How to Validate a Profitable Niche

Tina Johnson

Tina Johnson

CEO & Certified Business Strategist, CEO Consulting Group

Validating a niche to see if it’s profitable is a process that MUST be undertaken before even buying a domain name. Before going through the steps below, it’s important to ask yourself what your goals are.

If you’re passionate about the niche and just enjoy blogging about it (without any intention of profiting from it), then by all means go ahead and blog away. Enjoy yourself in the process and share with the world whatever you know about the niche.

However, if you’re a marketer who’s into niche marketing and you’re in it for profits, you definitely will want to create a website and sell products to a niche that is full of hungry buyers willing to spend money.

The pointers below will help you to ascertain if a niche is worth pursuing. This can be a slightly tricky process… but once you go through the steps below, you should have a pretty good idea if the niche is worth your time.

1. Is there competition?

Competition is NOT a bad thing. In fact, it’s a fantastic indicator of a niche’s profitability. Open a Google Adwords account and do a quick search for the keywords related to your niche.

Look at the bidding prices for those keywords. If they’re high, there’s money to be made in the niche. Advertisers would not be spending money in a losing niche.

Ads that show up on Facebook, Google, YouTube, etc. for products related to the niche you’re in is also a good indicator of profitability.

2. Are there problems that need solving?

Problems such as acne, weight gain, improving one’s golf swing, etc. are indicators of profitability. To the average person, improving one’s golf swing may be a trivial pursuit.

However, to the avid golfer, a weak golf swing may be a huge problem and they’ll pay to solve it. So, be aware if your niche has pressing problems. If you can provide them with solutions, you’ll be in the money.

3. What’s the size of the niche?

The size of the niche is also a determining factor. Generally, the bigger the niche, the better. That said, there are small exclusive niches that are very lucrative too, but these mostly involve high-end expensive products such as designer handbags, watches, etc.

For the most part, a wide audience is better. One of the best tools you can use to figure this out is the Facebook Audience Insights tool. It’ll provide you a good idea of the niche size and the relevant demographics.

4. Are there products for sale?

Visit popular marketplaces such as Amazon, ClickBank,, etc. to see if there are products catering to the niche you’re interested in. 

If you see that the products are selling well or on the bestsellers list, you can rest assured that you have a winning niche.

5. Check the trends

Another way to check if a niche is popular all year round will be to check on Google Trends

Do a quick search for a few root keywords to see if the trend is evergreen and rising, or if it’s on the way out or seasonal.

6. Do keyword research

Keyword research using Ahrefs, Jaaxy, Semrush, etc. will tell you the number of searches the keywords are getting. More searches = more traffic. That’s a good thing.

You don’t need to use all the keyword tools. Just one will do and you’ll have a good idea. If you don’t wish to pay for a keyword tool, you can hire someone on Fiverr or Legiit to do the work for you at a fraction of the price, since they’ll already have access to the tool.

7. Will you be able to cross-sell in future?

The last point to note is if you’ll be able to cross-sell to your customer in future. If you can’t do it, then your income will be limited to some extent.

For example, the ‘get rid of bedbugs’ niche is very popular and you can make good sales selling a book on how to get rid of these pests.

But what happens once the bugs are gone?

It’s over. The problem is solved. The customer doesn’t need to buy from you anymore. Don’t even think of trying to sell them an ant farm.

Niches such as survival are great because you can cross-sell the audience a ton of products that range from tactical flashlight to outdoor supplies for gardening (off-grid living)… to even gun safes.

Your ability to cross-sell in future will extend the lifetime value of the customer and increase your earnings exponentially.

These 7 tips are extremely useful for validating any niche. Apply them whenever you’re deciding on a niche. You’ll rarely go wrong.