Don’t start with a wrong niche

Choosing a niche.

You want a niche that has the potential to achieve your financial goal. Unless you are doing it as a hobby, don’t waste your time, money and effort in non-profitable niche. The worst advice in choosing a niche is “follow your passion”, because your passion may not be profitable enough. Don’t start your internet business with a wrong niche.

But how do we know if a niche is profitable?

You can determine if a niche has the potential to achieve your financial goal by performing the calculation below:
(For calculation purposes, let’s assume the following scenario)

Average number of searches every month    =     20,000 searches
Expected percentage of searchers actually visiting your website    =    3% (this will depend on your Google Ranking)
Expected conversion rate (the percentage of visitors actually buying from your website)    =    1%
Average profit per transaction    =    $20

Average number of visitors to your website
=    20,000 searches  x  3%
=    600 visitors

Average monthly profit
=    600 visitors  x  $20
=    $12,000

Please note that ‘the percentage of searchers visiting your website’ will be increased significantly (can be as high as 15%) if you managed to rank your page in the first page of Google Search Results.

The ‘profit per transaction’ will be based on the product you are selling or the commission you are getting from selling other people’s product or an affiliate program.

To perform the above calculation, there are three variables you need to find out:

  1. Average number of searches per month
  2. The profit from products or affiliate programs available online

NB : To get information on the number of searches for a niche, sign up to https://adwords.google.com/ko/KeywordPlanner/Home

step 1 : Click ‘Get search volume data and trends’. See picture below.

Identifying number of searches.

Step 2 : Type your keywords in the box. Make sure you enter your niche keyword like this – [niche keyword], if you don’t put the keywords in square brackets it will not bring up accurate results of the amount of people searching for that keyword every month. Select the targeted location and hit “Get search volume” button. See picture below :

Type in keyword to start earning money online

Step 3 : Look for a niche with at least 10,000 search monthly. See picture below :

Result of keyword search for earning money online

Above result shows average monthly searches of 12,100, I will not consider niches with less than 10,000 searches monthly.

 

You do not want to choose a niche in dying trend

You need to have a niche that is growing in trend, or at least not dying off.

NB : Check your niche if it is in a dying trend at https://www.google.com/trends/ .

Step 1 : Sign up to Google trend. Put in your keyword for your niche, see picture below : 

Google trend in making money online

Step 2 : Evaluate the result. See picture below :

Google trend on earning money online

Be-careful of competitions

When a niche has great potential, over hundred thousands of searches every month and in growing trend, that niche might be already facing tough competitions. For example you would like to choose ‘Sports Attire’ as your niche, then you will be facing huge competitions from big corporates like Addidas, Nike, Under Amour, Polo and etc. It will be quite impossible to get your site ranked on the first page of search results with those big boys spending tremendous amount of money in advertising and SEO.

In this case, you may want to consider to narrow down the niche to maybe ‘Sports Attire for Toddler’ , ‘Sports Attire for The Underprivileged’ , ‘Swimsuits for Pregnant Women’ , etc. To learn how many competitors are having the same niche or using the same keyword, click here.

Choosing a niche is the first step of starting an internet business. Spend enough time and effort to choose the correct one.

 

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7 Comments

  • Profile photo of Kickstartdream

    Kickstartdream

    November 7, 2016 at 6:06 pm

    Yes that is the right link.

  • Profile photo of Abundantia

    Abundantia

    September 12, 2016 at 5:32 pm

    Thanks for sharing this information.
    I didn’t know about tools that can help me find out if my niche is a profitable one or not. I wish I knew this before I started my niche: healing with coconuts.
    I will do a search to find out if I’m on a good path or if I should close this down and start a whole new niche. I sure do hope I am on the right track. I have
    put a lot of effort on my website so far.

    Tove

  • Profile photo of jimcarlsen

    jimcarlsen

    September 9, 2016 at 9:21 am

    When I go to adwords planner, it brings me to a different page than you show on your site. It brings me to a page where Google wants to sell me some ads. What’s wrong?

  • Profile photo of jimcarlsen

    jimcarlsen

    September 9, 2016 at 8:54 am

    That’s good information that makes sense. I’ve been told before that any niche can be profitable, but of course I took that with a grain of salt. But still, I didn’t do any of this research before selecting a niche that I am already pursuing. Should I do the search now to see if it’s worth my time to continue with what I started?

  • Profile photo of Grant5787

    Grant5787

    August 28, 2016 at 10:08 am

    Very interesting. It’s good to know what you want to make per month and work backwards and see how many visitors you need to make that happen.

    • Profile photo of Kickstartdream

      Kickstartdream

      August 30, 2016 at 10:15 pm

      Yes Grant, but a lot of people over-looked this important step and dived directly into a niche without knowing if it has the potential. By spending just ten minutes on this simple calculation, we can have a clear target of the amount of visitors we need to attract to our websites and subsequently determine the marketing strategy.

      • Profile photo of Abundantia

        Abundantia

        September 13, 2016 at 10:29 pm

        Well, I learned that finding a niche should be centered around your interests, your favorite hobbies or passion.
        I can’t say that I knew about this tool before I found my niche. And now I am having doubts about the niche I picked.
        I tried to use the google.com/ko/keyword/Planner/Home but I couldn’t find the right link. Is this link the right one?

        Tove

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