This is the part two of the niche-finding exercise I wrote about in my previous post. As I have already said that this list is a fool-proof way of finding a profitable niche. All successful niche marketers use a lot of these ideas, if not all, to investigate their next profit-pulling niche. So, without further ado here’s the list of next five tips-

• 1. Scalability- This depends hugely on the tasks mentioned in the first and the fifth point in the list, i.e. finding the demand and researching article directories. Scalability is a lot about long-term need of the niche. Its also about whether there is a possibility to expand in that niche.  This is a key criterion I persist with. Although it’s not really simple to anticipate scalability of any new niche, finding such a niche can be a difference between huge profits or mediocre results.

• Digital Product- We are living in an age of information. Increasing number of online entrepreneurs are engaged in selling/promoting digital goods. It always pays to investigate whether your chosen niche has a potential to sell digital products. Internet is information-based medium. Most people flock it to access information. So, its really hard to find a niche with no scope for digital selling. Still some are better placed than others. That’s what you have to find out. Check places like, Clickbank and E-junkie for existing digital goods.

• Existing Affiliate Products- Unless you are looking for strictly an advertisement-based business model, you will need affiliate product to sell. Following up from the previous point, you will need products/services to sell. They could be yours, or, someone else. Researching in advance about existing affiliate products is a good indication of niche popularity. If there are a lot of products, you can presume that there is a vibrant existing market. Lack of existing options to sell/promote in a particular niche combined with a low demand normally means you got to ignore it.

• Authority Sites: If you can find a niche, which has huge demand, low competition, which is not too complicated to create content, with good scalability and a thriving affiliate scene than you have hit the jackpot. Only thing remains to be asked from the Genii is a lack of a clear authority site/blog in that niche. Because if you have identified an ideal niche with no clear winner, you have an unparallel opportunity to rule that niche for years.

• Adsense Income- With all things being equal, I will pick a niche with higher paying Adsense keywords. How do you find that? There is no exact way, because Google/Yahoo can never disclose that. A fair indication is again given by Google’s Adwords Keyword tool. Try to find a keyword’s CPC ( cost per click) as if you are an advertiser. Keywords with higher CPC generally earn higher Adsense click commission. There are a thousand metrics involved in assessing a content-click cost to be paid to the publisher, but this CPC formula gives a fairly good idea.

I hope this comprehensive list will give you enough ideas to arrive at that perfect niche. I am always talking to affilate marketers about ways they spot a winner. Trust me, these ten steps form the bulk of research strategy of those who are churning the best moolah.

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