Listen to our entire episode on high ticket dropshipping niches above. Many people will give you a “list” of high ticket dropshipping niches. We don’t agree with this approach.
Instead, we believe in teaching people how to find niches so that they can carve out their own path instead of competing with everyone else that’s looking at the same exact niche list.
Joe: All right, everyone. Welcome to the build assets online podcast show. Today we’re going to talk about niche selection. And this is something that people get hung up on when it comes to high ticket drop shipping. And I’m not sure why. I’ve explained in the past that, you know, there’s really very little risk when choosing a niche because it’s not like you have to wait six months to come out of the Google sandbox to see if your niche works. You just call suppliers and if you get in with them you advertise with them and then you get more suppliers. But nonetheless, we’re going to talk about niche selection and kind of our take on it and give you guys some advice along the way. Anything?
Mike: Just say I’m doing. Let’s do it.
Joe: Cool, let’s do it. So the first thing I want to talk about or we want to talk about is why these niche lists are bad. You know, you see these niche lists posted, you know, if you Google high ticket dropshipping niches or you youtube it, there’s niche lists that are presented and I really, really don’t believe in these. And one of the reasons is that because if they’re posted online, like everyone is doing it.
Mike: Yeah. I mean essentially with a niche list, no matter how big it is, they’re never going to actually be able to cover all the winning products that you would achieve just by going out and starting a store and doing research yourself. And that’s because it just takes a little bit to actually understand an industry and understand all the different product types that you can actually have when you acquire a supplier. A lot of times what will happen is no matter what you start with, you’ll acquire a supplier that has some sort of product that you never thought of before. And then you can use that and brainstorm existing products from there. And so when you’re just going from the same pile that everyone else is, for one, I think that’s a terrible thing because you wind up just competing with everyone else who is doing this, which I don’t think is good or necessary. And I think that’s actually the hardest instance of it.
Joe: That’s definitely the best. That’s the hardest way to compete. It’s like, you know, like one of the most common niches online is health and fitness. And if you’re going into the health and fitness space, like you’re going up against so many different players. You know, my friend wanted to make like a Keto diet website the other day. I’m like, what are you doing? Like it just seems like such, like find your own little thing that you can carve out and you’re gonna have much better results much quicker than by just taking what’s super popular and like what’s already out there. I think it’s a bad way to get started.
Mike: I think making a Quito site is something you do when you’re brand new and it’s like your only understanding of health and fitness or like these big terms. You know, as a general person, you’re only exposed to the generalizations of certain industries.
Mike: Once you actually get inside that niche, then you learn so much more and you can all these other products that are available. And I think that’s happened probably every single time we’ve made a store.
Joe: Yeah. And also, you know, I don’t really want us to ever publish a niche list just because I feel like it’s kind of, cause I would want to publish a niche list that’s like unique and like stuff that we would actually do. And first of all, like we want our students to be able to find that on their own. And second of all, if we’re teaching our students to find that stuff on their own, I wouldn’t want to necessarily blow up their niches at the end of the day.
Mike: Yeah. That’s cause I mean, the way that we teach you to find niches is it actually works so well that I think to like it works well for that reason is because we’re able to find these super low competition things and succeed with them. And then even if something’s higher competition, it works cause you can just get down to the granular level for each product. But yeah, I think even when we’ve gone into super general niches we’ve always been able to come out ahead just by, I think this is can segue into the next slide. So yeah. So even when we’ve gone into general niches, we’ve been able to focus.
Joe: Oh boy. See guys, we are having lots of technical difficulties. We’re using my wife’s we’re using my wife’s macbook air to record this cause I have windows 10. There was a big update, so I apologize. We’re working on getting a totally new setup. We got the Great mic. We’re working on it.
Mike: Oh they get it.
Joe: All right, Alright.
Mike: So let’s move, move on to the next slide.
Joe: So what is a niche and how do we view a niche?
Mike: So what a niche is. A niche is a subset of different products of different industries that make up just a broader idea.
