This complete guide will show you how to find a niche by using free tools to generate great ideas, researching those ideas to find a profitable niche, and finally finding the money spot within that idea. This method is great for any type of online business model. In this guide you will learn the following:
- What Is A Niche?
- Ten Reasons Why A Niche Market Is Important
- Three factors to consider when selecting a niche
- How to generate niche ideas?
- How to do niche research?
Make sure you read the entire post to understand the whole process. Take notes and let’s dive in.
Section 1: What Is A Niche?
A niche is a specific category that is targeted by a group of people who has the same interest in that particular market. Niche market caters to a smaller group of an audience as opposed to a general and larger group. It is a component or a subset of a larger market that has its own fan-base.
There are millions of people who love dogs and from that group, there are those who are particularly interested in small-sized dogs, and then there are people who are interested in a specific breed of a small-sized dog.
This narrowing down process is what creates a targeted niche market and the more you narrow down, the deeper you will get into a specialized area of the niche. The smaller niches are usually known as a sub-niche and there are even micro-niches which are a highly specific topic that caters to a very limited group of people.
By getting yourself involved in a niche, you are confining yourself in a targeted business area which enables you to be more focused and engaged with a solution that helps people within that niche market.
Knowing how to find a niche the right way increases the chance for your business to be successful. You don’t want to spend months or even years working on a topic before realizing that the market which you’re in is not a money-making market. You also don’t want to try to cover every single potential area in that niche and find out that it is just too competitive and requires too much effort from you.
Section 2: Ten Reasons Why A Niche Market Is Important
Here are 10 reasons why choosing a niche market is important for your business:
- You know your target audience
- Focus on a specific solution
- Shorter learning curve
- Be recognized as an expert
- Less competition to get on top
- Build your brand
- More opportunity to scale up
- Align with your passion
- Improve further with feedback
- Exit easily
1. You know your target audience.
When you specialize in a smaller segment of the market, it is easier for you to know your target audience. Having a smaller market enables you to do your research faster in identifying the demographics and characteristics of your audience.
- Health and Fitness niche: Anyone of any age, gender, occupation, ethnicity can fall under this category
- Home workout for young moms: Your audience now is generally women, between the mid-’20s to late ’30s, most likely do not have access to go to the gym because of work or kids, etc.
2. Focus on a specific solution
As an internet marketer, you make money by solving a pain point or a need, Being in a niche makes it less hard to identify the specific problem that a majority of the people in that category is facing.
3. Shorter learning curve
If you are passionate or have experience with a topic, working on it will be much easier because you already have some fundamental knowledge about that field.
What if you are in a niche that you don’t know much about? By choosing a more specialized area, you can learn much faster about it. You spend less time to learn which means you get to avoid the risk of information overload.
4. Be recognized as an expert
When you specialize in a certain niche, you are positioning yourself to be an expert in that field. As you gain more knowledge, people will view you as an authority. You may not be the ultimate authority in that field but you do know more than the average person and that is enough for your audience to trust you and get the solution that you are providing to them.
Here are 5 simple things you can do to be recognized as one;
- Write on Medium and get your content out there to the people in your niche.
- Start a YouTube channel and give free advice.
- Guest blog in other people’s website who are in the same niche as you
- Answer questions on Quora.
- Create a digital product and launch it.
- Write a kindle book and publish it.
5. Less competition to get on top
There is more than 630 million content on the dating for men niche. The number drops down to 275 million for dating for men over 60 niches and 38 million for dating for men over 60 and widowed. As you go deeper into your niche, the size of the niche also gets smaller. When you are starting, you want to make sure that you choose a niche in which you can compete and win.
6. Build your brand
When you have enough knowledge in your selected niche and are seen as an expert in that field, you will start building your brand. One of the most effective ways to build your brand in a niche is by growing your audience and following. The audience and the large following are social proof of your brand.
When someone comes to your profile and see that you have 30k followers, that immediately creates confidence in you and that person more likely will become your follower.
