How To Find A Profitable Niche Market For Your Online Business
Finding a profitable niche market can be a frustrating and daunting task. Especially how so many people give such poor advices like look for a niche that you’re passionate about or the more competition, the easier it is to make money.
Even though none of these advices are either right or wrong. It does not add any value to you when you’re ready to find a niche to work in.
What You Will Discover
- Break down of every step to finding a profitable niche
- The important aspects to look for
- What to avoid
- Scoring that winning niche
So for starters…[su_heading size=”24″ margin=”30″]what exactly is a niche market?[/su_heading]
A niche market is simply just a segment of a larger market.
For example, losing weight is a multi-billion dollar industry and it is impossible to market to everyone who wants to lose weight.
That’s why there are different segments of the market (niche) where they only focus on a particular problem or solution.
For example, you can lose weight by any of the following; dieting, exercising, workouts, body building, taking pills and so on.
These niches are lot easier to target and makes it possible to market your specific offer.
Now, you can easily break that down even further which are sub-niches. A sub-niche is basically a niche within a niche.
For example, let’s use body building as our niche. We can break that down to female body building, male body building, over 50 body building, getting toned VS getting ripped VS getting bulked and so on.
As you can see, when you break down your market like this. It makes it 100x more easier to market and target.[su_heading size=”24″ margin=”30″]The Good, The Bad and The Ugly Niches[/su_heading]
Now, everyone will have their own way of determining what makes a good niche or bad niche so I’ll just share my own criteria that has been working really well for me.
These criteria may change depending on your level of experience, competitive analysis and your time/financial status.
The criteria below is for anyone who is just starting out and would like to learn how to build a successful niche site the easy way. For the sake of being simple, just answer these 4 simple questions.
Question #1: Are people searching for information on your specific niche?
This goes without saying but if no one is searching for information relating to your niche. Then don’t waste your time and move on. Below are 2 very obvious examples:
Good: Learn how to speak Spanish online
Bad: How to train your cat to do a kick flip.
Questions #2: How competitive is your niche?
This is the number 1 rookie mistake that I see a lot of people make.
They try to build sites around niches that are extremely competitive. I’ve seen people build sites around weight loss, finance, poker, forex, stocks, dating and so on. Honestly, this is what it will feel like.
The saying “Build it and they will come” is a load of B.S and if you really think you can outrank these massive authority sites who spends millions of dollars (maybe, who knows?) per year ranking for specific keywords, then you’re dreaming.
The truth is, you want to look for niches that have low competition which makes it a lot easier to rank on the search engines. The ones with lower competition are generally more laser targeted. Niches that are broken down into sub-niches with a small audience. Not too small though, but small enough to avoid the big guns.
Question #3: Are people buying products within your niche?
I know this may seem obvious to some but you’d be surprised how many people disregard this factor. I could rank a keyword that brings in 10,000 visitors per month but if that market isn’t willing to pull out their credit cards, I’m wasting my time.
Of course, there are many other ways to monetize the traffic like Google Adsense or selling Ad space. Some examples of these sites are kids gaming sites or news sites. These sites have nothing to sell but make a ton of money by selling ad space and adsense.
However, if you’re building a niche site from scratch and would like to earn a decent amount of money then your market needs to be active buyers.
Question #4: How big is the audience?
The issue with targeting tight sub-niches, is the fact that the audience size might be too small to earn any kind of income.
Sure, you might get very high ROI’s but it’s going to be very short-lived. I could spend a total of $100 to make $500 targeting a really tight niche but if that’s the most I’ll ever make, it’s not really enough to live off.
The key is to find some kind of balance. Not overly competitive and not too small of an audience.
If you can answer these 4 basic questions, you should be able to differentiate the difference between a good and bad niche.
Keep in mind that I’m writing this article as an affiliate marketer point of view, not a company. The reason for this is because a company can easily spend millions of dollars and make their way through a very high competitive niche and make a ton more money. It’s all about the resources that you have available to you.[su_heading size=”24″ margin=”30″]How To Find A Profitable Niche Market Suitable for you[/su_heading]
One of the easiest way to look for a niche market is to start your research with affiliate networks. There are lots of affiliate networks out there that have thousand of niches and sub niches. Networks like Clickbank, Amazon or even eBay will give you a very good understanding on what products people are buying.
There’s no point trying to spend months looking for the perfect niche, when you can easily find what’s working NOW. Easiest way to find a niche to start in, is to find marketers that are already making money from them.
