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Discover your Profitable Niche

by | Aug 14, 2022

Imagine yourself calling everyone in a crowd.

What do you think will anybody bother?

No! Right?

What if you call their specific names?

There would be no doubt that they won’t respond. Right?

In this particular article we you will understand what is a Niche? Why specificity or niche is important for your business? And How to choose one for your particular business?

This article is a good read for anyone who is a blogger, an affiliate marketer, a digital marketer, an ecommerce business, or any other professional/freelancer who is selling or planning to sell any kind of products/services in the market.

So Let’s begin by first understanding the term “Niche” itself.

 

What is a Niche?

Niche is a specific market or a sub-market within a market which has a specific set of customers who have some definite needs, interests and behaviour related to that particular market.

This definition might sound pretty vague to you. Let’s understand this with the help of an example-

Within the huge market of women shoes, vegan shoes for pet lovers is a niche market and so is the specialised shoes for nurses,  or shoes made with sustainable materials for a sustainable living can be another and there can be ‘n’ number of such niche markets.

Or as a digital marketer your niche can be Google Ads services for Coaching/ training centres.

And nearly every market can be further refined or divided by specific needs and preferences of the customers.

 

Importance Of Choosing a Niche

Irrespective of what your business is, whether you are a blogger, affiliate marketer, digital marketer, ecommerce business, or providing any kind of products or services as a professional/ freelancer it’s always important to select one niche initially and work on that only. For example –

As a blogger or an affiliate marketer you write, review and sell kids toys of a specific age only and earn affiliate income using affiliate links. Or,

As an ecommerce business owner you discover your niche to be therapeutic musical toys for children with special needs and you only sell such toys on your store. Or,

As a professional who discovers his/her niche to be teaching Indian cooking to foreigners, thereby create courses, target and sell your courses to just foreigners.

That’s how niche targeting looks like.

But you might ask ,’Why can’t I target multiple market segments at one time and be the Jack of All?”

Let me also answer this question and emphasize on the importance of choosing a niche again with the help of an example.

Just think of one company who is providing all sorts of products and services to all kind of customers who are having diverse interests and needs. What do you think what will be the resulting analytics of that company?

Will there be much scope of innovation in that company?

Will there be much efficiency in terms of production and quality?

No, Right!

So it’s very important to focus on one particular segment of market rather than chasing every other market so that your efficiency in terms of working, productivity and quality remains good.

Rightly said,

“The man who chases two catches none.”

If you make your niche too broad, you’ll face too much competition. As opposed to it if your niche is too narrow, you’ll have a hard time targeting the niche. So, keep your niche at a very median level. Try targeting a niche which caters to a larger audience.

Moreover by focusing on a niche your targeting and your brand’s message both remains very clear and effective.

For example as an ecommerce business or affiliate marketer you are selling thick yoga mats to pregnant women so that while doing yoga they their bones won’t hurt as they get overweight or may be so that they can conceive well. That way your target audience would be just pregnant women and your brand’s message would be physical well being of the pregnant women and their babies.

Another example could be of a skilled professional/freelancer who is also a mother, and is targeting women like her to get inspired and teach them a skill or two so that they can make out a living for themselves as well. Then her target customers are mothers and brand’s message is women empowerment.

 

Increased wealth through specialisation

We live in a global population of 7+billion people. And there is an opportunity in every single market whether it’s health, food, legal services, tech etc. And new needs and niches are born every single day. For example when someone buys a new scooter. Now they also need servicing, washing, fuel, safety guards, etc for that particular vehicle. So new needs are discovered every single day. Now you just need to discover and fulfil that particular need in a particular market that you will define best for you.

As everyone specialises in one thing, the wealth of entire nation goes up. You don’t need to do other things yourself as you can hire others who are specialists of their own fields to do up things for you.

And moreover, as you specialise in few specific things, it also becomes difficult for others to compete with you.

 

How to identify your Profitable Niche?

The process is simple but takes effort to research. Your Profitable niche is a combination of three important aspects.

To make it more simple, I have a formula for you.

It’s states n = T ∩ M ∩ P, where ‘n’ stands for ‘Niche’, ‘T’ stands for ‘Talent’, ‘P’ for ‘Passion’, and ‘M’ for ‘Market needs’.

The market segment where these three things intersect each other and get under one roof, that’s the right niche for you.

That means If you have talent or skillset in a particular category and you can create/sell products and services in that category,

And you have the passion to back it up and do it every single day.

Also, that product/service has a market full of prospects.

That’s the way to go.

Discovering your talent

Talent is the skillset you have developed by first acquiring the knowledge and then practicing it day by day, throughout the years to gain some level of expertise in it.

