How to find profitable niche markets

how to find a profitable niche

by Alex on May 19, 2010

This is my step by step process to finding the right Keyword for my next site or promotion, and the steps I take to make sure it will be a profitable promotion, using only the free tools available on the web.

This started as a post about the entire Keyword Research Process that I follow, but 3000 words in I am realising that perhaps a series of posts are in order. So without further ado I give you…

Step 1: Finding a niche marketlooking for a profitable niche market

If you already have a product or service in mind then you can skip this step, but I would still recommend that you run your product through this process anyway because it will provide valuable insight into that particular niche market – as you will soon see.

Before you can start a successful site (using only the best Keywords of course), you need to make sure that the product or service you are promoting is profitable. There are a no. of sites/services that can provide insight into this and when combined together, can give you a good overview as to the potential of a product. There are probably a good thousand sites that can be used to garner what we need, but for simplicity’s sake I’m listing the sites that I use EXCLUSIVELY when searching for my next niche market.

  • Ebay Pulse is available at http://pulse.ebay.com and is a daily snapshot of current trends, hot picks, and cool stuff on eBay. There is a drop down categories list above (I mention this because it took me a month to notice it!)so simply choose the category that your potential product exists in and see if it is there.
  • Amazon Best Sellers is probably the most popular destination for niche research and when you think that Amazon is the largest supplier of goods online, it is easy to understand why. If it’s selling on Amazon – it’s hot! Simply go to Amazon.com and on the left hand pane you will see the option fot ‘Bestsellers’ Simply click on this (or CLICK ON THIS) and you will have access to all their bestselling items, as well as the ability to search by category of course.
  • ClickBank is the number one digital marketplace online and is always a good place to go and check that you are entering a profitable niche or that the product you are promoting has related digital products that you can potentially promote. What you are looking for over anything here is Gravity. As a general rule, the higher the gravity, the more affiliates are promoting the product. And it’s fair to assume that the more affiliates promoting the product – the more the product is actually selling! Follow this link to VISIT CLICKBANK
  • Yahoo Answers is a great place to assess what the people want to know. Granted this is not the best if you are looking for specific products to promote, but if you are looking for quality content to use as link bait on your new niche site, the yahoo Answers directoy is certainly the best place to start as it provides you with topics you KNOW people are curious about. Of course if they are asking about the product in question – you’ve just hit a goldmine! Follow this link to VISIT YAHOO ANSWERS.
  • Google Trends is a tool connected to their Adwords tool that allows you to compare the world’s interest in your favorite topics. Enter up to five topics and see how often they’ve been searched on Google over time. Google Trends also shows how frequently your topics have appeared in Google News stories, and in which geographic regions people have searched for them most. Follow this link to VISIT GOOGLE TRENDS

So Now we have found a product (eg a high chair) or specific topic area (eg babies and feeding time) that is clearly going to be profitable! … now what?

It’s time to find the right keywords to support your new product and create the basic framework that you will ultimately build your mini niche site around. But finding the right Keywords is an art form – It’s more than just checking the search volume against the competition.

Stay tuned for the next post in the series on niche Keyword Research where I talk about How to locate effective keyword ideas as well as identifying and interpreting keyword trends.

Alex Uses and Highly Recommends:
Try Market Samurai now for free!

{ 23 comments… read them below or add one }

Scott Barron May 19, 2010 at 12:03 PM

Excellent post!

I love Google trends, but I’m still running into the wall we discussed last night.

I’m stuck in America. Per Google: “Google Trends uses IP address information from our server logs to make a best guess about where queries originated. Language information is determined by the language version of the Google site where the search originated.

Ok, so you’ve got high-chair, babies and feeding time. We have those in America but with different rules and regulations. The Regalo high-chair you mentioned is not available here, however Regalo has an international office in Burnsville, MN USA.

Sorry, I’m just thinking out loud. I’m trying to figure how to get a global niche; reverse that, niche globally. Honestly, I’m not even sure how you got out of Australia! :-)

Can you make a quick phone call to Queen Elizabeth II, Quentin Bryce & Kevin Rudd and tell them I’m having trouble finding a global niche and ask their suggestions. I think they are a local call for you? ;-)
.-= Scott Barron´s last blog ..Choose a Fax Service =-.

