How To Pick A Profitable Niche To Make Money From (Step-By-Step Guide)
One of the more common questions I get from my email subscribers is “How do I pick a profitable niche?”
So inside of this blog post, I am going to answer that.
When you are picking a niche, you should think long-term and build a brand around something you love.
If you try to pick a niche just so you can make money, then you will eventually get bored and won’t want to keep going.
Also, when you build a brand you can sell affiliate products, your own information products and even coaching and consulting.
In other words, building a brand gives you room to grow and expand.
When you build a brand, people will buy from you because they know, like and trust you.
Learning the marketing skills will always help you sell more products, but building a brand will allow you to have a long-term business that keeps growing because of all the work and assets you create over time.
So let’s jump in.
Here’s what you will learn:
- How to become an expert in any niche even if you’re brand new with no previous experience or knowledge
- The 3 evergreen niches that are massively profitable and always will be (Hint: I suggest to always go with one of these)
- How passion and hobby niches can make you a lot of money
- Why you should “Think Big” and promote high ticket products because it takes the same effort to promote a high ticket product as it does to sell a low ticket product.
#1 – You Don’t Need To Be An Expert To Get Started
When I first got started online, I was afraid that no one would follow me or buy from me because I wasn’t an expert.
I was brand new and I didn’t know anything about internet marketing, how to pick a profitable niche, how to create content, how to generate leads or make sales.
I would short myself and think, “I don’t have any value to offer,” or “why would someone buy from me when my competitors know way more than me.”
And I see this limiting belief plague a lot of beginners who try and create an internet business.
But what I realized was that you don’t have to be an expert to offer value to someone else.
If you know just a smidge more than someone else, then you have value to offer.
Originally, I started my tipsfromtim.com blog to document my journey and to share tips that I was learning along the way.
I loved learning about internet marketing and taking action on all the courses and information I was studying from.
Even though I was brand new, I was sharing tips that were helping people who knew less than I did!
It didn’t take long before people were sending me messages on Facebook and filling out the contact form on my blog asking for help.
All I did was openly share what I was doing and the results I was getting.
The results didn’t have to be about making money either.
After I learned how to create a blog, I created a tutorial showing people how I did it.
I did the same thing when I learned how to create a YouTube video and upload it.
These were very basic skills to someone who is an intermediate or advanced online marketer.
But there are millions of beginners who are searching for how to make money online every single day and I knew that I could help those people!
I’m always studying and trying to get better, and then teaching what I learn back to my email subscribers and social media followers.
I never claim to be an expert, but people started following me because they resonated with my story, my personality, and the fact that I was trying to help them.
No one starts out an expert. They become an expert over time by constantly learning new skills and then sharing massive value to their marketplace on a consistent basis.
You can do the same thing in the niche that you choose. Simply share what you are learning and create content that serves your niche.
Experts publish their own content, and when people come across your content they will perceive you as the expert because you’re delivering valuable content that helps them solve a problem or learn something they’re searching for.
That is why self publishing is so powerful, and it’s a lot easier to become an “expert” than you think.
Now let’s talk about picking a profitable niche.
#2 – The Three Most Profitable Niches Are Health, Wealth and Relationships
In my opinion, I would only build a brand around one these niches because everyone wants to be fit and look sexier, make more money and have a better relationship or find the perfect partner.
In other words, people are spending A LOT of money in these niches and that will never change.
When someone has a problem in one of these niches, they will do just about anything to solve their problem and they will spend as much money as it takes.
I’ve spent thousands of dollars on courses, mentors and live events in the “make money online” niche because I wanted to be financially free and never have to sweat about paying the bills or living just above the poverty line.
I’ve also spend thousands of dollars in the dating/relationship niche because I wanted to learn how to attract the right partner and have a successful relationship.
I’ve also spent thousands of dollars in the health and fitness niche on supplements, gym memberships, gym straps and squat belts, whole foods and workout programs because I wanted a better looking body and increased confidence.