Examples of talent can be – you know how to cook Italian food. That is your talent, or as an ecommerce business owner you have the right skills/talent to run an ecommerce store or as a health expert you know the right practices to cure diabetes using lifestyle and there can be much more.

Although as an Ecommerce business owner or affiliate marketer you may still be selling products which you are not skilled/talented enough to manufacture yourself wholly or partially but atleast have the right knowledge of the product, its manufacturing and processing. And if you are passionate enough about that market and can look for prospects in that market then possibly that can be your e-commerce niche.

The market will not pay you for your passion but will only pay for your talent.

To find out your talent, you should ask yourself, your family, friends, and co-workers on what you are good at. You will surely get answers.

 

Discovering your passion

Sometimes your talent and passions will be the same but in most of the cases, you would’ve developed talent in something else as you grew up. For example, my passion is professional photography but I have no talent for it as I’ve never had the chance to practice it. 

So how do you find your passion?

Passion is that hidden force that drives us towards activities and subjects based upon our natural inclinations. Things you were naturally excited to explore and learn about since childhood and now may have become your behaviour. When you connect with your childhood inclinations you naturally feel happy and contented.

List out things you enjoyed reading about or always fascinated about as a kid. You may or may not have practised it but atleast you are passionate about it.

 

Discovering and Understanding Market Needs

If you want to make a lot of money and still do what you love, you need to combine your talent and passion with market needs. Understanding market needs first involves choosing and validating the market, then eventually identifying your target customers & what are their needs.

How to validate your market?

Before even choosing what products/services to sell, it’s important to understand which market to cater to? Because no matter what product/service you sell, it’ll not survive if it’s in a bad market. And contrary to this, if you find a thriving market, you can sell effortlessly even with a bad product/service or a bad copy.

So start with a market you are interested in based upon your talent and passion. And do a trend analysis using Google Trends.

In India if you check the interest within 12 months time period is consistently above 25, it is pretty much good market to start with.

Search Interest for the term – Digital Marketing.

Understanding the needs of your chosen market –

People want to go from their current situation to their desired situation and your product will be the bridge between where they are and where they want to be.

Only by discovering and understanding the market needs you’ll be able to distinguish between their current and desired situation and then you will be able to design an offer that can help them.

A few ways by which you can understand the needs of your validated market-

– Start with understanding the needs of the market based on the assumptions you already have.

– Find out the top 10 blogs in your niche that you suspect has a market need

– Find the top 10 books in a niche.

– Read the reviews on Amazon and other ecommerce websites for the products in your particular niche. You can also read comments on customer complaint websites. Find out the gaps in the market. See what your competitors not helping your niche with? That’s how you fill a gap in the market and sell your product quite easily.

– Use keyword research tools to find out what people are searching for. Like ahrefs, Ubersuggest, etc

Tools to do niche research

Google Auto-Suggest – When you type some keywords on google, google will  further suggest you some relative keywords. These are the keywords people are already searching for. This will give you an idea what your market wants.

Let’s search what are the market need for a service like Facebook Ads?

Just type in ‘Your_market_name’ and put space.

All the above suggestions are the different micro-niches available to choose from, experiment with, and target in your particular niche.

Amazon Search – If you want to decide a niche or micro-niche for an e-commerce store, similar to Google Auto Suggest here also you can search for related keywords that people are searching on amazon. And choose within them.

Another way is to check for best selling products in your particular niche. Head over to bestseller section on Amazon so that you can have an idea what are the most selling items in your niche. And read below the reviews and queries of the customers then create an offer that they can’t refuse. 

Google Trends – People’s interest in a particular search term over a period of time. You can compare two different topics within your niche for trend analysis and may provide value to your customers in those areas.

Youtube Channels – Find popular youtube channels in your niche and check the type of content they are sharing. Or look out for influencers within your niche who can possibly promote your product/service in the future.

Facebook Ads Library & Marketplace – Look out for the advertisements your competitors are running on Facebook & Google. Longer the time since the advertisements are running greater the chances that the particular product/service is working out for them. And you can enter the market with similar products/services.

Niche Research through a Community – It can be Facebook or Telegram groups. There you can create polls, ask questions, answer queries, do AMA (Ask Me Anything) sessions, ask what they want to learn etc. More queries about a particular topic means your community wants to learn more about that particular topic. So provide them with those resources.

To fulfill the discovered market needs, you also need to discover your ideal buyer. That’s where the concept of the Buyer’s Persona lies. (will be discussed in another post)

After discovering the various opportunities available in a particular market that coincides with your passion & talent, you can decide whether to go ahead with that market or not. Or explore some different markets.

Conclusion

In the above discussion, we understood what is a Niche, it’s Importance, & how to discover your profitable Niche.

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