A while ago I had posted a question on the Warrior Forum about how to find a profitable niche. That question received some great responses, and I thought I’d share with you some ways you can find a profitable niche, even during the recession.
One thing I would just like to add is that it’s important to get into something that you have a personal interest in. There’s no point in creating a website in hopes of selling something if you have absolutely no interest in the products or idea.
For instance, I have an interest in video games. I have quite a few different gaming consoles, and I’ll every now and then take some time to play. Because of that, I decided to start a website related to the Nintendo video games niche.
I used some of the responses to my question to gauge exactly what niche I should go into. Here is some feedback (in my own words) of how to go about finding a profitable niche. And keep in mind… you want to make a profit here, otherwise it’s not worth it.
First, you want to find a “hungry” market. In other words, you want to find buyers for whatever it is you’re thinking of selling.
Once you find a hungry market, or niche, you need to gauge how much competition there is for that market. High competition isn’t always bad. That means there is money to be made. Too low of competition could mean there’s not a hungry market. But, that could also mean you have the chance to make some serious money due to the low competition and the need within that market. It requires some research, but more often than not, go after niches WITH competition.
So this brings the question… how do you go about finding a niche and also determining the amount of competition?
Here’s some strategies to find a hungry niche:
- Search the term in Google, if there are a lot of advertisers at the right column of the results page, it’s likely a good one. These are ads that people are paying for.
- Search on CBEngine.com. See what products are hot right now and what niche they’re in.
- Search on Amazon.com. Check if there are books, CDs, etc. that sells to that niche.
- If you’re looking to sell software, check Download.com, etc.
- See if there are at least 3 forums in the niche you’re looking to get into.
- Use Google Trends, eBay Pulse and Yahoo’s Top Searched to find out what people want.
Here’s some advice that would be very relevant to today’s economy. Find a lower priced niche that targets towards people’s needs more directly rather than expensive isolated niches.
How to determine the amount of competition…
I recommend reading How To: Evaluating Competition For New Site Niches as Dennis Edell posted an article by Donna Fontenot that provides some great insight on this very topic.
Also, use tools such as Google Keyword Tool and SpyFu to find out how many competitors you could be dealing with. If you’re focusing on specific keywords, do a simple search in Google and see how many websites show up for that keyword phrase.
Another tool I highly recommend is Detecting Online Commercial Intention: Audience Intelligence: adCenter Labs. This is to see if your particular keywords are profitability-oriented (example: people searching for “acne” want info. People searching for “acne cure” want a solution/product).
There’s a lot more I could share with you, but that should give you a pretty good start in finding a profitable niche you can use to make money on the internet.
If you want to fast-track your learning curve in finding a profitable niche and have all the hard work done for you, I recommend you check out the Niche Power Group.
Did you learn anything from this article? Is there anything you would like to add? I’d love to hear your feedback.