Joe: Cool. Yeah. And if you really, if it really comes down to it, and this kind of goes back to the niche list for a second, how many niches are like how many industries, how many top level industries are there online? Not that many.
Mike: Not that many. All you have to do is look at the categories on Amazon or on Wayfair house, any big ecommerce site that sells everything. Yeah. Has to categorize Everything.
Joe: Yeah. I mean there’s product niches of I mean we’ll stick to product niches for this, but there’s like home and garden, electronics. What else is there? Like automobile, like what else is there? Like it’s just all these broad categories, but you know, the real gold lies as we go deep beneath. All right. So that is how you define a niche, I think, once you get beneath the surface. So next slide. So what’s your opinion on this, Mike and maybe I know the answer; is both of these viable B2B and B2C and what is B2B and B2C?
Mike: B2B is business to business. So that’s anything that you as a website would sell to another business. B2C is you’re selling to the consumer, so business to consumer. So anything that you would sell to someone in their home or an end user of anything. Yeah. So are both viable? Of course. There’s definitely successful websites online that sell strictly to other businesses. Like Webster on store for example, or B2C, which would be more of like a Wayfair or hay needle. Both of these sites, they do a little bit of both. Like they’re not a hundred percent and 0%, I would say. But yeah, so obviously either of them are viable. You just need to be able to do the things that we just discussed. Whether it’s a B2B sort of niche or vertical or B2C niche or vertical, you need to go and find the hidden products that lie in that particular industry. With B2B I think the payout can be greater, but there are harder things to, it’s a lot harder to get into particular B2B industries, for example, like commercial kitchen stuff; kind of what Webster on store does. It’s very hard to get into that without being a company that can service their products or install or warehouse.
Joe: Yeah, definitely. I think that’s something we can probably mention. This is that sort of a niche that we’ve tried to get into on several instances. You know, several like different subsets of that niche and it’s really difficult. Like you said, you know, it’s not, it’s equipped for, I think, like you said, like people who are doing installs and stuff like that and repairs, not necessarily for Internet.
Mike: Honestly I just think it hasn’t even become an internet industry. It’s so non Internet based. I mean when we’ve gotten into with that one B2B supplier that you were working on for awhile and they sent us 10 books, 10 packets of products. They didn’t have an online capitol excel sheet. No online pricing. So this is what you’re working with and it makes your job extremely difficult. So as a beginner, I certainly wouldn’t recommend it. If you’re able to build out a team that can actually like process that and handle it, it would take a lot of focus and a lot of hours, but the reward could be there. Yeah. But I think with B2C, obviously pretty much all of it is online now, but then you’ve run into more products that are more low priced and say higher competition. It’s definitely viable and you can definitely sell high priced B2C items. But it’s just more to sort of sift through.
Joe: Yeah. I think with the B2B stuff, I think there is room to actually, like if you’re so inclined to carve out your own path, if you’re willing to kind of work through some of that stuff.
Joe: Yeah With B2B.
Mike: Yeah. Yeah. But again, I don’t think it’s beginner friendly. Like if we, I think we’ve probably gotten it with suppliers like this in the beginning and we just totally didn’t bother with doing anything with them. Because it’s just so daunting to have to go and.
Joe: go through manually sift through catalogs and stuff.
Mike: I think about how much better we are now at product uploads and we basically have like a full time product upload team. And I think our processes for it are pretty good, but it’s still daunting to go ahead and list all these products and then even at the advertising level, it’s very difficult to get hit with like a supplier that has like a thousand or like 10,000 skews and then you need to figure out what works, like with one point. So with B2C, a lot of times if you can get in with a good B2C supplier, a lot of their catalogs, are much more manageable. I think historically when we’ve gotten suppliers that have catalogs say under 25 or even under 50, like under a hundred I think is manageable under 50 is even better. And then I think the less and less you get is essentially better because think about all the reputation that a particular brand has, it’s basically concentrated into those products.
