I always remember a simple formula when choosing a profitable niche:
Niche = Passion = Revenue
There is a lot of information to take on board when building an online business and selecting profitable niche markets is what will propel your business to the next level. If you are like me, you probably examine all angles before starting on anything. Searching for your niche and finding niche keywords is no different.
I have so many passions and interests – it was quite daunting to choose one or two of those passions and create a profitable website. Find your passion and you will find your niche.
There are a few topics I want to cover in this post and hopefully by the end you will know how to choose a niche and create a profitable website.
What is a niche and how to research one?
Will your niche be profitable and can you earn revenue?
Choosing a niche you are not passionate about but earns great revenue.
What Is A Niche And how To Research One?
I like to look at a niche as a piece of pie. The internet represents the entire pie and your slice will represent your piece or segment of the market that you want to target. All the other pieces will be your competitors.
Lets take a look at an example: say you want to start a website about computers. That topic is too broad if you want it to be ranked successfully within Google.
But if you break it down you could target building a computer on a budget. Any customer who wants to purchase a computer wants to do it at the best possible price – that would be a targeted niche!
You can even go further, lets say building a computer on a budget for Acer users – now you have narrowed your niche down even more.
You might want to break it down more and say building a computer on a budget for Acer users living in the US. Now this is targeted too much. It is restricting only a specific segment of the market which won’t be enough to generate a profit through your website.
Profit is key here so you don’t want to narrow your niche too much!
A great tool to use when doing niche research is Amazon Best Sellers. This will give you the top selling products in almost every niche imaginable.
So when choosing your niche:
- You want it to be useful for your visitors who are visiting your site
- You want it to be forgettable in price. What I mean by this is that if the person buying the product from your site finds it extremely useful, then the price won’t matter to them. It will be irrelevant.
- It must be popular – something that customers are searching for on a regular basis. Search for products that have received high ratings.
So browse through and find products you are passionate about and select your niche based on that.
Will Your Niche Be Profitable And Can You Earn Revenue?
Online marketing is limitless and you can have a niche about anything and make a decent profit. Take a moment and think what are you passionate about and what would you like your website to be about.
If you love gadgets and consider yourself a tech-savvy individual may be a great niche could be phones, software, drones, there is so much to choose from!
Now, your niche doesn’t just have to be tangible products. Lets look at those customers that prefer to do things themselves. Ok, so these people are looking to save money through DIY, but you can then infiltrate that niche by maybe offering ‘’how-to’’ guides or eBooks. If you offer people a guide to build their own deck for example, where they can save at least $9,000 – then I’m sure they wouldn’t mind buying a $30 guide from you. So your niche doesn’t always have to be a tangible product that your are promoting.
A Niche You Are Not Passionate About But Earns Great Revenue
Believe me, there is a profit to be made in every niche. Some niches are harder though and your sales volume will have to be quite high to earn a decent commission.
For example, take a $17 dollar product that you advertise on your site and Amazon offers you a 6 % commission from each sale. That’s just a little over $ 1 for each item a customer buys through your site. If your goal is $5000 dollars per month, that means you have to sell 5000 products! So choose a niche that is not only popular but profitable too.
Lets look at another profitable niche. Technology and gadgets are very popular. If your niche is mobile technology and the average sale is about $200, you will earn a commission of $12 per sale. So you would have to sell about 400 products per month to achieve a commission of $5000.
That brings me to my next point. Choosing a niche you aren’t passionate about, but the earning potential is fantastic. In order to attract traffic to your site, you will have to write great content but would you mind writing about a product you are not interested in?
My view is, if you make money, then go ahead and choose that niche even if it’s not something you are passionate about. I have a few niche sites that I’m not passionate about and probably wouldn’t even buy the product myself but there is a market out there who are passionate about the products I’m advertising on my website. So if their interest generates revenue for me, then great!
We will be discussing how to choose a domain name in our next post.
I would love to hear about some niche websites you are thinking about. Comment below and lets discuss.
Best wishes,