Is Your Business Niche Profitable? — Here’s How to Find Out
When selecting a business niche, you need to choose something you’re an expert on and that your audience is interested in. Choosing the right niche that helps them solve their problems is the key to success. But if you want to start a viable business, you also need to make sure your niche is profitable.
Start with a List
The best approach is to start with business niche ideas that you find interesting, then check each item on the list to see whether it’s profitable. Make a list of topics you’re passionate about and your audience wants to know about. Make a list of possible topics and then use the following methods to check whether they’re profitable or not.
Check Search Volume
Start by checking Google’s search volume to see how many people are searching for each topic. People need to be searching for your niche in order for you to have potential customers. A high number of searches shows that people are actively looking for solutions to their problems within this niche.
You can use Google’s free keyword planner tool. You don’t need to buy any ads; just take advantage of the free data it offers. Enter your keywords or idea and it will tell you how many monthly searches each term gets. Remember, this doesn’t tell you it’s profitable, but just whether or not it’s popular.
Look at Online Marketplaces
Take your ideas and check Amazon and other online marketplaces like eBay, Etsy, ShareASale, and ClickBank to see if there are products currently being sold there. If there are products for sale in this niche, this tells you it is likely profitable. If a product has a great deal of reviews, this tells you many people have purchased it. You can also conduct research like this by simply searching for similar products on Google.
This research is useful because it also gives you an idea of what’s out there so you can set your offering apart.
Listen to Your Audience
Use social media, online forums, and sites like Quora to get an idea of the types of problems people are searching for solutions for. On sites like these, people share their problems and ask for help. If you can offer a product that solves their problem, you’re virtually assured sales. People will pay good money for anything that saves them money, time, or headache.
You can also ask your audience directly. Pre-internet, companies paid a great deal of money to have interest groups discuss product ideas. They could get valuable insights from these encounters. You can do this yourself by pitching ideas to your social media followers or email list. They will tell you directly what they would like to buy and maybe even how much they’re willing to pay.
Test Your Idea
Once you have a good idea, you can test it out by creating a landing page and offering pre-sale on the product under development. Drive traffic here and if you see interest in buying, you’ve found a profitable niche.