How To Find A Niche That’s Profitable Step-By-Step

Many beginner online marketers make the mistake of falling in love with a specfic product or topic only to find out later they’re unable to make a profit. They spend months building a website and promoting it then give up because it didn’t make them any money.

So how do you find a niche that’s profitable?

1. Choose a target audience

Ideally you want to find niche you love and there’s an interest and/or demand for it. For instance say you choose “running” (one of my passions) as your niche. Already you know there are millions of people that run to stay fit and they buy all kinds of accessories (ie running shoes, socks, heart rate monitors, gloves, under armour, watches, sunglasses, foam rollers, etc) to assist them with their sport.

People often buy based on emotion rather than needs. For example when you go to a car lot the salesman may encourage you to drive a new car. You smell the new upholstery, you feel the power, you love the color, love how it drives and imagine the feeling when driving around your new car. You may not need the car but your emotions override your need and you end up purchasing it.

Action step
Create a list of all the things you feel passionate about or have an interest in then prioritize them in the order of which ones you love the most.

2. Narrow your niche

If your niche is too general people will lose interest because all topics will not interest everyone. Narrowing your niche (ie sprinters, trail runners, joggers, etc) makes it easier to decide what products to promote.


Even though you may choose “running” as your niche you’ll want to get more specific. For instance you could target a specific age group (ie running after 50) or gender (ie men in their 40s).

3. Research the popularity of your niche

The internet makes it easy to find people throughout the world who are interested in a specific niche. One of the best ways to determine popularity is to use the free keyword research tool from WordTracker.

Watch How To Use Wordtracker For Keyword Research

If you enter “running” as your base keyword in WordTracker’s search box you’ll see the number of times these 10 keyword phrases are searched on every month across multiple search engines. This means people are actively searching for information on those phrases.

running 62,194
running shoes 30,225
reebok running shoes 26,441
running shoe 13,278
running man 12,124
recreational running 6,866
cross country running 6,361
free running 2,001
best running shoes 1,948
walking vs running 829

You’ll notice the list also contains keywords
for potential products you could promote.

Here are some other places to find communities of people
who are currently talking or writing about your niche:

  • Google Plus Communities
  • Facebook Groups
  • Forums (Google “keyword+forum”)
  • Amazon Market Place
  • Blogs (Google “keyword + blog”)

You can determine the popularity of a blog post by the number of comments it receives. Bookmark the blog if it received lots of comments so you don’t have to search for it again to leave a comment.

4. Do market research to determine profitability

If there aren’t any products people are willing to spend their money on you won’t be able to build a profitable business. Find out what products people are addicted to buying so you don’t waste time and money on a product they won’t purchase.


Good running shoes are a necessity if you don’t want to get injured. Runners will pay 100s of dollars to buy a decent pair, sometimes 2 pairs (like I did) because you need new ones every 500 miles.

Here are some other locations to check for profitability:

Google Ads
Enter your main keyword in Google to see if advertisers are paying to have their ads displayed (ie “running shoes”). Typically you’ll see these ads displayed at the top and right hand side of the page.

Amazon Market Place
Research the Amazon market place to view the types of products and books that are selling well. Studying the book titles will also give you great ideas when trying to write titles for your own content and products.

ClickBank Market Place
This is a great place for promoting digital products in your niche. For example if you search the clickbank market place and enter “youtube marketing” you’ll get a list of products you can promote as an affiliate. Clickbank affiliates receive 50%-75% commissions.

Commission Junction
Find high paying affiliate programs by visiting the publishers section of commission junction.

If you can’t find an affiliate program for your niche Google
niche keyword + affiliate program” It just takes a little more digging.

5. Determine what high ticket item to sell on the backend

Instead of just earning small commissions from low priced products, research high ticket items to generate higher commissions. Alternatively create your own signature product to sell on the backend.

6. Create a free offer

Ask yourself “what free offer, ebook, report or video would get people to buy my backend product?”. The purpose of your free offer is to get people on your list then follow up by sending them a series of emails via your autoresponder so they will buy your backend products. Your free report should focus on solving one pain point.


I send people who watch my free YouTube videos to a squeeze page to receive my free e-course. In the follow-up emails I invite subscribers to purchase TubeVideo BootCamp – a beginners course in YouTube Marketing

7. Create a series of follow-up emails

Before someone is ready to buy you need to contact them several times to build trust. After getting people to fill out their name and email to receive your free report you need to follow-up with them by sending new content every few days.


A girl won’t marry you if you ask for her hand in marriage on the first date. You first need to date her over a period of time before she will trust you.

A similar process is required for building relationships with subscribers before they become your customer. You first need to build a relationship with them before asking for the sale.

Use a professional autoresponder service such as Aweber to automatically schedule a series of follow-up emails. Once you’ve set them up they can be sent “hands free.”

Watch My Aweber Review – 3 Secrets You Probably Wish You Knew!

8. Create an inexpensive product to sell

The purpose of creating an inexpensive product is to find people who want to buy what you have to sell. Once someone purchases your product they’ll be more inclined to buy higher priced products.

Here are some ideas for creating an inexpensive product:

  • Ebook or Report
  • Membership site
  • Software
  • Video series

TubeVideo BootCamp

9. Plan your marketing funnel using reverse math

Once you know your numbers you’ll be able to create
a streamlined process for generating profits.


  • It may take 10 inexpensive sales (ebooks)
    to sell one high ticket item
  • It may take ten opt-ins to sell an
    inexpensive ebook, report or membership.
  • It may take 30 visitors to get 10 opt ins

Now you can plan out your sales process:

300 visitors = 100 opt-ins = 10 ebooks = 1 high ticket item
So you need to generate 300 visitors a week from your blog, YouTube Videos, Facebook ads or Social Media.

If you can get 30 cents a click from Facebook Ads then it will only cost $9.00 to get 100 clicks. Be prepared to spend some money up front because your profits will mostly be generated from backend sales.

10. Scale it up!

Once you’ve set-up your marketing funnel scale it up by choosing activities that generate new customers. Every month your goal is to beat the month before so you make REAL progress by increasing your profits.

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