how to find a niche for your online business with timestamps YoutubeScribe.com

[0:00] There are three common problems when it comes
to finding a lucrative niche for an online business.
[0:05] And the reason why they're problems is
because there's conflicting, yet valid points
[0:10] to each side of the coin.
[0:12] Problem #1: passion vs. profit.
[0:15] One group of people will say to pursue
something you're passionate about...
[0:18] Or else you will fail.
[0:21] And the other group will say to follow the money
because passion isn't going to pay the bills.
[0:26] Problem #2: low vs high competition.
[0:30] One party swears that low-competition niches
are the only way to go because you can get
[0:36] traffic faster and you won't have to compete
against behemoths with bottomless wallets.
[0:41] And the other side says that you have to go
for high competition niches otherwise, you're
[0:45] limiting your earnings potential.
[0:48] And problem #3: micro vs. broad niches or
the age-old question: "How niche should I go?"
[0:54] Now, finding a niche that's right
for you isn't a coin flip.
[0:57] And there is no magic formula that's
going to give you that answer.
[1:01] And that's because there is no
generic solution to these problems.
[1:06] Finding and choosing a niche will come down
to a mix of personal and business decisions.
[1:12] So in this tutorial, I'm going to show you
how to find a niche for your online business,
[1:16] vet and research that niche and actually choose
one that's going to meet your personal style
[1:22] and business goals.
[1:23] Stay tuned.
[1:24] [music]
[1:29] Alright, so before we get into solving these
problems, there are 2 things we need to do first.
[1:33] #1. Define what a niche actually is.
[1:37] And #2. Talk about how to find niches.
[1:39] And the answers to the three problems I just
discussed will help you to actually choose a niche.
[1:46] So let's get on the same page and
talk about what a niche is.
[1:50] Simply put, a niche is a segment, or
a smaller part of an industry.
[1:54] And this segment has a community
with their own specific needs.
[1:58] For example, backpacks for hiking is a niche.
[2:01] Backpacks are a segment of the larger industry
of bags and luggage and the audience is hikers
[2:07] which has a pretty big community.
[2:09] Now, whether you want to monetize through
t-shirt sales, affiliate marketing, or whatever,
[2:14] all of the research methods and principles that
we'll cover today can be applied to your business.
[2:19] But because we can't cover every possible
business model, for this tutorial, let's say
[2:25] that we're looking for niches
for an affiliate website.
[2:27] This way, we won't need to discuss things
like the cost of inventory, logistics, etc.
[2:33] Alright so let's talk about some
ways to find a niche.
[2:36] The first way is to dig into a competing website's
traffic and financial information.
[2:41] There are website marketplaces like Flippa
and Empire Flippers where sellers are required
[2:46] to include traffic and financial information.
[2:49] So assuming you have no idea what kind of
niche you want to enter, you can get started
[2:54] by going to Flippa.com.
[2:56] And since we're looking for affiliate ideas,
I'll hover over browse, then content, and
[3:01] choose to look through blogs.
[3:03] Next, I'll filter for just revenue generating sites.
[3:07] Now, after skimming through results,
I came across this listing.
[3:11] And right away, you'll see things like the
site's age, monthly profit, profit margin,
[3:17] and monthly page views.
[3:19] Scroll down a bit and you can see the revenue
breakdown over the past 12 months.
[3:24] Scroll a bit more, and you'll see data that's
been imported from Google Analytics.
[3:29] Now, to get a very basic understanding of
profitability, you can take the average profit
[3:35] and divide it by the average pageviews.
[3:37] So that would work out to around
three cents per pageview.
[3:41] Again, this is just a very general way to
understand how much money you could
[3:44] make if you were to rank for the same topics in the
same niche with the same monetization method.
[3:51] Alright, the second method is to use Google
ads data as a proxy to commercial value.
[3:56] And this can be done using a metric like
Traffic Value, which is an SEO metric available
[4:01] in Ahrefs' Site Explorer.
[4:03] And traffic value estimates the value of
a website's organic traffic if they were to
[4:08] pay for that same traffic through Google ads.
[4:11] So in this case, our blog gets around 300,000
monthly search visits and the value of that
[4:16] traffic if we were to pay for it through Google ads
would be over half a million dollars per month.
[4:23] And that's because SEO and digital
marketing are pretty lucrative topics.
[4:27] So basically, this method is based around
the theory that if advertisers are paying
[4:31] top dollar to appear for these keywords, then
there's likely going to be commercial value.
