So, how do you choose a niche, or know your niche is profitable?
First, what’s the definition of a profitable niche?
A niche that has the ability to generate a profit for you – and this will be a function of a few things…
1) How many people are there who need the kind of information you offer?
2) And how much competition is there?
Meaning – if there are only a few people who need your help and are willing to pay for it, but millions of teachers…it’s probably not a great niche.
But if there are millions of people who need your help, and not enough people teaching..then it could be a great niche –
Of course, there is an entire spectrum of possibilities between those two extremes – and one more thought – even if the niche has ALOT of competition – meaning that there are a lot of people selling information – if there is a large number of people who NEED help, likely if you position yourself as an expert and treat people professionally, there is plenty of business for you.
The reason for this is that in competitive niches, especially profitable ones, people tend to get lazy and not do a good job teaching…and when that happens, even though you might be just starting out, you can gain a big piece of the business in that niche –
So, how do you know if a niche is profitable?
(Note, I didn’t say, if a niche has a lot of demand) Thing is, a lot of people evaluate a niche by how much demand, and they might measure it by how many keyword searches there are, etc., but that only tells you about interest, not about paying demand.
And the only way to find out if there is paying demand is to find out if people are buying the kind of information you will be selling.
There are a few ways to do this, I recommend using all of these in combination to decide if your niche is profitable.
First – a side note: If people are buying information in ONE medium – for example, physical books – then they will buy information in ALL mediums online.
Hence…an easy way to ascertain demand is to find out if people are buying physical books on your topic. If they are … they will likely buy information packaged as coaching, or mp3s, or CDs, etc.
Same thing with magazines.
If people are buying magazines in your niche…they will likely buy information products.
So…an easy way to determine if your niche is profitable is to determine if a lot of books or magazines are selling in your niche.
You look at book sales rankings in amazon.com, you can google for magazine subscriptions, you can find out which books are selling best in the physical bookstores (using the New York Times Bestseller List) – and if books are selling, if magazines are selling – you can generally make money selling the product.
Another, deeper way to see if there is profit is to buy a few issues of the magazines.
Who is advertising? Are people selling information via the magazine? If so…likely highly profitable.
One more way….find out if people are selling information via Google Adwords – if they are, there is likely a strong profit demand in your niche.
One last point for today. Work in ‘evergreen’ niches. Meaning niches that will be here tomorrow, the next day and next year.
Focusing on trends can make you quick cash, but very hard to build something long term and stable.
Use our easy niche research checklist to find your next profitable niche.