Hi! Don’t know what is a niche? Not sure how to choose a niche? I can totally relate. I used to be in your shoes. When I first started to research on how to start and grow an online business, these are the burning questions that I had.
So, to help you, today, in this blog post, I share with you 6 Steps to Choose a Profitable Niche.
Just a note:
This is part of the Business 101 series. I created this series to help you learn how to start and grow and online business. So, if you like to be updated whenever I publish a new blog post in this series, remember to join the I Love Passive Income community.
Business 101 series
- How To Start An Online Business in 2021 with 10 Steps
- 6 Steps to Choose a Profitable Niche
- 3 Steps to Help You Create a Brand for Your Business
- 7 Steps to Create A Website for Your Business in 2021
- 8 Ways to Promote Your Website
- 7 Ways to Make Money From Your Website
- Winning the Micro Moments That Matter
Watch The Video: 6 Steps to Choose a Profitable Niche
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What is a Niche?
When I first began my entrepreneur journey, I learned about the word – niche. And I too, just like you, wondered what is that?
I have learned since that this is the theme of your business. It is what your entire business is all about.
It is a distinct segment of a market. With a niche, you will know who you are targeting. And who you will be helping with your business, product or service.
Step 1 – Make a List of Hobbies or Interests
In one of the online courses I attended, I was encouraged to make a list of my hobbies or interests. It should be something that I like. Something that I enjoy.
Also, it should be something that I can write about, talk about, produce content like YouTube videos about, etc. And if it is something I enjoy learning more about, even better still.
So, I did that. And I came up with travel, meditation, spiritual stuff, movies, tv shows, comics, pets, digital marketing and make money.
As such, this is the first step to help you choose a profitable niche. Write a list of your hobbies or things you are interested in. Do not censor yourself. Just think about it. And write that list.
After that, you need to narrow down that list to one niche. The following steps can help you do that.
Step 2 – Which Niche Are You Passionate About?
To help you narrow down the list, think about which of the niches you are passionate about?
For example, I thought about my list. And I realized that I really enjoy traveling. And I love to meditate, do digital marketing and make money. I am passionate about all these niches.
I am also interested in spiritual stuff. But I can’t say that I am passionate about it. Maybe just a fascination with it.
I love to read comics. But have since outgrown it. So, no more passion there.
Also, while I enjoy watching movies and TV shows, I can’t say that I am passionate about this niche.
So, all these 3 niches are out.
In this step, do the same for your list. Really think if you are really passionate about the niche. Or are you just fascinated by it? Or just enjoy mildly about it?
One way to know if you are passionate about it is to think of the niche. Then find it in yourself if you are excited about it?
Step 3 – Which Topic You Can’t Stop Talking About?
This step can help you really narrow down your list. I took a good look at the remaining niches on my list, and thought about which one would I be always talking about? Which one would be the one that I would always end up sharing with friends and family?
Years ago, when I did this exercise, I had a bit of problem at this step. I found that I am really passionate about all these 4 topics – that is traveling, meditation, digital marketing and make money.
And I made the mistake of doing all these niches. As I mentioned in my previous blog post – How to Start an Online Business in 2021 with 10 Steps. I have since learned my lesson to only focus on 1 niche first. Then pursue the rest later.
So, over the years, I found out that while I love traveling, it was not something that I would be always chatting with people about. In the end, this is more a personal favourite activity.
I do love to chat about meditation. I found it really useful and helped me with focus, concentration and improving my overall well-being and health. And it is one of the niches that is a strong contender.
Over the years, I have also been a speaker at seminars and conferences as well as a lecturer at university and education institutes. I teach digital marketing. It is something I am good at. So, for sure it is a topic that I love and can’t stop talking about.
It is the same for make money niche. The best part about make money niche is that I can help many people. As such, I decided to do the make money niche and include digital marketing, too. After all, in order for an online business to succeed, people need to learn how to do digital marketing, too.
So, that is a perfect combination. As for meditation and well-being, I decided to put that on hold, and pursue it later.
I can see myself doing the make money niche (with digital marketing) for a long time. And that is a good thing. The niche you choose should be something you would love to do a long time, too.
As you do the niche, and help people, you will gain authority on this topic.
So, do this step. Look at your list. And see which is the one that you cannot stop talking about.
Step 4 – Narrow Down Your Niche
After you have chosen your niche, you need to take a good look at your choice. And ask yourself – is the niche too broad?
If it is, that is not a good thing. I know. The temptation is to choose a broad niche. It is because then you have an almost endless number of things to talk about, isn’t it?
But the downside is that you are not targeted enough. And your audience will be too wide. Plus, the competition is higher. As a result, you will find that it is going to be harder to make money from this niche.
So, step 4 is to narrow down your selected niche.
For example, the make money niche is very broad. I decided to focus on the sub-topic, or sub-niche if you will – education within make money. Meaning within this niche, my choice is to help people learn about how to make money online.
Or if you like to see it in another way. I love to teach. And my chosen niche is education. And I have narrowed it down to education on the topics of make money online and digital marketing.
So, there you go. That is an example of how you can narrow down your niche.
Step 5 – Is There A Market for Your Niche?
The next step is to find out whether there is a market for your selected niche. So, you need to ask yourself – Is there a market for your niche?
How you find out is to see if people are looking for topics within your niche. And that means search traffic.
One way to find out is to use Google Trends. Type in a keyword of your niche and see if there are people searching online for it. For example, if I am doing education. I enter this keyword. As you can see, there is quite a lot of searches for education.
So, there is a market for my chosen narrowed and targeted niche.
Another thing to note is your competition in this niche. If it is too crowded, it will be a challenge.
But do be wary if there is little or no competition. A friend of mine, in the past, was planning to start a business. She said the ideal business to do is one that has no competition.
That is so wrong. It is a big mistake. One of the reasons is that when you see no competition, it could be that there is no market. This means no one is interested.
You can pick a big market. And by narrowing your chosen niche, you are targeting a specific segment within that huge market. This will increase your chances of success.
Step 6 – Can You Make Money from Your Niche?
The idea of this entire exercise is to find a niche and make money right?
The final 6th step is to find out if you can make money from your chosen niche. And, also how much money? To see if it worth your time and effort.
There are many ways to monetize from your niche. For example, if you are doing affiliate marketing business, then you need to find out what are the commission rates for your niche?
One way is to go to Amazon, and find out what are the affiliate rates for products that you intend to promote within your chosen niche.
Another way is to go to join Wealthy Affiliate. They have a really useful feature called Affiliate Programs. This tool can help you see what are the commission rates for products within your chosen niche.
You can use the tool when you join Wealthy Affiliate. Click on the link below to get this tool.
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6 Steps to Choose a Profitable Niche
Timotheus Final Word, for Passive Online Revenue
From my experience, you can make money from most niches. The way to achieve that is to help people by solving problems that they face. For example, this video. I am helping people who do not know how to choose a niche.
Once you have found and decided on a niche, you can build your business around it. And start earning money online.
And it can be fun. Especially when you choose a niche that you are interested in. One that you are passionate about.
To get more ideas for choosing a niche, I highly recommend watching the Choose a Niche video on Wealthy Affiliate. Click on the image below to watch that video.
At the same time, do let me know in the comments if you have any questions. Or where you are at in the choose a niche phase of your business? I would love to hear from you.
I look forward to your success!
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