In this blog post I am going to help you create the correct mindset and identifying profitable niches (including sub-niches).
And more particularly I am going to talk about profitable niches for a newbie or semi-advanced marketer. So if you are not a “guru” marketer that makes millions in the most profitable markets in the world, then this blog post is for you..
Ok. So if you want to make money online you can become an affiliate and make affiliate commissions or sell your own product. If so then you have to find profitable niche markets that you can market to. Targeting in the wrong niche will not make you money!
But WHAT exactly is a profitable niche?!
Is it only a niche with lots of interested people?
Is it only a niche with lots of buyers?
Is it only just an untapped niche that none other marketers are selling at?
Well to my eyes from all the years I’ve been marketing online I discovered that a profitable niche is where..
- A group of people that has a common PROBLEM.
- There is a SOLUTION to their problem.
- People are SPENDING MONEY to get their problems solved.
- You can REACH all these people.
- People BUY your solution (the one you recommended or the one you created).
I will explain everything below.
So let me ask you a question. Do you know WHY people buy stuff? To solve a problem. This can be a BIG or a small problem. People are paying for something (product or service) because it’s going to solve a problem. That’s why you are opening your wallet every day to buy food, furniture, software, property, car insurance, stocks and even INFORMATION (eg. internet marketing products). To get your problems solved.
Now the niches that have the biggest and most serious problems (eg. health problems, money problems, family problems) have the most buyers. Why? Simply because in those niches, people are DESPERATE to get their problems solved (in most cases anyway). This is where people are spending money for a solution.
So this is where we as internet marketers/affiliates come in. To offer a solution either by selling our product or by simply selling someone else’s product as an affiliate.
Now the next part (which I believe this is where most marketers/affiliates fail) is to reach all these people (that have a problem and have the money) and convert them into buyers. One reason is competition. This is where most of you (and even me) most of the times fail and we then simply chose an easier niche to target which in reality it’s NOT profitable!
But Andreas isn’t competition bad?! Because I will have to spend money or time? Actually competition is good because it shows you that there is money spending in that niche. You definitely DONT want to lose your time and money in a wrong niche.
Of course that’s a VERY large subject and can’t be covered completely in a single blog post or even in a 100 pages ebook. Hundreds and hundreds of traffic products (information that gives a specific solution) are available in the market today. So I just wanted to mention that there are only two types of traffic. Paid and Free. Which one is the best? Of course it depends from the source of the traffic (Facebook, Google Adwords, Search engines, banners advertising etc). But in order to be a profitable for you (hence a profitable niche for you) it depends on how much “investment” it requires you to have. How much does it cost (money and time) you marketing in that niche?
If your expenses (I will call it an investment) are lower than your earnings then the niche is profitable for you!
Of course in order to make a profit you have to convert the traffic (the desperate people with problems and spend money to solve them). Give them value! A good solution and even more value (by giving a bonus) and that niche will be profitable for you!
It can be a tiny sub-niche and you earning might be just $50 per month. It doesn’t matter! All that really matters is if you can make a profit from that specific sub-niche.
So basically a profitable niche is all above EVEN if there are not millions of buyers. The secret is finding lots of profitable sub-niches and then leverage on those profitable niches with some smart marketing.
More on this in a later blog post.
If you want me to write a blog post on how to leverage your profits simply let me know! Remember I am here to help you. If you have a question leave a comment below before you leave my blog! 
If you are shy (I was too so I know how you feel) or don’t want others to see your question you can contact me privately.
To Your Profitable Success!
Andreas
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Hi Andreas,
As per usual a quality post from yourself. As you say a profit can easily be achieved from a niche if you identify the correct prospects.
In today’s market more than ever, the need to divsersify your income streams is more important than ever, and as such we all need to find those profitable niches.
Keep up the good work,
Paul.
Paul Power´s last [type] ..The Value Of Listening To Your Mentor
AndreasSpyrou Reply:
August 17th, 2011 at 4:55 pm
Hey Paul!
