| Do you remember all the anxiety about Y2K in 1999? | | | | exclusively on a hotmarket. But you can use it as a |
| Itcreated a "hot market". A lot of businesses jumped | | | | temporary opportunity tolaunch a new business or to |
| into thathot market. Many of them failed when the | | | | increase the profits of yourexisting business. |
| Y2K problemevaporated. But a few used the unique | | | | OPPORTUNITY TO LAUNCH A NEW BUSINESS |
| opportunity itprovided to build permanent, profitable | | | | You can launch a new business based on a hot |
| businesses. | | | | market and usethe profits from it to finance your |
| HOW TO IDENTIFY A NEW HOT MARKET | | | | entry into othermarkets. When the profit potential of |
| A hot market usually involves something new or | | | | the hot market startsto fade it will only be a portion |
| previouslyunknown. It offers a big benefit or solves a | | | | of your total income. |
| big problem fora lot of people. | | | | For example, I recently read about a new company |
| Pay attention to what you hear from other business | | | | launched in |
| owners,what you read in trade publications or what | | | | 1998. The business started by selling a software |
| you find on the | | | | product theowners developed to find and correct |
| Internet. When you uncover a new product or | | | | Y2K problems. Saleswere brisk and they used the |
| service askyourself, "What are the characteristics of | | | | profits to develop other newsoftware products NOT |
| the customers whouse this? Are there lots of them | | | | related to Y2K. By the time the Y2Kmarket vanished |
| and are they easy to find?" | | | | they were getting most of their sales fromother |
| If your answer is "yes", you may have discovered a | | | | products. |
| new hotmarket. | | | | A NEW PROFIT CENTER FOR AN EXISTING |
| When you think you've found a hot market, look for | | | | BUSINESS |
| ways youcan profit from it. For example, you may | | | | You can also diversify an existing business into a |
| be able to become adistributor for the product or | | | | hotmarket to take advantage of its profit potential. |
| service you found ...or youcan develop your own | | | | When theprofit potential declines you can decide |
| products or services to serve the samemarket. | | | | whether to abandonthe market or continue to |
| GET IN AT THE BEGINNING | | | | operate it as a "normal" profitcenter. |
| A hot market can produce a surge of business for a | | | | I know several marketers on the Internet who |
| shortperiod of time, especially if you get in at the | | | | regularly dothis with new affiliate programs. They get |
| beginning. | | | | in early andvigorously promote the program to |
| That's when sales are easy to get because the | | | | quickly sign up a lot ofnew affiliates. They stop the |
| market isgrowing and there isn't much competition. | | | | special promotions whencompetition gets heavy but |
| Later, it becomesmore difficult and expensive to get | | | | continue to offer the program asone of the many |
| sales as morecompetitors flood into the market. Hot | | | | services they provide. |
| markets become highlycompetitive. | | | | Try to spot emerging hot markets. They offer a |
| Most hot markets won't vanish like the Y2K market. | | | | profitablebusiness opportunity with minimum risk -- |
| A hotmarket may be a permanent market but the | | | | especially if youcan get in early. When you find one, |
| extraordinaryprofit potential it offers is temporary. | | | | use it to launch a newbusiness or add it as a new |
| It's difficult tobuild a permanent business based | | | | profit center to your existingbusiness. |