[4:36] Alright, so to find niches with high traffic
value, you can use a tool like Content Explorer,
[4:41] which is a searchable database
with billions of pages of content.
[4:45] Now, if you have a general idea of the area
you want to create a website around, then
[4:49] enter that in the search box.
[4:50] But in our case, let's say that we're open to
any niche but we want it to be an affiliate site.
[4:56] So I'll search for "amazon associates," because
people often include some kind of Amazon affiliate
[5:01] disclaimer on their pages.
[5:03] Next, let's set a website traffic value filter with
a minimum value of 5,000, meaning, websites
[5:09] that show up should be getting at least $5,000
worth of monthly organic traffic if they were
[5:15] to pay for it with Google ads.
[5:17] Now, to filter out these mega sites like Amazon
and CNBC to name a few, we can set a Domain
[5:22] Rating filter.
[5:23] And Domain Rating is an Ahrefs metric that
represents the overall strength of a website's
[5:28] backlink profile.
[5:29] And it's generally a good way to
filter out highly authoritative sites.
[5:33] So let's choose the Domain Rating filter and
set it with a maximum value of something
[5:37] reasonable like 40.
[5:40] Next, let's set the "One page per domain" filter
since we only need one result to see a website's
[5:46] total traffic value.
[5:47] From here, you can skim through the results
and just eyeball the domain names to see if
[5:51] there are niches or industries
you can tap into.
[5:55] Alternatively, you can go to the websites
tab to scan through the top 100 websites.
[6:00] And again, let's sort the table
by Traffic Value.
[6:03] And just from eyeballing the domain names,
this one seems to be related to sleep, another
[6:08] on pies, and one related to vegetarian
or vegan diet plans.
[6:13] Now, the domain names will give us
a general idea of a product or industry.
[6:17] But if you want to dig deeper, you can research the
pages that are actually sending these sites traffic.
[6:22] So I'll click the caret beside sleepdelivered.com,
and head on over to the Top Pages report which
[6:28] shows the pages that send the most
search traffic to the site.
[6:31] Now, if you have the experience, skills, and
resources, going after a ton of sleep related
[6:37] products at once could work out well for you.
[6:40] But if you don't then you might want to stick
with one product to create content around.
[6:45] For example, looking at this website's top
pages report, you'll notice that the majority
[6:49] of pages sending organic traffic
are related to bed frame reviews.
[6:54] So this might be something
worth exploring further.
[6:57] Alright, so if you go through these two methods
of finding niches, you should be able to jot down
[7:01] a bunch of interesting ideas
for your site.
[7:04] So let's move on to the next and perhaps
most important part of finding a niche for
[7:09] your online business and that's to
research and vet it.
[7:13] Now, in the vetting stage, you'll want to
get more detailed information on your
[7:17] brainstormed list of niches.
[7:19] This way, you won't be committing to anything
without knowing exactly what you're getting
[7:23] yourself into.
[7:25] So the way I like to vet sites is in two buckets.
[7:28] The web bucket and market bucket.
[7:31] The web bucket includes things related to your
website like how you'll get traffic to your site
[7:36] and how competitive it is
to get that traffic.
[7:39] Understanding this information will ground you in
reality by understanding your competition better.
[7:45] Now, the market bucket includes things related
to the industry and products you'll be recommending
[7:51] or selling.
[7:52] So that would include things like sustainability
or the overall trend of the niche and seasonality
[7:57] if any.
[7:59] Understanding these factors will ensure
you're not entering a niche that might fade
[8:03] over time or has already faded.
[8:06] Alright, let's talk about figuring out
how you'll get traffic to your site.
[8:09] More specifically, I'm talking about
optimal traffic sources.
[8:14] Paid ads, social media, and search engine
optimization are just a few traffic sources
[8:19] that tons of websites use.
[8:21] And they're all great but they each
come with their pros and cons.
[8:25] Paid ads are great if you have the money to
spend because you can literally get traffic
[8:30] to your site within an hour from
setting up your campaign.
[8:33] Now, the downside is that you
have to pay for web visitors.
[8:36] And the moment you stop paying,
you'll stop getting traffic.
[8:40] On top of that, you're adding a potentially
sizable expense which makes being profitable
[8:46] more difficult - especially if you're
selling low-ticket items.
[8:49] Now, social media traffic can be
great because it's free and fast.
[8:54] But if you don't have a big following, then it's
tough to actually get traffic from these networks.
[8:59] Plus, a huge downside is that the shelf-life
of social media posts tend to be very short
[9:05] because most social networks are designed
to surface new and fresh content.
