an idea of a product or service you’d like to offer online ask yourself these questions: “What online product or service do I use all the time? What annoys me about it? Is it possible to fix the things that bug me?” Once you have the answers to those questions you’ll be well on your way to creating a successful online business. It’s not about inventing a mousetrap; it’s about building a better mousetrap.
That’s been one of the keys to becoming very successful at what I do. I pay attention to what people buy and use online, and look for the cracks beneath the surface. Then I take what’s out there and find a way to make it work much better than it did before. That way, I’m able to swoop in and corner that niche market.
This is a lesson that I learned through trial and error, and one that every online entrepreneur should take to heart.