The common sense approach to niche marketing is to find a niche where there’s not that much competition. You’re doing this not so much because you fear the competition, but you are trying to increase your chances of success. The best way of course to beat the competition is to just provide a better value than your competition.
In other words, you increase the level of value that your potential customers can get from you. When you do this, your competition has to worry about you instead of the other way around.
But there are certain situations when it makes sense to go into a highly competitive field where it seems that everything has been pioneered, all the routes to success have been mapped, and the whole market segment is very established — in other words, targeting a niche where it seems that everybody and his dog is trying to make money.
When does this make sense? – If you have a competitive advantage. The competitive advantage that you can bring to the table is usually fairly simple. The competitive advantage is when you actively listen to people who buy in a very competitive market and pay attention to their needs.
Once you figure out their needs profile and you come up with a completely different product configuration that answers their questions differently, you quickly set yourself apart from the competition. This is when targeting a high competition niche makes sense.
Don’t let haters and doubters discourage you. They might say, “Well, you’re trying to fish from the same pond where 1000 fishermen are fishing from.” They would be absolutely right if you’re going to be doing the exact same thing those other fishermen are doing.
However, if you’re bringing different bait, you have a more powerful net or fishing pole, you would come out ahead. In other words, don’t fear competition as long as you have the proper information and the proper strategy.
If you don’t have this, then you would reduce yourself to doing what other people are doing. If you find yourself in that situation, then find a lower competition niche quickly. If you’re just going to do what everybody else is doing, don’t start, find something else.