How Do You Know If a Niche is Profitable?

20 replies
Hey Warriors,

James Seward here again

The question now is quite straight foward: How do you know if a niche is profitable?

I hear a lot of people saying "well the dog training is a profitable niche", for example. But how do you know this, how do you check this?

Of course this is far more interesting to know for narrow niches, and that is my point. For example, is the "german shepard dog training" a profitable niche? You get my point... :p

Thanks for the help

All the Best
James
#niche #profitable
  • Profile picture of the author yesacpow
    There are several thing that you can check for to know if the niche is profitable. Here are some of them:

    1. Search for related keywords and check if there are adwords ads advertising products in that niche.

    2. You can buy local magazine and see if there are advertisers advertising in that specific niche.

    3. Check forums related to the niche to see what people are talking about and you will know if they spend in that niche.

    4. If there are info products on clickbank, the gravity can give you and idea as well as the amount of products in that niche.

    5. Do you see advertisement on paid broadcasting on television? That can be a good indication as well.

    There are many other things you can do but i just came up with those off the top of my head.
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    • Profile picture of the author Craig McPherson
      Originally Posted by yesacpow View Post

      Search for related keywords and check if there are adwords ads advertising products in that niche.
      Watch over a period of a few weeks if the same people are using Adwords.
      If there are, then you know it is profitable.
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      • Profile picture of the author liza31n
        A niche is profitable if it's in demand with the market and people keep searching for it on the web.Profit depends on how you advertise your niche.
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  • Profile picture of the author FriendlyRob
    There is a new "commercial intention" website developed by microsoft. To be honest, I haven't had a chance to really master it, but I've read a lot of good stuff about it. Also, my initial inquiries looked pretty interesting.

    If you type in "commercial intention" in Google, it should be the first result you see.
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  • Profile picture of the author Rezbi
    You test it.

    If you make a profit, it's profitable.

    If you don't, it's not.
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    • Profile picture of the author Rod Cortez
      There are many ways to do this, here are 2 that I've been using lately (I could write a book on each one, but this is the essence of both):

      1. Analyze the competition and track what they are doing. Companies don't stay in unprofitable niches for very long in most cases.

      2. Find an affiliate product in that particular niche, set up a simple landing squeeze page or sales page, send traffic to it using PPC. If the commission is 50% and you can break even, then you've got a winner. How so, you can then create your own product or market a string of affiliate products. In other words, sometimes you can take a loss on the first product and make it up in the back end as long as you build a list and have a product mix.

      RoD
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    • Profile picture of the author John Romaine
      Originally Posted by Rezbi View Post

      You test it.

      If you make a profit, it's profitable.

      If you don't, it's not.

      Hilarious!
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    • Profile picture of the author JasonParker
      Originally Posted by Rezbi View Post

      You test it.

      If you make a profit, it's profitable.

      If you don't, it's not.
      I guess if you're into lighting fire to money, this is a good method

      I have a lot of criteria I go by before choosing a niche, but the biggest 3 for me are these:

      1) Is there a lot of competition? If yes, good, because you can leverage joint ventures... and even Jay Abraham will tell you JVs are most powerful.

      2) Are there successful continuity programs and high end products? If at least yes to one, then there's either very consistent income streams to create or enough large sales to make you happy with your income.

      3) Is it an ethical market? Obviously you're not going to be happy unless you sell what you believe in.
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    • Profile picture of the author Steve L
      Originally Posted by Rezbi View Post

      You test it.

      If you make a profit, it's profitable.

      If you don't, it's not.
      haha, this is what i was thinking. ultimately, yes... you'll have to test it to know for sure if it's profitable obviously.

      i'm sure you're not implying that market research shouldn't take place however.
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    • Profile picture of the author ponting786
      Originally Posted by Rezbi View Post

      You test it.

      If you make a profit, it's profitable.

      If you don't, it's not.
      Hi....James!
      I am totally agreed with Rezbi..
      If a niche gives you profit then it is profitable.It can be of any category.
      Profitability of a niche also depends on market conditions..
      For example,niches related to Finance,Money,Credit cards and health are more profitable as compared to others...

      Hoping,it helps you....
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  • Profile picture of the author Daniel Deegan
    I would say the most reliable methods are analyzing and watching paid search activity within your niche as well as looking at print magazines related to your niche. The key is watching things overtime. I've learned some really interesting things after watching various keyword and markets using a tool from PPC Kahuna over the course of a few months...

    The advertiser churn rate is quite HIGH in many markets, but it becomes very easy to see who is profitable and more importantly WHY they are profitable. You simply analyze the process of those who are successful in a market compared to those who are not and many things become very clear.
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  • Profile picture of the author feixia913
    There are several thing that you can check for to know if the niche is profitable. Here are some of them:

    1. Search for related keywords and check if there are adwords ads advertising products in that niche.

    2. You can buy local magazine and see if there are advertisers advertising in that specific niche.

    3. Check forums related to the niche to see what people are talking about and you will know if they spend in that niche.

    4. If there are info products on clickbank, the gravity can give you and idea as well as the amount of products in that niche.

    5. Do you see advertisement on paid broadcasting on television? That can be a good indication as well.

    There are many other things you can do but i just came up with those off the top of my head.
    So professional. I think you may be an expert in this area.
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  • Profile picture of the author rlrlphs
    A niche is profitable when it is very on demand like Internet Marketing Articles,softwares plug-ins and many more.
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  • Profile picture of the author thomashoi
    Originally Posted by James Seward View Post

    Hey Warriors,

    James Seward here again

    The question now is quite straight foward: How do you know if a niche is profitable?

    I hear a lot of people saying "well the dog training is a profitable niche", for example. But how do you know this, how do you check this?

    Of course this is far more interesting to know for narrow niches, and that is my point. For example, is the "german shepard dog training" a profitable niche? You get my point... :p

    Thanks for the help

    All the Best
    James
    Simple, as long as you make a sale, the niche has gold.

    So many people have given up digging the gold mine
    after they hit 1 sale.... they saw better opportunities else where

    but i can tell you they are leaving money on the table.... you just
    need to promote the heck out of it.... reinvest the money
    and build a opt-in list / drive PPC traffic.
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  • Profile picture of the author BrightLife
    If other guys making money in a market niche does not mean it is a profitable market niche for YOU. This is the great misunderstanding of PPC Bully.
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  • Profile picture of the author haikuangel
    I think profitability lies with two important things:
    Passion and Market viability.Focus groups are always a great way to check the potency of an idea, remember that no matter how great this niche is if no one will want to purchase it then its not exactly built to make you gold standard is it? Being passionate about product development is also imporant and this means having the flexibility to turn your original concept into a more market friendly product.
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  • Profile picture of the author Chirag
    Great post with many interesting tips! Feel like I could use some of the ideas above.
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  • Profile picture of the author StevieHawk
    I think Yesacpow hit almost every nail on the head there. If you seen other people constantly marketing in the niche ie. the same **** berry ad appearing on google adwords for 3 months then that means it's a profitable keyword!

    You can also check google trends and insight tool to analyze the search volume just to see how many people are looking for a certain solution or have a particular problem that needs solved. The bigger the market the bigger the potential profit!
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