How to evaluate your niche?

by mguy
21 replies
How do you guys evaluate the profitability of your niche?
#evaluate #niche
  • Profile picture of the author Warrior X
    A 'niche' is just people who all have a certain problem/interest/desire. So it comes down to how well you know those people and can relate to them.

    A marketer could pick the most profitable niche in the world; but, not knowing how to relate to them, they could end up making zilch.

    So stick with what you know.

    A good copywriter can come off as an expert in a certain area (even though they are not)... What you don't see behind the scenes, however, is the time they've taken to get to know the audience they're writing to. I think that point often gets overlooked.
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  • Profile picture of the author nicholasb
    I make sure there is a lot of competition and competing products, this lets you know that there is plenty of money to be made in that niche with good marketing.

    I will only go into the largest niches, with the most competition, that's how I prove its profitability before I enter.
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  • Profile picture of the author MartinPlatt
    I probably wouldn't. I'd evaluate a niche to see if I want it to become my niche.

    Look at keyword volumes through what Google tells me from the keyword tool, look at insights.
    Look into what is already selling via jvzoo, clickbank, cj, amazon and so on. Look at competitors, and see what they are doing, look to see if adwords are running against a particular set of seed keywords.

    Need to see that people are already in there, so there is competition, as that means there is money to be made. If not, I won't touch it.

    I think I would be looking to where I could fit within the niche - evaluate what I could do, and how easy that might be. Then look at other niches, and pick the one with the highest potential.
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    • Profile picture of the author datingworld
      Originally Posted by MartinPlatt View Post

      I probably wouldn't. I'd evaluate a niche to see if I want it to become my niche.
      Thats it.....

      If you dont want it to become your niche, evaluation is of no benefit...
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    • Profile picture of the author Evocess
      Originally Posted by MartinPlatt View Post

      I probably wouldn't. I'd evaluate a niche to see if I want it to become my niche.

      I think I would be looking to where I could fit within the niche - evaluate what I could do, and how easy that might be. Then look at other niches, and pick the one with the highest potential.
      I would agree with Martin.
      Having a potential niche site it doesn't mean that you can earn a decent amount of money with that if you don't really know what is the niche all about.

      If you want to be in a niche site make sure that you have the interest about your niche and you enough knowledge with your niche.
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  • Profile picture of the author mguy
    So you guys look if the niche is competitive, take it as a sign of it's profitability, and run your SEO campaigns to blow off the competitors? Is that accurate?
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    • Profile picture of the author myob
      Originally Posted by mguy View Post

      So you guys look if the niche is competitive, take it as a sign of it's profitability, and run your SEO campaigns to blow off the competitors? Is that accurate?
      Not quite. In the most competitive (ie lucrative) niches, the odds of falling flat on your face are extremely high using SEO. If you're competing with the big boys, never market the same as they do.
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  • Profile picture of the author Stuart Walker
    Getting traffic just from SEO is a fools move, most people with any sense diversify so not to be at the mercy of Google.
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  • Profile picture of the author HorseStall
    Originally Posted by mguy View Post

    How do you guys evaluate the profitability of your niche?
    I typically evaluate the potential success of a niche through keyword research.
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    • Profile picture of the author cebrg1
      I would do all the above, but I would approach it from the angle of what I can see myself doing for 6 months to a year.

      1.) I would make a list of things you like to do. Between 6 and 12 is fine.
      2.) Research your market, including writing down the burning questions that each of your possible niches want answered.
      3.) Decide on 2, maybe 3 things on that list that you could pursue.
      4.) See where you can fit in. Is there a demand for something that people haven't filled yet or you may be better at filling a need than someone else in that niche.
      5.) Decide on your niche.
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  • Profile picture of the author mguy
    ok help me out.

    So i want to evaluate if this particular niche is good.. say learning French.. in Quebec.

    what is the mental process that you would follow for something like that?
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  • Profile picture of the author Brandon Modrov
    I like to look to see an existing marketplace. I like to know that there are products and services in place with people buying. Rather than re invent the wheel I look to see what people are selling and how they are selling it. This way you can study the process to see what's walking and what's not. You can then look at the forums to see the buzz, what's working and what's not. You can then evaluate the marketplace and decide how you would enter, what you would do etc.

    But the simple answer is I look to see what's going on with the existing marketplace.
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    • Profile picture of the author TonyNorton
      Originally Posted by Brandon Modrov View Post

      I like to look to see an existing marketplace. I like to know that there are products and services in place with people buying. Rather than re invent the wheel I look to see what people are selling and how they are selling it. This way you can study the process to see what's walking and what's not. You can then look at the forums to see the buzz, what's working and what's not. You can then evaluate the marketplace and decide how you would enter, what you would do etc.

      But the simple answer is I look to see what's going on with the existing marketplace.
      This exactly.

      People make this whole niche selection thing too complicated. They WAY over think it.