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Scott Barron May 19, 2010 at 1:31 PM

Hi Alex,

Can you fix Jean Sarauer’s link on your Top Contributors page? Her link is broken :-(

It takes me to the wrong virgin when I click it!! Unless Jean has other websites for virgins. :->

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Alex
Twitter:
May 19, 2010 at 2:08 PM

Thanks Scott! Not sure how that happens since it automatically links (after I allowed it) Will investigate….
And I called Big Kev and Quinny for you, but the Queen’s in England – get the infopreneur to call

As for your first response – you raise some really good questions and certainly is something to think about – and post about. Now to Google the answer – D’OH I only get Australian Answers

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Jean Sarauer May 19, 2010 at 2:36 PM

What, Alex, you thought 3000+ words might be getting a little long? :) Smart move to turn this into a series. You could even add a bit for a free report to gain opt ins. I’m a fine one to talk about free reports since I haven’t even written one yet.

Sorry to hear you’ve been sent to the wrong virgin, Scott :) I’ll look into the link tomorrow, as my brain has used up its entire charge for the day.

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Jean Sarauer May 19, 2010 at 2:50 PM

Just decided to check something easy here, Alex. It looks like I typed the URL incorrectly on a previous visit, so I’m going to fix it and see what happens. If there is smoke coming from your site, you’ll know things didn’t go well.
.-= Jean Sarauer´s last blog ..And the Winner is . . . . =-.

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Jean Sarauer May 19, 2010 at 2:52 PM

Sweet! That worked slicker than socks on a duck! No more links to strange virgins.
.-= Jean Sarauer´s last blog ..And the Winner is . . . . =-.

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Alex
Twitter:
May 19, 2010 at 4:29 PM

“Sweet! That worked slicker than socks on a duck!”
HAHAHAHAHAAHAHAHAHA. That expression had me going off like a frog in a sock! GOLD Jean – pure quacking GOLD

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Scott Barron May 19, 2010 at 2:55 PM

Yah, I’m thinking it could be beneficial to explore the Australian blogosphere.

After all, you’ve sent us your share of good actors. Nicole Kidman, Heath Ledger, Russell Crowe, Hugh Jackman & Cate Blanchett. (We’ve tried to return Mel Gibson – unsuccessfully.)

After examining my website, my articles were written in the US mind set and wouldn’t render my site globally useful. I also noticed differences when I read your Ezine article about starting a business. Laws, permits, licenses, business & tax structures, federal/state/city/county tax withholding, health care, deductions, workers compensation, and educational reimbursements are all different.

Actually I learned most of that from my last company. We outsourced most of our business lines because it’s just too expensive to operate in the USA. We had to keep a “visible” amount of American employees, basically just for “show”.
Sadly for us, it really made sense to outsource to countries that provide their own health care and education. Places that didn’t have laws to govern “overtime” or “paid breaks & lunches”.

Sorry, I’m off on another tangent. My ADD kicking in.
.-= Scott Barron´s last blog ..Choose a Fax Service =-.

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Matthew Big Red Tomato Company May 19, 2010 at 10:18 PM

Hi Alex,

Great sources of inspiration here. Have you thought about Google Wonderwheel ?

Just a thought.
.-= Matthew Big Red Tomato Company´s last blog ..Lessons from Lady Gaga and Luke Skywalker =-.

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Alex
Twitter:
May 20, 2010 at 9:34 AM

Have not used Google Wonderwheel. Just checked it then and it certainly looks interesting, As I understand it, it’s simply the adword tool with a bit of a mindmap formatting added. Personally I Like it! Have not used it but from what I can see – it has certain advantages.
Thanks for the tip Matthew (Congrats on the upcoming launch btw!)

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mark
Twitter:
May 20, 2010 at 3:19 AM

Hey Alex –

This looks like a great beginning to a great series, certainly one that I am interested in reading.

Of course, if you can get Jean to mis-type her URL every time, the comments will surely stay hilarious.

I am only familiar with Google Trends, and like Scott, I wish that it was a bit more useful. Nonetheless, this is a great beginning!

Have a great day!
.-= mark´s last blog ..Selling Rapture Insurance – Creative Thinking For a New Age =-.

