Choosing a Profitable Niche – A Practical Guide!

In my previous post I mentioned that choosing the right niche is crucial to succeeding with your niche site. In that post, I gave the criteria I normally use when researching a niche market and then promised to also give you a practical guide on how to pick a profitable niche. In this post I want to fulfill that promise.

So, if you are ready let’s get on with it!

Recommended: Riches in Niches Power Challenge: How to Pick a Profitable Niche Market!

Where Do You Look For Profitable Niches?

The truth is if you do not know where to begin your research, you will waste a lot of time running around! Now, I must say for your niche site to meet the criteria we set out you must stay away from anything “internet marketing” or “make money online”! Instead go for real, tangible products!

Why Real, Tangible Products?

There are lots of reasons but for this post I will simply say when you build you niche site around real, tangible products, you would be selling physical products and not some theoretical concepts. You would be delivering something of actual, tangible value to your customers and of course you don’t need to grabble with those pushy persuasion techniques you see on Clickbank.com!

Besides, building your niche site around physical products agrees greatly with the basic principle we are working with which is:

1.    Build a niche site that is optimized for the search engines…
2.    So, when a potential customer goes to the search engine and searches for a product…
3.    Your niche site shows up…
4.     The potential customer clicks to visit your site, looks around and then follows your affiliate link to the product site and there, make purchases…
5.    And then, you get your commission!

It’s that simple and honest, too!

You don’t have to use some underhand marketing tactics or some pushy salesmanship to “hand twist” the visitor because with physical products, the value of the product is obvious to the buyer already!

So, Where Do You Look For Profitable Physical Products?

Here are some good places to look: Amazon.com, ebay.com, Overstock.com, Rakuten.com (buy.com) and of course Google.com/shopping. For this guide, I’m going to use Amazon.com and a few other free online tools to show you how to pick a profitable niche.

So let’s begin.

Step #1: What Is Already Selling Out There?

For this step I could start either by first going to Amazon.com to see what is already selling there or I could use Google keyword research tool to know what others are looking for.

If you want to start with Amazon.com and work backward, what you simply do is visit the site and then specify “Books” to search. Then enter a niche you desire to target (you must have known this). Take a look at the results.   The number of books written on the subject at Amazon.com is an indication of how much that market spends on the topic. When you see people spending money, you have a potentially profitable niche!

Once you confirm that (1) The niche is targeted enough and (2) The niche is spending money, your next move is to know if the niche is big enough. From there you have to go on and use any keyword research tool of your choice.

For this guide, I’m working the other way round, starting with keyword research first and then going on to Amazon.com!

Step #2: Where Do I Look?

Here I’m assuming that I do not know what niche to target. So, I’ll start by using one of the “discovery keywords” I mentioned in the previous post – “how do you stop.”

I took that and entered it into Google’s search box and received the following suggestions:

Niche Site Product Research

Notice the two phrases I underlined. I will be working with these two but with special focus on the first one!

Step #2: What Really Is The Demand?

Next I will proceed to know if the demand is high enough. Is this niche a popular one? Are people looking to buy products in it?

So working with “how do you stop snoring” I opened Google’s keyword tool and entered this keyword phrase. Please note that I selected “Exact” as the match type. Here is a graphic of what I received:

getting details about the niche site research

 

There are actually two things that are my focus here these are “Competition” and “Global Monthly Searches!”

The competition is an indication of how other “sellers” sees this market. You’ll notice that for our example the indication is “high.” It is clear from all the keyword phrases returned in this experiment!

NOTE: A word about this competition. I have heard many say if this is high you should stay away from it because it means you will be up against a big competition. Unfortunately, it is not so!  This is only true if you’re using Google Adwords for your promotion. If however, your niche site will be monetized through Google Adsense and other affiliate products, going for this is your best bet!

For me, I don’t use Google Adwords. Search engine optimization is my specialty and writing SEO optimized web content is my stock in trade! And so, I actually look out for a high “Competition” as it is an indication profitability!

Step #3: How Profitable Is Really This Niche!

Now this step is only to confirm if truly this niche is profitable. For this I will use another online keyword tool and Amazon.com. The keyword tool is Spyful.com.

First, I will start with Spyful.com and I will be looking to find for our potential niche a search result of at least 1500 searches a day for all keywords combined. Also, I’ll check to know how much advertisers are paying per clicks (PPC) for these keywords on Google Adwords.

As a general rule, if the cost/click hits anywhere between 50 cents and $3.00, it’s a good indicator that people are making money in this niche market. A pointer that you too can make some money in it!

So, let’s see what Spyful.com has for our keyword phrase:

Keyword research using Spyful.com

Please take note of the data I’ve highlighted. These are worth explaining.

