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How To Choose A Profitable Niche In 5 Easy Steps

Choosing a niche doesn't have to be tricky.  In fact, it can be one of the easiest things you do when starting your online business.  In this article were going to talk about how to choose a niche for your online business and the simple things you can do to make the discovery process fun and easy.  We're not going to stop there, either. I'm going to teach you how to niche down so that you can stand out and how to get in the minds of the people within that niche.  So if you want to learn how to choose a niche for your online business and get it right the first time then go ahead and continue reading.

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How To Choose A Profitable Niche

Whether you are new to the digital marketing game or you're setting out to create a new website and a new niche this article is just for you.

One of the biggest mistakes I made when I first started online was not picking a niche.

Just thinking back to those early days I cringe.

I had no idea what the hell I was doing.

My first website was about marketing, because that's what I love, self-improvement, The Law of Attraction, network marketing, Google AdSense, and a plethora of other topics.

Needless to say, that website didn't do very well.

I wonder why?

The five steps to choosing a niche are:

  1. Select your interests and passions

  2. Determine the problems you can solve

  3. Check out the competition

  4. Find out if it’s profitable

  5. Narrow down

Five Simple Steps On How To Choose A Niche

Like I said earlier, picking a niche for your online business does not have to be difficult. As you're about to find out, it's actually pretty fun.

I actually go through this entire process every time I create a new website in a new Niche that I've never been in before.

By the way, you can go into a niche even if you aren't that passionate about it.

I would advise doing that because you're much more likely to succeed if you're passionate about the market you're in.  But if you really did want to go that route there are ways you can succeed if you are not passionate about the niche at hand.

It's just a matter of how hard you're willing to work.

Select Your Interests And Passions

The very first thing you should do when choosing a niche to work in is to lay out all of your interests and passions.

If you're like most people, you would be surprised at how long this list can get and how quickly you can fill it.

Don't overcomplicate this part.  I don't want you to wonder if there's a niche for any particular topic that you're passionate about.

Trust me. There are thousands upon thousands of niches out there.

And the even crazier thing is that the vast majority of these niches are profitable.  I know people who are making pretty decent money in niches about journaling.

So get a pen and paper and begin brainstorming about all of the topics and subjects that you're passionate about or have a peculiar interest in.

Do I Follow Passion Or Money?

This is a fantastic question and it's something that always comes up when I'm talking about choosing a niche for your online business.

My answer to that is not exactly solid.  I say it depends.

Even though I've always been the guy to tell you that you should follow your passion,  I know there are methods you can use to have success in choosing a niche that you're not particularly passionate about.

The biggest reason why I tell people to follow their passion is that they are much more likely to follow through with the work involved.

Think about it.

Just because a particular niche makes a lot of money, and it's something that you may not be that interested in, do you really think you're going to keep up with the daily grind to succeed?

But if you want to go into a niche that you have no current interest in, all you have to do is learn more about it.

It's that simple.  Just the simple act of learning about something will increase your interest or passion about it.

Don't think so?

Tell me about the last subject you were interested in that you didn't take some sort of action to learn more about it.

Determine The Problems You Can Solve

Now that you have your list of topics that you're interested in or passionate about, it’s time to get to my favorite part of this process.

Pick one for 3 of your most passionate topics.  This is what we're going to work with for this step.

This part contains a little bit of work and it's not pretty but I can promise you that it's worth it.

We're going to get into the minds of the people in the niche that you have chosen.

In the examples below I chose the gardening niche.

This Is How You Get Inside The Minds Of The People In Your Niche

One of my favorite websites that I love to use during this process is called AnswerThePublic.com.

It's completely free and totally helpful.

All you do is enter the keyword in the search bar and watch the magic happen.

Answer the public gives you questions that real people are asking.  Not only are these great insights into the minds of your potential readers but these are also wonderful, potentially low competition keywords to target. 

screenshot of Answer the public dot com

You will be greeted by a silly, bald man with black glasses.  It's funny because if you take too long he can even get mad at you.

I entered the search term 'Garden Pests' and this is what came up next. 

screenshot of question tree

This beautiful diagram is what will give you insight into what people are asking for searching for concerning this particular search term.

You can go further with the answer the public service as well. You don't have to just stop here even though this is enough just to start out with.

Use Quora To Determine Problems In Your Niche

Another great tool you can use is a website called Quora. I love this place because your readers are asking the questions themselves.

The people who post questions here are freely and openly talking about their problems and frustrations. This place is a literal Goldmine for marketers.

Just go to Quora.com and enter your search term in the bar at the top of the web page. 

screenshot of quora search

Quora has hundreds of thousands of questions on just about every topic that you can think of.

Search for your topic and peruse the top questions.

You could spend days on here, and I think you should, and walk away with more nuggets of wisdom than your competitors.  This is true simply because you've done the work most marketers online aren’t doing this sort of thing. That's why there's such low-quality content and marketing out there.

Take a look at these more personal and hard-hitting questions.

screenshot of quora questions

You could turn each one of these questions into a blog post all by itself.  And then you can come back and answer these questions and link back to your blog post, driving quality and targeted traffic.

Getting into the minds of your potential readers is fun. And I hope you can see why.

There’s so much knowledge and insight to be gained here.

Check Out The Competition

Back in my newbie days, I was told that I should choose a niche and take a look at the competition.

Like so many others before me, I had the concern that maybe my niche was too competitive.

This couldn't be further from the truth.  A competitive Niche is a good niche to be in.

This was counterintuitive news when I first heard it.  Competition is good?

Yes.

Competition is the best thing you can ask for in a niche.  If there is competition in a niche then it means that there is money to be made.

So how do we check out the competition in the niche that you've chosen?

There are only two main products that I recommend when it comes to researching your competitors:

SEMRush and SpyFu.

