Analyzing Demand and Profit Potential from a Niche

The next thing you want to do is stop and figure out if there's a good demand for the niches that you have done a preliminary investigation on and determined to be broad enough, and also narrow enough for you to succeed with.

Demand and profit potential can be two different things. They can also be connected. You can have a demand for something, but it may not be a profitable niche. At the same time, in order for something to be profitable, there has to be a demand.

So start with the demand side. You can use market research tools, gather information online by looking at your target market and what they are discussing and purchasing, and to see where their mind is at in terms of their hunger for information in this niche.

Sometimes, it can be very basic analysis steps such as looking on Facebook to see if there are groups for your niche topic. If so, do the groups contain 10 to 50 people or do they contain 30,000 to 100,000 or more members?

If the groups are too small, or there are no forums that are catering to those who demand information about this niche, then it could be that it's simply not that much of a pressing topic.

You can also look to see how many competitors are in your niche. We'll talk about competition a bit more momentarily. But for now, you just want to see how many others are in the same niche and how many people they have following them.

You can also look up social media accounts and other online communities to see if they are thriving or struggling to get engagement. If you want to do a test run, you can create an account and use hashtags paired with intriguing content and see what kind of interaction you get.

You can also do a Google search to see what the trends and statistics are showing about your niche topic. Keyword tools will also give you an idea of how many people are searching for information about your niche.

You want to be able to diversify your earnings whenever you tap into a niche. There are some niches where it will only make sense for there to be one income stream, but this is a risky way to set up a business online because if one system fails, you want to have other avenues to earn from.

Try to see if there are both products and services being sold to these niche followers. You might also think of different ways to expand your earnings in the snitch, such as broadening or zeroing in on different demographics that you are targeting.

For example, if you are going to be promoting the keto diet to people over 50, you can set up a variety of profitable promotions for men and women instead of merging the two. This way, the consumer feels as if it’s more tailored to their needs.

You might also want to see if there are influencers that you might be able to collaborate with. This could help you expand your customer database, and it would be mutually beneficial because you share the same target audience.

Are deciding on the profitability of a niche, and the demand for information and products, you want to go on various social media platforms and identify which ones are hosting the target audience you need to reach.

You might be able to uncover platforms that you didn't realize had a strong following, and this can help you earn more than what you had expected. You can even tailor your brand message across different platforms to fall in line with what users there want to see.

Take a look at the various offers and pricing that is currently occurring in your niche. You might see everything from low cost products to high ticket offers. Or, you may see a trend of monthly payment options in addition to annual or lifetime payment choices.