3 days ago I’ve published an article about the niche blogging stater guide and receive a few emails ask me that how to choose a profitable niche. So, I know I need to make another article on this topic too.

Choosing a profitable niche is much like choosing a profitable career. You don’t know which ones will profit you most until you’ve taken it. However, there are some indicators telling you which careers are profitable and which are not.

Generally, these indicators have something to do with supply and demand. It also follows trends and takes its cues from historical data. Conventional wisdom also lends itself into identifying which careers will be most profitable in 10 or 20 years.

By this comparison, we can say the same thing of niche marketing. Niche marketing also follows the law of supply and demand. It also follows trends and takes its cues from historical data. Like choosing careers, choosing niches also needs conventional wisdom in order to choose wisely. The following is an in-depth discussion on how to choose a profitable niche based on the current capabilities and talents of the entrepreneur.

Niche Marketing

Before we can begin any effective discussion on how to choose a profitable niche, we first need to define what niche marketing is. Simply defined, niche marketing is the act of a business of gearing its product and services toward a tinier yet more focused and more targetable segment of the market.

For example: A car company may mass produce cars for the general population, but it will try to identify niches, or certain segments in the market, wherein its sales are strongest.

So, where to find an idea for your niche website? I usually visit EzineArticles to find out the general niche, also the sub niches for an initial process:

Then look at the current trend/hot searched keyword with Delicious tags, Google Insights or Yahoo top overall searches:

After that, you should lookout for the product marketing potential of the desired niche, these websites are very useful: shopping.com and Amazon Most Popular Tags.


And now, when you have some ideas in mind and want to build a small targeted niche website, you could do a keyword research to find out the best one (high search traffic volume, low competitors, keyword-match domain available…). These type of websites are easy to rank on SERP and can make you a passive profit income for a long time.

Knowing your strengths and weaknesses

The primary key in identifying a niche profitable for your business (if you already have one) or a niche that will be profitable for you (if you’re just thinking of starting a business), is knowing your strength and weaknesses. This is very important as choosing a niche in which you have no strength at all and a lot of weaknesses is just an invitation for failure, even if said niche is wide open and have very few or even no competitors.

One, you must be very good in said niche. If you’re going into any specialized business, you must possess proficiency in it. You must produce excellence. Otherwise, other businesses will just come in, imitate your business, and push you out of the market.

For example, a retailer that suddenly discovers that there’s an increase in demand for eco-friendly dresses may focus on eco-fashion and produce dresses that satisfy the market for these type of dresses. However, competition will soon notice this demand, and they too will try to join in on this action. If the original discoverer of the niche produces low-quality eco-dresses while the imitator or the trend follower produces high-quality ones, it won’t matter if the first business was the first to enter the niche. All that matters is that it was beaten at its own game.

As a blogger, before start a new project, I recommend you to write down all of your strengths and weaknesses on a note paper, and then try to answer all of these questions:

  • What will you do to maintain your niche? A step by step to-do-list would be perfect in this case.
  • Can you go along with it for a long time?
  • How about your current and future competitors?
  • How about your budget?…

I saw many, many people failed in Internet marketing just because they just tried following other people’s works, they don’t know what are they doing, don’t have any plan or targeted object ahead…

Being aware of the “black hole” in the market

As consumers, we always have needs and requirements that businesses don’t always meet.

For example, before Groupon existed, there was literally no single company doing business in offering group discount coupons. But there was an untapped market of consumers always on the lookout for discount coupons. It turned out that this untapped segment of the market was a very, very large segment of the population. Now, Groupon is valued to be more than $6 billion dollars. By seeing the black hole, the unmet needs of the market, Groupon CEO Andrew Mason is now one of the richest men in America.

Niche marketing only becomes successful if the idea is innovation-driven, not profit driven.

In this point, might be you want to read a story about a very innovative guy with his product called as “The Jump Manual”:  How to Jump Higher… and Earn $75,000 a Month in the Process.