Thank you for your good comments! I am just trying to help as more as I can.
Of course. We need the correct prospects which unfortunately most marketers will not give you the complete puzzle.
You are right about diversity. You might have a big website in a profitable niche that receives hundreds of targeted buyers and making money but it can be postponed for any reason.
Keep up the good work too!
Take care,
Andreas
One of the things that has always confused me was when a “guru” would suggest finding a market that had little competition. What didn’t make sense and still doesn’t is that those markets when you studied them had very little traffic and or little in the way of additional keywords.
Going after bigger markets, even with those with more competition, makes more sense. To borrow from Gary Halbert, it would be better to have a hotdog stand in a crowded hungry city, than an empty desert. Yes there would be more competition, but there also would be more buyers.
AndreasSpyrou Reply:
August 17th, 2011 at 4:48 pm
Hey Dave!
You are right. Gurus are confusing as all the time. Some tell us to target the BIG niches because there is money in and some other tell us to target untapped niches.
In the first case someone can make a lot of money IF he can REACH them and offer a solution. Its impossible for a newbie marketer to “swim in the deep water” and offer a solution because other marketers or even companies are already stronger and know eg. the value for each visitor. In this case the newbie will most provably fail..
In the other case when we are hunting an untapped niche we finally get visitors but the most likely these people will not make you money simply because they are not buyers,
So how do we start? We start targeting sub-niches with little competition but in a niche with some buyers. They might not be thousands or million of buyers but only a few hundreds. It doesn’t matter because you are able to REACH them and make some profit.
You then build more websites “hunting” for more buyers..
From there you start experiencing with all the new traffic and conversion techniques you learn etc.
The next “level” involves list building and networking with other marketers building more websites in a similar targeted sub-niche to get more buyers (and MORE advanced things) which basically leads you closer and closer to the BIG profitable niches.
This is a secret that most marketers will not teach you. I hope you have a better view now how a newbie and semi-advantaged marketer can get in profitable niches.
If you have any more questions let me know.
Take care,
Andreas
PS. Here is a quick example in a “hungry” market.
If someone opens a restaurant in all cities and countries across the world offering all the kind of food then I am not sure if he can make it! You first open the restaurant eg. selling fish, in a small city (to be able to REACH them) where people want to eat fish (PAYING for SOLUTION). You get your first “buyers”. You might be not making millions online but you are able to market them and make some profit. From there you open more and more restaurants and expanding across all the country and offering an extra dish in your menu etc..
Hi Andreas, hope you’re well.
I really think you hit the nail on the head when you said find a solution to people problems. Like you said they’ll spend money to solve a problem.
Lots of people make the mistake of just jumping on the band wagon when it comes to affiliate marketing and when they find the products that do solve problems they don’t buy them and really asses the products.
They’d get a much better result if they did because they could mention the depth of the product and maybe point out a concer or 2 to show they have their targets (potential customers) in mind.
I also agree that competition is good. Like you said Andreas it shows where people are spending money.
Talking of competitions, I have a challenge going on over at my blog and would love for you to join in Andreas. It’s not very time consuming
Hope you can join in mate,
Barry
Barry Wells´s last [type] ..Challenge: I Am Showing You Mine But Will You Show Me Yours?
AndreasSpyrou Reply:
August 18th, 2011 at 8:35 pm
Hey Barry!
Yes I am well what about you?
Yea if you target a niche with no problems and solutions then it will be difficult to make a profit. Thats why most marketers target the “internet marketing” niche because there are lots of different problems and LOTS of solutions. Our task is find the most valuable solutions for our subscribers.
Unfortunately a LOT of newbies afraid to buy an internet marketing product when they first start out, but then they buy a scammy 1-push button software or anything else that requires no work at all because they THING thats the big secret!! (Which is NOT)
AND THATS THE FIRST MISTAKE!
They then believe that ALL products are worthless and scam
and avoid investing in REAL information because they are always looking for the easiest solution!