Joe: It’s like when you go to a restaurant and like the menu is like six items. Like you know, those six items are going to be good. Like when you go to the diner and there’s like a thousand things on the menu.
Mike: it’s like you don’t know what it’s their good thing.
Joe: You got to ask the waitress like, well what’s what’s good here?
Mike: And then you get a tuna sandwich and that it’s terrible. But so yeah, it’s like that.
Joe: This is a comedy podcast as well.
Mike: So if you can have a brand that has all of their reputation and authority just concentrated into five products, then you can go all out with dominating every single one of their products.
Mike: The next slide.
Joe: Well said. So you know, what were some of our biggest niche selection mistakes? I think we kind of covered this actually. I think when we first started, we made… Like niche selections, just kind of like like we described the beginner would, like not fully understanding like what’s underneath the surface in terms of like sub niches. But you know, we always managed to find, I think the way we approach it is we start broad and we always manage to find the sub niches. So I think our biggest mistake is not having that outlook to begin with.
Mike: Yeah, I think it’s not a bad mistake to make because I think it’s all a part of gaining that personal experience. Like even though, you know, in our course we have lessons as to how to go and find niches, like you’re not going to actually understand it really until you do it and you definitely get better and better at it. So yeah, I think it was just a necessary part of the process. And even if you’re like, so for the say for doing kitchen islands, you select kitchen islands, right? You can still make sales. Often just a general kitchen item product. It may be a little bit harder than maybe more competition. It may be harder to make sales of a brand new terms, or sorry, off of generic terms, but if you start doing something more long tail. So for example like marble top kitchen island, yeah. Now there’s less competition. And so now you’re naturally have these more long tail products and you know, you’ll make money off of those.
Joe: So I think what you’re trying to get at is in the broadest sense that everything is that kitchen islands is a bad niche. Marbel kitchen islands is a good niche.
Mike: Yeah. You could say that.
Joe: Yeah. Just to make it easy for people to understand. I mean, that’s kind of it’s painting with a broad brush. But yeah.
Mike: There’s definitely like a sliding scale of…for kitchen islands in general, that’s a very, very popular thing. Everyone has one in their home for the most part, you know, so the popularity of that particular thing is going to be so high that there’s gonna be so much competition. So you kind of need to break away and have some modifier to it. And then you may even need to go a level further.
Joe: Gold plated marble kitchen island.
Mike: Yeah. Or you know, 48 inch,.
Joe: I got 48 inch gold plated marble kitchen island. You’re going to be converting like crazy from that if you have that. Yeah, exactly.
Mike: Or there’s some things where that particular industry is so small that just by having found that type of product, that’s all you need because there’s so little sellers. So I think the biggest mistake you can make would be not hitting either of those points. Not having the long tail on a super popular thing or not finding that sort of diamond in the rough product.
New Speaker: Well said.
Joe: So yeah, I think we just kind of covered this, but long tail niche selection; when you choose a niche, don’t choose a long town niche like we’ve been saying, but sell in the long tails. So pick broad. So long tail, am I right?
Mike: Yeah. and I think the example we just had went over well, but I think it’s important to point out that long-tail does not mean how long the term is. Okay. It means in the general bell curve of searches in the long tails of the bell curve, there are these low competition, low search volume sort of options. Searches. And there’s just like an infinite amount of them.
Joe: So you can have a three word long tail, I think is the point.
Mike: Yeah. Or even two words.
Joe: You can’t have a two word loan. That’s kind of funny. No, cause you know, people throw around these words like long tail keyword and all that stuff. But I think, I’ve never, we’ve never actually talked about this, but I think you actually made a great point is that you could have a two word long tail. Yeah? Like pink kitchen or pink. Well this is three words, but come on, come me some slack. Pink kitchen island could be a long tail or pink kitchen, pink kitchen.
Mike: I mean, no one even, I don’t know what that means necessarily. But like most people probably are not thinking about pink in their kitchens.