Sometimes, businesses try to prime the market for certain niches and end up falling flat because their primary motives were profit-driven. If you try to pre-empt the market and open up a niche wherein the public isn’t interested or isn’t yet ready to patronize, you’ll just fail.

Consumers have their own idea of what they want and what they need. It is better for you to focus on innovation than on creating a false need. Genuine interest in providing consumer needs will fuel more success than a thousand attempts at creating false demand for a niche consumers do not want.

Choosing between a broad niche or a small niche

This has always been a question among niche marketers. Which is a more profitable niche, a broader niche or a tinier niche? The answer would be: it depends.

It depends on the type of market you have and on the income levels of your consumer. Obviously, a small niche would need to have richer consumers if it is to maintain profitability. This is not much of a problem for a broader niche, which can afford to have a market of middle-income to lower-income earning consumers as opposed to a small niche, which needs higher-income earners to consume their products or services in order to produce more profits.

There’s no winning strategy for everyone here, the idea behind niche marketing is that you target a group of people who want to purchase a specific product or service, a small niche will give you advantages of easy ranking in Search engine, low competitors but low search traffic while the larger niche will make you have more competition but also more searches, more opportunities.

Conclusion

Knowing how to choose a profitable niche is a combination of self-awareness, imagination, creativity, and critical analysis.

You need self-awareness in order to know your strengths and weaknesses. You need imagination and critical analysis if you’re to identify the “black holes” in the market. And of course, you need innovation in order to develop something better than the competition.

Innovation spurs on new discoveries, and ultimately opens up new markets. Profitable niche markets arise out of innovation.

30 thoughts on “Quick Tips to Choose a Profitable Niche for Your Site”

  1. Great post, might I also add the Google Hot Trends tool.

    http://www.google.com/trends/hottrends

    One of my favorite places to find profitable niches, although you have to look out for the obvious hot news of the moment, and look for more evergreen terms.

    1. Thank you so much, Gregory, for letting me know about this service of Google. I’ll include it into my post soon.

    2. No problem.

      BTW, quick question, are you using WPSubscribers or some other type of plugin for the opt-in to your list in the comment section?

    3. Hi Gregory, I use WPSubscribers plugin for the opt-in in the comment section, the sidebar opt-in, the post bottom opt-in and the exit popup opt-in :)

  2. Hi Jenni,

    I had this dilemma several months ago about niches. Mine was originally most food-health related and few tech with social media.

    Recently, I’ve chosen to add more tech and less material for foodies. Why? Of my long term priorities the tech side is appearing more important. Should I change the name of my blog? Perhaps, but I don’t want to start from scratch. So, I know that you’ve to be inside to see how it works.

    These are great recommendations for new people enter into blogging and for others starting secondary blogs.

    Cheers,

    Gera

    1. Hi Gera, as I see that your domain is “sweetsfoods.com” so it must be something relative with Food and Health stuff…

      As a visitor, I really don’t want to visit your website if I’m finding a technology information, that’s why you should stay in your niche and keep it consistency.

      I think you could create a new tech blog in this case, copy all tech articles from sweetsfoods.com to a new blog then do 301 redirect for all old articles to the new one.

      Hope that helps
      Jenni

  3. Choosing your niche is not easy and you need to be precise and select the best you can. The above tips are simply awesome and will be fruitful to help you while doing so. Also i agree to @Gregory C that Google Hot Trends also will be vital while deciding on this.

  4. I am very bad when it come to starting up and selecting a niche for that matter. I always leave for my partners to decide and i just join in for the work. Off late now i want to start a new blog and i have decided to go for automotive niche. can you please suggest me about my choise.
    Thanks & Regards.

    1. Hi Oscar, you can follow my tutorial to choose the most profitable niche/sub-niche for your new website, also, always keep in mind that your blog content is the most important point, it must be attractive and helpful for your visitors.

      An automotive niche is a very competitive niche, so lets analyze your competitor, do keyword research and pick a most suitable domain.

      Hope you will get into success soon.

