It may seem difficult to come up with a proper niche at first. I am sure you already heard or read somewhere, that you should follow your passion. Many people started to build an online business (or another kind of business) around their passion, without even thinking about that. That is the ideal case.
A person who knows what his passion is usually following that path and does not have to think too hard.
But how about us – who are not sure about our passion.
Don’t worry, we will choose a different approach when it comes to niche idea. Is it going to be a better approach? I don’t know – you tell me after you finish this post in the section below.
So here are the steps we are going to cover:
- First, we will define what the niche is. For sure many of us already know, but it does not hurt to take look at the concept of niche once again.
- Then we will come up with ideas where to find a niche and we will be looking in both online and offline worlds.
- Somebody will probably ask – is there any evergreen niche as well? – We will look at that too.
Let’s start with the definition of a niche.
What is a Niche in Business – My Favorite Definition of Niche
I don’t like when an article starts with some boring 10 minutes long reading story about history. I won’t be doing it here, but still, let me allow you to tell you my favorite definition of a niche.
Niche or niches are coming from Ancient Rome. They were (and they are still to be found in Rome) basically alcoves used in both interior and exterior walls. So it is a small part of a large structure. In the business, the niche is also a small segment inside of larger structure.
For example, you have your home with a garden, and as a small niche would be – your mattress. It could be also your pedal bike if you are passionate about cycling.
So this is the boring part, or if you will the technical definition of a niche. Let’s take a look at the interesting part, or in other words how to find the proper niche for my business.
How to Choose a Niche – General Approach
Based on what we have seen above, one might think that we should start with a specific niche, build a website around it, get traffic and monetize the website. Well, it probably sounds right, but a better approach would be reverse engineering.
Here is what I mean by that.
We want to check the market first. We want to know what is already selling. One way to check it is to go to google trends. Depending on your location you want to change the region accordingly, or you can go worldwide, that is OK.
As our friend Neil Patel suggests, compare your chosen niche/term with the “digital marketing” and make sure that your term is larger than the term “digital marketing”. This way you know that the market you have chosen is huge.
Somebody may ask, but Mike there is too much competition.
I understand that, and I used to think the same way. I got to learn that competition is good. You want to get into the market where money already flows. That is why we have followed Neil’s idea of choosing a bigger niche than “digital marketing”.
If you get a small portion lets say 0.01% of $5 Billion industry, your profit is much bigger comparing it with $5 million industry.
I always like to give an example of McDonald’s and Burger King.
I used to think that the Founders of Burger King must’ve been crazy to open a very similar chain of restaurants as McD has. But that is a wrong approach. The founders of BK were very smart. They figured out what is already working and they just remodel the existing idea.
So now, when you found the market which is profitable, go and select a specific niche. Check what others do, and do it better. Or at least remodel it and apply your unique approach. There will be many people who will appreciate your way of doing things. There are billions of people connected to the internet.
You only need a few thousands of dedicated customers.
Many people want to start with a brand new idea – they want to start with something completely new. This is a hard way how to make money, especially when you have no initial financial resources.
Yes, there are these examples like Facebook, Airbnb or Uber. It is only a small percentage of people who have done so well. But we are not aware of people/projects who tried and failed.
A safer way is to check the market where money already flows and get some portion of it as well. Then when you grow, you can outsource the current business and you can focus on the idea you had at first place.
Ways to Find a Niche – Ideas From Online & Offline World
The perfect way how to brainstorm for ideas is to go to a book store or any store where they sell magazines. Check the ads inside and check the cover of the magazine. Do you see a relation there?
And also one tip. If you go to a certain magazine and check the ads, go to the same magazine a few months later. The ads which are still inside the magazine are most likely related to the niche which is profitable. Otherwise, they would not have any profit run the ads anymore.
Second tip – You can check also the Headlines. How the headlines are written, how is the content written, pictures inside to make it easier for a reader? – but I digress.
Back to the online world. And I am guessing you are right – Amazon.
Amazon as the biggest retailer company and with thousands of categories is a perfect place to find a niche.
Here is the link to Amazon full store directory, and it looks like this:
It does not even fit on my screen 🙂
You see here only the top-level categories. Go click to any of the categories and you can get even deeper 2 or 3 levers. Still that deep down, you can find many profitable niches. And if you know how to become an amazon affiliate, you are on your way to generate profit.
Let’s say I have found out that stuff related to the furniture has earning potential. I will get to check the “Home Garden & Tools” -> “Furniture” -> “Bed Frames” and I will pick only those ratings with minimum 4 stars and at the end, I will sort them out according to the customer reviews.
Evergreen Niche – Profitable Regardless of Season
There are certain types of niches that can be considered as profitable for a very long period of time. They are closely related to human primary needs, such as:
- Food – We all need to eat. Food is a very broad niche, but if you think about healthy food, or even “how to lose weight and eat what you want” is already a narrow one.
- Clothing – Again we can break it down to for example shoes for hiking
- Shelter – Everything that you need for a house. People move from one place to another, they need to sleep somewhere – You see it even in the offline world, stores dedicated to mattresses only, or kitchen appliances, etc.
To give a better perspective, on the other hand, what is not an evergreen niche is, for example, ski shoes. Here we are touching a bit the Clothing subject we have mentioned above, where shoes for hiking might be considered as seasonal niche as well. But many people go hiking throughout the entire year so it is not the same as ski stuff.
Also what you want to be careful about are certain specific niches like for example these fidget spinners. This is an extreme example of a niche where competition is just too huge and there is no point of going that road anymore. Sure at the beginning, companies who came up with these spinners made a profit. This would be considered as seasonal niche as well, although it is not related to a year seasonal, right? 😉
Hopefully, this has given you a better overview of the niches. Now you will find your niche quite easily. If you still have some doubts about the niche, I recommend a short video for you (it has a little over 17 minutes).
If you decide that in about 2 or 3 weeks you want to change your niche that is perfectly OK. But do not change the niche every 2 months. A year might pass and you still be where you started.
So try maybe 2 or 3 niches, but eventually, stick with one and build your business around it. That is why for those who build their business about passion, they will never get tired of it.
I have feeling that I have not covered everything here since the niche subject is so huge. I might come up with a similar article in the future.
Let me know in case I have missed something, or you some idea would like to elaborate a bit more about .. let me know in the section below. I’ll be more than happy to help you out.