How to Find An Online Business Niche in 5 Steps

When you’re thinking of the business you need to set up, you’re probably also wondering how to find an online business niche.

Sure, the temptation is there to go big, but to give your business the best chance of success, it’s recommended to know exactly what niche you want to target and know everything about the customers that frequent it. 

Once you’ve nailed that, you can then look at expanding. Even Facebook started with college students and expanded. It’s important not to overstretch yourself and try to target everyone at the beginning.

But how do you find an online niche? Or more importantly, how do you find a niche that’s not oversaturated, is profitable and attracts enough people to make it worth your while?

There are several things you need to do to find the perfect niche for you and by taking the time to identify it from the onset, you’ll save yourself a lot of time and money.

How to Find an Online Business Niche

How To Find An Online Business Niche in 5 Steps


You’re going to be spending a lot of time creating and building your business, so it’s essential you’re passionate about what you’re doing, or at the very least – interested! Chances are, if you’re not passionate about what you’re doing, then you will soon quit.

Having that passion makes it a little easier to knuckle down on days where it seems harder, or to rebound quickly from mistakes. Make a list of the top 10 things that interest you and use this as your initial idea list.

A great question I like to ask people is “If you had to spend all of your time doing something, for no money – what would that be?” This is a great way to really find your passion and you’re taking money out of the equation. This is important because for a long time you’re going to be working a lot of hours for little-to-no return.


The best types of businesses solve problems a lot of people experience. So, with your top 10 interests identified, it’s time to do a lot of research. Your first port of call will be online. Look at question sites such as Ask, or Quora, and most importantly, forums that exist in your niche. Find where people are discussing problems or simply pose the question yourself.

Then take a look on Google to see what type of questions people are asking about the niche. By using tools such as keywords everywhere with your google search, You’ll be able to see how often the question is searched. Use this opportunity to do some more keyword research along with utilizing Google Trends, to see just how popular the niche is.

Next, you need to do some one-on-one research. Identify the target market for your niche and have a list of well though out questions you’d like the answer to. You can conduct a survey and run a couple of adverts to get people to respond, ask friends and family or contact businesses if your ideas are B2B.


The focus here is not on quantity, but of the quality of your competitors. You need to see how well other businesses are addressing the problems in your niche and if there is room for you to get your own slice of the market. This is heavy research and will involve you trawling through websites to see how well they’re doing. Things you need to keep in mind are:

  • How well does their content address the problem?
  • How well written is their content?
  • How good is their SEO?
  • What keywords are they ranking for?
  • Is their site/company transparent?
  • How many people are competing for paid advertising?
  • What’s their websites usability like?
  • How is the websites design?

If you feel like you can out do them on most of those points, then there is definitely a potential for you in that niche.


Now you should be able to see the frontrunners in your list of 10, so it’s important to make sure that there’s money to be made. One of the best initial ways to generate money on your website will be through advertising and affiliate marketing.

To check if keywords in your niche are popular, go back to your searches on google using keywords everywhere and see what they’re listing the CPC at for your niche.

The higher this is the better, as this will roughly determine how much money you will make when a visitor clicks on an ad.

If there are physical products or books relating to your niche, then you can check on Amazon to see the sales rank of the items that correlate. If they’re high, then a lot of people are obviously interested and willing to spend money on them.

Finally, you need to check out some affiliate networks such as, Rakuten LinkShare, and ClickBank etc., to see what affiliate offerings exist in the area.

Where Amazon’s affiliate program used to be the main earner for most affiliate sites, the slash in their commission rates means it’s more viable to look at making good affiliate partnerships elsewhere.


By now you should have identified the niche that ticks the most boxes. So now it’s time to get testing. Many people suggest purchasing your domain name based on keywords but, while that might have worked well in the past, it’s not that useful any more. The key thing you want is a strong brand.

This is mainly because Google has changed it’s algorithms to steer clear of obvious niche sites that offer little value, but reward authority sites that are highly informative about that niche. This means that you’ll need to develop a strong brand that sticks in peoples mind as well as creating a great user experience and very high quality content.

Building your website and creating great content to is going to take time, but you can utilize this time to run testing as you’re finishing your website. A fantastic way to do this is to create  a landing page on the domain that collects emails, sends people to an affiliate product, or simply gets them interested. By running split tests, you can get people interested and really start testing your niche.

When you’re created your content and are happy with your design, it’s time to launch, advertise and get back in touch with those people who initially had a problem that you’ve now answered!

By following these five simple tips, you’ll know exactly how to find an online business niche that’s not only profitable, but can eventually scale to a larger online business.