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Choosing a carefully pinpointed niche market should be one of the first steps that an internet business owner has to take. A very common way of describing a niche market is ‘a targeted group of individuals with very specific and similar needs or interests.’ These people engage in similar activities and hence they would most probably demand the same goods or services to cater to their needs. Online businesses that drop ship their products to their customers would thrive by focusing on a specifically targeted niche market. In this article, I would focus on the advantages a niche market can bring to an online Drop Ship business. This article also provides you with practical steps for you to select your niche market.

By focusing on a specific niche market, Drop Ship businesses gain an edge because they are like ‘monopolies’ for that particular niche. The ‘monopoly’ for that niche would be able to provide a much wider range of products and better services for that market, enabling it to dominate. Because there is a very large number of niche markets on the internet, most Drop Ship businesses are able to survive and thrive online by selecting a niche that no major competitor is targeting, and directing their marketing efforts to their respective niches. With limited resources, a small Drop Ship business just starting out cannot hope to sell ‘mainstream’ products that are also supplied by huge competitors like Wal-Mart.

It is critical to first establish a market with an unfulfilled need and then develop products or services to meet these needs. Most online ventures fail by first selecting a good product, and then looking for the market for that particular product. They fail when the product’s demand is insufficient, or when the product already has a strong competitor supplying to the market.

The internet is not the only medium where niche marketing dominates. In our corporate world, the majority of the successful companies also selects a niche market and develops products or services that cater to their specific niche. Microsoft develops software as operating systems and platforms for computers. Nike offers shoes and footwear targeted at the sporting population. This illustrates the importance of first selecting a niche market for your business to focus on.

There are a few simple stages in the selection of a niche market:

1) Brainstorm for niche markets that are related to your area of interest or expertise. It is simply easier to succeed if you focus on an area that you are passionate about and have the most expertise in. This way, along the learning curve of starting an online business, the frustrations that you face along the way will be reduced because whatever you are doing feels more like fun instead of work.

2) Research the market in detail. This involves producing a detailed profile of your market, including the estimated demand for your products, the products in the niche likely to have the highest demand, and where these prospects normally congregate online.

You can use the free Overture search term suggestion tool to gauge the market size for the products you have in mind. It is available at http://inventory.overture.com/d/searchinventory/suggestion/. Simply type in the product keywords and this tool can suggest more specific keywords, and also the number of times this word has been searched over a period of time.

Chat rooms, forums and newsgroups are where your target market normally congregates online. By monitoring these discussion boards, you should be able to determine the evolving needs of your target market, and what new product is likely to be in high demand soon. Forums can also be a good source of ideas for your products. Google Groups is a good place for you to start finding newsgroups or forums for your niche market. It is available at http://groups.google.com.

3) Select a niche market that has a need not currently being adequately met instead of targeting a niche whose need a competitor can fulfill very well. From the newsgroups, discussion boards and forums, you can get valuable information about business opportunities. For example, if consumers voice out their dissatisfaction about any unfulfilled need, you can quickly find and offer any product as a new solution to their problem. This fills a ‘gap’ in the market and your business is established.

4) For the niche markets that do not have their needs adequately met, conduct research on the major businesses in that field. If there are no major competitors, you can congratulate yourself on finding a suitable niche market for your Drop Ship business. If there are several major market players, you have to either develop a Unique Selling Proposition (USP) to differentiate your products from your competitors, or you can narrow down the definition of your niche market to a more specific level. For example, if your niche market is the group of individuals passionate about oil paintings, you can narrow down your focus to abstract oil paintings by Rembrandt or Renoir.

If you want to be a retailer of Rembrandt oil paintings, for example, note that your competitors are not the websites selling oil paintings from all artists, but the websites that focus only on Rembrandt oil paintings. All things being equal, an online shopper will certainly choose a website focusing only on Rembrandt oil paintings, instead of a website selling paintings from all the famous artists. This is the edge that a niche market can give to a small Drop Ship business.

You can use the free Overture ‘View Bids Tool’ available at http://uv.bidtool.overture.com/d/search/tools/bidtool/ to gauge the competition for your products. Overture is a Pay-Per-Click search engine, which provides search results ranked in order of how much businesses are paying for every click-through to the business websites. This tool lists the amount that each business is paying for every click by visitors. The higher the bid for the keyword, the more popular the keyword, thus the stronger the competition you face for your products.

5) Test your market. Once you have confirmed your niche market, you must test your products for that market. Start off your business by selecting a few of the most popular products and placing them in your catalogue. Next, you announce your products to newsgroups and discussion boards and gauge their response to your products. Observe how well the individuals are reacting to the introduction of your products. If you did your research properly and fulfilled a need well, most probably you would receive a very warm response from forums and newsgroups.