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Alex
Twitter:
May 20, 2010 at 9:37 AM

Hey Mark Thanks! Really good to get that sort of feedback and I hope I can continue to bring some value throughout the series.
(looking at the calibre of my readers, I’ve got some work to do to keep it up to scratch lol)
I agree with you and Scott about Google Trends though. Granted you can get an idea of what search trends have been happening, but not once, and I mean, not once have I really factored this into my decision on a niche product. It’s good if the trend confirms what I already think. but in the instance where the trend has not existed, I have still profited from the site.

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taj May 29, 2010 at 10:51 PM

Awesome advice. Thank you so much for this article… it may just be the best free information I’ve ever come across! I’m fairly computer and internet savvy, but I never thought about the specific strategy you suggest using. It seems so logical I’m like, “Why didn’t I think of doing that??” Thanks.
.-= taj´s last blog ..?????? ??? ??? ?? ?????? ??? ????????? ?????? ??????????? ??????? ?? =-.

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Louis
Twitter:
July 9, 2010 at 12:52 PM

Hi Alex,

One tool I think worth mentioning is MSN’s commercial intention tool where they give you a % figure on the commercial intention on a market/niche. Worth checking out. I will talk about this at some point at my blog. I’ve tried the ones you have mentioned except Ebay pulse.

Louis
Louis´s last [type] ..Are Memberships Sites PLR Content Worth A Try For Search Engine Traffic

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Alex
Twitter:
July 9, 2010 at 2:45 PM

Awesome Louis, thanks for the addition to the list. I have not heard of that tool, mind you I have not really delved into the Yahoo/MSN side of things as yet (too cheap to pay lol!)
Thanks again for stopping by and adding your little bit of value (as always)

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Alex
Twitter:
July 9, 2010 at 2:56 PM

Louis,

You have the honorable title of being the blogger who left the 1000th comment on my blog!
Awesome man!
:)

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Louis
Twitter:
July 10, 2010 at 11:22 AM

Hi Alex, glad to have made this happen for you. Louis
Louis´s last [type] ..Are Memberships Sites PLR Content Worth A Try For Search Engine Traffic

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Heru Kurniawan July 19, 2010 at 4:31 AM

Great detailed description of using Google trends and easy to understand. I really appreciate you sharing this info on your blog. A question: I am trying to figure out how to use Google Adwords. I see that I will need to pay $5.00 to sign up. Do I also need to pay for each ad I place within the eHow articles? Or is Google Adwords strictly a research tool that will cost me nothing beyond the initial start-up fee? Thanks for any clarification you can offer. I think you’ve inspired me. I may just do a tutorial on this subject because I’m getting a little long-winded here. I hope my rambling has helped you some, but check back for more updates on the topic. :) Thank you for your answer..
Heru Kurniawan´s last [type] ..Balance- Important Factors Great Golf Swing

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Alex
Twitter:
July 19, 2010 at 11:37 AM

Hey Heru,

Thanks so much for your kind words and really glad you are enjoying the posts.
As for your question, I am sorry to say that I cannot answer the initial part as I have not tried PPC yet. I have an adwords account but I dont remember having to pay $5 to get started.
The Google Adwords tool is the keyword research tool that Google provide free (because it uses the information from Adwords to give the results we all see) so there is no initial start up fee at all.
Hope this helps, and thanks again for stopping by Heru.

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Michelle July 30, 2010 at 1:56 PM

Investing on a niche finding tool may be well worth it. Especially with the numer of competition out there, it is almost impossible to find niches all on your own.

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Alex
Twitter:
July 30, 2010 at 11:38 PM

Hey Michelle,

This is true, luckily I have Keyword Research Pro which also does this for me

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cory wilson October 14, 2010 at 3:50 AM

Nice post. You tackled the most important things to know before starting to promote a site or product. Great informations. I’m everyone here will profit from the knowledge that you shared.

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DomainS November 2, 2010 at 9:14 AM

While the tips, you give are good, I have deep concerns about following these trends. We are far more effective recommending stuff we like, use and know. Besides, unless there is severe cash investment, is virtually impossible to get quality traffic overnight. The site has to be bred. The post and advice are good are usual.
DomainS´s last [type] ..The Development of a Mini Site- How to Play Darts

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