How to decide a niche for a digital product?
Hi! Finding a suitable and profitable niche is the topmost concern whenever anyone wants to start an online business or get into digital product selling.
The fact that you want to find a good niche, and you aren’t just running out into the business world with an idea that you think the world needs, is already a sign that you’re going to succeed.
Having a clear vision for a niche helps to focus on the target audience, content creation, and other relevant challenges in a better way. This puts you well ahead of most entrepreneurs, who start with a product or business idea they are married to without studying what people, if any, would actually want it.
If you have a general idea of what market you want to start in, and then narrow down a really valuable and hungry niche, you just have to think of what they’re already looking and asking for.
Put simply: once you truly know your audience, you’ll never be short on product ideas.
Let’s discuss more.
Real quick overview: a niche is a section of the market, excluding all other buyers who don’t apply. More niche = more specific, which is good in this case. As beginners, most digital product sellers prefer to choose a broader niche, and then get specific in future products. For example, fitness is a niche but there are many tighter specialties like muscle growth, weight loss, senior fitness, fitness for kids, etc.
I say get as specific as you can without shrinking your audience too much. It’s a bit of a balancing act. Fitness is too competitive, but it’s very possible to get too specific as well. A general fitness digital product is no better than a fitness textbook, AKA worthless. But a fitness product just for seniors in one city or state is needlessly restricting yourself, unless there’s some extremely strong reason why you would target it to just those people.
Remember, the power of digital products is global distribution. Take even something as specific as an online course about how to juggle at a professional level. Not many people out of a random sample of 1000 might want to be jugglers, but if you increase the scale to all over the world, 7 billion people, you’ll find enough highly-targeted buyers who desperately need what you’re offering.
Not all markets are equally profitable, but there’s enough opportunity out there that you shouldn’t feel forced to make a product under a topic that isn’t important or interesting to you. That always leads to problems.
Once you devote serious effort and time for selecting a niche, the rest comes easy. Ask yourself:
- What is a serious problem, concern, pain point, etc. these people have?
- What kind of digital product could I make to resolve #1?
To learn the specific ways of developing great digital products, you can check the Knowledge Base section on my website (on my profile), where you can find many helpful resources.
To finish up, while deciding on a niche, keep in mind the following
1) Make a list of all possible niches that come to your mind. Ensure you have an interest in them. For the moment, keep aside the profit factor. There’s enough money out there, I promise.
2) Once you make a list of such niches, say you have a list of ten, research each of those based on the factors suggested above.
3) Narrow your list to the three best ideas.
4) Pick the one that most appeals to you, and that you feel you have the best product idea for. Keep the other two niches and products as a backup, in case you plan to expand to other brands or product lines in the future, or if there are issues with your #1 niche you didn’t foresee until later.
Please reply if you have any questions.