How to find a profitable niche for your online business – What kind of business should I start?

If you want to start a business or build new income sources online, then you will need to choose a niche that is profitable where people are spending money in that specific niche.

What is a niche in the first place. It is a specialty field in a certain industry that revolves around a specific problem that people are trying to solve and are willing to spend money to solve. Basically a niche is a topic where people are discussing a solution for.

Once you identify a niche, it is important for you to become an expert in that niche, or hire someone to be part of your team who is an expert in that niche and partner with them. This is crucial to establishing your credibility and authority in that niche so your followers are more likely to trust you, take action on what you suggest, and buy from you.

Introduction

The importance of choose a unique niche that is right for you cannot be overstated. The more unique and specific your niche is, the less competition these is and more share of profits you can make from that niche especially if this niche is something you know is profitable.

This is why you always want to be on the lookout for little-known, untapped niches in the bigger niche that you are passionate about. This allows you to carve your own specialty niche that no one else can enter into since it is unique to you. And you are delivering value to others which benefit your community.

This is why I will always preach the value of finding your passion, discovering your gift, learning about your calling, mastering your craft, and knowing more about yourself and your unique place in the larger economy and the world overall. In this way, you deliver value to the world and it delivers value back to you.

Example of niches

Some common profitable niches are:

Making money online as side hustle for working professionals
Approaching men/women for dating for people in their 20s or 30s
Pet grooming and training for dogs/cats
Mental health such as dealing with anxiety
Fitness and weight-loss for post-pregnant moms
…and much more

These are the more common ones especially because they are what you call evergreen. They are evergreen because they are profitable all year round and are relatively stable through the years and decades to come since they are universal and timeless problems that certain people have through time.

Take for example making money online (aka internet marketing). You can break down this big niche into even smaller niches or subniches. These subniches can be PPC, article marketing, SEO, forum marketing, guest posting, blogging, affiliate marketing, product lunches, joint ventures, and much more. The more specific you can go, the more targeted the audience and the better you can connect with them on a one to one basis.

But no matter the niche, fundamentally you can categorize these niches in one of three big niche. Some internet marketers even call the big evergreen the Big Three which are: health, wealth, and relationships. Take not of niches and whether or not they fit into one or two of these big categories. They are big niches because they are well known and profitable, although competitive.

Take note of market saturation

Markets consist of sellers and buyers. For you since you are making from from the market niche you are going into, then you are a seller. There are ways of measuring how many buyers there are in a market as we will discuss later, but take not of how many competitor sellers you have in that niche.

The more saturaed a niche is means that there are much more sellers than buyers in that niche. Those sellers are competing for the attention and money of thoes buyers. Therefore, the more saturated that niche is the harder it is to become profitable for you as a new entrant into that niche market.

Still it is not impossible though, and the more competitors these in a niche is a good indicator that that niche is indeed profitable since why would sellers spend their time in that niche if it wasnt profitable in the first place.

The great news is that since there are so many niches and subniches to choose from, the likelihood of there being a profitable one is really high especially the longer you stick to that niche. Sticking to that niche long term is a competitive advantage in itself. This is especially so if you are very passionate about that niche.

Plus if a niche does become too saturated for you to continue, then there are plenty of niches for you to go into.

Be careful of fad niches

Some niches are what you might call fad niches. It is not always recommended to go into these fad niches because these niches can be seasonal and the profitability often times die down eventually once the fad dies down.

Some examples of these niches are Trump rally niches, the Fidget spinner niche if you remember those, or certain fad diet niches like Atkins diet. It is not that fad niches are bad per se. You just have to be careful with them and know if you are going into a fad niche or not so that you are not suprised when it stops being profitable all of sudden due to drop in popularity.

Fad niches can be part of an overall strategy of evergreen niches, but just be aware that they often do die down and you need to find a new fad niche to ride its popularity.

Now the more specific the niche you go into is, the more likely you are able to speak to your audience in a personal and emotional manner.

Keyword research and community and topic discovery

How do you find these niches in the first place? One place is to go to Google Trends and see what people are looking up for. Note though that these trends can die down also. But you also need to couple it with the Google Keyword Planner tool. Input keywords you found in Google Trends into Keyword Planner. Now you will see even more longer tail keywords, and more importantly the amount of searches they get in a period of time like per month. The way you find evergreen niches is to spot the stability of searches for those keywords you found in Keyword Planner.

This way the keywords you find are the beginning phrase of the evergreen niches ideas you can go into. But you also want to narrow it down even more. What you want to do not is search google inputting these keywords and add forum or blog post to see industry communities in that niche.

Make a list of these communities you find and figure out the demographics of these communities as in age, sex, or geographic location.

To make this process even easier, you can use Facebook ads manager to find your ideal demographic audience. If you do not have Facebook ads manager, I suggest you make one since it is a very useful tool and using the demographic tool is free as long as you do not actually start the campaign.

So you are in Facebook ads manager then from here, when it suggests what your target audience is, input the forum or blog communities you found. This will bring up other queries suggested to you by Facebook. You should note these down as well. If you do not find your forums, blogs, or communities in the ads manager, then try the keywords you found in Keyword Planner.