1.    Monthly Searches – This shows the local and Global figures from world-wide traffic as indicated by Google searches in all countries. For our example the local search is 240 while global it is 480! Of course, these looks insignificant but remember, I’m looking for a search result of at least 1500 searches a day for all keywords combined! For this, simply scroll down the page and you will see another section for “Profitable Related Keywords.”

Spyful.com Related Keywords

You should add these together and then divide by 30 to get the daily results.

2.    Cost Per Click – This is an estimate of the clicks an advertiser should expect from his advert on average each day and the the advertiser will pay per each click. Of course, this is only an estimate but for you as a niche site builder, it is an indication of what you can earn from such ads!

3.    Click-Through Rate – This is Google’s estimation of the number of clicks an ad gets vs. the total impressions the ad receives. If an ad appears 100 times, and it gets 2 clicks, its CTR is 2%! This is another profitability indicator for you. Please take note of this.

4.    Ranking Difficulty – Ranking difficulty takes into account the strength of the domains, on-page signals like “keyword in title,” and the number of .gov and .edu domains. We will talk more about this later when we discuss keyword research.  For now we will let it be!

So, there you have the data laid out for you. Easy to assimilate and simple to understand! All you need to do is use your experience and decide if this niche is worth targeting.

From my experience this is indeed a profitable niche however, from the “Monthly Searches” and “Ranking Difficulty” it will take some extra work to make an impact in the search engines.

But then you may want to check out Amazon.com before making your final decision.

So, what do you do?

Simply go to Amazon.com and enter the phrase, “how do you stop snoring” without the quotes.

So, what do we have?

Below are some of the products on sale at Amazon.com for this niche. Please note the customer reviews. Understand that if the customer reviews are over 30 it is an indication of how popular a niche is and as you do know, the more popular, the more profitable!

(i) Brookstone Anti-Snore Pillow!

Stop Snoring on Amazon.com

 

(ii) SONA FDA-Cleared Anti-Snore and Mild Sleep Apnea Pillow

Amazon.com - Stop Snoring

 

(iii) Doctor’S Nightguard Advanced Comfort, 1 Box

amazon.com Anti Snore Products!

 

Take Away: This is indeed a simple way of finding good and profitable niche markets.  How long does this take. For me, 30minutes to 1 hour is enough. But if you have not mastered the process it may take you a little longer.  You may decide to go for paid research tools. That is fine!

When I started the Niche Site Duel 2.0 I decided to look into some of these paid tools. And so, because Pat Flynn recommended the Long Tail Pro keyword tool I went on to download the trial version and tried it out. I also downloaded the trial version of Market Samurai having heard of it for some time now.

Now, I must say there are all good for keyword research.  But from my experience, to really get the best from them, you need the information I’ve just given you in this post. I must confess, I simply love using the free tools I used in this post. Yes, they may take time but I have a better grip on what I’m doing!

So, that is for now. In our next post we will talk about keyword research. Watch out for that post. If you have not signed up for our free updates do so right now, it is simple and free to join – see the box below!

Over to you: I will be glad to hear your thoughts and if you truly enjoyed this post, remember to share it!

An Exclusive Guide to Picking a Profitable Niche Market

Last week I informed you of Pat Flynn’s Niche Site Duel 2.0 and how I have decided to take up the challenge. I also mentioned that as much as possible I would be updating you with the details as we go on with the challenge.

I’m pleased to inform you that after working for some hours a few days ago; I was able to pick a niche market to target for the challenge. And so, today I want to give you a detailed guide on how to pick a profitable niche market.

You must understand that this is the most important aspect of building a niche site because picking on the wrong niche can result on your wasting precious time, resources and effort.

But before going into choosing a niche market I want to briefly answer the question,

What Really Are Niche Sites?

I think we need to understand this right from the beginning because I have seen a whole lot of confusion when people talk about building niche sites. For example, among bloggers I discovered that many only see this as choosing a subject for their blogs. You may have heard bloggers telling you to target a niche if you want to succeed as a blogger!

Of course, this is good advice and may truly sound like what we are talking about here. But inherently, it is quite different from building niche sites.

Here are some differences:

1.    In niche blogging, you are expected to be an expert in your target niche. Because of the personal nature of blogs anything outside of being an expert and personal will hinder your success.

But this is not so with niche sites. In fact, I can authoritatively say, even if you don’t know anything about a particular niche you can still make a success of your niche site if you know what to do! Besides, you can run the site with a “pen name”!

2.    In niche blogging you are expected to continuously devote time and effort to updating the blog. This involves constantly writing new content, replying to comments, visiting other blogs to post comments, etc.

