When choosing which niche you want to base your business on, it’s important to study how profitable the niche can be. Some niches are more profitable than others because they appeal to more people, or because the product is more excusive and more expensive. Some aspects of supply and demand fit here, but that’s not all there is to it.
In order to choose a popular niche, you should go through a few questions before making your decision:
1. How much money do you need to make?
2. Is the niche large enough to support that amount?
3. Can the numbers support the fees?
4. Are there sufficient products to support the niche?
5. Do you have your own products you can sell?
6. Who is your competition?
7. How can you differentiate yourself from the competition?
8. Do you have the budget to reach the audience?
There are two different reasons why people start niches. One, they have already created a product and they’re trying to find customers. Believe it or not, that’s the hardest way to be successful. Two, they study different niches until they find a niche with enough customers, money and desire to buy, and solve a problem the people in this audience have, and then enter that niche. The second way is the easiest way to enter into the market.
It’s very important that, whatever method you choose, you are educated about how much you can potentially earn. The way you study the niche depends on the niche in questions, but you would essentially determine how many potential customers there are who would be interested in your niche, and how much you can devote to marketing.
If a niche is really awesome but there are only 100 people that you can reach who can afford the product, you’d have to charge $1000 each just to make six figures before expenses. This doesn’t mean it’s wrong, but can the audience support that cost?
* Keyword Research – One of the best places to start is with keyword research. Choose a few keywords that you think that your audience will use and start from there. You are looking for high demand, low supply keywords.
* Determine a Monetization Strategy – How can you earn money in this niche? There are plenty of niches that will have high demand, low supply keywords, but that have no discernable way to monetize the traffic.
* Find Affiliate Programs – If your niche is in high demand, there should be some product already created for your niche. If there are no products created for your niche yet, you may want to reconsider the niche.
Keep in mind that in business school they teach students that the best business to open is one that already exists and what’s more, open it across the street from the other business. They use a Coffee shop as an example, but the same example can work for online business.
Choosing a niche that is already popular that you can serve in a new and more creative way will be easier than starting up an unheard-of, brand new niche. But, it’s up to you how to proceed. The point is, it takes research and understanding of the research to identify a profitable niche.