Here’s a shocker, Every niche is profitable 💰!
There are riches in every niche, you just have to find that sweet spot.
When I first started researching the idea of starting an online business, I had no clue what a niche was, much less how to choose a profitable niche.
To be perfectly honest, I can’t even remember hearing that word before. So, what exactly is a niche?
What Is A Niche?
According to Merriam-Webster dictionary, a niche is “a place, employment, status, or activity for which a person or thing is best fitted”.
Simply put, it is a specific area or topic within an industry that the content, products, or services of your blog or business will be about.
There are many different niches within an industry. Niches also have micro-niches within them.
Let me give you an example,
🚗Automotive is an Industry with different make and model vehicles.
Honda, Ford, Chevy, etc, are Niches and within these niches are micro-niches. Example Honda CRV is a Micro-niche of Honda.
You can go even deeper than micro-niche, for example, you may decide to just focus on transmission for Honda CRVs.
OK, I think you get the idea.
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Now let’s look at some reasons why choosing a niche is important.
Why Is A Niche Important In Online Business?
Having a niche is important because it:
- Gives your business a clear sense of direction and focus
- Allows you to focus on a specific target audience
- Builds brand awareness
- Allows you to provide more value for your customers because you’re focused on a particular area.
- Shows your expertise and authority in that niche
- Helps you to connect and interact with your audience, sponsors, other like minded business owners and advertisers in your niche
- Helps your business to be more easily picked up by search engines
- Has less competition
While there are advantages to niching down, there are also a few disadvantages. Some of which are:
- Smaller market
- Limited income potential
- Fewer products or services to maximize profits especially if you’re doing affiliate marketing
Given the number of benefits that a niche has, I’d say yes a niche is important for a business. The question now becomes, should you narrow down your niche or stick with a broad niche?
Should You Niche Down?
While a broader niche has a much wider market, it does not mean that it will be a more profitable niche for you. Here’s why
- Too much competition
- Not audience focused enough
- Harder to target
- Harder to build brand awareness and show expertise
- You’ll be more stressed trying to keep up or out run the competition
Many businesses fail because of one or more of the above-mentioned reasons.
Now that you know the pros and cons of niching down as well as sticking to a broad niche, go choose wisely.
After making that decision, it’s now time to brainstorm niche ideas.
How To Choose A Profitable Niche?
This question is one that baffles so many newbies, myself included. It’s possible to pick a niche that’s either too narrow or too broad.
The key is to find the money spot in your niche.
If you pick a niche that’s too narrow, you might not have enough search volume to make a profit from it, or you might have trouble coming up with content ideas for that niche after a while.
If you pick a niche that’s too broad, you might have difficulty getting a share of the market because the competition is too high.
When deciding how to choose a niche, there are only two possible routes to take, something that you know or something that you don’t know.
The first thing I would suggest you do before picking a niche is self-evaluation.
Identify what skills, talents, experience, and knowledge you have. Take time to figure out what your strengths and weaknesses are. Look at
- Your hobbies, passion, and interest.
- How you spend your free time.
- Which sites, books, movies, and magazines you enjoy reading, watching, or learning from.
- What topics you like.
- The clubs, groups, and organizations you join.
Find out from family members, friends, and coworkers what they think you’re good/great at.
Gathering this information will help you to be more clear as to what decision you should make.
Step 1 to choosing your niche is to assess yourself.
Decide Which Route To Take
As you brainstorm, you will find that choosing a niche falls into two categories:
- Something that you know
- Something that you don’t know
The advice you’ll hear from most marketers will probably be ‘go with your passion’. I’m not going to tell you that, instead I’ll highlight the pros and cons and then leave it up to you.
Something that you know
You can choose a niche around something that you know, like your passion, interest, experience, or love.
This is a good option because,
- You will be able to write about it a couple times per week for a long time without running out of content ideas.
- It will help you look like an expert in your niche
- Your passion for the topic will help you sell whatever product you create.
- You will be better able to relate to your audience.
While there are pros to this approach, there are also some cons as well.
If you want to find a profitable niche, sometimes going with your passion might not be the best idea because,
- There may not be enough people interested in what you are passionate about for it to be profitable enough for you to make a living.
- The market for your passion may be overcrowded and as a result you’ll have a hard time finding your sweet spot.
Something that you don’t know
You can choose something that you don’t know anything about, as long as it fills a need that people have.
People are generally looking to either ease their pain or fuel their passion. If you can provide solutions to these, then that’s a good route to take.
You also want to choose a niche in an evergreen industry (something that is always in demand, people will always want to learn about or need solutions for) such as health, parenting, relationship, education, etc.
You may also decide to pursue a niche that you’d love to learn about. This way you can share while you learn; share the mistakes, failures, and successes.
Step 2 to finding a profitable niche is to decide which route to take.
Conduct Niche Market Research
It would be pointless to decide to focus on a niche without knowing if there is a market for it, so now you’ll have to do some research to find out.
You want to find out if people are searching for your desired niche before you get started, to do this you’ll have to do keyword research. There are a number of tools and places that you can use to get the information you need.