  5. @Jenni

    You’re right Jenni about it; I’m trying to mix some social media / tech articles with other food-related to have some consistency.

    That’s a good idea to move to a new blog and makes a 301 redirection, I’ll have it in mind – thanks a lot for your suggestion!

    Btw, I can’t reply to your reply, apparently you don’t have more than 2 levels of threaded (nested) comments – this is why I put a new comment.

    Cheers,

    Gera

    1. Great! I hope you will get an awesome success with your blog.

      P/s: I’ve set only 2 levels of threaded comment so it’s ok that you put a new comment here.

      Thank you!

  6. Hi Jenni,

    I think choosing a niche is a fairly simple process, the problem for me has always been finding a profitable one that you can keep up to date.

    I started a Carpet cleaning blog a a few years ago thinking I was going to make a good amount of cash……boy was I wrong.
    It failed due to lack of content, it’s not that easy to come up new ideas for cleaning your carpets week after week, lol.

    I ended up turning it into a review site, I guess not all niche lend themselves to the blogging platform.(unless you are really creative)

    1. Hi Steve, if you actually can make a good amount of money in your niche blog, why you don’t try to outsourcing your site content? Finding a writer on Warriorforum would be a nice idea. Lets me know what do you think about this.

  7. Regardless of how carefully you analyze and research niche markets and products, not every online marketing campaign you set up is likely going to be a successful one. Nevertheless, identifying the best profitable marketing niches will still give you the right direction in choosing the right campaign for you. Also you need to be consistent with the content you post and how well you interact with the audience.

  8. @ Peggy you are right. Even after researching your market and starting up with campaigns you are not sure of success. All you need to do is keep working and working giving in quality and good content.

  9. Niche Marketing Internet – Anyone have any idea how to find the profitable niche marketing internet and what would be the criterion I should look into in order to get profitable Niche Keyword?

  10. I can add Ezine as one of my sources for niche ideas. I usually get my ideas from amazon or Google adwords, especially if I want a product keyword. I prefer not choosing a broad niche, I try to make it as specific as possible by using keyword tools such as Market Samurai.

    1. Nice tips, Kiara. Market Samurai is a great tool, I’m using it. Also, another tool like Bradcallen Niche Finder is great too.

  11. This is a very good, in-depth article and it’s given me a lot to think about. So far I’ve been using Amazon for niche ideas, but I’m going to use what I’ve learned here as well. Thanks a lot.

  12. This is really good. Usually, I like researching profitable niches
    by checking out Adwords Ads. My idea is simple: if someone is
    paying for it, it’s profitable.

  13. One must consider choosing a niche – a profitable one, even before even thinking about designing a website and implementing SEO. It’s a big mistake to neglect this and to think that the right niche will find you.

  14. This is a great walk-through of how to search for profitable niches. And it’s not just for finding niches to blog about, but also can be used for looking for products to sell. I especially like the point you made about the difference between trying to create a false need, and fulfilling consumer’s needs. Just because someone makes a product or service, doesn’t necessarily mean there is enough demand for it to be profitable.

    1. This truth known for years. To sell something you need to realize that potential client needs it. Only so much and so many

  15. Hi Jenni,
    Interesting and very informative post!
    Those are great tips! I enjoyed reading this post, and absolutely learned a lot. Thanks Jenni for generously sharing your knowledge. Til your next post. Best of luck.

  16. Fantastic post on discovering the best niche for a particular business. I have always felt that your should specialise in what you’re interested in (for example: cars). This opens up a wide range of services and opportunities to make money within the cars industry. What’s more, if it’s something your passionate about, you will do everything necessary to make it a success.

    Stick to what you know!

  17. I try to find some information about niche and i found your blog through google search.This information about niche you provided is really good.You cover every aspect.I learned a lot from you.Thanks very much!

    1. Ok Harith, maybe you can try some tools that can help you discover the suitable niche: http://www.intenseblog.com/reviews/ultimate-niche-finder-review.html

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