Competition is also good because you can work together with other marketers that offer similar solutions and help each other. The power of networking is extremely powerful. More powerful than trying to sell many of different solutions on your own..
Take care,
Andreas
PS. Yea I know about the challenge. (I’ve been on your blog yesterday). I like the idea but I would prefer showing your blog post in my blog and via versa or something like this rather than a video. I know that its important for you because of Sally’s training but we can try the idea above or any similar idea if you want to.
Hi Andreas… Today you inspire me…
Yeah, looking the hungry market is still my problem. Some gurus told me, You can sell everything on internet. But, I’ve never sold any. Honestly I fail identify the niche one. So, I must learn and practice to get my success
Thank you so much for sharing…
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AndreasSpyrou Reply:
August 18th, 2011 at 8:14 pm
Hey Myrial!
Thanks for your comment and for your kind words.
Well yea sure you can sell anything online. Just have a look on ebay (Everything Else >> Weird Stuff category) for some unbelievable items some people sell BUT we dont try hunting an unusual niche because the most possibly the income will not be contiguous.
Follow my advice to identify a niche and then test it. Is it a money making niche? Can you get traffic? Then give them what they are looking for (give as more value as you can) and try improving your conversion rate each time.
Then you simply repeat the process targeting some other profitable niche.
Remember each niche is different. You sometimes expect more profit but you get less and other times you get unbelievable profitable results.
Ok if you need specific help then let me know!
Take care,
Andreas
Hey Andreas,
Super cool post on profitable niches, very interesting read and clearly explained.
I have not really found a particular “niche” outside of I.M as such yet, but I am still looking, thing is… I need to be passionate about it or I just dont wanna do it, lol lazy thing I know.
But when I do find something I am passionate about and want to create products on etc etc, then I will be sure to remember and check it matches all above criteria!
Catch ya later,
Sally
Sally´s last [type] ..I’m soooooo proud of my LWS students already!
AndreasSpyrou Reply:
August 19th, 2011 at 2:26 pm
Hey Sally!
Thanks for your good comments.
Of course you said it right. We also have to have passion about a specific niche if we are looking for a long-term niche. But you can still target several profitable sub-niches without putting 100% effort and still make good money by following the above steps. If you can add automation, networking, outsourcing and of course passion then you can multiply your profits!
The I.M. niche is one of the most profitable niches online. If you are passionate you can produce your own products and mentoring program to multiply your profits! (basically what you are doing now…
)
Take care,
Andreas
Hi Andreas,
Nice post about profitable niches. It is really important that we research about the nature of business we want to invest in. That is why others even have feasibility studies to make sure that there is a market for their business.
AndreasSpyrou Reply:
September 8th, 2011 at 2:46 pm
Hi Vie!
Thank you. Exactly. It is important to do the research first and even feasibility studies before entering a market.
Many people do the mistake of choosing a niche (counting my self also but I am learning with every small “failure”) without counting all the points in my post.
If you need help or have any specific questions just let me know.
Take care,
Andreas
I need this information at this moment and I hope this will work for me…Thanks…
Suzanne´s last [type] ..glass blowing
AndreasSpyrou Reply:
September 16th, 2011 at 2:51 pm
You welcome Suzanne,
Remember if you have any questions don’t hesitate to ask me please by replying on this blog comment or via email.
Take care,
Andreas
Andreas, Interesting article on Finding “profitable” Niches. One can use tools like Google trends, and GKT (Google’s keyword tool) to find and select untapped niches and profitability too. Although data provided by them are not much accurate and i don’t understand why but they’re still worth using as you can explore a lot about niche you’re researching.
AndreasSpyrou Reply:
October 3rd, 2011 at 10:11 am
Hi Joel,
Thanks for your comment and good words.