Mike: So in general is going to be less people trying to occupy that space in an internet real estate.
learning some stuff myself on this podcast? Okay. So, I think we’ve kind of, you know, many of our students when they get in our course or they just email us and they always ask the same question: should I care about search volume? Should I care about search volume? And I think the answer is no because first of all, Google doesn’t have all the data when it comes to search volume. I mean they have the data but they don’t provide the complete data set in terms of searches per month. that’s just a fact. one reason being of course is that they don’t, when you look at one key word, you’re doing keyword research, Google is not going to give you all the variations of that keyword. So pink kitchen’s got a lot of variations.
Mike: in our own personal experience. When for one of our contents sites, you told me that you made a particular article, it had estimated 10 searches a month.
Mike: It was a pretty expensive item. You know what I’m talking about?
Joe: Sort of. There’s a lot of, you know, this happens all the time.
Mike: Yeah. So within it gets hundreds of visitors a month.
Joe: Okay. I thought you were talking about something different, but yeah..
Mike: I mean as in general, this happens, this happens all the time. Google will say that particular search has 10 searches a month depending on the article. You put it out the article and then you get hundreds of people to it.
Joe: I don’t even want to say that that information comes from Google. It comes from like third party keyword research tools that might get some of their information from the Google advertising platform and other places.
Mike: But just even in my own experience of using like Google keyword planner and looking at say a particular supplier or particular type of products it’s no determination on how your product is going to convert, the type of traffic is going to get, you just don’t know because especially when it comes down to ecommerce and Google shopping and just the way that people shop, there are so many long tails and like the market defines itself, you don’t really know exactly what is selling. and so You see people searching for that particular term, clicking on it, you know? Yeah. So you really have no idea where you stand until you actually start running ads.
Joe: Yeah. I think that’s, that’s the truth of the matter.
Mike: Cause I mean, who even cares about search volume if you’re not going to convert?
Joe: Yeah, exactly.
Mike: That’s a pointless metric to look at.
Joe: When you’re selling high ticket items as well, say you have a product upload that takes you five minutes and you making like $300 on a sale more. And you sell one of those in the whole year. But obviously you have more products than that. But the point is, is that all you need is one sale to get a huge return on your time.
Mike: And it costs you nothing.
Mike: Whereas say you’re doing this for content, you can publish an article for $40 and if nothing happened with it, oh well. So it’s a similar price. You have to wait longer to see what happens. Say with Amazon FBA, you make the wrong choice in terms of market demand and you order too much inventory. Now you’ve already spent tens of thousands of dollars potentially. And you’re screwed. So I think people think about things in terms of like different business models and more traditional ways of having a business.
Joe: So if you’re one of our students, don’t get caught up in niche selection. If you’re doing Amazon FBA, get caught up in niche selection. If you’re making a content site, get caught up in niche selection. Cause the wrong selection is a big problem. With high ticket drop shipping.
Mike: You can tell in a month.
Joe: You could tell quickly and it doesn’t cost you much, if anything at all. So.
Mike: As long as you’re being conservative and again, you’re not getting a supplier that has 10,000 products, you upload them all, you just start running ads and then you know, you’re just spending out of control and you don’t know how to handle that many products at an ad level.
Joe: One of the first things I did. This, talk about biggest mistakes. The first, I made a low ticket drop shipping store as one of my first ever internet marketing ventures. Like before we, you know, I don’t really remember the timeframe, but I was selling like dog collars or something and I fired up Google ad words and I was like, I was like $20 on dog collars, let’s go. I didn’t even know what I put in, but I thought for sure if I send $20 at it, I was going to go to sale. I didn’t make a sale.
Mike: Was it Google or was it Facebook?
Joe: No, it was Google.
Mike: That’s funny. Yeah. I mean, even when I started out as well doing Google ad words, if you remember back in the day, the first thing I ever did was I went out and I got that Google ads certification.
Joe: Oh yeah. Did you ever get that?
