Monday, December 26, 2011

The Secret of Profitable Niches



When I started looking at the Internet with the intent of making money online, I thought creating a useful website can make you rich. I was wrong. Just creating a useful website is not enough for making money. You need to create a useful website in a profitable niche. Basically, you need to be in a niche where your visitors are willing to buy the products that you promote and are not afraid to click on ads.
To put it in a blunt way, you need to create websites for people who have limited understanding of technology and are willing to pay you–directly or indirectly through ads. You shouldn’t expect to generate lots of revenue through Pay Per Click ads if you have a website used by tech-savvy people. So if you have a website on computer hacking, forget about making huge money through ads. You visitors will come, read the article and quietly go away.
So what kind of websites are good for money? If you want to make money, create websites for people who are not very tech-savvy. Your ideal visitor (target audience) is a person who can just open a Web browser, surf the Internet and check her mail. She should also have plenty of money to spend online.
You can find a lot of profitable niches such as health, parenting, pet care, gardening, fashion, crafts and cooking. You can also create websites about watches, interior decoration, shoes, travelling, farming and vegetable gardening. These are just a few niches that would find a lot of non-techie readers.
When you target the non-techies, you have higher chances of getting clicks on your website ads. You are also more likely to make a sale to them. In contrast, if your primary website visitors are techies, they will avoid clicking the ads. Products being promoted or sold by you will also be looked at with certain amount of suspicion. This is exactly the reason why several popular websites also have to ask for donations to sustain themselves. A popular technology blog (Download Squad) was shut down because it wasn’t generating enough revenue. These examples should be enough to prove my hypothesis.
I have seen websites make $1,000 from just 10,000 pageviews. I have also seen websites with similar traffic make a mere $10. How come one makes $1,000 while the other struggles with just $10? The answer is simple–right niche and right strategy. The websites that generate large income invariably promote/sell products in the right niches (aimed at non-techies). The website that makes $10 would be on some high-tech stuff for geeks and would be relying on AdSense for income. Can you see the difference?
If you want to make $1,000 for every 10,000 pageviews, you need to have a website for non-techies and include Amazon or Ebay products in your articles. You can also sell your own products or promote some through affiliate programmes. Let’s assume you have a blog about building or repairing homes. If you just rely on Google ads for making money through your website, you will probably end up earning a lot less than $1,000. In contrast, promoting products from Amazon or Ebay means you can earn a decent amount in commissions. Assume that only 100 of your visitors actually clicked on Amazon links. Out of these, only 10 bought spent $500 on the online store. If you are entitled to 5% commission, you make $25 per sale. That’s $250 from a website that gets 10,000 visitors per month.
On a final note, I would again like to remind you that always create websites for non-techies. Your ideal visitors are those who can only surf the web, check their mails and do some online shopping. In all other matter related to the Internet, the dumber they are, the better for your finances. So stop thinking like a geek and follow the dumbs.

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