3 Steps and 3 Resources for Finding Profitable Niches

Posted on 22. Jun, 2010 by Guest Post in Business, Entrepreneurship

Finding a profitable niche is the best way to make money online without working in a highly competitive market. For those who want to make money without competing with the “big dogs” then learning how to find profitable niches is a lesson that shouldn’t be missed.

Learning how to find profitable niches becomes something that every experienced internet marketer must learn at one point or another. Since one of the more lucrative aspects of internet marketing is offering your own products and services why not learn how to spot a valuable niche to take over? Simply being an affiliate your entire online marketing career can get boring and more competitive-so why not pave the way in your own niches? Generally speaking learning how to identify and exploit a new niche is relatively easy to do. Let’s take a look at a few simple steps to get started.

Step #1 – Start researching and communicating with consumers. If you’re going to uncover a niche a good way to get started is to find out what people want or need that they can’t currently get. This can be anything from a way to cure their headaches to a way to start their own lawn mowing business. Find information, a product or service that people want and see if there is a demand for it.

Step #2 – Find a way to get these people what they want or need. If you can’t offer the product or service to a hungry consumer base then someone else will-it’s just a matter of time. When you’re the first in a new niche that you think might be profitable it’s important you offer something that will fix their problem and fill their needs. Can you write an eBook and sell it to your market? Can you offer them a program or software application that fixes their problem? Figure out a way to generate something you can sell to this market that will fill their need and make you money.

Step #3 – Make sure you can make money long term with your niche. If you create a product and start offering it in your niche and you’re not making sales, there could be a problem. Assuming everything else is good (your landing page, your sales copy, your product, etc.) this might not be a “buying niche”-meaning you may have tapped into traffic that does in fact have a problem but they aren’t willing to pay money for the solution. If this is the case you’re in trouble and should evaluate any other potential niche to make sure it’s a “buying niche” before trying to break into it. This can be done by targeting what’s called “desperate buyers”-or people who have no choice but to pay for the solution. Niches that are an example of this include male enhancement, weight loss and acne cures but there are many others.

Learning how to find profitable niches seems simple and obvious on the surface but there’s a lot more than meets the eye. As you can see it really is as simple as finding a hungry niche and providing a solution, but it’s also important to look deeper and make sure that niche is willing to pay money for the solution and will be a viable long term strategy. There are a few tools that can actually make finding profitable niches a lot easier, let’s take a look at a few of them.

43Things.com – This website is a great place to go to see what people want to learn more about or find a solution for. On the website there are different things that people want to do that they’ve collectively voted on. The larger the word or phrase in the tag cloud is the more people are interested in it. This is a great way to find out what a good profitable niche might be since people list things like “learn how to play basketball” and “finally discover how to make a gourmet pizza.”

Yahoo! Answers – Another excellent way to find out what people want is to go through Yahoo! answers and see what people are asking about. Users will post questions like “How do I fix my computer to make it run faster?” or “How can I make French fries at home?” While these questions seem basic and boring they are questions that a large number of people want to know the answer to. Perusing the questions and answers on Yahoo! is a great way to get ideas for possible profitable niches.

Ask500People.com – This website is a great way to take a possible profitable niche and see if there’s a demand for it. Let’s say you think it’d be a good idea to target a new niche that involves teaching people how to make their own chess boards. Heading on over to this website will allow you to post a question like “Would you prefer to learn how to create your own chess board or just purchase a low quality one from a store?” and then receive feedback one way or another on the proposed question. Think of this website as your profitable niche “barometer” allowing you to see what unbiased people think of your idea.

Using online tools and carefully researching different niches is the only sure-fire way for finding a good profitable niche. Once you discover how to find profitable niches over time it’ll become easier and almost second nature to identify potentially profitable markets. Making money from new niches can be difficult and there is a certain risk involved so try to minimize your losses and maximize your gains as much as possible. In other words, don’t invest too much until you know it’s worth the money.

Whether you want to find a profitable niche to create your own product in or a profitable niche to promote an affiliate product in the process and technique really is the same. Make sure there’s a need for the product and make sure people are prepared to spend money for the solution. Without these two requirements there’s little room to make money in a niche.

Jason Acidre is a Marketing Consultant for Affilorama, an affiliate marketing portal. They provide affiliate marketing education and advanced affiliate marketing tools for beginning and advance affiliates.

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Tags: Business, entrepreneur, Marketing, Niches, resources, small business

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