Business Ideas | A Guide To Choosing A Profitable Niche Online

If you hustle online, then you know first-hand the importance of choosing a profitable niche for affiliate marketing, blogging, or any online business, for that matter. The question is, how do you know which area in a segment is profitable. So, in this guide, let’s look into what it takes to choose a profitable niche for your online involvement.

How do you identify a profitable niche online?

No matter how many relevant niche ideas you got or loopholes you recognize, Identifying a profitable niche online is tricky. The proof is in the profits. And that’s because it’s what you do after choosing a good one that matter.

If you don’t want to take a plunge with a business idea, you might as well take time to consider if there are prospects that you will make money in any area of interest you choose. Then you can clamp down on your ambition and go for more realistic goals.

How you go about this

Selecting a promising niche requires taking into consideration a lot of things. For instance, you have to consider what attracts you to the subject matter, something you can do of the niche, and how it translates to other people’s demands and monetary goals. In short, you have to deal with many conflicting interests to spot the winning niche eventually.


Suppose you’ve already chosen one, whether your niche is highly competitive or not. In that case, you can turn your sweet spot in any segment into a money-making machine. How you do this is a matter of:

Do thorough research

You won’t be an expert before engaging. But you can go by with Some level of research, skill development and practise. But as you research, sometimes it’s the information you come across that make you realize how much you don’t know about doing business online. Before engaging, I found myself asking what SEO is, keyword research, PPC, Scaling ADS, link building, you know, all that technical jargon. Far from getting direct answers, as I dug into knowing what all that means, that’s when I realized I have to;

Invest in online marketing courses

Fortunately, you don’t have to be a tech geek or a finance wizard to run a business online. But to know if a niche is profitable or not before engaging, consider the following factors that help familiarise with promising slots for online involvement. That will come in handy in identifying a potentially profitable niche.

Things that matter,

Choose an ideal niche market

That helps in expanding your options for online business as you dig into sub-niches. And this gives you leeway for choosing your business’s direction whether you create a new product or promote the existing one.


It won’t be easy to select a profitable niche without considering other components of the entire niche market. Things like existing products, what sells online? Who you’re competing against, the intensity of the competition and changes you inject into the industry you want to serve. So, You can familiarize yourself with a total niche market to know where you fit into the puzzle.

Here is a quick break down of the main things you can zoom into to consider which direction to choose.


Understand the online marketplace

Online, if you’re not familiar with the environment, there’re many areas of interest. You find audiences on various platforms, sometimes in groups. Take, for instance, people who use Twitter, Facebook, Instagram and Pinterest. In a way, these other social platforms are areas you can find your targeted audiences. Often in groups, pages, or with particular types of account profiles. Some platforms are suitable for social networking, with fewer chances of finding willing or ready to buy. But such platforms are also perfect areas to spot market gaps, problems, solutions, and points of interests.

Where your money’s at,

Recognizing the buying niche audience, your goals, and what is relevant online

It’s not easy to spot the buying type online. But it helps if you’re able to match your interests to audiences, understand their thinking logic, and determine what the audience could want to buy online. If you can do that successfully, you can present the right offers to the right audience, helping to get conversions. To spot a profitable niche,

Consider the following:

  • A niche audience – can you describe the buying tribe online?
  • A perfect niche market product – what kind of product can sell well online?
  • An Ideal niche market supplier – Do you have what it takes to provide proper solutions?
  • Niche solutions – what does the audience want?
  • Niche competition online – which authority websites are you competing against you?

Let’s drill deeper into these questions and describe your ideal niche market.

Your targeted niche audience online.

Who buy things online? You’re probably conscious about the things you wouldn’t hesitate to purchase online. Sometimes it’s not about what you can or can’t buy online. Instead, it’s why people buy things online if they can buy from a local shop.

