How do you identify a profitable niche online?

Profile picture of the author BarberShop by BarberShop Posted: 01/30/2013
How do you identify a profitable niche online?

Do you use tools? (Market Samurai?)
#identify #niche #online #profitable

  • Profile picture of the author John Romaine
    John Romaine
    Use common sense (its free)

    Get involved in a market where ....

    1. You are knowledgeable
    2. You have a lot of experience
    3. You enjoy creating content
    4. You're in it for the long haul
    5. You can add value to the web
    6. You can help people
  • Profile picture of the author AlexanderBeloev
    AlexanderBeloev
    Use Google Keyword Tool and register for Google Adsense. When you search for a keyword (in Google Keyword Tool) you will see the average CPC (Cost Per Click) from Google Adsense. The higher it is, the more profitable the niche (keyword) is.
  • Profile picture of the author neilclues
    neilclues
    Originally Posted by BarberShop View Post
    How do you identify a profitable niche online?

    Do you use tools? (Market Samurai?)
    Hi,

    Any niche really can be profitable and you can visit ODP - Open Directory Project to find a great niche you're interested in

    Hope this helps, Neil
  • Profile picture of the author LillySage
    LillySage
    I like to start at the free Google Keyword tool...(free)

    Then I head over to Spyfu.com and research advertiser supply and demand...(free)

    Then if I need more confirmation, I'll run a Google search for the niche keywords to see what the other sites ranking for that keyword look like..(free)

    You really don't need to spend money on tools...I've tried them all...my method above works best for me!
  • Profile picture of the author JohnMcCabe
    JohnMcCabe
    I'm with the other John - use common sense.

    Answer these questions:
    • Can you define a group of people with a common passion or desire?
    • Can you offer them something (at a profit) that will enhance their enjoyment of their passion or fulfill their desire?
    • Can you effectively reach them with your offer?
    Three yeses, and you have a potentially profitable niche.
  • Profile picture of the author Alexa Smith
    Alexa Smith
    Originally Posted by BarberShop View Post
    How do you identify a profitable niche online?
    Any niche can be profitable.

    Every niche you're ever going to see online is probably profitable for some people.

    The question for me is: am I going to be one of those people?

    The answer has a lot to do with me, but typically not so much at all to do with the niche, barring some fairly superficial considerations such as the obviously important ones mentioned just above. And for you, whether a niche will be profitable has a lot to do with you.

    Originally Posted by BarberShop View Post
    Do you use tools? (Market Samurai?)
    Market Samurai?! Noooooooo ...

    I think this isn't something "tools" would help me with.

    SEO-based tools are going to give indications mostly about SEO-based traffic, I think? I certainly wouldn't want to have to make a living from that, so in principle it has very limited - if any - relevance to my decisions.

    I sometimes look at the AdWords announcements displayed, though. This can be a very valuable indication of "the availability of profit". You need to see how many different ones there are (flick through the pages of Google's SERP's and see when they "come round again"), for how long people are advertising, how frequently they change, and so on. If people are continuing to spend money on them, then there's money in the niche, some of which can be landed by AdWords (and if some can be made through AdWords, it's very safe to conclude that more can be made in other ways, too).

    To me, the things that matter are (i) whether there are products I'm happy to promote (for me, that's such a big issue that I generally put that first, and look ab initio for products rather than for niches), (ii) whether I can attract traffic in the niche (and I'm not remotely interested in whether I can attract SEO traffic, because I'm an affiliate marketer, and SEO traffic's the very worst kind I can ever get, for that), (iii) whether I can write about it, or learn to (I'm an article marketer, so that's a limitation for me, if I can't and don't want to learn to), and so on.

    Other than that, I'll usually try, given an otherwise equal choice, to stay away from anything which I know huge numbers of other affiliates are selling, because there are so many profitable niches in which that isn't true that I can't really see the point in making life difficult for myself just so that I can sell the same sort of products as everyone else. So you won't find me in "MMO" or "weight-loss". :p
  • Profile picture of the author edhuu
    edhuu
    I use both Google Keyword Tool and Market Samurai
  • Profile picture of the author Bobby Asburn
    Bobby Asburn
    I use all free tools, mostly available from Google like Trends, Keyword Tools, Google Search and my common sense to research any market.
  • Profile picture of the author Marcus Rockey
    Marcus Rockey
    I have found Market Samurai to be an excellent tool with great insights in commercial value, traffic (rather than searches) and finding the most relevant keywords.

