3 Characteristics of a Profitable Niche

UPDATE: Get my FREE EBook of Over 100 Profitable Niches Here

STOP: (Ha! Ha! I’m not serious) but I just announced the start of a niche site experiment a few days ago. Check the niche I chose  for my Niche Site Case Study.

Today, I will go over what is a niche and how you can find one.

What is a Niche?

In a nutshell, a niche is a focused group of people that are brought together by a need to solve a problem regarding a particular thing. A niche is a sub-market of a bigger market. Let’s look at a common example; weight loss.

Weight loss is one of the evergreen niches that are guaranteed to make you money any time of the year. It is estimated that about 69.2% of adult Americans are overweight (source). Most of these people may be looking to lose weight. So, the common bond that ties them together is their problem (being overweight) and the solution they are looking for (losing weight).

So, we can say these people are in the “weight loss” niche.

But when it comes to being overweight, not everyone is the same. We have overweight moms, overweight adolescents, overweight 35yrs-40yrs, and so on. All of these people are in the weight loss niche, but we can further drill them down to their various niches within the weight loss niche.

Here are some possible niches we can have under weight loss

• Weight loss niche for people over 40 years
• Weight loss niche for new moms
• Weight loss niche for brides
• Weight loss niche for adolescent girls

You can also find some niches by letting Google auto fill do the work for you. For example, I was typing “lose weight for people” and Google gave me the following suggestions:

These are actually niches that you can build sites on and make some good money from them.

3 Steps to Choosing Profitable Niches

There is no shortage of niches you can enter. If you can find an audience that has a problem that you can solve in a better or more efficient manner, then you have a niche. However, not all niches are profitable (at least if you are trying to make money).

There are three main components that make a profitable niche:

a)      Size of market

b)      Power to buy

c)       Willingness to buy

Size of Market

This is self-explanatory. Basically, you want to go after a niche that has a sizeable number of potential customers. The larger the market, the better.

This said, you may be tempted to go for the weight loss niche and target everyone searching on Google for the term “how to lose weight fast”. When we look at Google Adwords Tool, we there are  165,000 searches for this term. This means approximately 165,000 people are searching for information related to losing weight every month using this keyword.

The number of searches that “how to lose weight fast” keyword gets means the market is huge. However, it also means one thing: competition will be tough. You will need a lot of time and money to be able to get your website ranking for the keyword “lose weight”.

If you someone who wants to make money fast (like me :-)), perhaps within a couple of months, you should further drill down the weight loss niche. Pperhaps soon-to-be brides looking to lose weight before their wedding? Yes, there are ladies looking to lose weight before their wedding:

Power to Buy

If you wish to sell a solution to your niche market, they should be able to buy. This seems obvious but it’s not in some markets. Let’s continue with the weight loss niche example.

Let’s say you want to target the niche of people who are over 30 years and want to lose weight. The obvious thing here is that the market (people who want to lose weight) are likely to have credit cards since they are over 30 years. So, they have to power to buy the solution you will provide.

Let’s look at another example, this time the niche is people looking to lose weight for free:

Yes, this is a niche. The only problem is that the people are not looking to buy anything. They want to lose weight but for free. If you are into making money, this is not a niche you will want to concentrate your efforts on.

Willingness to Buy

The final component is the willingness to buy. Let’s face it, not every obese person wants to lose weight. Heck, some people are even comfortable being overweight:

Your target market should be ready to get the solution you are offering, be they diet supplement recommendations, eBooks, video training, and so on. They should be actively looking to solve the problem they have (being overweight).

Now that you know what to look for in a niche, you might want to follow my Niche Site Case Study.  Make sure you read how I chose my niche for the case study. (I even reveal the market).

Did I miss something out of choosing a profitable niche? Share on the comments below.

UPDATE: Get my FREE EBook of Over 100 Profitable Niches Here

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