Last time we talked about finding an audience that is hungry for products in a specific niche. I told you about how you can use tools like the Google Keyword Tool and Market Samurai to enter seed keywords to brainstorm ideas for possible niches.
We also talked about hitting your local newsstand to look at magazines for ideas.
One of the most critical points about my last post was the importance of not picking a product before you pick a niche. It’s really important to understand this.
If you pick a product first, your entire business is built around that product however by finding a strong niche and market, you will have the flexibility to promote many products and ultimately to create your own.
So after you have found a niche that you think might have potential, it’s time to determine if it’s a profitable one.
Although there is no way to say for certain if a specific niche is profitable, there are a couple of ways to make a fairly accurate guess.
The main way to tell is if there is a lot of other marketers advertising in your niche. If others are willing to spend to advertise, you can be fairly certain that there is money to be made (otherwise they won’t be there for long!).
There are 3 main areas that I like to check for niche profitability.
As I’ve mentioned before, Amazon.com is a goldmine for niche research. Whatever niche you’ve decided might be worth looking into, just plug it into Amazon and review the search results. If you see a lot of books or related products on your topic, that’s a good sign.
For example, if I were to plug in golfing into Amazon, I’m going to see a strong market. However if I were to plug in rare handmade woolen mittens I’m not as likely to find anything.
The next way to check that a market is profitable is to do a good old-fashioned Google search.
If you do a search for your niche and see a good number of sponsored ads around your search results, you know that you’re onto a market worth going after. Again, if people are showing up in those sponsored ads, they are spending good money to be there. They wouldn’t be there if they weren’t turning a profit.
It’s also worth mentioning that the more ads you see, the better. If you see ads on multiple search pages, it’s a very good sign.
It shouldn’t take more than an hour to go through this process of finding out if a niche is profitable. Again, don’t agonize over the details. It’s pretty simple to get a feel for the “buzz” around a market and if there is money being made in it. You just have to know what to look for and Amazon searches combined with reviewing Google advertising is a great way to get it done.
Use the suggestions I mentioned above and try to pick a profitable niche that speaks to you before we move on to the next phase – which is picking a product to promote.
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