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How to Identify a Profitable Online Business Niche

If you are going to get involved in internet marketing, finding a profitable niche is going to be extremely important. Essentially a niche market refers to a group of people that are looking for a solution to a specific problem, and a profitable market will be a group that is having problems finding relevant solutions to their problem. The entire purpose of internet marketing is to find a certain group that has a problem or need, then creating a service or product to cater to that need. Of course, while it sounds easy, finding a profitable niche isn't quite as easy as it may sound. So, here are some great tips to help you identify a profitable niche that will work for your own internet marketing business.

Start By Picking a Topic You're Interested In

In order to identify a profitable niche, the first thing you need to do is to pick out a topic that you're really interested in. If you are not interested in the niche you choose, you probably won't stick to it. Come up with a good list of some of your hobbies, interests, topics you have knowledge on, or some of your passions. Have a list of about five different things to start out with.

Research Those Interests

Once you have your lists of topics you are interested in, then you need to research the interests that you have. Research all of the topics you have on your list to see if there is a niche that is unsaturated and one that is profitable having to do with that topic. While you may really have one thing on the list that is your favorite, make sure that you research all of those topics so you know where you can find the best possible niche for profit. Sometimes that may be the number one topic on your list, but you may find that topic number three has more potential. This is why you should research each interest so you get a look at all the options that is available to you.

Look for a Niche Within a Niche

Now you need to look for a niche that is within a niche. Perhaps you have decided that you are interested in a niche that deals with golf clubs. The thing is that to be profitable, you'll need to find a more targeted niche. You can do this by exploring longtail keywords within that niche. While golf clubs may actually be the market, you'll find that the longtail keyword within this market, "wood golf clubs," is a specific niche.

Of course, you can get even more focused than that with more complex longtail keywords. The reason you should be looking for a niche within a niche is because it is easier to start a profitable business in a smaller niche than it is to try and compete in a market that is already overpopulated.

Use a Good Keyword Tool

In order to find your longtail keywords to help you identify a profitable niche, you may need to use a good keywords tool to help out. The problem is that there are various keyword research tools to choose from today. Just a few great keyword tools that can be very useful for helping you to find the longtail keywords for your niche include the Google keyword tool, Wordtracker, Market Samurai, and Keyword Elite. Some tools are free, while others you'll have to pay for in order to use them.

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