In this video, Mike Mindel shows you how to find a profitable niche market for a new website. You’ll learn how to find that gap in the market where searchers' needs are not being met by enough suppliers, so your new product or service can fit right in and compete successfully.
Primarily aimed at those of you at the start of your research process, this time-tested way to find a profitable new niche market will be of use whatever your level of SEO knowledge.
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In this video I'm going to show you how to detect a profitable niche market for a new website.
You’ll learn how to find that gap in the market where searchers needs are not being met by enough suppliers, so your new product or service can fit right in and compete, successfully.
Just so you know who’s teaching you, my name is Mike Mindel and I’m the CEO and founder of Wordtracker.com, the popular keyword research tool.
I'm going to assume that you're at the start of your research process and you're looking for a time tested method that you can use to find a profitable new niche market right now.
So how do you find a profitable niche market?
Well, as the late Gary Halbert would say, you're looking for a starving crowd. When it comes to marketing online, the most profitable habit you can adopt is to seek out groups of people who are hungry for a product or service; they are probably going to spend money to get it and if you supply it, you'll get some of that money.
So specifically this means you're looking for:
1) Demand: Are there enough 'hungry people' easily reached? More demand means more potential traffic which means more sales for you.
2) Profitability: Are they willing to spend money to satiate their hunger? You want to make sure you are targeting a niche market that buys stuff.
3) Competition: Are there enough suppliers spending money to reach the 'hungry people'?
Don't be afraid of competition - it's actually a good thing - it means many people are making money in that particular market.
But don't celebrate if you see hardly any competition (like when do you a search for cat), because that's usually a sign that nobody is selling anything to anyone.
What you're looking for is some competition, so that when buyers in your niche market go looking for answers, they find just a few options, and you're one of them!
Just remember: Demand, Profitability, Competition.
So where do you begin your hunt for a profitable niche market?
Look around offline or online until you find something that interests you. There are millions of niche markets out there, so it pays to pick a market that you enjoy working with, even better if you're passionate about it.
A good rule of thumb is that if there's a magazine for it, there's probably a large group of people who are interested in it too, read a niche market you can serve.
If you look at Magazines.com for example, and select the 'Home & Gardening' category you can see there are 22 magazines about gardening.
There also a magazine for the niche market organic gardening. Both look like active markets to me.
Let's use the free Wordtracker keywords tool to find if there's any demand for organic gardening.
We'll start with gardening because that's the top level keyword for this market.
The free keywords tool shows you a list of keywords, real search terms made on search engines. Each keyword is also a niche market within the gardening market. The searches column shows you the relative sizes of these niche markets.
We can see for example that in the gardening market, organic gardening is the seventh most popular keyword.
If we click on organic gardening, you can see this niche market is defined by the keywords people use when they're searching for what they want.
Notice how keywords like organic gardening tips and organic gardening for beginners cluster around the root organic gardening keyword.
You may find it helpful to think of these searches as evidence of niche markets. You're looking at the language that buyers and sellers use in the gardening market.
These searches are clues to the thoughts in people's heads and reflect their true needs and desires. Your job is to find these needs and desires and give the market what it wants.
Don't get too hung up about the search numbers. If it seems like there are enough searches, as there are here, that's good enough for now. Now the free keywords tool is useful, but you have to bear in mind that each of these searches are only for the exact keyword.
So organic gardening gets exactly 684 searches in our database, but only if the searcher types the words organic gardening into the search box.
At the top, you'll see this number, 1,592 searches, which is all the searches for the top 100 terms in this keyword tail such as organic gardening tips and organic home gardening added together and gives you an idea of the size of the whole niche market.
You'll need this aggregated information to be sure you're targeting a niche market with plenty of traffic potential.
You'll also be needing data from multiple niche markets so you can contrast & compare and this is where we need to leave the free keywords tool behind and start using the full Wordtracker keyword tool.
Wordtracker will help you quantify and prioritize your niche markets so you can make the best selection for you.
Here's what the full Wordtracker keywords tool looks like:
So, let's create a new project called 'gardening' and then start your research by putting gardening into the search box, because that's the top level keyword for this market.
Then you'll click 'search' and then 'search and save'.
Behind the scenes, Wordtracker will quickly find 1,000 of the possible keyword variations for this niche market, add up all the searches and put them in a new list.
Then let's say we're interested in gardening advice, again search and save organic gardening, vegetable gardening and hydroponic gardening.
We can also search for niche markets related to gardening. Let's put gardening into the related search, also known as the orange tool.
Other niche markets of interest include flowers and plants. If we put organic gardening into the same tool we get pests, compost, organic vegetables and vegetable gardens.
Now when we go back to the projects tool, we can see just how many keywords and searches are available for each of our niche markets.
If we sort by searches, we can see that flowers is by the far the biggest, followed by plants and then gardening. Organic gardening is a smaller niche when compared to flowers but there's still some demand.
But let's keep going.
Next we’ll look at the most popular relevant websites for related words.
Search Google with a seed keyword you like, in this case we'll use organic gardening.
The first entry is http://www.organicgardening.com/. So let's look there and see what subjects they cover and the relevant words they use.
Some new words have emerged here, like:
- compost and soil
- organic living
- harvest techniques
- growing techniques
Let's put them into Wordtracker and explore each niche market.
At this stage, we're simply collecting as many possible niche markets to investigate, but remember, you're always on the lookout for a need that many people have that you can fill with your own product or service.
There's something else I should point out. You can come back to your lists and project at any time, develop and refine the niche markets and use them to plan the contents and structure of your new site. So none of this research work is ever wasted.
Which niche market do you choose?