Although that tools like Google Trends and Google Adwords Keyword Tool are Free it still worth using it to find profitable niches. On the other hand if you are serious about profitable niche researching and exploring a lot more details about the niche you are targeting then the #1 tool is called Market Samurai. I would HIGHLY recommend to use it for your profitable niches targeting. You to try the free trial version first to see how powerful this software tool is.
Take care,
Andreas
Hi Andreas,
I agree with you that profitable niche is a group of people that have a common problem. However the biggest challenge of all is how to connect with them. I’m really having difficulty in that aspect. Perhaps you can shoot me a tip in my e-mail. Thank you
Caesar@woodfield country club´s last [type] ..Andrea Chang Joins "The Champagne & Parisi Team" of Lang Realty
AndreasSpyrou Reply:
October 15th, 2011 at 10:03 am
Hi Caesar,
Thanks for your comment,
You are right the biggest challenge is to connect with those people. You can do this by building a good relationship with them and this takes some time and work.
You have to help those subscribers as much as you can. You have to make them feel that you are someone that they can trust and get help on solving their problem.
Never “sell” too much solutions because they will not trust you and they will think you only care about your commissions which is not something that you have first in mind. Always try giving the best help and solution as those subscribers were your relatives, without thinking how much money can I make etc..
Hope this helps.
Take care,
Andreas
I think that such group of people exists because it is allowed to exist. So in my opinion the fault is the governors, administrators, etc. And sadly – they are all connected:(
Anna´s last [type] ..Is wisdom tooth removal an option for me as an adult?
AndreasSpyrou Reply:
November 14th, 2011 at 3:31 pm
Hi Anna,
I am not sure if I understood what you mean. Can you please explain in more detail what exactly you mean its Governors, administrators fault?
Take care,
Andreas
Hello Andreas,
Great post – you made a lot of good points, but one of the key ones, and one which many affiliate marketers will struggle with, is the fact that competition is a good thing not a negative one. It’s a sure sign that there is money to be made!
At the end of the day, it’s a lot easier to rank for some popular keywords than people might imagine. It does involve a little work, and also requires some patience, but it can very definitely be done. So don’t let competition scare you off!
AndreasSpyrou Reply:
November 14th, 2011 at 3:28 pm
Hi Hamish!
Thanks for your good comments.
Exactly. Entering a market that has competition is actually good because most of the times this is where the money is. Of course you have to try entering that marketer from a different angle and this is where most newbies fail.
Yea, that’s right. You have to work a little bit and have some patient if you want to succeed. Most will find an excuse and quit after trying.. once or twice by using a 1-push button…
Thanks again for your comment.
Take care,
Andreas
PS. Did you read my FREE affiliate marketing ebook? http://www.newbieaffiliatemarketingprofits.com/
Identifying profitable niches has been so hard for me considering the number of competitors existed in the Internet. I’ve learned a lot of strategies but sometimes it won’t work anymore. Thanks for advising a correct mindset in identifying a profitable niches, It’s indeed big help for me.
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AndreasSpyrou Reply:
December 6th, 2011 at 4:12 pm
Hi Amy,
Thanks for your comment and for your good words. I am just trying to help as much as I can and teach others what I’ve discovered through trial and error all these years I’ve been marketing online.
Diferent strategies are always discovered but you DONT have to keep up with all of them. One of the most critical parts is traffic because most of the times a profitable niche is where there is competition and most marketers cannot drive the correct traffic to their own websites.
If you have any specific questions just let me know and I’ll be happy to help you out.
Take care,
Andreas
Proper keyword research fuels internet businesses. If you can identify niche markets and keywords that potential buyers are searching online, your chance of making a decent income online is pretty much certain.
AndreasSpyrou Reply:
December 12th, 2011 at 3:26 pm
Hi Dan,
Exactly. This is the “secret”. You have to find the “buyers” keywords and be able to reach them so you can make money. I would prefer havving 1.000 buyers visitors than 30.000 non buyers traffic.
Thanks for your comment. If you need help with anything specific just let me know by replying to this comment or by email.
Take care,
Andreas
We dienfitely need more smart people like you around.