Catering to Niche Markets

Web hosting resellers can enlarge their profit margins by targeting niche markets.

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A niche market is composed of individuals and businesses that have similar interests and needs, which can be readily identified and that can be easily targeted and reached. Niche marketing is effective because people tend to feel more comfortable dealing with someone who has a great deal of experience in their specific area of need. Despite the fact that they may be able to obtain similar results elsewhere, people will often tend to go to a person who serves a niche because of their belief that "experts" are better equipped to handle the task.

Hosting resellers have been taking advantage of this fact by providing specific Web hosting and design services to specific market segmentations. They have been addressing niche marketplaces to gain access to a broad base of businesses ready and willing to purchase their hosting services in order to reach the individuals who consume niche services.

Most hosting resellers that offer services to niche markets brand themselves as "communities of interest" rather than strictly technology-driven businesses. Such hosting companies thus portray themselves as community "portals" in conjunction with marketing themselves as service providers.

A reseller targeting a niche market will most likely provide news and other information services to their audience, along with Web hosting services. By integrating information products into their service offerings, resellers can also feature the products and services of their clientele. Such hosting companies thus build directories of and for their users. Notable communities of interest that utilize the portal model include ethnic communities and religious denominations. Such communities are popular because they act essentially as tools that connect interested parties, facilitate knowledge sharing and provide a repository of readily accessible information.

Web hosting resellers will also target niche markets by providing services especially custom-tailored to their client's regulatory specifications. An excellent example of this is hosting companies that specialize in providing services to the medical sector. Such firms will fine-tune their hosting operations to conform to regulations that must be observed to ensure the highest levels of safety.

There are also a huge number of hosting and design operations that specialize in building Web and hosting sites for family doctors, hospitals, dentists, pharmacists and chiropractors. These operations also tend to build "community portals" which allow consumers to comparison shop for health care services.

By creating "communities of interest," hosting resellers can cater to niche markets, by attracting consumers who are interested in their customers' products and services.