A good place to begin is with Clickbank.com
Clickbank has a wealth of information and if you want to learn how to make money on Clickbank, Chuck wrote a pretty cool post of his experience.
Clickbank is a marketplace for digital products. Thousands and thousands of affiliate marketers, including us, jump onto Clickbank to find products to promote.
Instead of using it to find a product to promote, it’s also a great place to find a niche that’s hot.
If you head over to Marketplace right at the top, you’ll see a whole bunch of categories to choose from.
Under each categories there will be sub-categories. Plenty of ideas can already come from this section alone but what we’re after is looking for one that is profitable.
Let’s say that I was interested in tapping into the Arts & Entertainment niche. I would just click on that category and the first thing I’ll do is sort the results.
I won’t break down every metric within Clickbank as they already have a guide that explains it all.
What we’re really after is which product is selling like hot cakes at the moment. So all we need to do is to sort it by “gravity”. Gravity represents the number of affiliates who cashed in on that particular product in the past 12 weeks. There is actually more to it but let’s just take it for what it is, which is how hot the product is as of now. The higher the gravity, higher the number of affiliates who are making money. This could be good and bad, it means that the market is hot for that niche but it also equates to the number of competition.
Again, it’s all about balance. Personally, I like to go between anywhere from 40-100 gravity.
As you can see, the highest in gravity under Arts & Entertainment is photo editing. This tells me that the market wants to learn more about photo editing and is willing to pay for it.
Another great place to find popular selling products is Amazon and eBay.
They are more than just ecommerce sites, there are actually heaps of niches to be found here. Especially if your building niche sites around physical products, you could easily find what types of products your audience really wants.
A handy little section to look at is the review section. Take this image for instances:
With 1,630 reviews and a 4 and half star rating, it means that people are loving this product and that a lot of money is to be made promoting TVs. Of course, it would also mean that it is very highly competitive as not everyone leaves a review.
For every 3-4 buyers, 1 person will leave a review. That means, with 1,630 reviews that could potentially mean 4,500 – 6,000 buyers. Here is where you’ll want to think outside the box. Of this many people are willing to buy this particular TV, how many of them would need TV mounts?
For more ideas, be sure to scroll down to see Q&As and feedback. You’ll find plenty of pretty cool gems that people want!
The same could be applied to eBay.
The last platform I want to reveal which is an absolute gold mine when it comes to niche research is Dummies.com.
Dummies is a company that thrives on writing help books, guides and manuals for markets that are in need for them.
What this means is, they spend heaps of time and resources to find out what exactly are people in need for and then hire experts within that niche to write a guide.
In other words, the research is done for you!
Anything you could find in dummies, you can count on the marketing wanting this kind of information.
Just click on Shop for Books & More to see all the topics that have written on, there’s also a featured titles section.
As you can see, from these 3 sources alone, you can come up with many ideas on what niche you want to tap into and the different products you can sell.
You can also do your niche research by looking at trends. Trends will give you an idea on the demand of your specific niche, whether it’s growing or declining. What better place to check than Google itself. Google has a tool called Google Trends, where you could find what people are searching for and the history of that search query.
For example, take a look at this screenshot below.
Paleo diet was a massive hit a few years ago but started to slow down a bit. Now, all of a sudden, there is a huge spike. This gives us a good indication that maybe paleo diet is becoming more popular and that there is some buzz going on. Maybe it’s a good time to try it out?
Here is another example of doing niche research with Google trends.
As you can see, the keyword meditation is very steady and by the looks of it, it seems to be rising up. Although it is very broad and probably has a lot of competition. Of course, Google trends just tells us if the niche is in demand or not but if you want to look at traffic volume, you need to use other keyword tools, like Google Keyword Planner.
Don’t discount the data that could be found below it either!
There’s also data on Regional Interest and Related Searches. With regional interest, you could find out which country is the most interested. But the main one to check out is the Related Searches, as you can see, meditation music is the top performer. Is that a sub-niche I see?[su_heading size=”24″ margin=”30″]Conclusion[/su_heading]
There are plenty of free resources out there to assist you in finding a lucrative niche. It’s just a matter of doing proper research and understanding the market. If the market is too big and overly competitive, don’t stress. You could always break down the niche and go for that instead.
The main thing to take away from this article is be sure that the market wants what you have to offer. Be willing to pay for the product and it’s not too hard to compete in. Just play it smart and you’ll end up on top with really nice ROI to go along with it.
What are your methods for Niche research?