You've got an important decision to make. How much of the niche market are you going to target?
Are you going to create a big site like gardeners.com for the whole gardening market and then target all the biggest niche markets like flowers and plants?
Or will you bite off a smaller chunk of the market, like organic gardening where there's less overall search volume, but also probably less competition, which means it's easier for you to enter the market?
Well, the decision is really up to you. Again, where does your interest mainly lie and how much content do you want to create?
Are you going for a straight ecommerce site which will mainly focus on products to sell?
Or an information or news site or a blog with an ecommerce component like http://www.kitchengardeners.org?
To help you decide, I'd advise taking a look at the competition for two or three of the niche markets that interest you.
So lets say we're looking at organic gardening, click on 'Get Additional Metrics' and then select 'Include Google count' and 'Quote keywords when searching Google'. Then click 'Get Additional Metrics'.
These additional competition metrics will tell you if there's any low hanging fruit in this keyword list that we can use to create content and enter that market.
Looking down the searches and competition columns I can see organic gardening for beginners has a reasonable search volume but a low number of competing web pages.
So you could create an information product e-book or video course about organic gardening, engaging an expert to help you create the material.
You may be wondering what I mean when I say competing web pages. I'm really looking at the In Anchor and Title column.
This tells you the number of web pages that are genuinely competing for a particular keyword.
I also take a quick look at the Google web page count which confirms there are only a few competing web pages for that niche market.
But as a rule of thumb, you're looking for reasonable traffic (remember 'hungry people') and lowish website competition (think ‘suppliers trying to reach them’).
We've seen how to find a niche market with enough demand and reasonable competition but how can we find out where business is really taking place?
A good first step is to look for some evidence of commerciality in the keywords using your common sense.
I think organic gardening supplies seems quite commercial, and there's some search volume and reasonably low competition.
So let's do a quick profitability check.
You can very quickly see if there is any potential for profit for your niche market by clicking on the open Google button in the Keywords tool and taking a look.
For organic gardening supplies, notice that there are a few ads which show that people are competing in this market.
And look, there's a site called groworganic.com with a great title tag and a bunch of products for sale.
Looks like organic gardening may be a good niche market to target!
People are clearly selling products in this market which you can see from its smaller niche markets eg, organic gardening supplies and there's some traffic and limited competition!
There are a couple of ways you could enter the organic gardening niche market. A quick look at Namecheap reveals that at the time of this video organicgardeningsupplies.co.uk is still available!
That kind of domain would probably suit an ecommerce store to serve the UK.
Or you could create a more news or community-focused site with an ecommerce component with a site name like www.organicgardeningtoday.com and create a category on your site called 'gardening supplies' like this: www.organicgardeningtoday.com/gardening-supplies/.
Then you could target multiple niche markets in organic gardening to drive more traffic to your site and then to your ecommerce store.
As always, the choice is up to you and your preference for the type of site you want to create and how much work you want to do!
But we have found a gap or niche in the organic gardening market ...
... where needs are being met by just a few suppliers.
Here's a great tip about competition. If you feel there is still too much competition, you can always niche down again by looking at the website of a supplier eg, www.organiccatalog.com/catalog/
... and look at their top selling item. In this case it looks like seeds.
You can then create a site just for seeds like these people have done eg, http://organicgardenseeds.com/.
But at some point the niche market will get too small and you'll run out of demand. Then you can go back up a level and enter the market at that point.
Just remember: there's always a niche market you can win at. Discover that niche market, own it, and then go up a level if that’s what you want to do.
To find a profitable niche market you need to look for:
1) Demand: Are there enough 'hungry people' easily reached?
2) Profitability: Are they willing to spend money to satiate their hunger?
3) Competition: Are there enough suppliers spending money to reach the 'hungry people' ?
Don't just go with the first niche market. Research a few with Wordtracker and see how they compare.
Enter some searches into Google and look at the ads to tell you if a niche has commercial potential.
Keep an eye on how you will monetize your site.
- Ecommerce store?
- Blog, news, information site with an ecommerce element?
- Information products?
If competition is too great, then niche down another level.
If demand is too slight, then go back up a level to a broader niche market.
Always think: can you see a gap in the market where searchers' needs aren't being met by enough suppliers and your new product or service can fit right in and compete?
Are you ready for the next step?
I hope you found this quick guide to finding a profitable niche market helpful.
You can see how the free keywords tool shows you what the niche market is thinking and gives you clues to what it wants. But that's only part of it.
You'll need access to the full Wordtracker Keywords tool to compare data from multiple niche markets so you can find the one that gives you a good chance of competing and making a profit!
Sign up for your risk-free trial of Wordtracker at www.wordtracker.com/trial or click the link below. Then enter your details and you'll be able to use Wordtracker for 7 days free of charge.
You can cancel at any time during your 7-day trial period or you can continue your membership for just $69 a month.
Your 7-day risk free trial will also include these free bonuses: first, our seven 'Profit from keywords' videos then a free Keywords Basics e-book which is the perfect introduction to keyword research, and a free keywords starter webinar which will handhold you through the process of using the Wordtracker Keywords tool.
So now you’ve got the information to get going, what are you waiting for?
Sign up to Wordtracker so you can start your profitable new niche website right away!
About Mike Mindel
Mike Mindel is CEO and co-founder of Wordtracker.
He is also the co-founder of Webventurer.com, a lead generation and niche e-commerce company.
Mike has over 14 years technical experience, along with keen interests in marketing and film-making; co-producing the the psychological horror film Don't Let Him In in 2012.
He has also helped develop and promote the Wam Bam Club - London's largest burlesque cabaret show.