I’m sure you have spent money in one of these niches as well. Especially the make money online niche, otherwise you wouldn’t be here reading this blog post right now 🙂
So, are you starting to see why these niches are incredible profitable?
If you want a niche lucrative niche that will stand the test of time and has repeat buyers then you can’t go wrong with any of those 3 industries.
And there are hundreds, if not thousands, of sub-niches in each one of those categories.
#3 – Hobby Niches Are Incredible Profitable
So we covered the big 3 niches, but hobby niches are massively profitable, too.
People never stop spending money on their hobbies because it’s something that they are passionate about and it makes them feel good.
Example 1: My mom spends ridiculous amounts of money on cat statues and cat artwork.
There are cat statues and cat paintings all over the house. It’s actually kind of creepy but it’s what she loves.
She also loves guitar and spends money on new strings, new guitar picks, microphones and loud speakers.
Example 2: My dad loves cigars and enjoys smoking one by the fireplace every night while he watches the news.
He loves going to the cigar shop down the street and picking different flavors.
He also has a humidor to store his cigars and he’s patiently waiting for the trade embargo with Cuba to end so he can get his hands on some Cuban cigars.
Example 3: I love computers and related accessories.
I will try and buy the best laptop computer with the best graphics card and fastest processor so that it runs fast.
I will purchase a wireless mouse because I hate having wires all over the place.
I will also buy high-quality microphones and video editing software so I can make awesome YouTube videos that have crisp audio quality.
I will justify the cost because I love these things.
Do you see the power in hobby niches?
When someone loves something or it entertains them, they will buy the latest tools and gadgets simply because they want them.
Just look at niches like golf, car enthusiasts, gamers, hunters, fishers, and bodybuilding.
People spend crazy amounts of money to pursue their hobbies.
If you have a hobby that you love and already have knowledge about it then this may be a good choice.
Now let’s move on to one of the most important metrics I look for in a niche.
#4 – Sell High Ticket Products
One of the things I look for when entering a niche is the ability to sell higher ticket products or services.
When I first started online, I couldn’t imagine people spending $500, $1,000, $5,000, or $10,000+ on something.
But then I spent $997 on a digital course and live event. Then I spent $2,000 on another digital marketing course. Then $5,000 on a private travel club membership!
And I wasn’t the only one. I saw this happening left and right.
After getting mentors and getting around people who were “thinking big,” I had to shift my belief of what was possible with internet marketing.
Not all niches have high ticket offers, but usually you can find high ticket offers in the health, wealth, and relationship niches.
Just look at the numbers to make $100,000 a year:
- Sell 10,000 people a $10 product
- Sell 1,000 people a $100 product
- Sell 100 people a $1,000 product
- Sell 10 people a $10,000 product.
It’s much easier to find 100 people who will pay $1,000 than to find 10,000 people who will buy a $10 product.
Trust me, this was the mistake I made for the first two years online 😉
I was trying to sell a $37 product that paid me $20 in commissions and it was rough.
Another great thing about selling premium priced products is the quality of your customers.
Someone who buys $7-$37 products refund more, complain more, and expect $10,000 of service in return.
People who pay premium aren’t the opposite. They are more serious, less likely to refund and complain, and know exactly what they want.
When you switch to selling high ticket products then it becomes a lot easier to scale your business because your margins are higher.
This allows you to reinvest into paid advertising, hire employees, or outsource busy work to freelancers.
This is what truly creates freedom.
Depending on your niche, high ticket could be $200 or $500, but for me personally, I won’t enter a niche unless I can make at least $500-$1,000 per customer.
How To Pick A Profitable Niche That Is Right For You
If I was starting all over again, then I would pick a niche in health, wealth or relationships.
Those niches will always have an endless amount of people to serve and help.
If you aren’t interested in one of those three niches, then try a hobby niche.
The most important factor is to pick something that you can see yourself building long-term and sticking with. Once you build a brand, it gives you options to expand and grow in the future.
Did all of this make sense? Leave a comment below with your thoughts.