Unfortunately, doing all that takes away your ability of building multiple niche sites since you have limited time at your disposal. Can you imagine running 3 or 5 blogs at the same time? How about 10 or even 20?

Can you imagine how overwhelming that can be?

Remember, niche sites are about building multiple blogs that will help you achieve your dream of multiple streams of online income!

Indeed, there are other differences but these two are really the biggest ones. Later on we’ll touch on some other differences but for now let’s consider…

How to Pick a Profitable Niche

Riches In Niches Guide to Choosing a Target Niche!For this, I‘ll quickly give you my simple guide for choosing a profitable niche. Note that this is not about keyword research but “market research.” Of course, you may need to resort to your keyword tools to know what people are looking for but your concern right now is not what keywords you will target. That will come later.

So, what should determine your target niche? For me, these are the determinants:

1) Are there people who are passionate about this niche? Do they have a desperate problem they want solved? Are there enough “motivated buyers?”

2) Is the niche popular? Is the market big enough, but not so big as to have too much competition when you’re just starting out?

3) Is it profitable? Do the people in this niche spend money?

4) What products are being successfully sold right now to this niche? Can you get these products to sell as an affiliate or can you sell a similar product of your own? If you decide to sell your own product, can you improve on it and give them something they want that other products of their kind are currently lacking?

5) What are these existing products in your target niche being sold for? Can you make a good commission selling them as an affiliate? Or could you be profitable selling a similarly priced item?

6) Do you have an interest or passion for this niche? Do you have the experience to create the right content for your niche blog?  If you don’t, do you think you can develop the passion or interest? Or is there some good proven way you can get the content created for you?

You must take note of these 6 points because they will determine how much success you’ll get from your niche site. Picking the wrong niche will result in very unpleasant results!

Let me quickly inform you that Pat Flynn did a post where he gave his own criteria for choosing a niche market. Much of it is really not different from what I have here now but there is a particular criterion he mentioned which I want to note here. He called it “The Grandma Test!”

This is what Pat said about this test:

“This is an easy, but important test – at least to me.

Once I find a keyword with decent search volume and relatively low competition, I’ll ask myself the following question:

If I created a website in this niche and it became incredibly successful, would I be comfortable sharing my success with my grandma?

If the answer is no, then I may have to think twice about getting into this particular niche.”

I think that is worth noting because as much as you want to make money online, going over board and throwing your values away is not the right thing to do. I hope the message there is clear enough!

So, let’s move on…

How to Uncover a Killer Niche Market in a Matter of Minutes!

Build Niche Sites the Easy Way!

If you are in any way feeling that picking a profitable niche is an intimidating adventure then hear this, it is simple and you can actually pick a niche in a matter of minutes!

For example, if I want to quickly unearth a profitable niche, what I‘ll simply do is use any of the following qualifying keywords – referred as “discovery keywords” or “seed keywords” – to run a search on Google’s Keyword tool:

•    How to
•    How do I
•    How do you
•    How to fix
•    How do I fix
•    How do you fix
•    How to prevent
•    How do I prevent
•    How do you prevent
•    How to cure
•    How do I cure
•    How do you cure
•    How to remove
•    How do I remove
•    How do you remove
•    How to quit
•    How do I quit
•    How do you quit
•    How to get rid of
•    How do I get rid of
•    How do you get rid of
•    How to lose
•    How do I lose
•    How do you lose
•    How to get
•    How do I get
•    How do you get
•    How to stop
•    How do I stop
•    How do you stop
•    learn
•    get rid of
•    fix
•    remove
•    prevent
•    cure
•    quit
•    lose
•    get
•    eliminate
•    restore
•    stop

If you look carefully at these “seed keywords” you’d discover that what I’m simply doing is trying to uncover what people are looking to do, solve, or accomplish. Chances are this could help you find some of the hottest niche markets without much effort on your part!

Want to see a live example of how this works?

Then join me in the next post. As you can see this post has already grown too long and I must stop here for now. But not to worry, simply subscribe to our free updates using the form below and you will be notified when our next post is live.

Niche Market Selection Take Away:

Picking a profitable niche market is important if you want to make money with niche sites. The easiest way to do this is to look for a niche with a group of “extremely motivated buyers”. Some of the criteria you must consider are, is the niche large, popular and if there is a desperate need that calls for immediate attention. You must make sure that there’s a very strong motivation to take care of a problem.

Over to You: Do you build niche sites? What criteria do you use in choosing your target niche? Share your experience with us in your comments below.

EXCLUSIVE: Riches in Niches Power Challenge!

