What is Niche Marketing? – I Guarantee You’ll Understand After Reading!

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To understand what Niche Marketing is, we have to first understand what is a Niche.

A Niche is simply a sub-category of a sub-market, and a sub-market is a segment of a market.

What is a Niche Market

I've prepared a whiteboard style explanatory video for you:

As Russell Brunson defined in his DotComSecrets Book, there are 3 big markets in this world, and they are:

  1. Health
  2. Wealth
  3. Relationship

And within each of the Market, there are Sub-Markets like:

Sub-Markets of the Health Market:

  • Fitness;
  • Weight Loss;
  • Supplements;
  • Healthy Eating;
  • Cures & Illnesses; and
  • Many more

Sub-Markets of the Wealth Market:

  • Online Jobs:
  • Online Marketing;
  • Real Estate Investing;
  • Trading & Investing;
  • Business & Finance: and
  • Many more

Sub-Markets of the Relationship Market:

  • Dating;
  • Marriage;
  • Baby;
  • Parenting;
  • Sex; and
  • Many more

Let me give you an example and you will easily understand what a niche is.

Niche Examples



NICHE Market


Weight Loss

  • Dieting
  • Exercising
  • Supplements
  • Lose Belly Fats


  • Exercises
  • Dieting
  • Muscle Tightening
  • Body Building

Healthy Eating

  • Zone Diet
  • Vegetarian Diet
  • Vegan Diet
  • Ketogenic Diet

If you notice, a Niche Market can be associated with multiple Sub-Markets.

The above Niche Market, Dieting, is just one of the many examples.

And, if you want to be even more specific with a Niche, you can drill even further. For example:





Weight Loss



  • Hatha Yoga
  • Bikram Yoga
  • Vinyasa Yoga


Dieting Without Exercising

  • Ketogenic Diet
  • Intermittent Fasting
  • Atkins Diet


Vitamins and Pills

  • Hydroxycut
  • Caffeine
  • Orlistat

Lose Belly Fats

Food to Eat

  • Healthy Protein
  • Probiotic Food
  • Intermittent Fasting

Alright, now that you know what a niche is (I hope you do)...

Niche Marketing is where a business or marketer serving a solution (product or service) to the people in the Niche, which is a well-defined target segment of a market.

I hope this is all making sense to you.

If you still have questions regarding Niche or Niche Marketing, feel free to ask your questions in the comments section below.

Advantages and Disadvantages of Niche Marketing

Some say that Niche Marketing is catered for smaller companies (small business owners) that can provide a solution that larger companies can't or won't provide.

Now, the fact is, whether you are a large firm, a small or medium size firm, an e-commerce business owner, or an affiliate marketer...

Understanding your Niche Market(s) and its strategies can help your business increase sales.

Yes, even for large firms.

Which is why we see:

  • Coca Cola buying up so many smaller firms that sells products to niches;
  • BreadTalk created an extension called "ToastBox";
  • Facebook acquired Instagram;
  • Google acquired YouTube;

All these happens because big firms want to grab a market share in smaller niches.

Alright, now that you know Niche Marketing happens everywhere in the business world, let's talk about its advantages and disadvantages.


#1 More Effective

As most marketers should know, when you are targeting everybody, you are targeting no one.

And because Niche Marketing hones down to only a small group of prospects, it is easier to understand their problems, needs, and wants.

With a much deeper understanding, marketers and businesses are able to identify the emotional triggers of their prospects.

It makes it easier to create a well-defined avatar(s) and craft highly-targeted sales messages that allows marketers or businesses to sell with connection and emotion.

And as a result, an increase in sales volume and revenue.

#2 Brand Loyalty

In this value driven society, it is tough to create brand loyalty unless you are able to consistently provide value to your customers.

It doesn't matter if the value is derived from a product, service, blog post, email, or whatever.

The key to building Brand Loyalty is to constantly serve value.

And, this can only be possible if marketers or business owners have deep understanding of the people in their niche(s).

You don't want to send someone an article about body building when that person is struggling with losing weight, right?

Although body building and losing weight is practically in the same market, it just doesn't make sense to do it.

Serving value means providing something that your customers need or want at every stages of the customer's journey, and you have to constantly serve it to them to build brand loyalty.

#3 Discover New Products or Solutions for Customers

The key to success for every business is the ability to bring a customer from point A (the problem awareness stage) to point B (the stage where they achieve their goals).

Every customer have new problems and issues they want to solve at every stage of their journey.

And for marketers and businesses...

 If you have a deep understanding of the people in your niche(s), you will be able discover and develop new products or solution to serve your customers at every stage of their journey.

Thus, generating more sales and creating brand loyalty.

#4 Lesser Competition

Well, I will take this with a pinch of salt.

I see so many articles claiming that Niche Marketing has lesser competition, that's why I am putting it here.

Yes, you get lesser competition, but what kind of competition are we talking about?

It is true that there will be lesser strong competitors, like the big companies, but in fact, there'll be more competitors generally. Why?

That's because of the low barrier to entry.

Almost anybody can enter the niche, which means that there are more competition, from the "small fries".

So, to win against those competitors, the best way is to understand the concept of Authority Marketing.

Authority Marketing simply means being an expert (the "go to guy") in your niche. In other words, if someone in your niche has a problem or issue, you will be the best person to get advice from.

#5 Cost Effective

Cost effective doesn't mean cheap. I'll explain.

To understand this, let us imagine that there is a meter, just like the one you see on Facebook.

On the left side of the meter is where your target audience is too specific.

And, on the right side is where your target audience is too broad.

If you ever use any advertising platform, you will notice that going towards both extreme ends will cost you more money.

But, one end of the meter is more effective than the other. I bet you know which end it is.

It is because as your marketing message (advertisement) is more defined, and you are targeting a specific group of people, your ad becomes more relevant.

As a result of the relevancy:

  • The advertising platform will reward you with a lower cost on that ad; and
  • Your ad will generate you a lot more leads and sales conversion. 

Thus, making your advertising campaign more cost effective.


#1 Low Barrier to Entry

Depending on the product or service you are dealing with.

If the niche product or service is hard to create or produce...

Meaning it requires you to go through lots of hoops or it cost a lot of money to manufacture or develop.

Then there'll be a high barrier to entry, thus lower competition.

But generally, Niche products are easier to produce, as compared to products in the general market.

This low barrier to entry opens a flood gate of competitors.

However, as I've mentioned above, you don't have to worry about competition if you understand and implement the concept of Authority Marketing.

#2 Low Growth Potential

This is subjective as the growth potential of each niche market varies. It also depends on whether the niche is perceived as a "need" or a "want". Let me explain.

For example, there is only a limited number of people who are interested in the woodworking niche.

And, the woodworking niche is fundamentally a "want". Nobody "needs" to learn about woodworking, right?

So, unless you can stir interest to get more new people to be interested about woodworking, there is a limit to how much your business can grow.

However, the Forex trading niche is a niche that is driven by "need".

Whoever that is interested in Forex trading are first interested in making money.

And, everyone "needs" money.

Possibly any niche that is driven by "need" will have a higher growth potential than those driven by "want". Does this make sense to you?

Final Words

I hope you enjoyed reading this article as much as I enjoyed writing it.

In case you are an aspiring affiliate marketer looking for a highly profitable niche, I suggest that you read this article.

Alright, if you still have any questions about Niche or Niche Marketing, feel free to leave them in the comments section below.

And, I'll appreciate very much if you help you share this article.

Before you leave, do read my other helpful articles.

And, if you'd like to grab my free stuff, click here.

Your friend,


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