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Before we discuss how to choose a profitable niche, let’s define niche and look at their importance. I am sure you have been reading scads about niches lately and want to know more. So, what is this thing called a niche? How does it relate to blogging and making money online?
Well, a niche is a focused portion of a broader market. So, for example, let’s look at baby products. That is a huge market these days with probably millions of businesses vying for a portion of the market. Then, to be competitive in the market, you want to look at niches that are smaller and more focused. So, you might focus on baby clothes. Still a huge, competitive market. So, consider drilling down more to look at baby clothes for boys. Now, there exist tons of things for baby girls – but less in the market for baby boys.
I remember when I had a little boy, I could find all sorts of adorable clothes for little girls, but just boring stuff for little boys. So, something you might want to do is focus in on adorable clothes for baby boys. You could look at clothes with different themes that are relevant for little boys – such as sports clothes, wilderness clothes (camo, etc.), astronaut clothes, construction clothes, etc. You get the idea. When you specialize in this way, you separate yourself from the mass market and become the uber specialist for all adorable clothes for baby boys.
Why choosing the right niche is important
What happens when you find a niche that is generally neglected, you limit your competition. You also gain a loyal following who seek your business for advice first. The niche market is almost unlimited. However, you do want to ensure that the niche you are interested in will be worth targeting. If you have made the decision to begin your online business, you might already know what you want to focus on. That is a great place to be. Yet, most who start are not sure what niche they want to target.
Make no mistake, picking the wrong niche can limit your profits. So, you do want to discover which niche has the ability to make you the most money. So, you have to do your research to find a niche worth building. How do you do this? One of the quickest routes to a business failure is to pick a niche that doesn’t have the potential to bring in the profits you’re looking for. The way to discover which niche has the ability to make money is easy. The way to do this? You must conduct careful research.
How to decide on a niche
First, select a niche that you’re personally interested in. The reason for this is rather obvious. You will be spending an enormous amount of time immersed in your niche. So, select something you are interested in. It doesn’t matter whether you are already an expert in your topic because you can become one. With the Internet’s abundance availability of knowledge, you can always learn what you need to know. But, if the niche is too technical or you consider it boring, you will dread every day that you work. That is not a place that you want to start your business.
In addition to choosing a niche that not only interests you, but one that you feel excited about working on daily. That way, you will stay pumped up, eagerly looking forward to growing your business. As you begin researching to find your niches, make sure that you are looking in an area that is interesting and relevant to you.
Researching to find the perfect niche
First, research by looking at what the big companies are focusing on. What are the hot selling items of the time? You don’t have to know this off the top of your head or guess. Look for these top selling items on sites such as Amazon or eBay or other market websites. One way to do this is to use free tools such as Sonar-tool to conduct your research on Amazon. Use Data Labs to research top trends on e-Bay.
Another way to conduct your research is to go to Amazon itself and look at their bestsellers. The bestsellers will tell you the pulse of the people buying products. So for example, if you are interested in Baby clothing for boys, you can drill down in Amazon to see the top ten bestsellers. Exploring this portion of Amazon can give you many ideas for selecting a niche based on what is popular. One more place to look on Amazon is the area for self-help books to see what’s selling there. For example, books on depression, weight loss, and relationships always sell well. Those and other books that sell well contain clues to let you know that the market will always be wide open for self-help niches. You can also gain additional insight on what else is popular and trending in any best-selling subject area.
Choose an evergreen niche to be profitable
Another important consideration for selecting a niche is to look for an evergreen focus. What that means – select a topic that will remain popular for decades – not months or even years. Make sure you don’t make the mistake of setting up a niche based on what’s considered a here today, gone tomorrow item. You will spend the same amount of time building a business that is trendy today as one that is evergreen – or trendy for many, many years to come. If you pick a too trendy, fad niche, then you face doing the work over and over again every time the trend changes. Not something that you want to do. In other words, avoid fads. Don’t build your business on pet rocks.
Pick a niche that is expandable
Another important consideration is picking a niche that can be logically expanded if necessary. Once you have fully developed your niche, you may find that you want to branch out. If you pick a niche that can be expanded, then building the next topic will be easier. If the new niche can be a natural extension of your original niche, then you have an audience in place, a mailing list in place and are ahead of the game.
Obviously, if you have to start all over with a very different niche, then you are virtually starting at square one. While you have more knowledge and the second niche will be easier to build, it will also have to start with building an audience.
Niche selection is highly critical to your success
Without a doubt, choosing a niche is one of the most important steps you will take when building your online business. Once you have carefully selected your niche, then it will be easier to select your name, your office logo, color schemes, and such.
Take the time to conduct your research carefully, first looking at what you are interested in, next considering what you are excited about and finally what everyone else is interested in. With this formula, you will be on your way to building a highly profitable business. Next, when you select your niche, you are ready to begin exploring the best keywords for your particular niche. Click here to explore finding your very best keywords for your profit generating niche.
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