Tools To Spy On Your Competition

SEMrush has been on the market for quite some time now.  They're one of the bigger players when it comes to niche competitor analysis.

screenshot of semrush

You can click or tap on the image above to start spying on your competitors.  When you do, you will be met with something that looks like this:

SEMrush analytics

This is where you can see the analytics of your competitors websites.   I personally think SEMrush is a bit more complicated to use than the other tool I recommend, SpyFu, but if you want to give it a shot I have a 7-day free trial you can take advantage of.

Click or tap here to get your 7-day free trial of SEMrush.

This next tool is my preferred weapon of choice.  They're much easier to use and the interface is a lot more intuitive and user-friendly.

screenshot of SpyFu

You can click or tap the image above to go to the SpyFu homepage where you can begin your competitor research.

Continuing with the garden Niche example we chose above I entered in a website that I frequent.

You can already tell the difference between the two Services. I personally think SpyFu is much more friendly to new users.

As you can see in the picture above, the analytics are laid out for you.

This is valuable information because if you were in the gardening niche, you can see that this website ranks 100% organically.

This just means that you can do this just as well.  There's no need for ad spend.

My favorite option that SpyFu has to offer is the shared keywords between this website and its competitor's websites.

This is not only information that you can use to gain a competitive advantage over everyone else just starting out, but it is also valuable analytics that you can use the entire time you're creating blog posts on your website.

What do you think you can do with this information?

Find Out If It's Profitable

This is probably the easiest steps out of all the steps on how to find a niche.  You've made it this far so there's no sense in stopping now.

The first thing we can do to find out if a niche is profitable is head on over to Google Trends. in this example, I chose the essential oil niche.

I don't know much about essential oils or the niche in general so this is going to be a learning experience.

Google Trends

screenshot of Google Trends

You can see that the search term ‘essential oils’ gets a fairly decent amount of traffic throughout the year.  So that's a good sign.

Even if there were huge valleys and large spikes in the trends throughout the year that doesn't mean you couldn't make a niche website that term alone.

A good example of this would be Halloween costumes.  You might expect a large increase in search and traffic the closer we get to that time of year.  But then you'd also expect a decline after the Halloween season has passed.

Amazon Reviews

Next, we can check the reviews on Amazon.

This is a good marker for whether or not a niche is profitable.  Is there are products being sold and a moderate to a large number of people purchasing those products and leaving reviews then it's probably a safe bet that that niche is making money. 

Notice my scribbles on the image above. I'm pointing out the number of reviews on each of the products.  All I did was search for essential oils and took a look at what was readily available.

There really isn't anything more to it than that.

Paid Search Ads

The last simple method is to take a look at search engines.

If there are ads for the terms you're searching for then that means that there is money to be made and a niche is profitable.

If there are ads for the terms you're searching for then that means that there is money to be made and a niche is profitable.

You can see here that the page is dominated by ads. And all of these ads are above the fold. When Google pushes organic rankings this far down, it means a lot of people are spending a lot of money on these ads.

Narrow Down

If you want to stand out from everyone else in the niche then you will have to narrow down.

Sure, you want to cover the whole General topic. But doing this will spell disaster for you in the long run.

It's almost like you have to work backward.

Start with the small stuff first.  Let me give you an example, rather a formula.

The formula for niching down:

Industry > Market > Specific Person > Reason

Example: Health > Diabetes > Neuropathy in women over 45 > Having trouble feeling feet and toes.

Niching down like this will make things so much easier for you.  In the example above I chose the health niche.

The hell snitch is pretty broad.  You don't want to be Broad.

So we went a level deeper.  Within the health niche, we narrowed down to diabetes.

But even then that's not specific enough.  We need to go deeper.

In the diabetes sub-niche, we want to target women over the age of 45 who are suffering from neuropathy.  Now that's pretty specific.

We could stop here. But let's go just a little bit deeper.

People who experience neuropathy don't all experience it the same way to the same degree. some people will experience pain or numbness in their hands or neck or back while others will experience those things in their feet and legs.

For this example, we chose women over 45 who are suffering from neuropathy and are having trouble feeling their feet and toes.

Now that is specific.

See?  These five steps on how to find a niche weren't that difficult, right?  

What Is A Niche?

I could call it a day and end the blog post right here.  But that would be underserving you.

I wanted to give you a simple definition of what a niche is and tell you the five biggest and most profitable niches there are.

So what the hell is a niche?

In simple terms, a niche is a very broad subject or category.

When it comes to online marketing most of the major companies dominate the broad Niche terms.

This is just one of the reasons why I urge you to niche down.

The Five Biggest And Most Profitable Niches ​​​​

These are categories that practically every human being falls into.  If they're alive, breathing, and have a need or want of any kind, then they will fall into one of these niches.

The five biggest niches are:

  • Health & Wellness

  • Money & Wealth

  • Dating & Relationships

  • Personal Development

  • Hobbies

Just about everyone wants to be healthy, wealthy, loved, improve upon themselves, and have something that they do that occupies their time and interests.

If you can find the niche that overlaps two or three of these larger niches and still is able to narrow down then there's no way you couldn't succeed.

Conclusion

Learning how to choose a niche for your online business doesn't have to be hard and I hope you're not able to see that after going through the five steps.

You learned how to choose a niche that is profitable.  You learned how to niche down and stand out from the crowd.

I would love to hear what Niche you're involved in. Leave a comment below and tell me. If you got value out of this post then I would appreciate it greatly if you would share this on social media.

I hope this article finds you well.

how to choose a niche for your online business
About the author

Marty Labrado

You made it to the end! You ROCK! My name is Marty Labrado and I am the creator of Digital Influence Pro. This site is a place where I can help digital marketers, like you, to grow their online business and convert your cold market into customers. Connect with me on social media!


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