There are millions of niches online and they may all seem lucrative and profitable… BUT you’ll never know until you do your research. The truth is that not all niches are made equal.
Some are filled with very passionate individuals but they’re not the type who spend money and buy items related to the niche. Many such niches exist. If you expend time trying to sell to this niche, your efforts will be in vain.
There are 3 factors to look at when discovering a profitable niche…
1. Spend time on popular marketplaces
It’s imperative that you spend time on sites like Amazon, eBay, Walmart (the website), ClickBank, etc. These marketplaces are a wealth of knowledge when it comes to niche research.
For example, if you’re in the survival niche, your research will unearth many highly popular products on Amazon that are making thousands of sales. Tactical flashlights, water purifiers, fire starter kits and so on.
This will immediately tell you that the niche is profitable and people are willing to spend money on products.
However, if you’re in a niche such as ‘mixed martial arts’, you’d notice that the products being sold don’t receive many orders. This is DESPITE the fact that the niche has millions of passionate people. They probably just enjoy watching matches and are not really interested in purchasing merchandise.
2. Are there problems?
If you’re in a niche where there is a major problem that desperately needs to be solved, you’ve probably struck gold. Niches such as ‘get rid of bedbugs’, ‘stop back pain’, ‘weight loss’, etc. are very popular and competitive niches.
People want the problem to end and they’ll pay quickly to put an end to their pain. Someone whose house is infested with bedbugs will quickly buy a $17 book just to figure out how to kill all the wretched bugs ASAP.
Research the niche and see what problems people in the niche are having. If there are several problems that need solving, you’ll make money in the niche by helping them.
3. Use analytical tools
Besides the two pointers above, sometimes you need to use tools to ascertain if a niche is profitable. Keyword research tools such as Ahrefs or Semrush will help you to do keyword research and see how many searches the keywords are getting. More searches = better niche.
Another tool to use is Google Trends. This will help you to see if the niche is seasonal or evergreen. Some niches are only hot trends for a short while. For example, fidget spinner and Pokemon Go. Once the hype dies down, the niche is dead.
Choosing a niche that’s popular all year round is a good way to ensure that your income is stable. That said, there are some niches like toy sites or Christmas gifts sites that see a ton of sales from October to December, but flatline for the rest of the year.
However, the sales and revenue generated during these 3 months is so impressive that the endeavor is worthwhile even though the niche only picks up for one quarter a year.
Ultimately, you’ll need to decide if a niche is worth your time. As long as there are problems to be solved or passionate people in the niche who are willing to spend money, that niche should be profitable enough for you to dive into.