Finally, as the online retailer for your niche market, you should aim to be the best online resource for the market. Articles, strategies and guides should be included on your website to provide your niche market with valuable information. For example, you can write your own guides on how to properly use tools for magician tricks if that is what you are selling. However, it is not advisable to start off by selling an enormous catalogue of products. You should first establish your credibility by supplying your market with useful know-how for the products, and recommending them a few popular products. As your business stabilizes, you can slowly expand your business catalogue to include other products.

Selecting a niche market is one of the most important steps for setting up a Drop Ship business. It lays the foundation for how your business will develop in future. Thus, spend some time carefully deciding on your niche market before taking the plunge into your business.

You are welcome to reprint this article as long as you include the Author’s resource box with the article.

About the Author: Ray Yee is the founder and president of Dropshipperscentral, a website which provides a wealth of informative articles, tips and resources on everything you’ll ever need to know about setting up a Drop Ship Business and marketing it. Click here for the Wholesale Drop Ship Directory from http://www.dropshipperscentral.com

Most home business owners are involved with affiliate marketing. As an affiliate marketer, a combination of techniques can be used to promote your affiliate website and/or link. Here are five things you can do to help with your promotional efforts resulting in increased affiliate sales.

1. Become an “expert” on the product

The most successful affiliate marketers are “experts” on the products they promote. To become an expert, it’s highly recommended that you purchase the product yourself to gain first-hand experience using it. If you cannot purchase the product, you must thoroughly research it until you become familiar and knowledgeable enough to promote it.

2. Participate in chat rooms related to the product

You can start your own chat or join an existing one. Do not try to selling initially, but during your chat, mention the product you’re promoting and describe its benefits. If there is interest in your product, you can then refer them to the product through your affiliate link. The same concept holds true for forums and discussion boards.

3. Write your own affiliate program ads

Most merchants will provide pre-written ads for their affiliates to use. If you write your own ad, or make significant changes to the one that’s pre-written, your ad will stand out from the others. Done properly, this will give you a great advantage over those affiliates that are using the same ad as everyone else.

4. Create a free newsletter or ezine

Submit your newsletter to the ezine directories and promote it on your website. Keep in mind that most subscribers are interested in receiving “information” that can help them. If you use your mailing list solely for selling, you will never gain credibility and will end up with a high unsubscribe rate. After you’ve developed a relationship and the trust of your subscribers, you can then recommend the products you are promoting

5. Create a free ebook

As part of your ebook, include an advertisement and a link to your affiliate website. The ebook can be given away free or used as an incentive to sign up for your newsletter. Submit your ebook to the ebook directories and offer it to other webmasters for inclusion on their website. The more exposure your ebook receives, the more sales you can make.

By using the techniques outlined above and always striving to become an “expert” on the products you promote, you are sure to see an increase in your affiliate sales resulting in higher commission payments.

John Purdy is an affiliate marketer and operates his own internet home business. For access to free affiliate programs, work at home opportunities and other resources on the home business industry, visit his website at: www.home-business-concepts.com

Have you ever wondered why you often find a coupon tucked inside your cereal box, or get invited to a customer preview sale at your favorite department store? Those companies know that their existing customers are the best - and most profitable - customers they’ll ever have. So it’s not surprising that they’ll do whatever they can to keep these customers happy and coming back again and again.

Believe it or not, the same concept holds true for your art career. While you don’t want to ignore potential customers, you’ll find that when you pay a little more attention to the customers and collectors you already have, it will really pay off - in increased sales and profits for your art business. The following 10 practical strategies will get you started.

1 - Understand how and why your customers buy art

Put yourself in your customers’ shoes. What’s in it for them when they purchase your art? Maybe they feel great about owning a piece of original artwork. Or they’re happy to support an emerging artist. Perhaps they’re looking forward to showing their new painting to friends. Start listening to your customers and asking questions, and you’ll learn a lot - fast.

Don’t underestimate the power of being an art collector yourself. You’ll know firsthand how your collectors feel when they purchase your work, and you’ll be a great role model for them. Even better, you’ll be supporting other artists.

2 - Make the first purchase a fabulous experience

When you sell a piece of artwork, remember that it’s also an exciting event for your customers. So let them be excited about their purchase. Accept any compliments graciously. Then share something personal that lets them know that you’re excited about the sale, too. Tell them how the sale is meaningful to you: It’s your first; your first to someone in New Jersey; your first in this series, or your last one like this. A positive connection now can pay off for years to come.

3 - Be businesslike in everything you do

Treat your art as a business, and treat your customers in a businesslike manner. Be meticulous about meeting deadlines and keeping appointments. Always provide the materials or information you promised - complete, and on time. And remember to thank your collectors personally when they attend one of your shows or support you in any way. A quick note or an e-mail will be appreciated, and remembered.

In addition, be businesslike when you price your artwork. Keep your pricing consistent: from the gallery to your studio, and from city to city. And stick to your prices no matter what; never discount your work.