    They have a free trial and some decent training too. However it's personal preference and what works for one may not be suitable for another. Certainly don't ignore this cool tool though.

    Marcus
  • Profile picture of the author Danielle Lynn
    Danielle Lynn
    Don't focus on using metrics to determine a 'profitable niche.'

    Focus on what John suggested. Finding a niche isn't that complicated.

    Can you define a group of people with a common passion or desire?
    Can you offer them something (at a profit) that will enhance their enjoyment of their passion or fulfill their desire?
    Can you effectively reach them with your offer?
    Answer those questions and you have your profitable niche. It can be ANYTHING.

    Please, don't build your business around 'keywords that rank well.'

    Build it around delivering real value to real groups of people. It will be more enjoyable and likely more profitable in the long run.
  • Profile picture of the author Chri5123
    Chri5123
    The easiest place to start is your interests.

    If you play the guitar for instance, you could make a few videos showing people how to play and there is a niche there.

    When looking for niches generally - you are looking for problems that need solving.

    The more desperate the problem the greater a need for a solution which normally makes for a better niche IF there are enough people with the same problem.

    Check out the Google keyword tool and look for competition first.

    You want it.

    The more competition = the more money being made in a niche.

    No competition it works the other way around.

    Then what will make a big difference is YOUR approach to the niche - what can you offer, why are you different?

    How can you offer MORE of what the niche needs?
  • Profile picture of the author jgant
    jgant
    If I like a niche topic and actually know something about it, I check out CPC with Adwords and search for affiliate programs/products to promote.

    I don't focus on product creation, but if you want to create products, determine whether there's demand for digital products (i.e. a problem to solve).

    I used to ignore CPC, but I had an interest and a great deal of personal experience in a niche that doesn't have many products to promote as an affiliate, but does garner very high cost per clicks ... so I jumped in with an Adsense-focused site and it's really going well. I kind of like having one adsense site because it's a freer mindset ... but it only pays if the CPC is high or you can attract truckloads of traffic.

    Often it's not hard to find something on Amazon that can be promoted to any niche. It's not my focus, but I incorporate some Amazon promotions where it's a good fit.

    At the end of the day, think about who the audience is and what they want. Often there are complementary products that will appeal to some readers.

    Another example is my first website, which had terribly low search volume and no affiliate programs I could find is now my biggest earning site/list with only 200 unique daily visitors and 1,500 subs. What I did was go out and find the perfect software product with recurring commissions that was perfect for readers. I test-drove the software and negotiated a private referral deal with the software developer. Now I generate recurring mid-4 figure monthly revenue from that software with a site I thought I would never be able to monetize.
  • Profile picture of the author jbsmith
    jbsmith
    I have always been successful by starting with a passion or interest and working backwards to find what is MISSING...what would I (or others whom I interact with or watch in my niche) struggle with or like to do in a better, faster way?

    Sometimes my ideas come from looking at other products or services that are selling well where I can reverse engineer the desire and then develop a different/better solution, other times it comes from a frustration or a statement like "I wished I could..." and still other times it comes purely by looking at what people struggle with.

    The bottom line is though that if you are going to live and breathe your market and business for the next 1-2 years, you want it to be something you are interested in...the rest falls in place rather naturally if you learn to listen and recognize what I call "opportunity triggers".

    Jeff
  • Profile picture of the author ymest
    ymest
    I'll say it with my HEART! By doing as I please and by using my brain! I mean, brainstorming! I am sure you know of a topic already but some little people have told you that it's not "profitable"....lol! Anything can be profitable as long as you know how to make it profitable! You can use MarketSam but I wouldn't spend the $$$ on it! Tried it for free, yeah good, it does the job but it certainly doesn't give you any other answer! You need to go get them yourself, to put it bluntly!

    I don't like getting the advice " Stay away from..."! First of all, why should I? Are you scared? lol! :

    Second, you need to find what people are looking for- ie, give them the answer they are craving for!

    Third, GO get it, try, re-try, think big, but don't focus on little guizmos like marketsamurai or any other gimmick like this! They won't do the work for you and certainly won't tell you if it's really profitable or not! It's a bit like the Stock Exchange I suppose!! Try and see!

    Good luck!

