The first step to starting an online business is to identify the niche. This is because you cannot serve all industries. When you focus on a niche, you can grow quickly and connect with advertisers. Also, you can have a plan for content creation and marketing.
A niche can be defined as a profitable segment of a market or industry. You can think of it as an audience that is searching for a solution.
These are five proven ways to find profitable online niches.
Follow Your Passion
What are you passionate about? If you are passionate about something, you will easily identify a profitable niche within it.
A hobby or pastime activity can give you an escape. If you enjoy doing something, why not look for a way to make money out of it.
You should note that passion is necessary to achieving success. Think of passion as the point where enjoyment and interest meet.
For instance, if you enjoy playing tennis, you can decide to set up a tennis blog. Through the blog, you can share your tips, news of tournaments, and even recommend tennis equipment.
Determine Market Value
Before you choose any given niche, you need to have an idea about its value. This helps you make the right decision whether to pursue it or not. By gathering data, you can have confidence that your niche will keep growing in value.
Another way of determining the potential of a given niche is to look at the demand for the products. For instance, if you want to promote affiliate products, you should look at the percentage of affiliate commissions.
The idea here is not about choosing the most profitable niche but finding an evergreen niche. Have a snippet view of what your business will look like in 5 years. Will customers still be looking for your products or services?
Analyze Your Competition
Competition is not bad, on the contrary, it is good. The fact that there are many competitors in a given niche, is a sign that the given niche is profitable.
Make sure you carry out a thorough analysis of your competitors. There are many online tools to help you carry out the competitor analysis.
After analyzing the competition, you should check whether you have an opportunity. Is it possible to rank some of the keywords?
Look at the content quality of the competing sites. If it is low, you can beat them by creating high-quality content that meets the needs of your target audience.
Look for keywords with high search volume but with little competition. In such a case, you have an opportunity to upset the competition.
During your competitor analysis, you should focus on keywords. If you use the wrong keywords, you are likely to fail. There are different keyword research tools to help you.
Remember you cannot refine your competitors if you do not know your competitors.
Study Industry Trends
Before you jump into any given niche, make sure you analyze trends. There are many free tools to help you online.
When analyzing trends, make sure you pay attention to the stability of your niche. Trends will reveal whether your niche is seasonal or not.
If you are looking for stable income throughout the year, you should avoid seasonal niches. For instance, a niche like gardening is seasonal no matter your location. There is nothing wrong with this niche, only people are interested in gardening equipment and information in certain months.
You can still go on with the niche if you are not concerned with seasonal fluctuations. However, you need to be prepared for it.
Test the Market
After getting all the information you need regarding a given niche, you need to test it out. The best thing to do is create a landing page for your product. Try to drive traffic to the landing page with PPC ads.
If you do not get sales, the niche might not be right for you. However, this does not mean your niche is not viable. Maybe your messaging has not been done right. It is advisable to leverage A/B split testing methods and optimize your conversions.
By testing your niche, you will discover factors hindering your progress. After confirming the viability of your niche, you should start building a full-fledged website.
Always remember that there is no perfect process of finding a profitable niche. There is a need to do your homework well and take action.