Here is an example of a typical response from Reddit

So if you can recognize a tribe of individuals with matching interests to yours, people with similar buying patterns, then you have identified your buying tribe. It doesn’t take much time to recognize such people in groups on social platforms if you zoom into any area of interest. Take, for instance, pet lovers who follow dog pages on Facebook. Not all of them are willing buyers for dog items online. But as a dog lover yourself, you’re most likely going to familiarize yourself with those preferences through crowdsourcing. On the contrary, if you’re not a dog lover, if you sneak into their group discussions to spy on their conversations, then you can validate your research results.

In short

The right audience would consist of firm believers in their habits and preferences. And Online, people won’t just buy any item they can easily find elsewhere unless there is some form of emotional connection. Think, for instance, in terms of a generic shirt you can find in your nearby grocery store. What drive you to buy a generic shirt from an eCommerce store and wait three days for the delivery? Your reasoning is something not to ignore.

That takes us to

Your ideal audience online

On social platforms, not all people who partake in group discussions will buy what you sell online. Although those groups reflect things they pride or enjoy, that doesn’t mean since they’re interested in the subject matter, they’ll be willing to buy anything relating to the topic. But you’re likely to get conversions from:

  • People who pride convenience
  • Those who value uniqueness or exclusivity

For the most part, scarcity and convenience play a significant role in getting a niche audience to purchase online. It’s easier and quicker to compare prices online.

Because of scarcity and inconveniences, people with unfamiliar needs and demands struggle to find perfect solutions. A person like that can be easily be misunderstood by those who don’t represent their tribe. For that reason, they then isolate themselves into smaller private groups on specific pages or designer platforms of like-minded people who engage in actual activities. For instance, someone who like dogs without one, and a dog lover with a dog buy different products for similar reasons.

In short,

The buying type is firm believers in their habits and spending preferences. You may not easily sway them into buying an alternative product that does not represent their satisfaction.

Why should you consider such an audience ideal for a niche market business?

  • They love using search engines. This type of audience usually battles to find ideal products. And with a powerful keyword research tool, it’s easier to pick on what they want online.
  • Due to its kind nature, if your solutions prove solid, they can soon become loyal customers to secure their needs and demands. That alone is a benefit to any business. But don’t take my word for it. Research your niche market, keep up with the trends and provide good quality products and services to keep them spending.

Niche market products online

How exactly do you find winning products in your niche? Choosing a profitable niche also requires taking into consideration What niche products to sell or promote online.


Not all niche products sell well online. Usually, your marketing strategy plays a significant role in getting click-throughs and conversions. And as you know, with zero modifications you won’t make profits.


What’s the best way to find niche products online

From my experience, there are two ways to this. You can find niche products by long-short or take a shortcut.

  1. Affiliate marketing

That is by long short, but affiliate marketing does help you discover products you thought didn’t exist and vice versa. Since affiliate marketing features niche marketing, As you search for affiliate programs trying to find brilliant products to promote, it becomes clearer which market gaps need the intervention of a new product. So It then becomes easier to decide if it’s best to continue promoting existing products or create your own.


  1. The shortest way to find winning niche products is by doing a quick research.

let’s look into the following that helps in identifying which niche product to sell online.

What niche product to sell online

Here’s what you can consider when deciding what niche product to sell online. Bear in mind Niche products has that X factor that speaks volumes to the targeted audience. And you won’t find that in generic products. Take, for instance, Golf-shirts for golf players. There are not generic golf shirts you can find in any store. Therefore they tend to have higher margins. That’s something you might want to consider in choosing profitable niche products to sell or promote online.


Excellent niche products are usually unique, specialized and highly customizable. Of course, to align with the targeted audience’s unfamiliar demands, which explains why most of them are scarce and often expensive.

Such products are not easily accessible offline.

So Lookout for

Products that are not easily accessible offline due to infrequent demands.

Exclusive Products with transactions that take places through referrals or recommendations, mainly because most people are not aware such products exists or where to find them.

Side note: If you have previously purchased anything online, then you could relate to this. If not, keep searching until you get to that point.

Why are such products ideal for a niche market business – in terms of profits?