The suggestions that Facebook ads manager shows should also show the amount of Facebook users that are interested in that suggestion. This is key so that you know the amount of potential viewership you can get. The keywords from Keyword Planner plus the suggested topics from Facebook ads manager will form the fundamental profitable niche you can go into.

For example this is how you can find people who want to “make money online by blogging for working single moms in the United States.” This is a good evergreen niche because this group of people will most likely spend money plus their problem most likely will go on for a long time and new people will always come to fit this demographic.

Now you have a mission statement for the site you will build and the type of brand image you create for that site. You can even get an idea now of what kind of products these people will most likely buy and also the type of blog posts these people will most likely read.

Passion vs Profit

Ideally you want the niche you choose to be one that your are passionate about and one that is also profitable. This combination is most ideal so that you can continue to work on your business for the long term since you love working on that business. The more passionate and enthusiastic you are about something, the more you will want to work on it, and the less willpower you will need to exert to get yourself motivated to start working on your business.

Not only do you want the niche to be something you are passionate about, but you also want it to be a niche that is profitable so that you can make money from it and sustain you and your family financially. This way you can keep working on that niche business and keep providing value to people helping them solve their problems in exchange for you getting value back in terms of money.

Shortcuts to finding your profitable niche

If you want to shortcut your way to finding a competitive and profitable niche then you can go to ClickBank and see the categories they have for sale. ClickBank is an affiliate marketplace where you can see and pick products you can promote. Most likely if people are buying a product with high gravity such as if the gravity is greater than 20 then that is a niche where money exchanges hands.

Another place you can verify if a ClickBank product is selling in a certain category is to go to CBEngine.com where they list out ClickBank products more in depth. CBEngine has data far more and shows way more info about the CB marketplace than CB actually does in their site.

And if that is not enough for you to find your niche, then you can go to a high quality PLR site like IDPLR.com. When you go here and sign up for a free account, you can go all the way to the bottom of the home page where it lists out big categories like Business or Self Help. When you click one of these categories (which act like big niches) then it will show a dropdown list of even smaller categories. These smaller categories are what you can treat as your more specific niches in part of the larger niche that you previously clicked on.

For example when I click on the large category of Business in IDPLR, then I also see that subcategories of Making Money, or Marketing, or Social Medias. Then there is the longer list which consist of personal finance, freelancing, affiliate marketing, email marketing, blogging, and so on.

What’s great with the PLR method of finding niches is that you already have a ready made product found to sell in that niche. Granted you need to be a paid member of IDPLR which I recommend you be so that you can download and have the rights to sell those products. What’s also really useful is that these PLR products often come with sales tools already done for you so not only is the actual content ready, but you also just need to copy paste the sales letter into your site.

This PLR method of finding niches is one of my favorite ways of finding profitable niches because you kill two birds with one stone. Not only do you find a profitable niche easily done for you complete with keywords, but you also find awesome products you can rebrand and readily sell as your own complete with sales tools.

Researching your competitions

Do not think of competition as a bad thing. In fact it is a good thing because your competitors are going to be on of the main sources of inspiration for your content and overall strategy. Also competition is a good indicator that the niche is profitable.

However, identifying your competitors in your niche is a funny thing. This is because you never realize your competition is everywhere. A lot of the time, your competition are the brands that you already know and love and you are already consuming their content. Take the blogging niche for example. If you are going into the blogging niche, then in the past you must have read other blogs like SmartPassiveIncome or CopyBloggers but you may never realize that they would become your competition once you get into the blogging niche.

But again, do not see this as a negative. Do not get pressured into thinking your competition is necessarily hostile and out to get you. On the contrary they can help you a lot in building your business. You can build your business based on the foundation that your competition have already set and leverage the information that they put out in their blog so that you know what content to produce for example. You can also research their traffic sources and where they are getting their visitors from to discover new traffic sources. This way you can test out whether those traffic sources would be good for you too since most likely your competitors found those sources profitable for them or they would not be using it for very long.

Knowing your competitors is really important. You need to make an Excel spread sheet listing as many competitors as you can find in your niche, up to about twenty competitors. You can do this by doing a simple google search with a keyword in your niche and then finding the blogs of your competitors this way. List the names of the brands that come up and copy paste them in the spread sheet you made.

Look around their sites and get a feel of layout and keywords they use as well. In this way, you can get a general overview of the kind of content that consumers in your niche are consuming. To get even more specific, make a spread sheet also of article headlines and the link to the articles themselves. Especially if the competitor you got the article from is really popular and successful, you can replicate the success of that article and re-paraphrase the article in your own words as profitable content for you own site. Make sure to cite your sources and also use your own words so you produce original content, being careful not to plagiarize.

More coming soon…

Building your perfect prospect profile

Reference

9 steps: https://www.withintheflow.com/dropshipping/how-to-find-a-profitable-niche/

10 steps: https://nichesiteproject.com/profitable-niche/

3 steps: https://nichehacks.com/niche-markets/chapter-5-find-niche-market