Naturally, it makes sense to present yourself in a professional manner every time you show someone your work. That said, never try to be someone you’re not. Let your personality come through, and you’ll be the best businessperson you can be: you.

4 - Make it easy for your customers to purchase more of your work

I was at a friend’s house recently and admired a beautiful hand-made journal she’d purchased at a local craft fair. Thinking it would make a perfect gift for another friend, I asked for the artist’s name. When she didn’t remember, we looked inside the journal and discovered the artist’s name and phone number were nowhere to be found. The result? He or she lost a sale.

Put your contact information on everything that leaves your studio: letterhead, invitations, show announcements, note cards, etc. Affix a personalized label on the back of each painting that includes your name, plus your e-mail address or Web site.

And send your new collectors home with an “Artist Pack”: a professional-looking folder with your business card, resume, artist statement, bio, articles about you and by you, and so on. Youll be amazed at how often your customers will share it with their friends and associates.

5 - Ask for another sale

When liquid shampoo first came out, it gave consumers a convenient and easy way to wash their hair. “Lather and rinse,” the label said. But shampoo sales really took off when just one word was added. Your shampoo bottle now says, “Lather, rinse, and repeat if desired.”

Repeat sales can revolutionize your business, too. So display your work in your home and studio where visitors will see it. And when customers are making a purchase, be bold: Ask them if they’d like to purchase a second (or third) piece. Ask your collectors for referrals to another collector, or to a shop or gallery where they think your work might fit in. Or suggest a commissioned piece you’d like to do for them. The key here is to ask for the sale.

6 - Upgrade your customers

Another way to increase your income is to upgrade your customers to a more profitable product (”deluxe” shampoo for color treated hair, for example). It’s really pretty easy, once you get the hang of it. Here are some upgrade ideas that have worked well for my clients:

• Encourage your customers who ordinarily buy giclee reproductions to purchase an original painting.

• Introduce your existing customers to some of your more expensive or larger pieces of art.

• If you have collectors who so far have bought only your sketches or drawings, suggest they purchase one of your paintings next time.

7 - Cross-sell your customers

Cross-selling is simply selling your customers something different from - but related to - what they’re already buying. Think back to the shampoo example. Wouldn’t it be relatively easy to cross-sell hair conditioner to someone who already uses shampoo?

Now take a look at your own artwork. Cross-selling might mean selling a piece of your pottery to one of your painting customers, selling a painting to one of your sculpture collectors, or suggesting your art note cards as an add-on sale when a customer stops by to pick up his pet portrait. Be imaginative, and you can increase both sales and profits.

8 - Get to know your customers and collectors

Remember that your customers are people first, customers second. Take your relationships beyond “business” and build personal relationships, as well. If appropriate, invite them to social gatherings, send a holiday card or drop them a postcard from your favorite vacation spot.

When you’re chatting with your collectors, make it a habit to listen for important dates and occasions. Then remember their very special occasions with an artwork gift. Imagine having a small piece of your artwork forever connected in your collectors’ minds with their 50th anniversary, the birth of their first child or grandchild, or their son’s graduation from medical school. Sometimes a little goes a very long way.

9 - Let your customers get to know you - and your art

Don’t you just love it when you get to watch another artist at work and see for yourself how they do what they do? You’re not alone.

Almost all art collectors are curious about how you create. So it makes good business sense to find ways to share your process with them. You might invite them to an informal demo. Show them photographs of the location that inspired you. Or even let them try the process themselves. Take the time to show your customers what makes you and your art unique.

Customers who understand how you apply your paint, why you use those strange-looking long brushes, or how you get so many layers of color onto your canvas are not only educated about what you do - they’re interested in what you do. And that will translate into more sales, and more referrals.

10 - Build strong, ongoing relationships with your collectors

Don’t be shy about asking your customers for advice and input, whether it’s on how you showcase or hang your work, or on new projects or techniques you’re trying out. Do it one-on-one, or host a studio open house (notice I did not say “studio sale”) to find out what they think.

And when you’ve just finished a new series or collection, or you’re ready to hang a new gallery show, invite your best customers to your studio for a special preview of your new work. They’ll love it.

Most importantly, be yourself with your customers and collectors. Yes, you may meet a collector or two who wants to be dazzled by art double-talk and rhetoric. Most collectors, however, will want to get to know the real you. They’ll love hearing about your feelings about your artwork, some of your artistic quirks - and even some of the mistake youve made.

Once customers and collectors really connect with you and your work, they’ll be back for more. And that’s good for every artist’s business.

Best-selling author Kathy Gulrich helps clients get from idea, to action, to results - more quickly, and more easily - whether they’re looking to write a book, develop a new product, or market their product or business. Clients love her direct, no-nonsense approach - and her gentle insistence on great results. Find out for yourself: Check out one of Kathy’s teleclasses, or pick up a free worksheet, at http://www.smARTbusinessCoaching.com