How to Find Profitable Low Competition Niches: A high-quality niche has two factors that need analysis: low competition and profit potential. If you have both, then you have a good chance of carving out a part of that market for yourself.
In this article, we will look at how to create a list of potential niche markets, as well as whether you will be able to break into the market.
=> Start by Coming Up with a Broad List
The first step is to produce as many topics as you can. You will later narrow this down to just the one or two that have the most potential.
Start by writing down all your personal interests and passions. Brainstorm at least ten things that you are either enthusiastic about or have knowledge of.
Then take a stroll through a bookstore. Look at the magazine racks and jot down any ideas you have for niches and sub-markets.
Carry your notepad with you wherever you go for a week or two. Once you have a few high-potential markets to look at, then it is time to evaluate each niche’s potential.
=> Researching the Number of Established Brands
The first thing to do is spend some time exploring the market. Though you can do the statistical parts of niche research in a day, to really get to know a market may take a little longer.
Get a sense for what the biggest brands in your space are. Do this by doing Google searches for a wide range of terms and seeing what sites come up.
In addition, read as many blog posts and forum posts as you can on prominent industry forums. What are the names of companies and people that are often mentioned? Who is viewed as the “gurus” or the best resource in space?
Ideally, you are looking for a market that has a few competitors, but nobody that has an extremely strong foothold. If there are multiple strongly rooted personalities in the market already, you will have a hard time breaking in.
This part of the research is more qualitative (meaning “feeling-based”) than quantitative. It is getting a sense of how deeply entrenched your competition is.
=> Toughness of Competition for Search Terms
The other part of the research is more statistical. You want to figure out which keywords you plan on targeting, then figure out exactly how much traffic those terms have and how much competition you are facing.
Look at the PageRank, the incoming links, the domain age, and the estimated traffic of the websites that come up first for your target search terms.
Are these sites established sites that are deeply rooted in the industry? Or are they new sites with few incoming backlinks?
In other words, do you believe you will be able to beat those sites to a number one, two or three position within about six months?
For your first time, it is best to aim for search terms for which you can easily rank. As you get more experience, aim for tougher and higher reward keywords.
The whole process looks something like this: First, brainstorm as many ideas as you can. Then cross off the ideas that clearly will not work out. Review traffic (quantitative and numerical) and competition data to obtain more ideas. Ask how loyal are customers to top brands? Then pick a market you believe you can break into and jump in with both feet.