[9:10] As for search engine optimization or SEO,
traffic is free, passive, and consistent.
[9:16] But the downside is that it takes longer
to actually rank your pages compared to
[9:21] the other two traffic sources.
[9:23] Now, the primary traffic source you choose
should be a blended decision of your timeframe,
[9:28] resources, expertise and your competitors'
main traffic sources.
[9:33] So to find out your competitors main traffic
sources, just search in Google for a keyword
[9:37] that's relevant to your business.
[9:39] So as an example, if we were to go with
the bed frames affiliate sites, I'd search for
[9:44] something like "best bed frames."
[9:47] And from here, I'll just skim the results
for a website that looks like it's solely
[9:51] about sleep or sleep products.
[9:54] So I'd ignore sites like Gear Patrol and
the New York Times and focus on a website
[9:58] like sleepfoundation.org.
[10:01] Next, I'll take that domain and
enter it into Similarweb.
[10:05] As you can see, they get well over 5 million
monthly visits to their site and if we scroll down,
[10:11] you'll see that nearly 90% of it comes
from search engines or via. SEO.
[10:16] So if I were to create a competing website,
that's the traffic source I'd focus on first.
[10:21] Alright, the next thing in the web
bucket is traffic competition.
[10:25] And this will boil down to the main
traffic sources you're going after.
[10:28] Let's keep running with the bed frames example.
[10:31] Since we've established that search traffic
is likely the best traffic source to go with,
[10:35] we'll need to look for two things.
[10:37] #1. Is there enough search demand in this niche?
[10:40] And #2. How hard will it be to actually
rank for these keywords?
[10:45] After all, if you can't rank for relevant
queries in your niche, then you won't get
[10:49] any traffic.
[10:50] Now, the best place to find this information
is with a keyword research tool like Ahrefs
[10:55] Keywords Explorer.
[10:56] So to get started, just search for broad topics
related to your niche, so I'll search for "bed frame"
[11:01] and "bed frames."
[11:03] Next, go to the Matching Terms report which
will show you keyword ideas that include your
[11:08] broad topics along with each
query's monthly search volume.
[11:12] And we also provide a keyword difficulty
score which estimates how hard it'll be
[11:16] to rank in the top 10 of Google.
[11:18] Now, since we're creating a hypothetical affiliate
website, we want to find a mix of informational
[11:23] content and product comparisons.
[11:25] So to narrow in on these queries, I'll click
the Include box and search for words like
[11:30] "how," "what," "who," "when," "where,"
'best," "vs," and "review."
[11:39] Finally, I'll set the "Any" toggle since I'm
good with keywords that include any of
[11:43] these words and hit Apply.
[11:46] And just from a quick search, it looks like
keyword difficulty scores are low to mid
[11:50] competition and with a cumulative search volume
of over 100,000 just in the US, it seems like there's
[11:57] plenty of search demand around
just "bed frame" related queries.
[12:01] Now, there's a lot more that goes into analyzing
competitors and search engine results pages.
[12:06] But rather than turning this into an SEO tutorial,
I recommend watching the keyword research
[12:11] module in our SEO course for beginners
where I go deeper into these things.
[12:15] I'll link those videos up in the description.
[12:17] Alright, let's move on to the market bucket.
[12:19] And again this is where we're researching
things related to the actual market, industry
[12:24] or product like the long-term trend of
the niche and any seasonal factors.
[12:29] To do this, just go to Google Trends and type
your niche or product in the search bar.
[12:34] So I'll search for "bed frame."
[12:36] Next, you'll want to choose the country
where your target market will be.
[12:40] So I'll choose the United States.
[12:41] And finally, I'll set the time frame to the longest
option to get a high level view of searches for
[12:47] this topic over time.
[12:48] And interestingly, there's actually a clear upward
trend for people searching for bed frames.
[12:54] Now, as for seasonality and other factors, it
seems like bed frames are popular year round.
[12:59] But what's interesting is that searches in July
and August consistently spike every single year.
[13:07] I'm not sure the reason, but it may be worth
noting for your promotional efforts.
[13:11] Now, to give you an example of seasonality,
look at the trend for the query, "garden hose."
[13:16] There are huge spikes starting in the spring
as the weather gets warmer and searches start
[13:21] dipping towards the end of summer and into
the fall and winter as the weather gets colder.
[13:26] This is what seasonality looks like.
[13:29] And niche sites that are season or holiday
dependent will have lower revenue in
[13:33] the slower months.
[13:34] So if this is the niche you're entering, beware.
[13:37] Now, with these methods you should be able
to find plenty of niches with profit potential.
[13:43] But everything we've discussed to this
point is purely about finding.
[13:47] And finding niches usually isn't a big problem.
[13:50] It's choosing the niche that often prevents
someone from starting their online business
[13:55] or persevering through the rough patches.
[13:58] And this brings us back to the three problems
in choosing a niche: profit vs. passion, low vs.
[14:03] high competition, and micro vs. broad niches.
[14:07] Let's tackle these problems head on because
your answers will actually help you choose
[14:12] and stick to a niche, increasing your
probability of success.
[14:16] So let's talk about the battle between
profit vs. passion.
[14:20] Plain and simple, you don't have to love
your niche in order to make a profit.
[14:25] But from my experience, it's a lot easier to make
money doing something you enjoy rather than
[14:30] doing it for just the money.
[14:32] Because what I've personally found is that
while I can start a site and get traffic to it,
[14:38] money alone isn't enough motivation
for me to want to grow that business.
[14:43] On the other hand, I know a few very successful
people who create niche sites on topics they
[14:48] don't care about and they're not
driven by money.
[14:52] But a key difference here is that these people
are driven by marketing and creating great
[14:57] teams to build new sites for them.
[15:00] In other words, they may not be passionate
about the niche, but they are passionate
[15:04] about the process.
[15:06] So the answer to profit vs. passion is going
to come down to what you're driven by and/or
[15:12] your level of tolerance.
[15:14] Alright, the next dilemma is about choosing
a low vs. high competition niche.
[15:19] Now, because earnings potential for an online
business heavily relies on traffic, your decision
[15:25] should be based on a balance of your skills
in marketing, your resources aka. your bankroll,
[15:30] and the level of competition
you'll be up against.
[15:33] But I also want to make a note that niches aren't
necessarily exclusively low or high competition.
[15:40] There's often a mix of topics with
varying levels of competition.
[15:44] So if you're starting a new site, a viable
strategy is to start with lower competition
[15:48] topics, even if they may not be super-commercial
until you've built your brand and website authority.
[15:55] And from there, you can start going
after more competitive topics.
[15:59] We have a video on assessing ranking difficulty,
so I'll link that up in the description.
[16:04] And finally, is the age-old question,
"how niche should I go?"
[16:08] This question is strongly connected
to the problem we just solved.
[16:11] It'll largely come down to your skills,
resources, and the level of competition.
[16:17] But to help you come to a more solid answer,
in general, I think it's worth starting as niche
[16:22] as possible with the intention to expand
and go broader.
[16:27] Here's a simple exercise.
[16:29] Think of your niche in a hierarchy
and where it fits.
[16:31] For example, you might want to go
after a niche about bed frame reviews.
[16:35] And within this niche, you can talk about the
best wooden bed frames, the best adjustable
[16:40] bed frames, the best bed frame for
people with king-sized beds and so on.
[16:45] And you can even go deeper and review specific
models of these products, adding another layer
[16:50] to your hierarchy.
[16:51] Now, a website with bed frame buyer's
guides isn't exactly a tiny niche.
[16:56] But it's also not huge.
[16:57] Meaning, you're eventually going to come
to a point where the hierarchy ends.
[17:02] So at minimum, I think it's good to be
able to build at least two levels down.
[17:07] But what's even more important is that you
have the potential to actually niche up.
[17:13] For example, bed frames fall into
the category of sleep products.
[17:17] And so do pillows, mattresses, and sheets.
[17:20] And each of these products can have
their own mini hierarchies of subtopics.
[17:24] And if you're able to successfully execute on each
sub-niche, you can create a super-authoritative
[17:29] website covering lots of topics that
are highly relevant to one another.
[17:34] Best of all, as you build your authority in
each of these niches, the next sub-niches
[17:39] you tackle will only grow faster because you'll
be building a stronger brand and website authority.
[17:45] So rather than asking yourself, "how niche
should I go?" you should ask yourself, can
[17:50] I expand my topic hierarchy by branching
out to related sub-niches?
[17:55] So take a look through your list of niches,
ask yourself these personal questions and
[17:59] you'll be well on your way to finding
and choosing a niche.
[18:03] More importantly, you'll have a better chance at
starting your online business on the right foot.
[18:08] Now, if you enjoyed this video, make sure to
like, share, and subscribe for more actionable
[18:12] marketing tutorials.
[18:13] I'll see you in the next one.

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