  • They tend to have higher profit margins. Most likely, due to scarcity. And providers favour adding higher mark-ups to compensate for all the efforts they put into customizing specialized processes.
  • When last did you drive around looking for a particular spare part that you couldn’t find in any of your local stores and ended up placing an order online? If you find a product like that, then you’re most likely going to buy it wherever you find it, even at an additional cost.
  • More importantly, it could signify that you may introduce a niche market business online to provide for the minority in various locations.
  • That way, you may attract volumes of targeted audience in various locations. People like that can go to any lengths to find products they want anywhere, even if it means importing. That’s a big deal for someone who is getting by to operate on a global scale.

Niche market suppliers online.

Going by this guide, this is where you fit in as you look for profitable niches. And that’s because you want to make money online. But How you enter the market doesn’t have to be complicated.

Characteristics of an Ideal niche Supplier

  • Do you ever notice that niche suppliers are people who usually start as custom designers of what they like but end up serving others too?
  • Think of those handymen on call, DIY experts, all the way to well-known industry gurus who became leading providers in the industry.
  • Although this does not exclude anyone with relevant skills, experience, or expertise, those who belong to the pride may stand a better chance (in my opinion).

That takes us to

Due to the targeted audience’s size and other factors, suppliers often locate themselves in secluded areas. You hardly find them easily offline.

How does this benefit you if you want to enter the online market as a supplier?

  • Suppose you can leverage your unfamiliar needs and preferences to supply your pride. In that case, you don’t necessarily need to hire anyone to research a market that reflects your preferences because you have what it takes – it could be a cost-saving for you.
  • Businesses that develop from interests or passion tend to flourish; operating that kind of business may not feel like hard work. Given that, you could minimize wastage in production as you’ll be more focused on doing what you dedicate to do.
  • You can capitalize on your experience to beat your counterparts in the competition. That could mean higher turnover resulting from a larger market share if you excel in what you do.
  • Suppose your products are unique and good enough. In that case, you could easily attract a larger audience from various parts of the world online. As a result, you can grow your network, become an international supplier, and increase sales volumes. – Enjoy the benefits of operating on a larger scale.
  • Given various ways to reach your targeted audience, you can take advantage of content marketing to get free traffic.
  • After all, the targeted audience tends to rely on search engines to find preferred solutions; it makes researching a niche online a lot easier with a keyword research tool.


Niche market Competition online

People are continually getting involved online to find new inspirational ideas and more exciting products. Sometimes they even try to find solutions for things they can’t confide in anyone. Either because they’ve no one to turn to, or they fear judgment. It is evident from the things people search for online that have resulted in niche markets. Below are a few examples of some things people search for, picked by google instant;

As a result, more niche markets, products, and suppliers enter the online industry daily.

For that reason, It may not be easy to measure the competition online without using advanced online research tools. So if you have a website, here’s how you can keep up with competition online:

Up your SEO game

If you’re starting, know that it won’t be easy to outrank authority websites. But you can invest in online marketing courses to learn the ins and outs of operating a business online.

Determining niche market competition online;

Make use of keywords and key phrases to size the competition.

1) The manual approach 

When you enter a search phrase on search engines, Google, for example, generated search results retains few browse through pages, sometimes nothing comes up. That is one way to size a competition; by noting the number of pages on your search results and perhaps counting the websites competing for that search term.

The downside of using this manual technique

Your manual technique could produce inaccurate results in many ways. But most importantly, you may not know the number of people who use the exact search term or search phrase to find the product. For that reason, you may not be able to accurately measure the competition, let alone determine your idea’s feasibility.

2) Using a keyword research tool, you can spot a promising niche

Let’s use an advanced keyword research tool (excellent tool for beginners) Jaaxy, for example, you can spot a good niche.

See Example below

Going by the search term “stylish”, you stand a better chance of choosing stylish plus size clothing as your niche.

A beginner-friendly tool like Jaaxy also help you find out:

  1. How many websites are competing for a particular search phrase
  2. The monthly search volume for a particular search term.
  3. And the SEO power of that keyword.


