Niche Market Research

Niche Market Research is about knowing how to find a niche in the market that is less competitive but profitable.

Market niches are those small, but profitable, sub-sets of an already profitable larger market.  And it's through niche market research that you can identify those small but super profitable niches.

Before you start creating a website or begin blogging, first find out how to successfully identify a profitable niche. 

 "Niche Finder Guide"
(Right-click and select "save target as")

Identifying your niche market through Niche Market Research

In order to find a profitable niche it helps to start by looking at the top 5 top things people spend their money on.

Besides the necessities like food, water and shelter people spend their money on things that bring them love, money, health, beauty and entertainment.

Any ideas that peak your interest? Of course these are not niches, they are very broad topics. The next step will be to pick a topic and narrow that topic down to a category and finally down to a specific niche.

For example, beauty has many categories, things like acne, anti-aging, hair care, nail care, weight loss, eye care, etc.

As you determine the categories that interest you it gets harder to determine what niche areas people are interested in and what kind of profitability the niche has.

Using a good keyword research tool will help with this.

For example, if you type 'weight loss' in the Wordtracker keyword research tool free trial, the following comes up:

• vegan weight loss
• weight loss for children
• weight loss for women over 50
• diabetes weight loss

...etc.

These are the very things people are searching for online and we know that because they are typing them into the search engines.

Once you find a topic of interest, there are 3 things I'll need to examine:

• Demand 
• Competition 
• Monetization 

Demand - This is where you'll find out if there's interest in your niche.

If I go to Wordtracker and look up "vegan diet" I see that it has over 45,000 searches and 'vegan diet weight loss' gets over 6000 searches. That's a good indication it may be a good niche.

Competition - Competitors are a good thing so don't let them discourage you. Let's take a look at how your competition can actually help you.

Go to www.google.com and type in "single cup coffee makers".

If you look down the right hand column of the page you will see that there are many paid ads for this term.

This tells me that people are making money on this topic. These Google Ads are a good indicator that a specific niche is a money maker.

Monetization -  Can this topic be monetized? Do you have a product to sell or are you considering affiliate marketing? What products are being sold in this market right now? What advertising can you use on your site or blog for generating income?

Finding the right niche, not only for you but for your market, is a process. It doesn't need to be a long or gruelling process but you need to examine the market carefully.

How you go about your niche market research and getting ideas varies from one individual to another. If you prefer using tools, micro niche finder by James Jones speeds up the process, in fact James has some free videos that can get you started.

If you are doing independent niche market research, use the free keyword research tools like Google Keyword tool and free trial tools like Wordtracker.