4 quick ways to build your following are:
- Start a Facebook Group
- Connect with people via your own YouTube channel
- Launch a podcast.
- Interview other experts in your niche and get them to endorse you
7. More opportunity to scale up
The best part of learning how to find a niche especially a smaller one is that you can always pivot and scale up later. When you are starting in this business, you want to be able to conquer the low hanging fruits.
You need to make your first sales as soon as possible to keep you going. Therefore starting small is always great because it requires less time, less effort, and minimizes the risk of you wasting your resources on something too big.
8. Aligned with your passion
You can always start with a niche that you are passionate about. The human tendency is to specialize in an area that you already know or are good at. It makes sense right? After all, we do not want to move from our comfort zone. The rational idea behind this is that if you do what you already love then it will not seem like work and you can pour your energy, effort, and focus into it.
9. Improve further with feedback
Remember in the beginning, we touched on how being in a smaller niche helps you identify your target audience. As you interact and engage more with your audience you will not only understand the demographics but also their characteristics and what makes them unique, their interest, challenges, and pain points.
The biggest benefit of niche marketing would be the feedback they give you as they also get to know you and experience the solution that you are offering. These are some of the best pieces of feedback that you can get to improve. Not all will be positive but usually, the bad ones are the best improvement opportunity.
10. Exit easily
Finally, being in a particular niche does not mean that you are married to it. There is no way to know 100% a niche will work at the beginning of choosing one. A niche may not work for several reasons:
- The market is too small
- Many free resources can address the pain points of the niche
- There is no money-making opportunity in that market
- Small market but very high competition
- Too hard to learn about that niche
- You lose interest halfway
- Required high investment
No matter what the reasons are, if it fails then you can quickly exit out and do something new. By working on a smaller niche, your time and investment risk are minimal and loss can be managed compared to putting so much time and effort into a larger niche.
Section 3: Three factors to consider when selecting a niche
These 3 factors above help you decide your approach in selecting a niche:
- Your solution in that niche must always be about eliminating a pain point or enhancing an existing situation. People tend to gravitate toward pleasure and away from pain.
- Do you want to get involved in an evergreen niche that is sustainable but has high competition?
- Would you choose a hot new trend where you can potentially make quick money and authority but may not be able to sustain it in the long run?
Using these 3 considerations, it is now time to pick a niche. To do that, first, you need to start generating niche ideas.
Section 4: How to generate niche ideas?
Why do you need to start generating niche ideas?
- Your objective is to choose the best niche which has the highest chance for success. Therefore, you need to come up with as many ideas as you can so that you can use the elimination process to narrow it down to the most ideal niche for you.
- Also, by coming up with a list of ideas, you will learn how to find sub-niches that you have not thought of before.
Steps To Generate Niche Ideas
There are 2 starting points to build your list of ideas:
- What do you know?
- Are you interested in something but you don’t know much about it?
What do you know?
This part relates to your skills, passion, experience, education, health, career, family, hobby, ambition, and anything that is closely related to what you already have or know. Here is where you can turn your knowledge and experience into a money-making opportunity. Here are 5 questions that you can ask yourself.
1. Do you have a formal education in a certain field?
- Would other people get benefit from the knowledge which you have gained?
2. Have you been certified in any formal training?
- What areas can you help people in the same field?
3. Personal problems that you have managed to overcome?
- It could be health-related, family, addiction, faith, relationship, etc.
4. Are you good in any particular area?
- You don’t have to be a certified top expert in that field. As long as you know more than your audience, you are an expert to that audience.
- What about your hobbies?
5. What kind of work gives you the biggest self-satisfaction?
- What type of people do you like to help?
- How would you like to help people if you have a chance to do so?
Here is a sample template in excel that you can copy and start building your own list of ideas.
Something you don’t know but have an interest in
The advantage of starting a niche that you don’t know much about is that you can be objective and just focus on the business aspect of it. You are also not emotionally tied to the niche and therefore if it does not work, you can move on quickly and do something else.