    Yoan
  • Profile picture of the author Alex Blades
    Alex Blades
    Check if there are google ads on top of the page, and along the side, if there is, people are making money in that niche. You can even check 2nd,3rd,4th, ETC pages for ads to see how deep the niche is
  • Profile picture of the author Doppelbock
    Doppelbock
    There are a lot of different methods to find profitable niches, usually this means that there are great products available for the niche you are looking for, because if there are none, then you have nothing to sell.

    But if you have a variety of products in a specific niche, and then do a search, or have a way to find popular searches, or even search rates for particular niches, then you can determine how much traffic you could be getting to these products.

    If you have solid products, with a solid demand, then you have a solid business.
  • Profile picture of the author 8485marketing
    8485marketing
    easiest way I find out if a niche is profitable is go to google, type something in that youre interested in making money from, if there are sponsored ads then thats a good sign that people are making money from it. not a definitive certainty but a damn good start.

    just do what others have recomended then about following up your interest in that subject with appropriate research into the market as a whole and find a specific area within that niche that interests you, that you have knowledge or experience of and that you can provide value to others from in the form of information to both give away and sell. if you want t scale up within this market you need to ensure that you can continue to provide more and more information that provide solutions to the problems people have.

    My tick list for niche marketing is as follows:
    does you market have a pain or an urge
    do they recognize that they have a problem
    are they seeking a solution to that problem
    is there an urgency to fix the problem


    then you need to consider if you:
    can you solve that problem using an information product

    and finally,
    continue to provide more solutions to the same customers in the future.

    if you can answer yes to all of these questions then in my opinion, you have a perfectly profitable market to enter.
  • Profile picture of the author BarberShop
    BarberShop
    Originally Posted by jbsmith View Post
    I have always been successful by starting with a passion or interest and working backwards to find what is MISSING...what would I (or others whom I interact with or watch in my niche) struggle with or like to do in a better, faster way?

    Sometimes my ideas come from looking at other products or services that are selling well where I can reverse engineer the desire and then develop a different/better solution, other times it comes from a frustration or a statement like "I wished I could..." and still other times it comes purely by looking at what people struggle with.

    The bottom line is though that if you are going to live and breathe your market and business for the next 1-2 years, you want it to be something you are interested in...the rest falls in place rather naturally if you learn to listen and recognize what I call "opportunity triggers".

    Jeff

    And that's my problem because Make Money Online and Internet Marketing is my "live and breathe" niche. But if you look at the comments of posters about this niche, its discouraging.
  • Profile picture of the author JohnMcCabe
    JohnMcCabe
    Originally Posted by BarberShop View Post
    And that's my problem because Make Money Online and Internet Marketing is my "live and breathe" niche. But if you look at the comments of posters about this niche, its discouraging.
    Okay, let's look at my three questions...

    > Can you define a group of people with a common passion or desire?

    Definitely.

    > Can you offer them something (at a profit) that will enhance their enjoyment of their passion or fulfill their desire?

    Up to you - yes or no?

    > Can you effectively reach them with your offer?

    Definitely.

    Edit: Let me rephrase that. Can they be effectively reached with offers? Yes. Can you do it? Remains to be seen. Up to you - yes or no?

    No one is denying that there is profit to be had in the MMO/IM markets. You just have to go in with your eyes wide open and recognize the challenge you are setting for yourself.

    The negatives people will tell you (competition, credibility, scammers, etc.) are the challenges you will have to overcome. If you believe that you can stick long enough and change to fit what you learn, those challenges have opportunities within them.
  • Profile picture of the author Alexa Smith
    Alexa Smith
    Originally Posted by JohnMcCabe View Post
    No one is denying that there is profit to be had in the MMO/IM markets.
    Definitely.

    I suspect that to some extent John and I have been saying some closely related things in different words, here.

    Nobody's questioning whether "MMO" is "a profitable niche". Of course it is. But what matters to you is whether it's a profitable niche for you. That's about you, not just about the niche.

    Some of the most profitable niches are also the very same niches in which very large numbers of people fail to make a living. This should surprise nobody, I think? The fact that they're so obviously potentially profitable attracts enormous numbers of people to them ...

    A little part of the conversation in this thread reminds me just slightly of all the threads in which people ask "How can you find out what the highest-selling product is on ClickBank?" (You can't, by the way - this information isn't published). And I read those posts and find myself thinking "Are you asking because it's one you want to promote (which is where they're actually coming from), or one you want to make quite certain you don't ever try to promote by mistake?" (which is where I'm coming from).

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