Say you make a product that is sold for $49. You build your product, website, and email campaigns; run ads in Google AdWords; and hire a small team. After two months of working on your project, you’ve earned $1,000.
But putting in the same amount of effort in the same time frame in a different niche could bring dramatically different results. You could make $10,000 or $100,000 a month just by shifting your focus to a different niche industry.
Why? The demand varies among niches. One niche might only generate 200 prospects each week, while another might yield 1,000 sales each day.
This is why it is essential to test various ideas. Let’s find 10 niche business ideas and test the demand and profitability of each to find the best ideas.
Do not rush. Try to remember all the things you have been passionate about. Maybe you were good at fashion and you know everything about new trends and how to combine different clothing items. Maybe you used to create gorgeous websites, and your boss was shocked by your talent. Write them all down.
The more data you collect, the more ideas you will be able to generate using your past passions.
List everything you have been paid for, whether by friends, employers, colleagues, or freelance clients. Maybe you used to sell the icons for user interface design on Creative Market. Maybe you wrote email copy for a brand campaign. Include those types of tasks in this column.
At first, it will be hard to generate ideas, but stick with it and spend at least one hour doing this exercise.
Do not focus on ideas that going to change the world. While there is a small chance that you will think of a brand new life-changing idea, it is better to work with the niches that already popular and have proven success rates. You do not need to build another Facebook to earn your millions. Just find the profitable niches, build a product or service inside that niche, run stable traffic, and start selling.
The more ideas, the better! We will test the ideas on demand in the next steps.
To find out the right demand for your product, it is important to choose the country where you would sell it. If you plan to sell in the United States, then click on "All Locations" and choose "United States."
If you would sell your product worldwide, then leave the section with the location as it is — "All Locations."
More traffic means that more people are searching the internet to find the products in your niche.
Higher traffic also means you can make an ad campaign and offer your product to these prospects. It is the easiest and most scalable way to get traffic to your website.
If there is not much demand inside your niche, then you run the risk that you will build a product that nobody cares about.
The better dynamics over time for this parameter, the better your chances are to find a niche that will bring you more prospects.
It’s similar to the effect of opening your shop in a popular neighborhood — more visitors equals more sales.
Google Trends allows you to measure interest in your search in a particular topic on a world, country, state, or even city level.
1. Remove all the niches that have less than 10,000 monthly searches in Keyword Planner.
2. Remove the niches with bad popularity dynamics in Google Trends.
3. Reject the ideas you do not like anymore.
4. Shorten your list to the five ideas that have the highest potential to generate results.
Write out your ideas using this formula: [Product] for [target audience] to solve [problem] with [secret sauce].
Example: "KarateKid is developing martial arts lessons for kids to make them strong without injuring themselves."
You need to be specific when describing your niche business idea. If you build a product for everyone, there is a big chance that it will be too general and no one will need it.
Consider your end goal and what it will take to reach it. If you want to earn $20,000 each month and your product sells for $100, you need to sell 200 products each month. But if you sell your product for $1,000, then you only need to sell 20 products.
In some niches, you can spend a week to close a deal for $100, and in the others, you might spend the same amount of time to earn $1,000. Choose the ideas with the right ratio between money and time.
So what do you do next? Test every idea by building a landing page that describes your product and services. Buy traffic on AdWords and Facebook to reach your target audience and find out which of your ideas is the most profitable.