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Finding Profitable Niches

One of the problems many new Internet marketers face is figuring out what niche they are going to operate in. It is hard enough to find a profitable niche. Finding a profitable niche that is not overrun with competitors may seem nearly impossible.

The secret to finding a profitable niche? Going deep to find sub-niches that are popular but have little competition. You want to find a niche: (1) that gets a significant number of searches, (2) where it is possible to create web pages or websites that rank well in the search engines and (3) where it is possible to make a profit. 

Let’s say that you are interested in the travel niche. That is a popular and competitive topic. Even sub-niches, such as hotels, air fare, and vacations, are highly competitive. There are lots of people searching on those topics, but there are also many competing sites.
Your next step might be to drill down further into the niche to find long-tail keywords where you can be competitive. Think of long-tail keywords as those that do not get the same number of searches as the top level keywords, but still get enough searches to be profitable. For example, “discount air fare” or “Costa Rica air fare” or “discount Costa Rica air fare.”

Another advantage of many long-tail keywords is that people searching for these terms may be more likely to be ready to buy than those searching for top level keywords. As an example, who do you think is more likely to buy right now: Someone searching for “digital cameras” or someone searching for “Canon Digital Rebel XSi”? Anyone who is searching for a broad term such as “digital cameras” is probably just starting to gather information. On the other hand, someone looking for a specific model of camera has done their initial research and they are much closer to a buy decision.

Another group of likely buyers are those who are facing an urgent problem. Someone who is in pain (physical, emotional or financial) will gladly pay for a solution to their problem.

How can you find out how many searches are done for the keywords you have identified, and what the competition is for those keywords? There are lots of tools that can help you. The Goodle Keyword Tool can show you the number of searches done for keywords, but it will not give you specifics on how many other pages are competing for those keywords. A tool I have found useful for determining both the number of searches and how many competing pages there are is Micro Niche Finder. Although it is a paid tool, it can save you a lot of time and help you identify profitable niches.

By targeting a specific, narrowly-defined niche, you do not limit your profitability, you attract exactly the right customers. Be a big fish in a small pond by seeking to dominate a tight, profitable niche rather than trying to be all things to all people.