Luckily, generating ideas on a topic which you don’t know much about is not difficult. Many resources can help you do just that. We will look at the 5 top sites that can give you tons of ideas.
Here are 5 free resources you can use to find a niche that you don’t know much about:
1. Amazon Best Sellers
- Go to Amazon best sellers here.
- Look for books or kindle edition.
- Browse through the categories in each site and find the niche that interest you. Click on the categories to view the sub-niches.
- Go to Udemy here
2. Click on the Categories tab and there will be a drop-down menu with a list of niches that people are willing to pay to learn. These niches are divided into sub-niches that give you more ideas.
3. Answer The Public
- Click here to access Answer The Public
- Type the word of any topic that you may be interested in.
3. Answer The Public will pull the popular questions people ask on the web. Look at the question and you will find some great niche ideas.
- If you type natural dog food in the search bar, one of the results would be natural dog food with grain and that is a sub-niche that may interest you.
Soovle is another free tool that collects all the popular phrases from major sites like Yahoo, Wikipedia, Youtube, etc that are associated with your main keyword.
- Go to Soovle
- Type in your main keyword and look at the results.
Let’s use natural dog food again and one of the results would be natural dog food for small breeds. That’s another sub-niche that you can add to your list.
If you want to generate a list of niche ideas, you cannot afford to ignore the good old Google site. It is the biggest search engine and everyone wants to get ranked on Google. You can easily find some good ideas using just Google. Here is how you do it:
- Go to Google
- Enter the keyword that you want in the search section.
- Google’s auto-suggest feature will immediately provide you with a list of search terms that other people are looking for.
4. If you scroll down to the bottom of the search result page, you will also find additional niche ideas in the Related Section.
So, now you know the different ways to generate niche ideas.
You can find a niche like a dog food grain free and then retype that into any of the tools above to go another level down in that niche. It all depends on which niche you are interested in. Don’t niche down too much because you may end up with a topic that has a very little audience.
What you need to know is to grab a pen and paper and start writing down those ideas. Next, we will look at how to find out if there is money in your niche.
Section 5: How to do niche research?
The ultimate goal of doing niche research is to find out where is the potential money-making opportunity within that niche. You want to look at what are the specific pain points within that niche. Good niche research requires the action of narrowing down the niche until you find the money spot.
How big should a niche be?
- There is no right answer to this question. Both large and small niches will be a good choice but the size of the niche will determine what strategy you will use.
- If the niche is really big it will be difficult to target a specific audience and you will face high competition.
- A very small niche may not have enough income potential for you.
A niche in all sizes can be a good one, it all depends on your marketing strategy.
The weight loss niche is a huge category and has a lot of competition. If you are going to get free traffic using SEO, it is going to take a lot of time and you’re going to face an uphill battle. However, if you are using paid traffic then you pretty much have the same resources as everyone else. It then comes down to how you market your product.
How competitive is the niche?
If there are too many competitors, it will be hard for you to break into the market. On the other hand, if there are zero or very few competitors, it may signal that there is no or very little money to be made in the category.
It is better to go with a niche that has competition, understand your competitors, and market your product better than them.
3 Questions you need to ask while doing a niche research
- Is this niche profitable?
- How is the demand for this niche overtime?
- What is the money spot within the niche?
Question #1: How profitable is the niche?
Does the market have money to pay for your solution? There could be a market that would pay for physical products but is it profitable for digital information products? You will use 3 free resources to determine if the niche is profitable:
- Amazon Best Sellers (Kindle edition)
If 2 out of 3 of these resources show profitability then that niche would be a good choice.
- Type your niche on Google.
- If there are ads or products listed on the 1stpage of the search result, that is a good indicator that tells you if a niche is profitable.
- For this research, we will use “Tarot reading” as an example
- As you can see there is an ad on the first page. Before you conclude that this is definitely a profitable niche, go to the next tool
2. Amazon Best Seller (Kindle edition)
- Key in tarot reading in the search bar
- There are multiple digital products in that niche which has been selling well. That shows that this is information that is in demand and people are willing to pay for it.
