Finding a good niche is key to building a good online business. So how do you go about finding a good niche? You read about all the technical aspects about finding the right keywords. Looking for popular subjects with low competition. The reality is that you can do all these technical things, but that’s really just missing the forest for the trees.
Are those elements important? Yes. But is that where you should start when you are looking for the right niche? Probably not.
What you really want to look for is a subject that is interesting to you and has some investment potential.
What do I mean by that?
Last year I was listening to an investment podcast. The person was giving investment tips on finding the right stock. One tip that he mentioned was that if you are researching a product and you find something that you really like, consider investing in the company’s stock.
His point was that if I took the same amount of money that I would have put into buying the product and bought stock in the company instead, chances are I would have made some money back in the investment.
Take a few minutes and just think about that concept…
Here’s why that advice really stuck with me. When I think about any major purchase, a new TV, new computer, mobile phone, etc… What do I do?
- I research the models that are available
- I read reviews
- I check up on the company that makes the product
- I check on the reliability
- I look at the warranty
- I ask my friends about the product and the company’s reputation
I look into all of these areas and more before I decide to spend money on any big purchase. Aren’t these the same kinds of questions you might ask if you were thinking about buying into a company?
So, as an example, I thought about one of my last major purchases.
In 2006, I was looking into getting a new computer. I needed to upgrade an old computer of mine that was getting outdated. So I looked at the various computers that were available. I wanted to get a reliable computer that was powerful and at the same time easy to use.
At the time, Apple had started coming out with the new Intel imacs. These computers were becoming more popular. The operating system was intuiting and Apple had a fairly strong reputation behind its brand. Plus, I knew that the company was on the rise and their computers were really improving.
So with all that in mind, I spent about $2000 and bought a shiny new imac.
Now take a look at what would have happened if I took that same $2000 and bought stock in apple instead. Here’s the Apple stock chart for the last 6 years:
In 2006, when I bought the imac, apple stock was selling for about $64 a share. Today, Apple stock is selling for $359 a share.
If I had used that $2000 to buy the stock, I would now have $11,218.75.
So, what does this have to do with picking the right niche?
What if you applied the same concept to picking a niche.
First you would find a product that you were interested in purchasing for yourself. Then you’d do all the research to make sure that product was worth buying.
Just think, if you did all that same research, you would be discovering a product that people will likely purchase themselves, right?
Consider this, if I had taken all the same concepts and applied the same principles. I could have done something as simple as creating a blog about imacs and just created some Amazon Affiliate links.
Looking back, I think everyone would universally agree that this is a good niche that has a chance of making quality sales. The subject matter at the very least is popular and has a good chance to get sales.
The second point is that using this method, you are picking a subject where you already have an interest. This way, you are less likely to lose your passion in your web site. Also, because it’s an area where you have an established interest, it will be much easier for you to come up with content.
Now, when you start writing your content for your niche, you will also be writing from the unique point of view of having some personal experience on the subject. Rather than just some generic review site, you can give your audience the perspective of an actual user of the item. Your niche will be personalized. Having that personal touch will help you develop a better connection with your audience.
How I Turn My Last Purchase into a Niche Site
So, the other day I thought about this concept and thought about how I might apply the idea to one of my last purchases. Recently, I cancelled my dish network subscription and bought an Internet streaming device called a Roku. This device allows me to watch my Netflix movies and other channels through the Internet.
Devices like this are starting to become more popular. People are realizing that they can get great a la cart content for a fraction of the price of cable or satellite.
So, I started a new niche site about my new purchase.
I found it fairly easy to write my posts for the site because I was basing it on my own personal experience and research. Also, because I knew I had done my homework when I bought the device, I felt confident that others might feel the same way and also purchase the device. (Hopefully through the links on my site)
Can This Method Work for Anyone?
Think on it. Take this idea and make a list of some of the major investments that you’ve made in the recent past. Think about your last major purchase.
Don’t limit yourself just to material items, have you been making an investment in your time? Think about your favorite hobby. Are these things that you can turn into a new niche site?