How To Pick a Niche with Profit Potential
Many people want to work from home. It sounds great if you want to leave your full-time job to work from home, or if you just want to supplement your income. You decide to launch an online business. You realise that you need to pick a profitable niche but you don’t really know how. Let’s go through some simple steps to allow you to pick a niche with some profit potential.
Is it important to choose a niche with profit potential or are there so many people using the internet that all niches are potentially profitable? Well, one of the easiest ways for your online business to fail is if you pick a niche that doesn’t have the potential to bring in the profits you’re looking for.
The first thing that you need to do, is select a niche that you’re personally interested in.
It doesn’t really matter if it’s one that you don’t know a lot about. You can always learn what you need to know. But you absolutely need an interest because if the niche is too technical, or you consider it boring, you’re going to hate doing any work, procrastinate, and fail. If you don’t believe me, write a 500-word post on something that you hate or have no interest in. Then try to do the same with a topic you are interested in. You will find the first post is next to impossible to write, whilst when you try the second, you can easily write more than 500 words. Now think about the first post you tried, and imagine doing that every day for the rest of your life. You absolutely need an interest in your niche.
A niche is another word for the industry that you will specialise in. You need this niche to have the potential for you to make money unless you are just doing this as a hobby. So how do you discover which niche has the ability to make money? You have to do your research. You need to research the industry you want to start your online business in, and the type of things that you will be able to sell. As you might imagine, there are many, many, niches out there. So where do you even start?
The first step should be to make a list. Or a few lists.
- Do you have any interests?
- What hobbies do you have?
- Are there any useful skills you have from previous jobs?
- Are there any niches where you are already a customer?
You will start with a long list. Now you need to narrow it down. See if any of the topics appear on your list more than one. For example, if there is a niche on the list as an interest, you are a customer and you have relevant skills from a previous job then that will be a strong contender.
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Keep narrowing the list down until you have a handful of niches for further consideration. You don’t want too many at this stage as you need to now work out which of these have profit potential.
Items That Sell
You need to choose a niche that not only interests you but one that you feel excited about working on. That way, you’ll stay engaged and eagerly look forward to growing your business. To find a niche that’ll bring in the kind of money you’re after, investigate what the big companies also look for.
What are the top selling items? Look for these hot sellers on sites such as Amazon or eBay or other market websites. Look for the bestsellers (check to see what ranking these items have). The bestsellers will tell you how popular and how many people are buying these items. So for example, if you see that on Amazon, a product sells well enough to be in the top ten, you know have something with profit potential. Let’s say one of those products was a brand new fitness gadget and they were selling like hotcakes. You’d find plenty of potential by tapping into that market.
You’ll also want to check out the self-help books to see what’s selling there. Books on depression, weight loss, and relationships always sell well and that’s a clue to let you know that the market is, and always will be, wide open for self-help niches and the products that you can buy dealing with that subject.
If you become an affiliate, you’ll want to pay attention to the money you could earn by becoming an affiliate. Check sites like clickbank.com or other affiliate sites. Also, look for tangible products for your niche as well.
Make sure you don’t make the mistake of setting up a niche based on what’s considered a fad. You want to seek out a niche that has long-term profit potential so that your business will thrive now and for many years to come.
Don’t worry if there is competition within your selected niche. Worry if there is none. The more people looking to buy within a niche, the more potential that niche has for you to make money.
This may seem like a lot of work, but it is far easier to do this now. You don’t want to go through all the effort of starting your online business, to find that your chosen niche does not have any profit potential. You will be unable to build an audience, sell any products and then be back at square one. Do the hard work now and pick a niche with profit potential before you go any further.