If you built and sold the first teleportation device you would make some significant cash.
But...
If you built the network that connected the teleportation devices and charge a subscription fee to use it, you're set up for a future of enormous passive income.
This is the view a large number of entrepreneurs are taking in the 21st century. Passive income can only be derived from niche items with a sustainable market.
We enjoy niche goods simply because they inherently do not have a lot of competitors and solve the problems of people who have money to spend. It is no wonder affiliate marketers fall over themselves in a rushed "grab-for-cash" sort frenzy whenever a niche item with affiliate income opportunities launches. Sadly several are too late and end up scraping the bottom of the barrel for the last few consumers.
If we analyze niche goods closely we can divide them into 2 distinct categories:
Un-Sustainable and Sustainable.
Unsustainable niche goods may perhaps or could not make revenue. If they do make income, they only do so for a short period of time, then they require to be re-invented to become new niche items. Affiliates who get in early stand to profit. But sales usually diminish rapidly once new competitors or hot goods arrive to saturate the marketplace. Take for example a vehicle or a DVD player, when 1st released the manufacturer sales margin would have been massive. Only the wealthy would have been able to afford one. But as competitors enter the market, margins start to decrease drastically and there is no longer much profit to be created. Mobile phone handsets are an example of this. The marketplace is so saturated that the phones are sometimes given away for no cost.
Sustainable niche products are those products that grow in value the additional individuals know about them. Drawing on the mobile phone example, the telecommunications network would be a sustainable niche. The far more many people on the network the far more useful the phone becomes to the owners. Affiliates of sustainable niche goods stand to profit considerably alot more employing this long-term technique compared to the achievable quick profit from unsustainable niche goods.
Sustainable niche goods can be sold to each and every individual in the market. They are inherently viral as every single individual who has the item can derive greater value when they convince other people to use it. For example a fax machine has higher value when every person has one. With subscription or disposable services, there is generally no market saturation. You can re-sell the same niche product back to the identical customer again and once again.
So prior to you invest your time, effort and funds promoting an additional merchants product, make certain the niche item passes the following checks:
#1) Does the product meet a continuous need to have of shoppers? Can you sell it 10 years from now?
#2) How viral is the product? Will persons rave about it or keep it as their secret weapon?
#three) How large is the marketplace that would use this item? Is it likely to shrink in the next 10 years?
#4) Does the item lend itself to a subscription based, limited license, or a disposable user pays model? Can you re-sell it to the very same customer once more and once again?
#5) Do the item benefits grow exponentially for each user that purchases it?
Here are some examples of sustainable (past-niche) goods:
#1) World-wide-web Telephony
#2) Over the internet Auction
#3) On the web Dating Service
#4) Customer Acquisition Exchange
#5) P2P file sharing services
If you're an affiliate marketer searching to derive sustainable passive income, make certain you market the correct kinds of item.
Copyright 2005 Michael Lever
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