Are you puzzled as to where to start when picking a niche topic?

So it’s time for me to pick a niche topic and run with it. The problem is – what happens if I pick the wrong one?

You hear the horror stories where people put their heart and soul into a product/blog site only to find out there’s nobody listing, watching, consuming or spending.  The problem is, people start with the product in mind, not the market in mind. So how can we avoid falling into the above pitfall?

Market research, market research and more market research!! AHHH I hate that word! I hated the idea of researching my market and didn’t know where to start. So in the past I’ve just totally skipped the process. If you’ve done this too, then its time to go back to square one.

Lets look at seven key considerations before you dive into a niche – head first!

1. Are you truly passionate about the topic?

And I mean really, really passionate? When was the last time you read a book or visited a website relating to that topic? How much knowledge do you have in the area? How much knowledge do you want to have in the area?

The problem that I had was I was going to select a niche that was convenient because I already owned a domain name relating to that topic.  I felt that I should be selecting something that is popular or profitable rather than something that I actually enjoy and want to learn more about (in reality, you should be able to do both!).  I’ve scrapped that idea and now I’m starting to follow these next few points (thanks to @luvyaa for the advice!).

To identify what I was truly passionate about, I created a new mind map (this is becoming a favourite pastime of mine!) Start with your skills and your interests, and branch it out until you can’t get any more specific. You’ll get a clearer understanding of what makes you tick and what areas interest you the most. Once you’ve picked a few topics, now you can see if anyone else likes what you do.  The fun begins.

2. Are other people interested in your topic?

If your niche keywords aren't getting enough traffic, move on!

So you’ve found your passion – excellent. Do others share the same passion?  I found the video by Frank Kern “How to find something to sell” to be very beneficial if you have no idea where you should start.

But basically you’ll need to identify some popular keywords. Although there are quite a few keyword research tools out there (no doubt I’ll be testing a few out down the track), to begin with I’m using the simple Google Adwords Keyword Research Tool.

By using this tool, I can get an indication of how specific I need to be to enter this niche.  By looking at the Global Monthly Search Volume, I can get an indication whether or not a keyword is viable. It is an excellent way of discovering longer tail keywords and finding potential ideas for content creation.  If a topic simply doesn’t get enough search volume, then it’s good to know that you might be saving yourself a lot of time.

3. Are people spending money in your niche?

The next step for testing the waters for your niche is to identify if people are spending money.  So I’ve been doing exactly what Frank Kern suggests. I’ve been conducting some Google searches to see if people are promoting affiliate programs & and products within the niche.

Checkout sites like Amazon, eBay and other popular shopping sites where you can get an indication on what products are selling & and what’s hot. It’s also important to discover all the forums and the ‘how to’ sites in the niche. Once you do, you can find out what questions are being asked and you can answer them.

4. Can you stay ahead of your market?

The ability to create and develop interesting content for your readers will be key. You’re going to have to love the niche enough to follow what others are staying or doing. Create content based on popular topics and ensure that you put your own spin on it. Remember, regardless of how specific or generic your niche – if you use your own unique voice, you will be heard!

5. Long term sustainability of the niche?

Simple – don’t pick niches relating to special events or ideas with limited lifespans. This is a critical one. If your niche was a certain type of technology, how long would it take before it became superseded? It’s no good building up a list of followers only to realise that soon they’ll move onto something bigger and better. You’ll be left dead in the water. Not fun!

6. Can your competitors also be your friends?

In the offline business world you usually aren’t close friends with your competitors. The thing that fascinates me with online marketing is the ability to create a WIN : WIN situation for both yourself and your competitors. To be honest – it appears that competitors have become more like companions with the introduction of social media. I love the concept of a community that embraces the idea of creating colleagues rather than competitors.   But obviously this isn’t the case for all online businesses. It depends on the business model you pick. Will your business adapt? Can you easily form joint ventures?

7. Should you be a niche blog flipper?

I’m getting very addicted to browsing through flippa.com, even though I’m yet to make a purchase or sell my own niche blog. But honestly, before you starting thinking about buying or selling blog sites, you first need to consider your end goal. From the beginning you need to identify what your end goal is for your niche site. Do you plan to hold onto it for a very short time? Do you want to brand your name and your face all over the niche and make it a long term business? It’s your decision – I’m not going to say there is a right way to do it. I will however state that I believe if you stick with your niche long enough, the power and leverage you’ll get in your market will far outweigh the income you’ll make from creating hundreds of niches and flipping them.

So what’s my niche?

Honestly – I’m writing as I’m learning. So at this point, I have an idea of my niche but I have not 100% made up my mind. Perhaps this is a good thing really. I don’t want to rush in and get burnt. I don’t think you should do the same either. Spend the required time researching your market, and then make an informed decision. You may end up saving yourself many many hours & dollars.  Keep your eyes peeled as to what decisions I make in the next few months to come. Hopefully I can practice what I preach!

Your comments are always welcome!

If you’ve picked a niche and had success, what steps did you follow? Please leave a comment – share your thoughts and findings.