- So now, Google and Amazon Best Sellers (Kindle edition) shows that this is a niche that sells.
- Next, do the same research on Udemy.
- There are 5,505 courses listed under tarot reading. That is a big number and it overwhelmingly shows that this niche sells.
Question #2: How is the demand for this niche overtime?
This part of the research is to determine if this is an evergreen niche, a new trend, seasonal, up trending, down-trending, and so on. The tool that you will use is Google Trends
1. Google Trends
- Go to Google Trends and enter the keyword which is “tarot reading”.
- Set your filters to “Worldwide” and “Past 5 years”.
- The trend data shows that this is an evergreen sustainable niche with very little fluctuations. there was a drip somewhere at the end but overall this is a demand niche.
Let’s go over a few different trends :
(a) A downward trend but stabilizes after a certain point. It may not be the first choice.
(b) Generally an upward trend. Good niche demand.
(c) Seasonal niche or niche that is affected by other external factors.
(d) Peak and Troughs trend. Fluctuates in demand but has overall stability. The fluctuations are consistent which means you can expect a spike in January and a drop in February and the pattern continues. Is this a good niche? Based on the trend stability – yes.
By now, you have a niche that is profitable and shows a positive trend over time. The next step is to discover the area within that niche which can potentially make you money.
Question #3: What is the money spot within the niche?
What are the pain relief and the pleasure that this niche is desperately seeking? You need to pay attention to things people are searching for the most. The specific products that are selling the best and the complaints that you can find in that niche.
2 tips to find the money spot
- Surveying your market is an ideal way to find the money spot.
- Promoting something as an affiliate is a great test of the market
What if there are tons of free information in that niche?
The presence of a lot of free information in a niche is a good sign. That means the information is in demand and people are looking for it. It does not mean that people won’t pay for similar information. Often, free information is disorganized and overwhelming. The free information is not adequate and is not formatted in a conducive way to help the audience.
Where can you find the money spot in a niche market?
There are 4 free resources that you can use to find the money spot within your niche. Using these tools, I am going to select one pain point from each of them. You can obviously select more but for this demo, one will be sufficient.
The 4 tools that will help you are:
- Answer The Public
- Ezine Articles
- Facebook Group
- In Quora, select the “Questions” and “Topics” tab to view the popular questions that people are asking within your niche.
- I can see that there are a couple posted by Christians who are asking if it is ok for them to get involved in Tarot reading. I see this as a potential pain point and will select Tarot reading for Christians as a money spot.
Answer The Public
- This is again another great site that provides you with pain points that potential customers might be looking for within that niche.
- I am going to choose “Tarot reading for beginners”.
- Another Q&A site that you can use. Ezine Articles may not be as popular as it used to be but there are still tons of information that you can get from that site. If you are working on an evergreen niche then this will be worth your time.
- Using Ezine Articles, here is an interesting subject about “Learn to read tarot for yourself”.
Facebook group is a great place to look for like-minded people and understand what exactly are they searching for. Below are the 5 steps to find potentially profitable niche topics with FB Groups.
- Go to Facebook Groups
- Look for Tarot Reading groups
- Find the active ones with the most post per day.
- Join some of those groups
- Look at what kind of solution are the members of that group looking for.
- Using this method, the topic that I found frequently discussed was how to read tarot cards for beginners.
You now have some potential money spot ideas:
- Tarot reading for Christians
- Tarot reading for beginners
- Learn to read the tarot for yourself
Pick one that you feel makes the most sense to you and start creating your possibilities around it. The next thing that you can do is register a domain name around that product.
Knowing how to find a niche is the first step in starting your online business. Although the steps explained here are for finding an information product niche, these methods can be used for practically any type of online business model. You don’t just want to jump into a category without doing any research and at the same time, you don’t want to over-analyze your niche and waste too much time on the research part. Use these simple idea generation and niche research method to kick start your online business. Thanks for reading this guide and please do share with others who might benefit from it. Download the free Lead Cash Machine formula system and start building your business.