I know for a fact that I have trouble with this even to this day but I do have a simple method that I have been using recently in order to really speed up the niche picking process and I wanted to share it with some of the newbies here in an attempt to give back to this forum for all the help it has given me.
*Note: This information is NOT new, I am sure there have been posts on this forum that outlines this exact idea but I have not seen any in a while so I felt it might be useful to repost the idea so that newbies can see it.
I am going to do this guide in three separate parts. Part one is a general checklist, part two is my personal step by step process, and part three is a list of useful tools
Part One: General Checklist
Okay, when it comes to niche research I always take a few things into consideration before I pick a niche:
- Personal Interest - I have always found that I am much more likely to enjoy promoting a niche and enjoy my work if I am in a niche that I find interesting. It doesn't have to be something that I have always found interesting, just anything that I can find something to get excited about. (This is not necessary in order to find the right niche, it is completely possible to promote niches that you have no interest in. However, (for newbies especially) it is often easier to stick with one method and one niche for a long time if you have an interest in it and in order to really be successful you have to be willing to stick with something long term.
- Excitability - Lets face it, you can have the most profitable niche in the world. However, if people are not excited about it then chances are you will not be able to build a long term business out of it. When people are excited about a niche it is often much easier to get consistent traffic month after month.
- Profitability - Okay so this sort of goes hand in hand with excitability as one of the most important factors when picking a niche. Remember, your goal is to help people or give them something that they value. But, at the end of the day you want to be able to make some sort of profit don't you? Well if people are excited about your niche but are not willing to spend any money in that niche then guess what. You WILL NOT make any money. You can have as many subscribers or visitors as you want. But if your niche is not profitable you will not make a dime. It's as simple as that.
- Competition - I include this in the general checklist very hesitantly. A lot of people are misinformed about the amount of competition that a niche should have in order to be profitable. However whenever I pick a niche I usually don't take competition into consideration very much. The thing is that we are looking to build long term businesses. The longer you stay in a niche the less competitors you will have. Think about it how many times have you entered a niche and ditched it after a month or two claiming that it wasn't profitable? The truth is that almost everyone has done this at one point or another and it is a common thing for EVERY niche you enter. So although when you enter the niche you might have 200,000 competing sites for that niche/product. Chances are that half of those competing sites will drop off within the first 6 months. Now obviously you want to be able to make some sort of profit in that time so the key is to find a niche that has a few different keywords that you can rank easily for while you wait for your backlinks to build up and your competition to drop off.
- Possible Marketing Methods - Decide what marketing methods you are comfortable doing BEFORE you pick a niche. The reason I say this is because some niches just aren't suited for some marketing methods. For example, I don't see video marketing being very effective for certain niches (sorry can't think of one off the top of my head right now). If you have a list of your marketing strengths before you start looking at niches then you can rule out certain niches based on its available marketing methods.
- Possible Monetization Methods - If you have no way of monetizing a niche then you have no way of making money. It's really that simple. When doing your niche research it is 100% necessary to make sure you can find at least 2 different methods of monetizing on it. This can be anything from adsense to affiliate marketing to product creation. If there are at least 2 methods that people are actively using for that niche then you can pretty much assume that the niche is at least somewhat profitable.
That's it for part one. Just some basic things to look at when looking for a profitable niche.
In part two I will go through my exact steps to finding a good niche to promote.
In part three I will list some useful tools for finding a good niche (both free and paid)
Keep reading :]
To Your Successes