How do you research if a niche is profitable?

19 replies
Before opening a new online business, what steps can you recommend to take to ensure the niche you're jumping into is a profitable one? I understand this answer could vary depending on the type of service offered, where I'm offering it, etc, but just looking for a general overview.

Lets say I decided I wanted to sell 3D Printer templates (not really thinking of doing this, just an example). Without being an insider in this industry, what steps should I take to ensure the niche I'm jumping into isn't going to be a waste of time?

Thanks
#niche #profitable #research
  • Profile picture of the author Michael Meaney
    Are there others in the niche?

    Are they spending money on advertising?

    Have they been doing that for a while?

    Just study your competition.
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    • Profile picture of the author Raphaelj
      That's my thought on this too. If there are many people buying ads in the niche, it's likely profitable.
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  • Profile picture of the author jbsmith
    I will typically do the following (mainly operate in digital products & software)

    1. Look for other products targeting same problem space/desire - I check Clickbank, Amazon, Udemy, Teachable, Sharesale, and depending on the niche or product - sometimes other niches as well

    2. I find the top ranked products around my topic and then do two things...1) go back to the site that offers the products to understand the sales funnel (often there are other products or upsells - I want to know what those are) 2) Do a broad search for the products to find out who and where they are being promoted (gives me affiliates, content sites and ads that appear around the net to understand more about how they are being marketed)

    Just following these two steps (really 3 given that 2 is actually multi-part) will give you good insight into top sellers, what total sales funnel looks like and how they are being advertised.

    What I can tell you is that often a lower-priced item (anything under $50) is unlikely to be highly profitable in itself - typically overall revenue is bumped by bundling or upselling (at point of sale or in follow-on sequence) which helps overall ROI
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  • Profile picture of the author Raydal
    A rule of thumb is if there are others paying good money ADVERTISING
    in that niche. If people are willing to pay good money to advertise their
    business then it must mean they are making a profit.

    -Ray Edwards
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  • Profile picture of the author Steve B
    In addition, you might try this:

    Type in your most targeted keyword or phrase into Google search. From the results that are displayed (SERPs), look at the top two or three pages to see how many competitors are selling products, what those products are, and how long the businesses have been around (have to get this info from the site). If there are only 2 or 3 different businesses that dominate the results, that's not really what you want to see. It's better if there are lots of sellers competing and no one really dominating the marketplace.

    You can also type in the website URL of the top competitors at SimilarWeb and it will show you some useful information about that business (competitive intelligence).

    Just remember . . . competition is not a bad thing - it is a sign that there is money flowing in that marketplace.

    The best to you,

    Steve
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    Steve Browne, online business strategies, tips, guidance, and resources
    SteveBrowneDirect

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  • Profile picture of the author JohnMcCabe
    In the US, check out SRDS (Standard Rate and Data Service). Many public libraries have subscriptions you can use.

    Look at the lists available. Are they lists of buyers? How many? How much did they spend? Pay particular attention to lists available from magazines and catalog companies.

    Now you know you have a niche with actual buyers, as well as how much they spent, how often, etc.
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  • Profile picture of the author yukon
    Banned
    Originally Posted by Goalie35 View Post

    Before opening a new online business, what steps can you recommend to take to ensure the niche you're jumping into is a profitable one? I understand this answer could vary depending on the type of service offered, where I'm offering it, etc, but just looking for a general overview.

    Lets say I decided I wanted to sell 3D Printer templates (not really thinking of doing this, just an example). Without being an insider in this industry, what steps should I take to ensure the niche I'm jumping into isn't going to be a waste of time?

    Thanks


    You're doing it backwards.

    Find a potential traffic source first.
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    Hi
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  • Profile picture of the author ryanbiddulph
    I feel folks in your niche can give you clues. I like asking: Do you have a passion for the niche? Because when things are going slow - aka when you are not making money - I know that passion pulls you through.
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    Ryan Biddulph helps you to be a successful blogger with his courses, manuals and blog at Blogging From Paradise
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    • Profile picture of the author TonyRoberts
      That is a very good point which is why i tend to pick niches that appeal to me. When you're not passionate about something, it's very easy to give up.
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      • Profile picture of the author discrat
        Originally Posted by TonyRoberts View Post

        That is a very good point which is why i tend to pick niches that appeal to me. When you're not passionate about something, it's very easy to give up.
        Yes and no. At least not in all facets of the business world. I as well as many other college grades back in the day accepted positions from Companies ( at career day) and many of my fellow students had absolutely no passion about the products of the company. A few come to mind ike IBM, Procter and Gamble, BFI Waste,Chick Fil A. And a number of these fellow students are still with these companies to this day making a fine living.

        Passion is important but it is not the end all be all
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        Nothing to see here including a Sig so just move on :)

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  • Profile picture of the author Rory Singh
    The most profitable niche (for you) would be the one that you would be willing to work for FREE!

    Have I lost my marbles?

    Well did you read Ryan B's answer above?

    Why would you need passion?

    Because in order to succeed online, most likely you will have to work for free (while you're learning).

    And yes passion is the ONLY thing that will pull you through.

    Now here's something else to think about...

    A funeral parlor director makes a very 'profitable' income.

    Now if you were looking for a career off line in the traditional world of business...would you choose to become a funeral parlor director just because it's one of the most 'profitable' professions?

    Probably not.

    So why the heck do people come online and try to pick a niche out of their hats?

    Maybe you have lost the marbles?
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  • Profile picture of the author Honey Bunny SEO
    I suggest you research historical data on advertising by top players in your chosen niche and estimatу how their ad budgets have changed.
    Thorough competitors' research should tell much about the demand and seasonal trends, and such.
    I'm using Sersptat, Keyword Planner, and Ahrefs for that kind of research.
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  • Profile picture of the author chenbui
    If you do not have a budget to run your ads, you need to research keywords to pick out the least competitive keyword that has more searches. SEO for those keywords to the top
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  • Profile picture of the author davidricherd
    You can use dropmylink to find the best niche for backlinks.
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  • Profile picture of the author maxsi
    NICE comments here.

    What can I say? .... they make $10K per month ( recurring income) by using Automated Businesses. it's the new trend in these years because people love things that go on autopilot.
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  • Profile picture of the author luciesmazanska
    1. First Check Google Search Volume For Your Niche Idea

    Finding out just how many people are searching for your niche idea and related keywords or search phrases on Google is a first good step.

    2. Check Google Trends

    A quick check on Google Trends to make sure it's not a dying off trend is a good idea.

    3. Are There Products on Sale?

    The best niches are ones with both physical and digital products available on sale and lots of them.

    Though many niches will only be one or the other and that isn't a problem as long as there's a good selection of products and a demand for them.

    A profitable niche will have most if not all of the following:

    A high level of people searching for your niche ideas.
    Lots of products on sale that sell well.
    People paying to advertise.
    Lots of hubs of activity in the form of blogs, forums and social media profiles.
    If you're seeing positive results from each you know there is money to be made.
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  • Profile picture of the author Sonicmans
    First , check the monthly traffic volume of that niche.
    Second, run few ads on that niche or other promoting method to test the niche's general conversion rate.
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  • Profile picture of the author Raphaelj
    For me is this way, if there are many people in the niche, it's likely profitable. You also check if many advertisers buying ads in the niche over and over on facebook, adwords, and others. If there are many advertisers, then that's good sign of profitability too.
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  • Profile picture of the author spartan14
    I look if he has many affiliate products ,this means it has a lot of buyers .What i do its i check on amazon or i go to affiliate networks and i see in what section it has the most products
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