Ok – How to pick a profitable niche!!!
A question asked all the time and all the advice you get is to pick a niche you are interested in or that is your passion… even I’ve said that on many occasions…. HOWEVER there is a flipside to that comment because you want to actually make a profit from your passion or interest – otherwise it’s just something to chew up your time – right?!
Think about it : being well informed and super excited about your passion is not enough to build a profitable business – you have to make sure your area of interest has enough profit potential to get you to your own financial goals, especially if you are putting in money to start up websites etc.
Realistically building an online business will cost you money – admittedly it doesn’t have to be a lot of money, nothing like an offline business – but it does take a little investment if you want a good looking site that actually attracts and converts – one that shows your audience you are serious about your business… to do this you need to put in time, energy, money on design, web hosting, development, SEO etc…
Basically if you can’t show a Return On Investment – why do it? Then it’s not a business, it’s a hobby.
So, if it’s your goal to build a profitable business online then you need to choose a ‘profitable’ niche market. There is a bit of a skill to picking a profitable niche market – and finding one that you are passionate about.
What is a Niche Market and Niche Marketing?
So a niche market is basically a segment of any market that has a specific product focusing on it. Any market can be divided into segments or sub-markets with specific demographics, interests and products. For example fishing – that is a huge market! Within the fishing segment you can find niche markets focusing and drilling down to specific topics – such as Deep Sea Fishing Off Miami or The Best Hook To Use To Catch Tuna. You can make the niche as specific as you can – SO LONG as the niche is a profitable one.
By this I mean the niche/sub-niche needs to have products attached that meet the specific need. So the Deep Sea Fishing Off Miami example may have a charter boat that offers special cruises and if you promote this you get a commission on the sale.
With the Hooks example there may be a book on offer all about tuna fishing or you may have a link back to specific hooks on Amazon. Either way if there are products attached to the niche you are promoting – that’s great!
Better yet you need to make sure the market you are aiming at has money to spend! Promoting luxury items to university students who are all interested but are all broke won’t get you sales.
So niche marketing involves the art of defining your particular niche and marketing your product or services to that audience. Please note a well-defined niche will bring you more business than aiming at a broader market.
Try to focus on your niche audience, not just the product as products come and go.
Broad or Small Niche?
The reason I say to target a small-sub niche is simply to get in front of an audience who will purchase off you. If you are promoting a diet book and your aim is to hit every single person in the world who wants to diet – thinking you will make more money – you will fail miserably.
There are literally hundreds of thousands of products and companies and online entrepreneurs who have been target dieters for as long as the internet has been going and you have absolutely no way of competing with that.
However if you sub-niche it down to say, mothers of toddlers wanting to lose weight after their 2nd baby – then you have a great target audience that you can build trust with and really market to.
Identify your Audience
You need to start off by identifying with your audience in order to understand their needs so you can offer help for their needs. Basically products come and go, but your audience will always be there and if you can make yourself a source of information or you have built trust with them – then you have an ongoing market to promote to. Knowing your audience will stop you from struggling to know what to promote to knowing exactly what they need.
Think about your audience and their needs, such as ‘new mothers’ for example. You would first think about their needs:
Baby clothes, parenting ebooks, weight loss, time management, yoga outfits, kids books, marriage help…
Then you can start doing your research on how you can best serve this niche market.
Research is Imperative
This is the part a lot of people don’t want to do as it does take time and you need to learn this as part of running your business. Just like an offline business will conduct research for their products or their customers, you need to do the same for your business.
You need to identify what keywords your audience uses when they go online and look for information in your niche market – especially problems related to pain, problems, desires.
This information let you know what topics your audience is interested in and whether there is a product (or you can create a product) to fulfil their needs.
A great way to start is using the Google Adwords Tool. You can use this tool to identify keywords your audience is using to research products, services, solutions and information on your particular niche. It provides useful data, search volume, level of competition, cost per click and so much more – there are tutorials there you can follow.
The keyword tool I use is Jaaxy – again it offers great training and you can try it out initially for free to get the hang of it.
There is some really specific training on the Wealthy Affiliate website that will actually walk you through the process of refining keywords for your niche.
Another part of your research will be to jump onto forums related to your niche and find out what people are talking about, what are their questions and needs – this will give you great ideas for articles and within your articles you can promote your products.
Look at facebook – this is a wealth of information for you as far as your niche market. You can participate in discussions and even ask the audience what their biggest problems are – use the words and terms they express for more keyword research!
Picking Products to Promote
Once you have spent time learning how to research your keywords for your niche and you are ready to move forward it then comes down to promoting your products or affiliate links and start making money.
I get most of my affiliate products from Clickbank, it’s totally free and once you set up your FREE account you can see all the products in the marketplace. Start by looking there for products you are interested in promoting. It’s easy, it’s full of 1,000s of products to promote and the support is sensation if you happen to run into a problem.
When looking at niches, generally if products are existing – then they have been created because research has already been done on whether it’s a profitable niche. Within Clickbank you want to look at a couple of things however to check if your chosen product is profitable.
Products NOT to Promote:
My suggestion is to look for products (or infact niches) that are ‘evergreen’. By that I mean initially try to go for niches that will be around for a very long time i.e. health, relationships, gardening. Going for trendy or products or niches that can go out of date quickly will not build a long term sustainable business for you.
Core Criteria for a Profitable Niche:
- Make sure you have large numbers: if you have only and audience of 1,000 people, well you’re not going to build a solid business on that. The bigger the audience in your niche/sub-niche the better building block for you.
- What are their problems: is your audience experiencing problems and looking for solutions? It sounds negative, but is one of the more positive things you can do as an internet marketer is have an attitude of serving and helping your selective audience.
- Are they willing to spend? Is your audience willing to spend money on solutions to their needs? Building a website to help people find Government Grants will not get you very far up the money ladder. However helping a golfer (who already spends a lot of money on his hobby) to better his swing will definitely get you sales and probably a great database of golfers that you can further promote to!
Now, I know I have sent to the Wealthy Affiliate site a few times – mostly because of the immense free training you can get, but it is also how I got my start and I can’t speak highly enough of the course and it’s my desire to see other people, such as yourself, benefit financially from your efforts – I can only point in the direction of a program that worked for me.
Must Watch: How A 28-yr- Old Got Fired &Then Built A $500k-A-Month Business ⇒
Please follow and like us: