list of things needed to start a business (Chapter-3)
Chapter 3 – What Makes a Niche Profitable
Before you can start designing a product or service, you have to determine if there is an audience out there that will be willing to purchase what you’re offering before you invest too much time building a website and producing content. This means that you need to think about how you’re going to monetize your product or service and whether the niche that you’re thinking of choosing will support the business model that you have in mind. It is essential to understand that some niches vary drastically in terms of profitability.
What Makes a Niche Profitable?
To fully understand this, you need to consider the available options that you have for monetization. One of these options is advertising. This requires placing banner ads or Google Ads on your website. This is probably the least profitable way for monetizing your niche because you end up sending visitors away from your site every time they click on an ad. What’s more, you need to consider if those advertisers are willing to pay for your traffic. They have to have a way to make more money from your site visitors than you are.
These advertisers are most likely making money by selling something. If they are selling something, then they’ll be able to keep the lion’s share of the profit from each visitor while at the same time keeping them engaged with their brand. Eventually, this is what you want to be doing with your site. You can do this by either creating a product on your own, ideally a digital product like an eBook, or by selling a product that you didn’t create. This is what is known as affiliate marketing. Of course, you can also sell a service.
One thing that you have to consider before you choose your niche it that some niches lend themselves to products that you can sell much more quickly than others, which will end up having an impact on your advertising fee as well. If there isn’t anything that your advertisers can sell in your niche, then they won’t be willing to pay very much to appear on your website. So, what does this mean in regards to a niches’ profitability? It means that the niches that have a lot of products that can be sold will be the most profitable for you.
For example, picking a niche like “Fortnite” wouldn’t be a good choice, since it is an online video game owned by Epic Games. This means that you can’t sell your own Fortnite merchandise and the best that you might get away with is a ‘guidebook,’ which probably isn’t going to fetch you a ton of money. At the same time, other advertisers aren’t going to want to advertise on your website either. While you will still probably be able to get adsfrom
Google Ads, they might not be very relevant. This means that you won’t get the clicks that you need to earn money from those advertisers. Plus, since they won’t be able to sell any ‘high ticket’ items, they won’t be able to pay out a lot of money for those clicks. This is something that you need to be thinking about when you are choosing your niche. While you still might be able to make some money from Fortnite blogs or other fan sites, it is going to be much harder to do compared to different niches.
Some High Earning Niches to Consider
One of the most obvious reasons that a niche might be profitable is that it offers a form of investment for the customer. For example, a blog on investing would be something that people would be willing to pay to learn about because they should be able to earn more money from that kind of knowledge than they spend to acquire the information. The same thing goes for topics in business. People spend thousands of dollars on online courses to learn how to make money from websites because, in theory, they will earn the money they spend back.
Another kind of niche that tends to be profitable are any that promises to change the customer’s life in a measurable way. This is where you need to consider your value proposition, or how you’re going to make people’s lives better. This is why fitness is such a great niche to be in from a profitability standpoint. People are willing to spend a ton of money on fitness books or workout equipment because they believe they will get toned abs and muscular biceps from their investment. This can, in turn, lead them to live longer, being more confident, and generally, feel better overall. This is a highly tempting prospect for most people, and they are more than willing to spend their hard earned money on it.
Another thing to consider is the price point of the products or services that you are selling. Having higher ticket items for sale
means that you can potentially earn more from your site. If you are writing about sports cars, then you have the potential to make a lot of cash. This is also why travel blogs can earn a lot of money because they appeal to travel agents and sites like Expedia and Orbitz for advertising.
If your niche isn’t obviously profitable, in that it doesn’t have a tempting value proposition, the promise of investment, or high- ticket items, then you just have to get a bit more creative. For example, you might want to make money by helping people find hotels so you can make a commission. Maybe your plan is to build your site up and then branch out and extend into another area. Whatever you decide, just make sure you’ve considered all of this before you take the first steps in choosing your niche.