Mike: Yeah. Yeah. It did. I mean it’s just a test you do online. But even after I did that, I tried running Google ads for a local business and I had no idea what I was doing and I just wasted their money.
Joe: Yeah. So what do we say? You’re better spending your time in the business,.
Mike: if you can learn the business without losing money, then you’re winning because you’re, you’re gaining the knowledge, you’re gaining the experience while being compensated for it. there’s only so long that you could lose money.
Joe: Yeah. And I think there’s only so much that you can learn without like actually being in it. Yeah. There’s no way around it. You have to get in it, you have to do it. No, you can learn everything there is to know, but you don’t know it.
Mike: Even, I guess we can make this announcement right now about how we’re trying an FBA product with someone. And so when working with this person, we’re fully prepared for, you know, like before we actually get the product in anything could happen, we don’t really know. We’re just waiting to kind of get in there and get the experience and sort of, you know, iterate. Just try things and actually see it in real time how we get feedback. But he’s like consuming content like crazy. He’s getting all worked up like he’s going through highs and lows.
Joe: Let’s just know. Yeah. This individual for a little bit of context. He’s a great guy and we love working with him actually, but he’s got like a programming background.
Mike: Yeah. Very intelligent.
Joe: extremely intelligent. I think is it, you know, a voracious consumer of content. Whereas I think we, and many people are like that. They are voracious consumers of content and many people who’d only do that, they never apply the content. They just consume it. And I think an important distinction is we’re willing to consume a little bit, see how it can digest, you know what I’m saying. Well We’ll consume a little more, see how that feels. You know, optimizing a little bit along the way. But it’s like you gotta you know, you’re…
Mike: But I think before you’ve actually had the dopamine spike of success with online business consuming content is the only way to get it.
Joe: Yeah, that’s true. That’s true.
Mike: You know, so it’s like you have to, when you go out and you take action, it like feels bad. It feels terrible taking action sometimes. Yeah. There’s a lot of resistance to it.
Joe: Yeah. You know what’s funny, I actually hate consuming content now.
Mike: Yeah. Cause you have to reverse that pattern. Once you’ve actually had like real wins and you see how much harder they are to come by or See like how quickly your mental state will fade back and to be like, fuck, you know, this going to work. Then it’s hard to like once you, once you’ve actually been able to experience consistent online business success, then you don’t need the high from consuming content.
Joe: Yeah. I mean, it doesn’t actually feel like much of a high when you consume it.
Mike: It feels hollow. It feels like fake. Like I’m not even gonna entertain the idea of like getting a dopamin.
Joe: It’s like another chart I’m looking at online.
Mike: Or something I’m gonna have to do now, you know? So whereas when you’re newer, it’s like the possibilities, you know, they give you like a rush. And I think it’s about being able to balance the inner spark of yeah of all the possibilities and then going out and grinding through it and taking action on them and then seeing how that feels and eventually turning that momentum into just your daily life.
Joe: I don’t know where I heard this, but someone said that your brain gives you a reward when you think about doing something.
Mike: [crosstalk] I know it 100% does. Yeah, I think that’s called the reticular activation system, but I don’t know.
Joe: I don’t know either.
Mike: look it up.
Joe: But yeah, I’ll go look it up. All right, so we’re going to wrap it up here guys. You know, I think we’ve kind of said everything that needs to be said with niche selection. I hope you guys got a lot out of it. This podcast has been sponsored by our free course, which is in the description. Go check it out. Sorry for any technical shortcomings that this podcast had. We’re working on it.
Mike: Next time it will be better.
Joe: Yes. It’s, you know, essentially. What did you say the other day? You said that I never realized it would be so hard to record stuff on the Internet. It’s hard. It’s hard. You really got to spend time and like experimentation into the setup. It’s crazy. And my computer is up a windows 10 update right now. What can I do? It won’t go on. So I’m using my wife’s laptop in her office. What do you want from me?
Mike: We’re getting there. We’re bringing the content either way. So I hope you enjoy it and we’ll see you next time.
Joe: See you next time guys.