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How to Pick a Niche: Choosing a Profitable Niche

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Knowing how to pick a niche is a skill that differs depending on which types of online marketing you have in mind. For example, a niche that is designed to convert customers into sales might not be suited toward being used as a niche for a blog.

Learning how to pick a niche involves knowing your own personal preferences. A niche should somewhat align with your own personal interests. For example, if you enjoy golf, a niche in the golf category might be the perfect pick, depending on how you intend to market your online business.

How to Pick a Niche for CPA Marketing

CPA marketing, or cost-per-action marketing, involves marketing a company’s product through paid search or a highly trafficked website. Visitors fill out a form and submit their credit card information in return for receiving a free sample or a trial version of a product. In return, you earn a commission for referring that customer. This is easier in some respects than straight affiliate marketing, because the enticement that a free trial or sample provides often spurs customers to submit their credit card more quickly than for an expensive product.

But do you know how to pick a niche for this market? Ordinarily, you need to pick something that is close to a person’s heart, either physically or emotionally. Diet products that promise amazing results are often a popular option, as are free trials for dating sites. Products or services that offer nearly immediate gratification are ideal.

CPA marketing is often the market that has the least to do with your personal interests. You need to pick what sells, not what you’re interested in, per se.

How to Pick a Niche for Affiliate Marketing

If you want to find out how to pick a niche for affiliate marketing in general, then all you have to do is make a list of your hobbies and interests. Some examples include music downloads, sports, musical instruments, ticket sales, kitchen gadgets, Apple electronics and home decorating.

Within these big niche categories, choose a subcategory that you can really focus on. You want to build up rapport in this market, but you can’t dominate every aspect of any category. Thus, the smaller the subset that you choose to focus on, the better your chances of dominating and making an authority website.

Once you’ve chosen your niche, search affiliate platforms like Commission Junction and LinkShare for companies who sell products like the ones you wish to promote. Knowing how to pick a niche does you no good if you can’t find products to sell!

How to Pick a Niche for Blogging

You can choose virtually any niche you desire if you just plan to monetize a blog with sponsored ads. The skill of knowing how to pick a niche for blogging relies mostly on your own ability to create content for that blog, either through your own research, professional knowledge or life experience. If you can’t write your own content, you may need to hire an independent contractor to do it for you.

You can also choose to sell products on your blog, just as on your website. But many bloggers don’t want the hassle of inserting affiliate links and prefer to just select a niche that drives lots of traffic, which in turn increases the odds of visitors clicking on sponsored ads.

All in all, knowing how to pick a niche involves selecting a business model based on something you’ll be interested in and with which you’ll be able to make a good return on investment.

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4/19/2014 7:06:25 PM UTC