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While planning for starting an online business, one of the very first steps will be to identify the target customer for your product and the profitable niche market. Targeting a profitable niche market will let you get to the right customer at the right time.
So, what is a profitable niche and how to you identify them?
We’ve got the answers for you.
Let’s get started!
What is a Niche?
In simple words, a niche can be defined as an area of expertise in which you’ll be specializing.
Your online business plan will highly depend on your niche as it will be the major criteria for defining the type of products you will focus on, partnerships you will accept, content you will produce, and customers you will try to attract. However, for online businesses, it is suggested to go for a broad niche and then choose a specialized niche within it.
There are numerous niche markets you can focus on when it comes to online business. So, it is always recommended to go for one specific niche rather than multiple niche markets.
The most successful online businesses combine an interest of the entrepreneur with a popular and searchable topic that people are willing to spend money on to learn about or add to their lives.
Thus, focusing on a single profitable niche will help you identify your ideal customer more easily and approach them with targeted marketing.
5 Benefits of Finding a Niche for Your Online Business
Lower Advertising Cost
Having a profitable niche will definitely lower the cost of advertising as you will be focusing on limited customers. It is recommended to use Google AdWords for your marketing strategy, but depending on the need you can also go for platforms like Facebook, Instagram, Linked, etc.
Attract Loyal Customers
Niche markets usually tend to have loyal customers. Since the market is limited, there will be high chance of having loyal customers resulting in repeated purchases.
There seems to be a positive relationship between niche market and loyal customers. Also, you can partner with industry influencers to reach your targeted niche.
Using influencers will help you drive traffic to your online store, while adding authenticity and credibility to the specific product you are marketing.
Makes you Stand Out from the Crowd
Targeting your ads to the niche customers not only makes it visible to the specific customers but will also increase your exposure. These loyal customers are more likely to tell others about the product. Being different and standing out can help impact old fashioned word-of-mouth and customers sharing your products on social media platforms.
Participation in Successful Trends
It is very important to participate in the successful trends. For this, you’ll need to make sure that your niche product is part of a trend that has an upwards trajectory.
Higher Priced Products
Since niche products are focused on limited production, they tend to be high in price. People are willing to pay more for products that are not easily available and when they can rest assured their receiving a high-quality ecommerce product. So, this will give you the leverage of selling higher priced products.
Criteria of a Profitable Niche
Before understanding the criteria of a profitable niche, it’s important to understand 3 basic terminologies: Search Volume, Competition and CPC.
Search Volume: Keyword search volume refers to the number of searches for a particular keyword in a 1-month time span. Search volume matters because search engines are one of the key ways that sites attract new visitors and traffic. You can use tools such as Ahrefs, SEMRush, and more in order to get the keyword search volume for your profitable niche.
Competition: Keyword Competition simply means how difficult it might be to rank for that keyword. Competition can either be judge by the help of tools like Ahrefs and SEMRush or by checking the total number of Google search results for that keywords.
Keywords with higher volumes mean more potential exposure (or impression share) but will likely be much more competitive. Also, while selecting keywords with search volume, you should also consider the volume and competition of the keywords you are targeting.
CPC (Cost Per Click): CPC of a keyword represents the cost to the advertiser every time someone clicks on their ad. Most online ad platforms require a target cost-per-click for new campaigns to run.
Criteria for Profitable Niche for Google AdSense
A profitable niche for Google AdSense should be the one that you have knowledge about and are comfortable working with. Ideally, the profitable niche should have:
Search Volume: 10K-50K
Competition: 1 million – 15 million search results on Google
CPC (Cost-per-click): As high as possible
Criteria for Profitable Niche for Affiliate Marketing
Affiliate marketing is the process of earning a commission by promoting other people’s (or companies’) products. You find a product you like, promote it to others, and earn a piece of the profit for each sale that you make. A successful niche marketing strategy is based on identifying the needs of your target audience, solving their problems/needs with high-quality content, and promoting relevant and useful products that can make their lives easier. Here are a few criteria for better earning from affiliate marketing:
- Niche can be related to some physical product available on Amazon. It gives you an opportunity to go for Amazon affiliate earning as well as AdSense earning.
- Price of the physical product you choose to promote should be medium to high so that you get more commission per sale that you make.
- The product category you choose should be sufficient product models in the category, so that you can promote hundreds of products through your website/blog.
Most Common Profitable Niches
People need help managing their money or securing the money they need for important expenses. They might also need help in paying debts or getting a lower interest rate. Through online marketing for this niche, you can connect your prospects with expert providers, promote information products as an affiliate, or offer products like credit monitoring as an affiliate. This is a huge niche with a lot of opportunities. You can also create e-learning and education products to help people navigate these issues and improve their financial situation.
Gadgets and Technology
There has always been a lot of craze for gadgets such as tablet or smartphone, computer speakers, mp3 players, smart devices etc. people from all age group are interested in these products. Everybody wants the latest technology. One approach is to make money blogging where you highlight all the latest tech and products coming on the market. You could also have a review site in which you offer reviews on several different products in a category. You could also create your own tutorials, information products, and such as well.
Make Money on the Internet
You can also make money on the internet by creating your own information products, courses, eBooks, or coaching programs. You could also get into network marketing. Even if you’re building an online business in any of these other niches, you can teach others the strategies and tactics you’ve used online to build your own business, creating another side business of your own teach internet marketing.
Any products or services related to beauty treatments gain huge exposure online. We all love and wish to have tighter and brighter skin and no wrinkles, don’t we? So, any sort of beauty products, formulas, or similar products that promise to eliminate or reduce the signs of aging is very popular.
With more and more baby boomers aging and looking to reverse the signs of aging this is potentially one of the largest markets on our list of top profitable niches. You can just get started with a YouTube video demonstrating health, beauty, and hair care type products.
Wealth Building Through Investing
Who is not interested in building wealth through investing? Thus, this sector also has a hugely profitable niche online. Online businesses can come up with a variety of investment-related products such as trading services, financial newsletters, trading systems, and many more. There are some people who have built six-figure businesses just teaching people how to save more money with coupons!
Self-improvement is also a market with a huge niche online. Online businesses focus on this niche through courses and programs, books, videos, online training, coaching. This is a massive industry that’s always growing as people want to feel happy, satisfied with life, and stress-free.
Fitness and Weight Loss
Fitness and weight loss have always been one of the most common profitable niches for online businesses. People have always been obsessed with losing weight and getting in shape. Keeping this in mind, online businesses have been providing them with the products such as supplements, diets, weight loss programs, exercise programs, and more.
Elance Digital Media is a result-driven Digital Marketing Company dedicated to the growth & success of clients. Our approach to the Digital Marketing Presence of your Business is uniquely built around what we know works and what we know doesn’t work. We are not just an Agency whom you give Service, rather we are your Potential Digital Marketing Partners and we thrive for your Growth & Success as much as you. You can always contact us for your online marketing needs.