5 steps on how to find a profitable niche
One of the biggest challenges for many who are new to blogging or having an online business is deciding on a suitable niche. It’s important to know how to find a profitable niche at the very beginning so that you will not waste your efforts in building your website. If done properly, a niche website will be able to help you in concentrating your efforts better, understand your audience well enough to be able to sell products to them, position yourself as an expert in your field and build trust and loyal readers.
Be completely honest and ask yourself:
If you were not paid, what sort of topics will you continue to read and research about?
What are your hobbies?
Have a look around your house or office to see what sort of physical products, software or digital products that you have purchased in the past.
What sort of advice do your friends and family ask you on a regular basis? Have they praised you for any solutions that you have given to them?
In your current or previous jobs – what were your strengths? Did you specialise in any areas? Did you help to solve your company’s challenges in any way?
Now, I want you to jot all these answers down. Just write whatever that comes to your mind. Do not think too hard as you’ll overcomplicate things. Based on these answers, you will then be able to narrow down your potential niches.
Next, you will need to find out whether these niches are popular on the internet so that you will know whether they are worth pursuing.
I recommend you to find out the demand of these niches through Google Adwords. It’s free to register for Google Adwords and if you already have a Gmail account, you can use your username and password to login to this tool.
Once you logged into your Google Adwords Account, you will see on your top dashboard of the Keyword Planner that there’s a ‘Tools’ icon. Click on this icon.
Next, you will need to select the ‘Keyword Planner’ link on the dropdown menu.
After this, click on ‘Find new keywords’.
For this exercise, I’m going to make the assumption that you have chosen teaching piano as your niche. So I will be typing in ‘how to play piano’ under the new keyword search. Then I’ll hit the ‘Get Started’ button.
Now, you will need to choose a location for your search outcomes. For this exercise, I have chosen ‘United States’.
You will see below, that the Keyword Planner has come up with the average monthly searches for ‘how to play piano’ based on searches from the United States.
What you will also find is a list of related keywords to your main keyword, ‘how to play piano’.
If there are more than 10,000 average monthly searches for your main keyword and at least 50,000 average monthly searches across other related keywords, then this indicates that this is a good niche for your website.
After this you will need to go to ‘Google Search’ and type ‘how to play piano’ to see how many results you can get from that term. As you can see below, there are 275,000,000 results from this main keyword. So it means that many people are developing content in this area. This is shows that it is a profitable niche because people are spending time writing about this niche.
When you’re new in a niche, it isn’t easy to start your own product straight away. So you may want to consider selling other people’s products in the mean time.
A quick way to finding out what products to sell is by typing in ‘Google Search’ the words ‘how to play piano + affiliate’. You may also want to check out popular affiliate programs such as Amazon and Clickbank to find physical products, software or online courses in your niche.
If you see many products in your niche, it means your niche has the potential to be a profitable one.
When checking out the affiliate opportunities for physical and digital products sold in your niche, it is important to find out the potential commissions you can get out of each sale. This will give you an indicator as to whether your business will be able to be profitable.
The next step is to do a competitor research. Find the blogs and website that are in your niche. Find out what products and services they are selling and how much they charge for them.
For example, I would go to ‘Google Search’ and type ‘how to play piano + blog’.
Then you can find a blog that offers products and services to get an idea on what you could potentially develop and sell to your prospects in future.
For example, I found this really cool website on how to play piano called Piano Blog at http://www.pianoblog.com/
The owner of this blog, Matt, offers paid courses and private piano lessons.
You should then dive deeper and see what courses he is offering and how much he charges for those courses. This is an indicator on how much people are willing to pay for products in this niche.
A thorough competitor research will help to determine whether you can upscale your business in future.
You can also sign-up for webinars, podcasts, free products and opt-in to these blogs to learn more about what they are offering and how they approach their customers and prospects.
Once you have determined your niche, you can then move on deciding your website domain name and register your web hosting.
Have you used any of these tips on how to find a profitable niche and found them useful? Do you have any other tips to share to find a profitable niche?