True Recession Free Products

I've been going over my stats for the last 90 days and checking it out. I've seen some very interesting things play out that you might be interested in knowing.

The Usual

The usual stuff is health and making money. People still require some sort of solution for health related issues despite what the economy holds. It is also true for money because people are worried about their jobs and would like to develop a second income. There are other things like entertainment because we always need some form of entertainment, but that's limited in a way. When people are broke, they'll stay in and play Risk, not spend money, so I'm not actually convinced.

My Statistical Observation

Something that I've always been preaching seems to keep coming through ten fold in this recession, small sub niches. 86% of my sales over the last 90 days have come from small niches. I suppose there is an inherient bias in those numbers since I specifically target these niches, but I still attack more mainstream targets as well and the sales are non-existent.

Small Sub Niches

Percentage of Sales: 86%
Average Gravity: 18.26
Highest Gravity: 34.**
Lowest Gravity: 3.**

The sales that are in more popular niches, with much higher gravities have been few and far between. Many of them have been promptly refunded immediately. I thought this could be food for thought for anyone looking for true recession free products.

Why Sub Niches Work?

I'm going to use Apple Computers as an example, even though I hate them with a passion. Apple users like to think Apple computers is a big business that is really a competitor of businesses like Microsoft. They really aren't. Apple targets a very specific type of niche market. They target the artsy upper middle class losers that believe in being "different", so they buy a Mac (lol). You get the idea. This market will always buy because these people need some sort of laptop or ipod that they can use to show the world they're "different".

Apple is riding out this recession quite well, while a business like Microsoft is posting huge losses and slashing their work force.

Here's the point though. People know how much of the market exists. If I'm looking up how to put on big muscle, I know the internet is full of great information that I can use. I can shop around. I'm a value shopper that is going to make sure I don't have to spend a penny unless it is absolutely necessary. And really that means no sale because there are is a lot of information there.

In a subniche, there just isn't that much to go around. How do you cure a rare phobia if there just isn't that much information available? You have to buy and that is the position you want to be in. You want people to buy because they just can't get the information any other way. That's why small sub niches work.

January 23 2009

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