You have 3 must-be-done tasks in order to choose a profitable niche market for an online business:
1. Find a specific or differentiated niche market 2. Make sure the search quantity in order to generate profit 3. Define unmet needs from your target consumers.
Details as follows:
1. Find a specific or differentiated niche market
If you choose the market of "health", you need to choose more specific needs. For example, you can choose "methods of curing eczema", "eczema treatment book", "how to treat acnes", "yoga", etc.
You don't need to worry that this market is so small because internet market is the market of over 1 billions people and the internet penetration is increasing higher and higher.
2. Make sure the search quantity in order to generate profit
If you choose a specific market without consumer need, you will die. One of the popular failures is that the entrepreneur focuses on or invests in markets with so limited need.
So you need to make sure your niche market attracting at least 10,000 searches per month in order to make profit. Why? Because that search quantity is 100%, through purchase funnel as below, your potential sales volume is around 3-5%. I mean, with 10,000 searches, only around 300 people take an purchase action. If you sell your products with the price of 18 USD with commission or profit of 9 USD, you can just earn 2,700 USD/month.
The page: https://adwords.google.com/KeywordPlanner will let you know your local search quantity and global search quantity per month. You will get the information as below:
3. Define unmet needs from your target consumers.
Now you can realize the niche market which is big enough out there. Next step is to find a specific problem which your target consumers need to solve. Consumers only pay to you when you help them solve their problems. You can do it by joining forums related to your business. You need to observe what they talk, what they need? You can also look at what your competitors do? how do they introduce their products?
Ok, that's it! These are simple and basic steps you need to consider in order to choose the right niche market.
Here is plus ideas for choosing a niche market.
This idea to choose a niche market is inspired from The World billionaires such as Bill Gates, Steve Jobs, etc. That is "do what you love" and "follow your heart". I mean to go with a niche you are passionate about. This most likely includes a hobby or lifestyle choice.
This is a great idea because you are already knowledgeable and experienced on the topic. You're also less likely to get bored with it than niches where you don't have a personal interest.
The second suggestion is to choose a niche where you have professional experience or expertise. Another great approach, except that most people are already burned out on their chosen profession, or still doing it as a day job, and can't get excited about spending their nights and weekends at it as well...
The third way to select a niche, and one that I recommend a lot, is to choose something you'd like to start doing. A new hobby or lifestyle, or something you'd like to collect or get into.
Because you are just getting started at it yourself, you actually are your target market. This puts you in an ideal position, and gives you insight and empathy with your market - you can easily connect with them on their level.
NOW ==> DREAM BIG. CHOOSE YOUR NICHE! AND MAKE IT HAPPEN!