Market Profitability

We need to find out if a market is profitable. If it is not, we are not going to promote it. Conversely, if there are opportunities available within this industry, we are going to take advantage of them by expanding our research, doing an analysis, and implementing a campaign. The thing that most people don't understand is that you can make almost any niche a profitable one if you understand who the consumer is and perform an adequate level of research on the niche.

To gauge the profitability of a niche, we need to find out what the consumer demand is. We can do this research several different ways:

Expand on Higher Level Markets

Expand on higher level niches using the Keyword Research Tool. Select a higher-level niche. In this example, we will choose "sports car". You are going to want to find out if there are niches within this industry that receive traffic and in which people are searching for. The first thing you will want to do is search this term within a keyword tool such as the one offered here at WA. This tool will help expand your research and allow you to "dig" under certain search terms to reveal more targeted niches.

Problem Statements

Search for problem statements using the keyword tool. This will often times reveal "niche markets". Examples of problem statements are "cure, fix, repair, solve, get rid of, how to, etc." When people are searching a lot for a solution to a problem, chances are this is a profitable industry. Take advantage of these broad niches by digging down (as in our automobile example), and find smaller, less competitive niches.

Using Forums/Groups

People use forums, groups, and blogs to communicate their concerns and essentially they are looking for a solution to their problem. Here is what we do on occasion and find it is great for finding "niche markets". When visiting a forum, look at the common questions people are asking "how do I fix my slow computer, how do I lose weight without dieting, where do I find a wedding dress for cheap, etc." Research these niches and find out if you can make them profitable. Using forums and groups will reveal many niches and you can literally take what people are talking about, and turn them into campaigns.

To find forums within a particular industry, you should do a search within Google.

Search: INDUSTRY/NICHE forum

Obviously you want to replace the INDUSTRY/NICHE with the actual industry or niche that you are looking to find a forum within. Here is an example:

gaming forum

This yielded many gaming forums. You can now use these to perform your market research.

Here is a list of some groups to utilize for research: