You’re willing to start your own online business but you’re not sure how to find a profitable niche? Let’s check together what criteria you should follow to find the right niche for you.
After reading this guide, you’ll have clear what are the steps in order to find a niche market that makes you money.
What Is A Niche?
A niche is a smaller segment of a market where people are looking for a specific solution to their problem.
Any market can have multiple niches and sub-niches or categories, each of them targeted to a specific problem.
For example:
Market = Pet –> Niche = Cat –> Sub-niche = Cat Litters
That being said, a niche includes all the people interested in the same topic or people with similar demographic traits.
For example:
Market = Beauty –> Niche = Make Up –> Sub-niche = Women 20-45 years old
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4 Steps To Find A Profitable Niche
In order to find the right niche for you, we can follow a process that will help us identify the criteria of a profitable niche.
What are people looking for online? If you wish to start your own online business, just by looking at what people are typing in the search engines, we can find a lot of useful information about what is a good topic for our niche.
Brainstorm your interests and passions
Start by doing a list of topics you are interested in or of passions you have. Try to pick 5 to 10 different areas of your interest.
Even if it might sounds quite obvious, it’s very important to choose something we are passionate about as it will much easier to put in efforts day by day in our business.
Of course not each passion has the same potential and maybe some of our interests don’t have a profitable market based on which we can establish a business.
My first advice is to head over Google Trends and start typing keywords related to your favourite interests to check what’s the current volume of research for that topics.
Here below you can see the volume of searches in US for the term “how to make money online” that has been very stable for the past 12 months. This is a good sign that there is enough demand for this topic.
Top Niches Recommended
- Health & Fitness
- Personal Development
- Make Money Online
- Dating & Relationships
- Pet
Identify the problems a niche has
What are the problem you’re going to solve? If you want to make money online you need to solve a problem that an audience has.
When you decide what kind of business you want to start you always need to have in mind that people are looking for a solution, so the more value you give the more money they’re willing to pay to get your product or service.
In order to find the problems that your target customers have, you need to do a bit of research:
- Keyword research: what are the most searched keywords related to your niche?
- Forums: identify what questions have your target audience in forums, such as Quora.
- Questionnaire: create a questionnaire and try to get as much as responses as you can, by sharing it with targeted groups on Facebook or send it to your friends.
Analyze customers buying habits
Are customers in this niche known to buy? This is the main question you should ask yourself when picking a niche.
In fact, even if there is a big volume of searches for a specific keyword, it doesn’t necessarily mean that people are willing to spend a lot of money to solve a problem.
Maybe they’re just looking for tips on how to improve their financial situation or what is the best way to cook pizza.
In these cases people are looking for immediate suggestions to put in place, but they don’t want to buy anything.
As a start, you could have a look at the best-seller section on Amazon.
Check out in each category what are the most sold items.
If you wish to start an eCommerce business, this is a good way in order to decide to open a store and start selling online.
Estimate the profitability of the niche
Now that you have a better idea of what niche you’re going to get into, it’s time to determine better the profitability of that niche.
What’s the value of the products in your niche? How many competitors are selling the same product?
Based on these questions you can estimate at what price you could eventually sell a product or service.
At the beginning of course, you don’t need to own a product, but you can partner up with someone that already has a product to sell.
This is the case of affiliate marketing, where you earn a commission every time a customer buys the product you’re promoting through your affiliate link, or dropshipping, where you don’t stock the product you’re selling.
Conclusion: How You Can Find A Profitable Niche
If you made it this far, maybe you’re still wondering what’s the best way to make money online.
Of course there isn’t a straight answer to that, there are no get-rich-quick schemes.
Only hard work and perseverance will pay off.
If you follow these steps and put in the right efforts, you’ll become an expert in finding a profitable niche.
In order to help you to start your own online business, let’s recap the 4 main questions to check when choosing a niche:
- Are there always offers to promote?
- Are customers in this niche known to buy?
- Can you market to this niche in a profitable way?
- Do you like this niche?
In fact, the most important thing, once you’ve found a profitable niche, is to enjoy the journey. That’s why is very important you pick a topic you’re passionate about and your work will be much easier.
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