How to determine if a niche is profitable online

Like any business idea, which means no income and expenditure figures, to determine if a niche is worthwhile so you can eventually choose the promising one involves the following:

 In Brief

  • Do thorough research
  • Invest in a good keyword research tool
  • Test your niche ideas

Drop a comment below:


18 thoughts on “Business Ideas | A Guide To Choosing A Profitable Niche Online”

  1. Hi 

    Thank you for writing this detailed article on a profitable niche markets. It is important that you choose a business that you are passionate about and  can readily show that passion. You needs to also research products that are are in demand but have not many suppliers. It is also important that you do not rush and come up with a credible business based on your passion. All of your tips are appreciated and are easily adaptable to find your niche.

    Thank you


    • Absolutely, 

      Even though you share the same passion, your preferences could be unique to those you share the same passion. So it could be for the best that you research your niche market before leaping. 

      Thanks Antonio

  2. The first and greatest mistake any online business owner can make is that of choosing the wrong niche, that is a niche that is not profitable or promising. This determines a lot as you’ve said and it’s the responsibility of the owner to plan better right form the scratch and make the right decision, Considering the tips you’ve explained here, it’ll be easy for this right decision to be made. It’s nice of you to share.

  3. Hi Sipheni. Your discussion on Niche markets and how to choose one is very informative. I have operated ‘Bricks and Mortar’ business’s for many years now and the workings of an online  one sound very similar.  With the offline type we market to an audience that are most likely the ones to use our products. So what you are saying with the online niche is that we are marketing to an audience with similar (if not the same) interests as our own. The only part that I’m struggling with is where you state that “such products are not easily accessible offline”, could you explain this better to me please? I would have thought any product was fair game today. I’m not sure if there are many products that aren’t available both offline and online.  Thanks Jim

    • Hi Jim

      To answer your question, given that a niche market consists of people with similar needs and demands, the keyword here is ” similar” and it does not mean “same”. A group of people who buy your products may be into construction for instance. And you need to ask yourself, what do they construct? What kind of properties? For who? each of these questions will give you a clearer picture of the types of bricks you provide. And each class represents a different audience with specific needs and demands.
      One more thing, not all products that are easily accessible online can be readily available offline. The opposite is also exact. Some suppliers introduce their products online because they sell better online. And some stay offline because their products sell better offline.

      I hope this answers your question 🙂

  4. A sensitive business person should be very cautious of what niche it chooses and how and what criteria is used in making this happen. It’s a kinda tough decision for some people to make since they don’t have prior knowledge of what to look out for when choosing a niche, thanks to you for sharing this, it’ll be of great help to them. I’ll share this to some of the newbies I know. This article is really helpful.

  5. I found useful these questions you presented here in this post to help us determine if our niche is profitable. I made my niche go through these filters and I have concluded that I should change my niche. I’ve already been working for more than a year and haven’t seen favourable results. Thanks for opening my eyes 

  6. Choosing a niche is a difficult desision. But after reading this post I have a much broader perspective of what I should look for. I have found useful what you have mentioned related to the characteristics that a good niche should have. If we can find an audience that is always purchasing, that would be ideal.

  7. Hey thank you for the awesome post!! This post is something I will be taking into consideration as I work on my next site. It’s really important to have a profitable niche! I also agree that Jaaxy is a great tool!! It is super helpful in finding the right keywords for your blog!!

  8. Thanks for the thorough and very helpful guide to choosing a profitable niche for a business and a website. It definitely makes more sense to keep the data in mind instead of guessing about the size or scope of the potential market. No matter what kind of job that you are working on, the right tools always make a difference in the quality of the work. Thanks for sharing your tools and tips!

  9. This is an excellent post which is jam packed with highly useful information.

    We sometimes think that a niche just needs to be something that we are interested in, or have a passion for, but you have shown that it is much much more than that.

    At the end of the day, it is not about us and what we like, but what the customer wants to buy.  Your instruction to carry out research is therefore vital to success.

    Your introduction to Jaaxy is invaluable, as it gives us a tool that cuts out the guessing and actually tells us how many people are actually searching for the niche and therefore a good indicator of the market size.

    I would therefore recommend to your readers that they make sure they use Jaaxy a major tool in their research.


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