      When it's all said and done it boils down to this. If you want to know if you can make a profit in any given niche you have to test it and see.

      I'm not saying to just test any hair brained idea that comes along. There are certain signs (or qualities of the market) you can look for that lead to testing. There are 3 qualities you need to look for, they are...

      1. Are there a lot of people with a passionate (more than just casual) interest in the subject?

      2. Are those people ALREADY spending money on products and services related to that market?

      3. Can you get your message in front of those people easily?

      That's really about it. Of course each of those questions requires a bit of research to answer. But if you find a market that says "yes" to all those questions then it's worth TESTING that market out.

      Here are the overall steps I use when going into a new niche...

      1. Brainstorm ideas. I like to come up with a list of 15-20 potential ideas before moving on to the next step.

      I also tend to lean towards markets that are pleasant in nature like a hobby or something the person enjoys doing instead of helping them fix some problem they're having.

      You can make plenty of money helping people with their cheating spouse, and other stuff like that, I just find that the customers are a little more pleasant to deal with when it's a hobby or something they really like instead of something unpleasant going on in their lives.

      That's just my personal choice though, you can still make plenty of money in what I call the "negative markets".

      2. Qualify your list of ideas. Basically you answer the 3 questions I listed above and use the answers to narrow down your original list. Usually, during the process of answering the questions you'll have 2 or 3 markets that jump out at you. They'll have all the qualities I listed to varying degrees.

      If all the markets have about the same number of passionate people, who are spending about the same amount on related products and services, and you can easily reach the people in each market, then you can just pick one at random or (and this is what I suggest) you can pic the one that seems interesting to you, at least to some degree.

      This is important because if you decide to go deep into the market (this is where the REAL money is made) you're going to be spending a lot of time in that market. You don't want that time to be a grinding experience so you might as well choose something you have a chance of liking if business takes off.

      If one of your finalists clearly has more people spending more money and you'll be able to reach them easier then just go with that one.

      3. Test the niche. The easiest and quickest way I've found to get real proof of spending in the market is to promote an affiliate product. This is where the proverbial rubber hits the imaginary road.

      You'll be making an investment of either time or money to verify that people are spending money on the market.

      Along the way you'll find out what kinds of marketing approaches are working, and you'll have a good idea of what will be required (in the way of sales and conversions etc) in order to make a profit in the market.

      If you determine the market isn't as profitable for you than you originally thought it might be you have a choice. You can try to test and tweak and improve your marketing to make it profitable, or you can start the testing process over again with one of your other niche 'finalists" from step 2.

      If the market looks profitable you can move on to the last step in the process...

      4. Build out. Simple, create your own product and sell it instead of the affiliate product you were promoting. You get to use all the experience you've accumulated from selling the affiliate product in the promotion of your new product and you get to keep all the money from your sales since you're now the product owner. Plus you can form joint ventures, swap promotions with other list owners and all the other stuff that brings in the real cash.

      And that's about it. I could add that once you max out the potential in that market you can use the process again to find a second and third market etc.

      The beauty of this process is that it's "ever green". Meaning that the same basic process will always work, whether it's today, tomorrow, or a hundred years from now.

      Anyway, I hope that helps make things a little clearer for all the folks who are frustrated with the niche evaluation process. It's not a difficult plan to implement, you just can't skip any of the steps along the way.

      Tony.
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  • Profile picture of the author JasonBennet
    I will always make sure that I am in a market where people are facing problems. I have learn from someone to always target evergreen niche market like "Relationship and Dating", "Making Money" and "Health and Fitness"
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  • Profile picture of the author Brendon Zahrndt
    Mguy,

    Start here:

    Niche Selection
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  • Profile picture of the author beestaff
    You evaluate by doing keyword research and competition analysis, before this you can just use your common sense and assume, but you don't find real gems this way.
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  • Profile picture of the author bss2t
    At the end of the day, you won't know until you jump in. You can have an inclination but you won't know for sure.
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  • Profile picture of the author Moneymaker2012
    You can evaluate it by doing some keyword research and competition analysis,
    Google can provides good insights into the competition.
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  • Profile picture of the author rodsav
    I generally use the Google keyword research tool and see what the number of searches are for that keyword. I also review the competition analysis. I may even go to Google and search to see who the competitors are. Maybe do some price checking to see what my competitors are offering.
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  • Profile picture of the author Randall Magwood
    First of all i set a fixed price for my product. It doesn't change regardless of what competitors are charging. Then i analyze the google organic results and the Adwords results to see if this niche very active. Then i check on Clickbank to see if there are alot of people with products in the niche. From there i make a logical decision as to whether or not i should operate in the niche - especially when it comes to backend marketing.
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  • Profile picture of the author clever7
    You have to begin by finding the products that are being sold in the niche you want to enter. The profitability depends on how much people are spending in a certain niche.







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