Hi! Welcome to Twenty Set. Here you will find 4-5 insightful new articles each week about personal and professional development. I write candidly from personal experience.
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I regularly answer reader questions on my blog. If you have a question you can submit via twitter (@monicaobrien) or email me m@twentyset.com.
This question comes from @andydrish:
“I’d like to hear what it’s like to build a community around shows like gossip girls…Howd you get into that niche?”
Andy is referring to my other website, Media Lookbook, which is an affiliate marketing site for the fashion seen on Gossip Girl.
I don’t talk about this much because I’m worried that the story isn’t very exciting. Back in 2007 I stumbled on ProBlogger and thought I could make money blogging. So I started several sites, and one of them was a fan site for a new show coming out called Gossip Girl.
The show was getting a ton of buzz, and my fan site did okay, producing a couple hundred bucks of Google AdSense revenue a month. Of course, a hundred bucks is not enough to make the business of publishing daily news and recaps about the show profitable.
But then I kept getting emails from fans asking me “What did Serena wear in this episode?” “Who designed the dress that Blair wore to the ball?”
I soon realized that the business of telling people where to buy items from the show was lucrative. First, the information was of high value to a group of trendsetters, and it was hard to find online. Second, the target audience for the information had tons of disposable income. (When you can spend $700 on a Marc Jacobs purse just because you saw it on a TV show, you have a ton of disposable income.)
So I got into affiliate marketing. Affiliate marketing is when you post a link to another site that’s selling the item, and then you receive a commission if someone uses your link and makes a purchase.
Reality check: the commissions are not huge. 5-10% maybe. But on a $700 purse, that’s $35-70. So if you are even thinking about trying this, you have to find a niche where the purchase price is very large, and to be honest, most of these markets (including mine) are already saturated.
Getting back to the story, I started a new site that was focused solely on Gossip Girl fashion and monetized it with banner ads and affiliate links. Even without any new posts, the site accumulated traffic like none other. Within a year the website had 50,000 visitors per month and 500,000 pageviews. By the way, this is a lot for a blog with a very niche focus and no external promotion.
I could go on about the website, but the point is that I created a valuable niche business with very little capital because I paid attention to the trends and explored a new direction to exploit an unmet need in the marketplace.
The takeaway from the experience for me is that the way most successful entrepreneurs find business opportunities is serendipitous. You come up with ten ideas and maybe one is worth exploring in depth. For every 10 ideas you explore in depth, only one is worth putting significant capital behind. And so on. And then sometimes your original idea sucked, but it led to insight that gave you a better idea.
By the time you put all the filters in place and work backwards, you probably need 10,000 good ideas and several iterations of innovation before you stand a chance of creating the next Facebook. That’s okay, because we don’t all need to create the next Facebook to be successful entrepreneurs. But the point is that there is an opportunity cost of not exploring new opportunities. If you aren’t constantly exploring new ideas and learning new things, you will miss the profitable businesses that come to you by chance.
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