One of the most important aspects of being successful online is finding a niche that you can make money in.
In theory, it’s possible to make money in just about any niche, but some of them are much more difficult than others.
That’s why figuring out the most profitable niches online is so important.
When I started thinking about this post, my first idea was to write an article where I listed some of the most profitable niches at the moment.
However, that doesn’t really work, because niches change over time.
As one niche becomes more competitive or less popular, it may well stop being as profitable.
The trick is to be able to figure out what it is about some niches that make them profitable.
What Makes a Niche Profitable?
Most people focus on two main things about a niche. One is traffic and the other is competition.
For the most part, the higher the interest in a given niche (the traffic going to it) the more profit potential it has. However, there is almost always a tradeoff.
As the traffic to a given niche increases the competition that that niche will also increase.
This means that finding the most profitable niches online involves looking for niches that have decent traffic, but that also don’t have too much in the way of competition.
There is another factor to consider also.
In some niches, people are much more likely to spend money than others.
Likewise, in some niches the products sell for higher amounts than in other markets.
Now, the main thing you need to think about is whether your audience is likely to spend money.
After all, even low priced products will sell, and sometimes it can even be easier to sell products that have low prices. You do have to sell more, but it can still be a very effective approach.
On that note, be aware that high ticket items often do not sell well.
For example, I once saw someone recommend selling aircraft as a profitable niche, because they sell for so much.
This is a completely ridiculous idea, because if someone is going to spend a considerable amount of money buying an aircraft, they’re not going to do that from a website where you are promoting that particular product.
Instead, they’re going to do the research themselves and buy from somewhere they trust.
As a general rule, remember that the more something costs, the harder it is going to be to get people to buy it.
After all, people often hesitate about spending a lot of money.
A very good thing to consider is the disposable incomes of your audience.
If you have an audience with a considerable amount of money, then they are much more likely to make purchases than people who are short on money.
For example, some people target teenagers as an audience.
Teenagers can often be very passionate about a given topic and they may even have an after-school job, but in general they won’t have much money at their disposal.
Additionally, teenagers often don’t have a way to buy things online, while an adult will find buying things online much easier.
So, in general, if you target audiences where the audience is able and willing to spend money, making money is much easier.
The Way Niches Evolve
Niches arise from the way that people search for things and the topics that they are interested in.
Sometimes a niche will stay popular for a long time, but other times it will peak in popularity and then decline later.
A really good example of this is green coffee beans.
Not so long ago, no one had really heard about green coffee beans, and no one really cared about them either.
However, in about 2012, interest in green coffee beans for weight loss really picked up, and interest in the area spiked.
For a while, green coffee beans may have been a very profitable niche, particularly as a lot of people were searching for it, and it is very easy to relate products to that field.
However, as you can see from this image, interest in green coffee bean has declined dramatically since that point in time.
Niches like this are only popular for a short period of time, and then their profitability declines dramatically.
Now, if you can manage to spot this trend early on and quickly put together a site, then you might be able to make significant money off the trend.
However, once the popularity in the niche drops, the site ends up being much lower in profitability.
If you catch this trend at the wrong end of it, or if it just takes you a while to get a site up and ranked, then you’re likely to be putting a lot of effort into something that isn’t really going to be that good for profit.
Not every niche does this. Some niches remain relatively steady in interest over time. A good example of this is cosmetics, which is sometimes thought to be a recession-proof field.
Trends in the market and news stories really have little impact on the cosmetics niche.
This means that people who build up a website in this niche have the potential to make money from it in the long term, without worrying that interest is going to crash.
When you are looking for the most profitable niches, you have to keep the way that niches change over time in mind.
Otherwise, you risk getting involved in a niche that isn’t going to be very stable in the long term.
A term that people sometimes use in the internet marketing field is evergreen.
An evergreen market or niche is one that remains profitable consistently, regardless of the trends that occur within the market.
There is often considerable competition within an evergreen market, but you can always look into sub-niches.
Some of the more general evergreen markets include health, romance and wealth.
These are things that people remain interested in regardless of the economy.
In fact, people tend to be more interested in some of these when the economy gets bad.
After all, how many people start looking up ways to earn money when they lose their jobs?
Any one of these markets has a huge range of sub-niches you can look at.
For example, in the health, some sub-niches are weight loss, supplements, improving health, increasing energy, and natural remedies for some disease.
Another advantage of evergreen markets is that people are often looking for an urgent solution to the problem, which means that they are more likely to spend money in the field.
I have talked about the importance of hobby markets in another post, but I want to cover it briefly here too.
People are often very willing to spend money on hobbies and they tend to search with the idea of spending money to start off with.
Because of this, making a website about a specific hobby can often be very profitable approach.
Personally, I think that hobbies are some of the most profitable niches online, because many of the people interested in hobbies are very passionate, which makes them much more likely to spend money.
Now, a word of warning when it comes to hobbies.
Not all hobbies are created equal, and some of them aren’t that profitable.
You can read my full article on hobbies here for more detail, but in general, you want to be looking for hobbies where the audiences have a lot of money to spend, and where they do spend a lot in the hobby.
So, for example, people tend to spend much more money in the photography niche than in a niche like crocheting.
An Overall Strategy
Realistically, finding the most profitable niches online is almost impossible, because how effective a niche is will constantly change.
Even if you find a highly profitable niche or sub-niche, there is a significant chance that the competition to it will increase over time, or that the interest in it will decrease.
Your overall strategy does need to involve looking for niches with audiences that have disposable incomes and are willing to buy, as well as niches that are likely to remain popular.
However, this is only one part of the approach.
The second important thing to consider is your strategy for dealing with changes within the market
It’s naive to go into any market and assume that it will remain profitable in the long-term.
You need to make sure that you have a strategy in place for what happens if competition increases or traffic decreases inside a given niche.
One important approach is to think about how you can modify your strategy and site if it starts to experience problems.
For example, maybe you would end up developing a different type of product that addresses current needs.
Alternatively, you might focus on researching keywords that have lower competition to attempt to rank for keywords that you are more likely to be successful for.
Many people work on developing an authority site where they provide real value for their customers.
This type of site keeps people coming back to it and you have the option of changing the advice you offer or products you promote based on changes within your market or changes in competition.
Regardless of the type of site you develop, a good place to learn more about niches and making money online is Wealthy Affiliate.
Wealthy Affiliate is an online training site that supports and teaches people in the field of internet marketing.
The site offers a large amount of information and support, while catering to individuals of all skill levels. It's a great place to get started, particularly as the site has such an active community.