Some of the tools and places are:
- Q & A platforms like Quora
- Exploding topics
- Answer the public
- Social platform groups
- Google trends
11 Things To Consider When Researching Your Niche
When researching a niche, there are a few things you must take into consideration.
- How big is the niche?: If it’s too big it may be hard to target and too full of competition. If it’s too small it may be hard to get targeted traffic to be profitable.
- How competitive is the niche?: If it has too many competitors, it may be hard to make money in the niche. If it’s too small then maybe there is no money to be made in the niche.
- You need ideas with high monthly search volume and little competition
- How profitable is the niche?: You need to find a niche that has an audience that is willing to pay for the products.
- Is anyone selling products relating to your niche
- Is potential for back end products?
- Are there affiliate products to promote in your niche?
- Do you have enough interest in the niche?
- Do you know enough about the niche?
- Is it an evergreen niche- will it be around for a long time?
- Is it becoming more popular or less popular?
Step 3 for coming up with a good business or blog niche idea is to research your idea.
Identify Problems And Find Your Target Audience
Now that you’ve analyzed your business niche and have some great niche ideas it’s time to find that sweet spot for your business.
I’m not going to tell you to identify your target audience first, instead, my advice is to identify a problem that you will be able to solve effectively and then find your audience.
If I say choose your target audience first and you go and do that, what if you can’t solve that audience particular problem/s? Your business would fail because you would not be able to provide solutions for them.
The audience lies with the problem. So find that sweet spot problem and give it your best.
Step 4 for choosing a profitable and successful business niche is to identify a problem that you will be able to solve and find your target audience.
Figure Out Your Unique Selling Point (USP)
You’ve found the problem that you want to solve and your target audience, but there are other entrepreneurs solving that problem too, so how are you going to stand out?
What can you bring to the niche market that will set you apart from the competition and make the audience want to come to you?
It’s not really different than working a job with other employees and trying to get a promotion or a raise. The ones who will get the raise or promotion are the ones who do something different or add extra value.
If you want to dominate the market in your niche you have to figure out how you’re going to add more value to your audience than your competition. The key here is MORE VALUE.
To help you with this part there are two things I recommend you do.
- Be your first audience and think about what would make you want to come to your business for solution to your problems. What could you offer that will keep you coming back?
2. Look at your competitors, the ones that are at the top, and see what they are doing and then add more value to what they’re doing or do what they are doing in a more unique and better way.
Learn from your competition, look at what they’re missing, what’s working for them, and then combine the two.
Step 5 for building a profitable niche business is to have a unique selling point.
Look For Products And Services
Now, if you want to have a lucrative and successful blog or business then you have to have something to sell. Every profitable niche is selling one of two things or a combination of the two.
In step 3 when you did your research, you would have looked at products and services in your niche, now is the time to dig a little deeper and decide exactly what you’re going to sell.
You can create your own niche products and services or you can become an affiliate and sell for others. There are many affiliate networks and businesses that you can join.
For digital products, Clickbank and JVzoo are great places to go, and for physical products, you can join networks such as Rakuten, Shareasale, Commission Junction, Impact, and Amazon.
That’s just a handful of places to get started.
By the way, affiliate marketing is one of the top ways marketers make money online. Every entrepreneur does some form of affiliate marketing.
If you don’t see a product or service you’d like to offer your audience, then create one.
Step 6 for picking a niche is to decide what you’re going to sell.
Now you’re equipped with the knowledge of how to go about setting up your niche website you’re good to go.
I’m not going to tell you to go pay for ads to test and validate your niche site like everyone else because you may not have money to do that. God knows I certainly didn’t.
What I will tell you is to write great well-optimized content and use social media to promote your business and drive free traffic to your website.
Why Most Newbies Get Stuck, Quit, And Fail?
Most newbies get stuck at the niche choosing part because they:
- Are trying to pick the perfect niche, but there is no perfect niche.
- Believe it’s going to completely take over their life. If you’re passionate about it, then you won’t be worried about it taking over your life.
- Are afraid to choose the wrong niche and fail. Here’s the thing, it’s ok to fail and it’s best to fail in the beginning, so you can learn from it and try something different.
- Chose a niche that was too broad and had way too many competition.
- Focused more on the profits than the customer. Think Customer first, then profit second.
When you make your decision, try to start with only one niche. If you don’t, you’re going to spread yourself too thin and you won’t be able to provide enough value to your audience.
The Wrap On Choosing A Niche
There is no such thing as a perfect niche. There are riches in every niche.
Starting a niche site that’s profitable is possible, you just have to find that sweet spot. A lot of entrepreneurs are doing niche marketing and making a lot of money.
You too can find your niche online and launch your own niche site and earn a full-time income working from home.
You can download a copy of a list of popular niche ideas here.
Thanks for spending a few minutes with me, I’d love to hear from you, drop your thoughts in the comments below.
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Quote Of The Day
“Commit to a niche; try to stop being everything to everyone.”Andrew Davis