If you are interested in making money blogging or you are in any way interested in building multiple streams of online income then you definitely must have heard of one blogger who is making waves in these areas. Pat Flynn, is one blogger you cannot ignore when it comes to making money online though he has tried in many ways to be modest about it!

I got to know of Pat Flynn back in 2010 when I “chanced” on his blog, the Smart Passive Income Blog.  At the time he just finished what he now call  Niche Site Duel 1.0. Though I got to know of the challenge after it was ended, the information he provided on the topic was so encouraging that I immediately signed up for his newsletter and since then I have never regretted joining his newsletter!

Niche Site Duel 2.0 - Diversifying your earning potentials!
Why Put All Your Eggs In One Basket?

Niche Site Duel 2.0: This Must Not Slip Through My Fingers!

Now, this post is actually about Pat Flynn’s Niche Site Duel 2.0 which is officially launching this week. Niche Site Duel 2.0 according to Pat, became necessary because from 2010 when Niche Site Duel 1.0 happened till now, a lot of things have changed. There is therefore the need to update the strategies and tactics used in Niche Site Duel 1.0.

Niche Site Duel 2.0 is therefore another way of his sharing his experience and expertise. My greatest joy however is the fact that Pat has graciously allowed his newsletter subscribers and blog readers to participate in this niche site challenge.

I must say at this point that this post is nothing but my official announcement that I’m taking up this niche site challenge with Pat Flynn! From what I’ve learned from Niche Site Duel 1.0 Pat is undoubtedly, an expert when it comes to building niche sites. And so, I’m actually looking forward to seeing good results from this duel.

Why Become a Part of Niche Site Duel 2.0?

There are actually a few reasons why I decided to take up this challenge. Here are some:

1. It Aligns With Part of My 2013 Business Resolution

At the start of this year, one of my plans was to set up at least 4 niche sites before the month of June and then progressively add to this number as the year move on.

Unfortunately, thus far I’ve been able to set up only one niche site out of the 4 even when we are already in June! Of course, there are reasons for this one of which is my SEO web content writing service. Right now, I spend more time on clients’ projects. But I’m not really comfortable with this because one of the reasons why I made that resolution was to set up niche sites that will run on their own freeing up my time to do other things.

I’m a passionate believer in building multiple streams of passive income. You know as they say, you mustn’t put all your eggs in one basket! Joining Niche Site Duel 2.0 is therefore a way of pushing myself to achieving my dream of multiple streams of passive income.

2. Hone My Niche Site Strategies and Also Learn New Ones

Another reason is the opportunity this will give me in terms of strengthening my niche site strategies. Indeed, I’ve been into building niche sites for some time now but as you know, there is no end to learning. So, Niche Site Duel 2.0 is a good avenue for me to learn new strategies, build on the ones I’ve been using and also to network with other like minded online entrepreneurs.

3. Contribute To the Blogging Community

The third reason is to use this challenge to contribute some insider tips to the Web Income Journal community. If you are wondering how this is going to be, then understand that for some time now I’d been working on a free email course titled: WP Riches In Niches Power Course! This email course was supposed to be available only to my blog subscribers. However with my joining Niche Site Duel 2.0, I’ve decided to share the content freely on this blog!

4. Help Move Me Out Of My Comfort Zone

Lastly, I want to use this as a personal development tool. I did mention above that one of the reasons why I was unable to meet my target of 4 niche blogs by the month of June is because of the many projects in my hand right now. However, I must say also that beyond that, it is clear to me that I have not been able to push myself beyond some limits. It does appear that I’ve somehow set an imaginary comfort zone which is not doing me any good. This challenge therefore is to help me step out of this comfort zone because I believe working with other people in this challenge will offer some push to  do things I’m not ordinarily doing right now!

So, What Should You Expect From Niche Site Duel 2.0?

Like I have mentioned above, I would be sharing with you what I learn as we go on with this duel. I will update you on my results and also seek to know what areas you can help out, where necessary. What it means is that even if you are not able to directly join the duel yourself you will be able to pick up one or two strategies and tactics to build your own niche sites.

I ask you therefore to stay connected to the Web Income Journal in order to get the full gist as we go on. You can do this by signing up for the blog’s free update either by email of RSS feed. To sign up through email simply use the box below.

In my next update, I will roll out the tactics for choosing a profitable niche to target. I’ve read Pat’s insights and criteria for choosing a target niche. I intend to give you some very simple tactics and criteria that I use. I’m sure you don’t want to miss out. So, sign up for free updates right now by entering your details in the signup box below this post.

The journey has begun; keep a date with us because this challenge is really going to an enjoyable one!

Over to You: Do you build niche sites? What do you think is the most difficult aspect of building niche sites? Share your views in the comments below.