When selecting a niche to base your business on, it’s extremely important to study how profitable that niche can be. Some niches are a lot more profitable than others because they appeal to a larger audience, or because the product is more expensive and more exclusive. Some aspects of supply and demand fit here, but that’s not all there is to it.
In order to select a popular niche to focus your business at, you should go through a few questions prior to making your decision:
- How much money do you need to make?
- Is the niche large enough to support that amount?
- Can the numbers support the fees?
- Are there sufficient products to support the niche?
- Do you have your own products you can sell?
- Who is your competition?
- How can you differentiate yourself from the competition?
- Do you have the budget to reach and engage the audience?
There are two different reasons why people select niches, one, they have already created a product and they’re trying to find customers. Believe it or not, that’s the hardest way to be successful. Two, they study different niches until they find a niche with enough customers, money and desire to buy, and solve a problem the people in this audience have, and then enter that niche. The second way is the easiest way to enter into the market and be the most profitable.
It’s very important that, whatever method you choose, you are educated about how much you can potentially earn. The way you study the niche depends on the niche in questions, but you would essentially determine how many potential customers there are who would be interested in your products, and how much you can devote to marketing.
If a niche is really interesting but there are only say 100 people that you can reach who can afford your product, you’d have to charge $1000 each just to make six figures before expenses. This doesn’t mean it’s wrong, but can the audience support that cost and is that all you want to earn?
One of the best places to start is with keyword research. Choose a few keywords or keyword phrases that you think that your audience will use. You are looking for high demand, low supply keywords.
Determine a Monetization Strategy
How can you earn money in this niche? There are plenty of niches that will have high demand, low supply keywords, but that have no discernible way to monetize them.
Find Affiliate Programs
If your niche is in high demand, there should be some product already created for your niche. If there are no products created for your niche yet, you may want to reconsider the niche and it might be able to support your earning ambitions.
Keep in mind that in business school they teach students that the best business to open is one that already exists and what’s more, open it across the street from the other business. They use a Coffee shop as an example, but the same example can work for online businesses and most others.
Choosing a niche that is already popular that you can serve in a new and more creative way will be easier than starting up an unheard of, brand new niche. But, it’s up to you how to proceed. The point is, it takes research and understanding of the research to identify a profitable niche and then action and hard work to make your business goals a reality.