One of the most obvious reasons a niche might be high earning is that it offers a form of investment for the customers. So let’s say that you have a blog on investing – this is something that people will be willing to pay to learn about, because they should be able to earn more money from that knowledge than they spent to acquire it. The same thing goes for something like business (like The Personal MBA). People spend thousands on online courses to learn how to make money from websites. Why? Because in theory they’ll earn that money back!
The other type of niche that is likely to be very profitable is any that promises to change your viewers’ lives in a very measurable way. Here you want to think about your ‘value proposition’ or how you are making people’s lives better.
This is why fitness is such a great niche to be in from a profitability standpoint: people are willing to spend a lot more money on fitness books, or workout equipment because they believe that they will give them abs, build them biceps and tone their buttocks.
This in turn can lead to them living longer, being more confident, having more luck with the opposite sex, looking better in clothes and more – to most people this is a highly tempting prospect and one they’d be more than happy to spend a lot of money on!
A similar example of this is dating. Dating is something many of us feel very strongly about, so if you write about that, you can earn a lot.
Of course other things are simply desirable and in this case, the ‘higher ticket’ the item you’re selling, the more you can potentially earn from your site. So if you’re writing about sports cars… well then you have the potential to earn a lot of cash! This is also why travel blogs can earn a lot of money – because they appeal to travel agents and sites like Trivago or Expedia for advertising.
If your niche isn’t obviously profitable in that it doesn’t have a tempting value proposition, the promise of investment or high ticket items then you just need to get a little more creative. And creativity can benefit you anyway.
For instance, maybe your plan is to make money by helping people find hotels to stay in so that you can then take commission? Maybe your plan is to build the site up and then branch out and extend into another area? Or perhaps you’re just going to sell the site once it gets to a certain size.
Whatever you decide, just make sure you’ve thought all this through before you go ahead!
Profitability and Your Target Audience
Something else to think about here is the type of audience you are going to get writing on a particular subject, or your ‘demographic’ to use the correct parlance. Even if your niche is potentially profitable, you need to consider the possibility that it might not earn as much as it should if your audience don’t have any disposable income!
If you’re writing about computer games then there’s a good chance your demographic might be somewhat younger – at least a large portion of it. This means they may not have as much money to spend as an older audience. This also happens to be a reason that the ‘silver surfer’ audience are so popular at the moment (pensioners on the web) as they tend to have a lot of disposable income!