Lesson 2: How To Find Profitable Niche Markets

Lesson 2: How To Find Profitable Niche Markets
By Rob
Rawson

There are thousands of potential areas that you can focus on
when you are starting a new Internet business. Some are likely
to be hugely profitable; others will probably not make you
very much money. So how do you choose an area that is going to
be profitable to you where there’s hopefully not too much
competition?

The skill of selecting the right market to focus on is one of
the most important if not the most important skill of Internet
marketing. Choose the wrong market and your chances of success
have just gone down by ten times.

So what should you look for?

Firstly you should research what people are looking for on the
Internet – find out what keywords are they searching for. You
need to know what people are interested in. For this type of
research I use Wordtracker http://www.profitpuppy.com/
wordtracker (http://www.profitpuppy.com/wordtracker)

Wordtracker will estimate how many keyword searches there would
be on Google each day. Generally I would want to see more than
500 predicted searches per day on Google, but it really
depends on the particular niche that you are looking at.

You can get really creative when searching for niches using
Wordtracker. If you are looking at writing ‘how to’ videos you
can type “how to” into Wordtracker and see what you come up
with. Here are some of the ones I got when I entered “how to”
(I left the sexual ones out!): how to build a workbench how to
write a resume how to knit how to draw how to tell if he is
lying how to draw anime how to build a chopper motorcycle how
to crochet how to play poker how to become an actor how to
play guitar

All of these are potential subjects for an information product.
You can also try typing these phrases into Wordtracker and
seeing what comes up: “buy online”,“tips”, “guide”, “advice”
etc.

If you are developing an affiliate site or an information
product there are

several other methods you can use to research and find a
profitable area:

One very effective method is to research how other people are
already making money. The advantage of this is that you know
that the area is profitable. The disadvantage is that you also
know there is some competition. Often the most profitable
areas also have the most competition.

How do you find these areas?

One way is to search on Overture http://www.profitpuppy.com/
overture (http://www.profitpuppy.com/overture) for thekeyword
that you are interested and find out which of the sites that
are advertising on Overture are affiliate sites. You can tell
if they are affiliate sites by looking at the site and seeing
if they are promoting various affiliate programs.

Another method for finding profitable niche areas is to sign up
to several of the affiliate networks. Some of the networks
will give you a ranking of how much people are earning from
each of the affiliate programs. This is usually ranked by
earnings per click. This means how much on average the
affiliates are earning for each click. Preferably you want an
affiliate program which is earning over $1 per click … this is
hard to find but when you do find one which earns you this
much you know there is great potential for profit. However,
you can still make good money from programs which pay 20 cents
per click or more.

What are some examples of profitable niche markets?
Mortgage leads – great for an affiliate site (an example is
http://www.ratesguide.com (http://www.ratesguide.com))
Satellite TV
Cellular phones

And there are many other possibilities also. Have a look at
http://www.profitpuppy.com/top-affiliates.htm (http://www.
profitpuppy.com/top-affiliates.htm) for more ideas on niche
markets.

They key is that you must spend time and effort researching.
Don’t treat it like a 5 minute task. You need to spend DAYS
researching to look for the best areasto focus on, if not
weeks. That way you will find profitable niches that other
people have neglected.

http://www.profitpuppy.com (http://www.profitpuppy.com)

Bobette Kyle is publisher of http://www.Take-Payments-Online.
com (http://www.Take-Payments-Online.com) , an ecommerce
information site. She is also proprietor of The
WebSiteMarketingPlan.com Network, subject-specific Web sites
designed to help you find the right information for marketing
plans and marketing programs. Visit at http://www.
WebSiteMarketingPlan.com (http://www.WebSiteMarketingPlan.com).