Choosing a niche market can be a daunting task if you are in it for business, you want to make a choice with niche market potential. Obviously if you are not interested in making money as much as you are just having a web presence where you can build an online following of people that like to socialize about a particular topic then just go for it. However, if you are going to take all the time and money to create an online business with a niche website you want to make the right choice.
Here are some guidelines that I use when determining a niche market.
Personal Interest – There are a number of interests I have but when it comes to being a profitable niche I find out there really is not any money in it. For example if you were interested in “Training an Elephant to Paint” your prospective buyers is going to be a small number of people. I do believe that it is best to choose a niche market that you have interest in since you will spend a lot of time with it, that is, if you want to successful with your website. Create a list of topics that you would like to market in and then apply the rest of the guidelines in this article to determine which is going to be the best niche to market in.
Niche market potential – Naturally you want to sell something that has a lot of people with interest in your niche. The way to determine this is to use websites like Google Trends, Google Adwords and Amazon.com. Go to Google Trends and type 5 of your niche ideas into the search box. You will see on the graph which one is the most popular. The most popular is not necessarily the one that you want to choose and you will learn why in the next guideline. Second take a look at Google Adwords, just go to Google.com, type in your niche and see how many sponsored links there are at the top and down the right hand side of the page. If there are a lot of people paying to be in those spots, maybe there is even a second page, that tells you that there is money to be made in the niche you are considering and that you have competition in that niche. Lastly, go to Amazon.com and type in your niche. Are there books written about your niche and products for sale in your nice? If there is nothing then you should think twice about the niche you are thinking about and find something where there are products for sale.
Fad likeliness – This is something I don’t ever hear anyone talk about. You want to be careful that even though there maybe a lot of traffic and even products for something that it is not just a fad. Having been in the retailing of vitamins and supplements there is something new every quarter and the old stuff sinks into insignificance, for example, bee pollen, deer antler velvet, shark cartilage and others. These are not as popular as Calcium and other vitamins, minerals and herbs that are well known and will always be sought for.
Competition – There are two different schools of thought on how to relate to competition. The ideal would be to find a niche with a lot of traffic but no one seems to be targeting it. Those niches are hard to find, kind of like the black 69 Camaro that has been driven 150 miles and then sat in Grandma’s garage. She lists it in the classifieds not knowing what the value is and you buy it for a song. Apart from the ideal there are the two groups and the first group suggests that you go into a niche market with little competition and you will be able to rank high in the search engines with good keywords. The other group suggests going for the more competitive niches since there is obviously more profit to be had and you just really need to know your SEO game. That is something that you will have to determine for yourself. It is true though that to try to rank for Viagra without Adwords or some black hat SEO methods would be near impossible.
Those are the major guidelines that will really help you find the right niche with the most niche market potential. Take your time to make this decision, don’t rush or you will most likely regret it.
The main tool I use to help in the determination of a niche with good niche market potential is Traffic Travis.