You have to first research any digital information-product business idea you want to start selling.
Avoid taking big risks – only take very well-calculated ones.
Although most passions can be turned into a huge fortune, yet there are certain passions that cannot.
So how do you know what’s going to work and what won’t?
In this post, I’ve outlined five simple points checklist that are going to guide your niche or topic selection.
These are the topic-qualifying metrics that you absolutely must measure before ever launching into a digital information-product business niche.
With this 5-step checklist, in less than 60 minutes, you can determine which of your passions will be the most profitable.
The 5 steps to qualifying your digital information-product business niche are:
1. Is the product to sell in the niche “Information Friendly”?
2. Are there “Competitions” in the niche?
3. What’s the size of the “Prospective Audience” in the niche?
4. How popular is the niche in “Search”?
5. Are there any “Long-Term Potentials” in the niche?
Checking off some of these steps takes only seconds.
Others may take a bit more time to research, but you’ll also learn how to find and use some great free online tools that automatically do the work for you.
Metric #1: Is the product to sell in the niche information friendly?
Let’s take underwear as an example.
There are literally billions of people who wear underwear around the world.
There is an incredible demand for underwear, too.
We can always find lots of people looking for underwear online.
But if you wanted to create an information product about underwear, could you?
You need to think through and understand this concept.
Many times we have a hobby or a passion that is simply not information-friendly.
There are no real tools to be used for this step; it is mostly your thought process.
However, if you can’t figure out whether your passion is information friendly or not, move to metric #2…
…it will take care of that for you.
Metric #2: Is there competition in the niche?
Finding competition is excellent news for your niche.
It means that other people are already having success, and you can too.
If, however, you find that your niche has no competition, don’t walk away – RUN!
It’s very likely that no one’s selling it because it doesn’t sell.
To find out whether there are others already selling products similar to yours online, there are two excellent sources to get competition data from:
95% of the time, Udemy will give you enough of an idea to know whether to proceed.
After Clickbank.com (which is restricted for certain countries), Udemy is fast on the rise as the #2 marketplace for digital information products…
…and, between these two platforms, over 30,000 online courses are offered.
They have covered every niche that you can imagine.
If you cannot find a similar course to your idea in these 30,000 courses, your idea is far too risky.
You need to pick a different topic.
Do not try to bypass this rule.
The odds are massively stacked against you if you do.
It is especially important when you are just starting out that you stick to proven niches.
If you do not find competition in your choice niche, stop your research immediately, change topics and start at #1 again.
Your topic must pass all five points on this checklist.
Metric #3: What’s the size of the audience?
There’s a free tool to help you work this out.
Facebook’s Audience Insights lets you dissect a niche and figure out the right target for yourself.
Facebook’s Audience Insights doesn’t cost a penny.
You don’t even have to have any ads running on Facebook to use it.
In fact, it is specifically made to be a planning tool.
If you have a Facebook account, simply go to, “https://ads.facebook.com”, and sign up to be an advertiser.
Even if you have to enter your credit card number, you will not be billed.
Once you are in the advertising area, go to “Tools” and click on “Audience Insights.”
It’s a fast process and will become one of your favorite audience research tools moving forward.
To keep things simple, when you want to research the size of an audience, only search your target locations that are proven to have active online shoppers.
Those areas will give you a great idea of your audience size.
So, how big should your audience be?
Nothing is written in stone…but below are some average numbers to use as a general idea.
Again, these numbers are not written in stone.
Each case is different.
These are simply to give you a rough idea on where to get started.
Metric #4: Are people actively seeking your information online?
Using some other great free tools, you can know in just minutes whether there are enough people around your target location who share your passion enough to actually research it online.
Keyword research tools let you take a peek behind the search engines of the world, especially Google.
You simply type in a keyword to instantly see how many people around your target area have searched for that keyword recently.
You can narrow your results to any specific location that you prefer.
There’s a great tool to find your actively searching market size:
That’s Google AdWords Keyword Planner.
Google’s Keyword Planner is a popular tool.
There is a catch, however:
To gain access, you need to activate an advertising account by creating a fictitious ad and entering your credit card details.
At the last moment, you can turn the ad off and never spend a dime – but you can still gain full access to their free keyword research tool.
Although, the process of having to pretend to launch an ad and also enter a credit card number makes some marketers feel uncomfortable.
But, an alternate option for you is www.SEMRush.com.
It’s free, instant, and provides enough information to help you determine the size of your niche.
This is just the beginning.
The first major step here is to make sure that your passion has at least 5,000 monthly searches on these tools.
As far as competition is concerned, you don’t have to ever worry too much about it.
There will always be opportunities in the most competitive niches.
One last important note:
Just because a niche has 100,000 or more searches does not necessarily make it a great topic for you to pursue as a business.
You still have to be sure that all the other checkpoints in this list have been marked off with a big positive “Yes.”
The next step guarantees that your niche is profitable as well.
Metric #5: Are there potentials for a long-term spending capability?
Is your niche an idea that comes and goes?
Or will you be able to build a customer for life?
Look at sex enhancement as an example.
If you were to join my customer list today and buy a sex enhancement product, there is a strong chance that you will still be buying from me three years from now – and even ten years from now…and even more.
Here is another example:
Take a look at the pregnancy niche.
This kind of niche does not pass the fifth step on the checklist.
Think about it:
Pregnancy only lasts nine months.
After that, the new mother is no longer seeking information on pregnancy, so she is no longer a customer.
However, you can still be successful if the size of the demand of your niche is huge.
Yet, if you’re smart, and you can create a similar topic in such niche, like, for instance, in this case, “infant care”…
Your business might easily progress right alongside your customers.
This will significantly increase the value of each of your customers.
The higher the long-term capability, the more scalable your business can be.
So if your niche does not have long-term scalability, then the size of your short-term demand needs to make up for the lack of the long-term potential.
Alternately, you can choose related sub-niches to your main niche to grow the topics covered and make your business scalable that way.
There you have it!
These are the only five steps you need to know to choose the right digital information-product niche.
As long as you cross check your digital information-product business ideas along these lines, you will remove 90% of your risk.
Source of post idea: Anik Singal, Lurn, Inc.
Let’s hear your say. What did you learn in this post? Share your opinions in the comments section below.