SEO
How to Find a Niche for Your Online Business
Starting an online business was the single best decision I ever made. It changed my life forever, giving me the time and freedom to earn an income on my own terms.
But I wasn’t an overnight success. I had to go through many iterations before finding a niche that worked for me. I tried everything from e-commerce and dropshipping, to making my own products for Etsy, to photography, and even selling kitchen knives.
I finally settled on freelance writing, which quickly grew into full-service SEO and eventually led to me starting my own websites for affiliate marketing. I now run several successful online and offline businesses.
Today, I want to teach you everything I’ve learned about how to find a niche for your business so you can skip the years of trial and error I had to go through.
A niche is a specialized segment of the market that your business is created to serve. It can be anything: gardening, banking, automotive, or even sewing.
Here are a few niche market examples if you need more of an explanation.
There are a lot of ways to find a niche for your business—but I’ve found that these three have a low barrier to entry and provide some solid data to work with right off the bat.
1. Browse existing businesses
One of the easiest ways to find a niche is by browsing business sales directories like Flippa and Empire Flippers to find data on already existing businesses and see what niches they’re in.
Once you create an account, you can see information like what niche the website is in, how much the monthly revenue and net profit were over the last 12+ months, and even some analytics data—all for free.
Empire Flippers mostly sells affiliate websites. Flippa, on the other hand, gives you the option to browse e-commerce, SaaS, service-based businesses, and more. It also shows financial and traffic information for each website listed for sale.
You can use this information to understand the pulse of a niche and what you can potentially earn in it.
2. Use Google Ads data
Another method is to use the “traffic value” metric in Ahrefs’ Content Explorer to find the potential value of the traffic going to sites in a given niche.
Traffic value is the estimated value of the organic traffic a website receives if it were to purchase that same traffic through Google Ads instead of receiving it organically.
The idea here is that if advertisers are paying a lot of money to appear in the search results for these keywords, then it’s likely that the traffic from those keywords makes the site a lot of money.
To use this data to find a niche, head over to Content Explorer and enter a topic you are interested in. If you have no idea what topic to enter, you can try the following keywords:
- “Amazon associates” to find affiliate websites with an Amazon associates disclaimer.
- “Buy” to find e-commerce and some service websites.
- “Sell” to find other general ideas.
From there, set the minimum website traffic value to 5,000 by going to More filters > Website traffic value and entering 5,000 in the “From” field. This will only show you websites that would be paying at least $5K to get that traffic from Google Ads.
I also like to set a Domain Rating (DR) filter with a maximum value of 40. This will only show you websites that don’t have as many backlinks and, thus, will be easier to compete with.
Make sure you click “Show results” to set these filters.
Finally, set the “One page per domain” filter so you don’t see a bunch of pages from the same website.
From here, browse the pages to see if there are any niches or industries you are interested in.
You can also click the “Websites” tab to see a list of domain names, then sort them by website traffic value from highest to lowest.
3. Use Ikigai
Ikigai (pronounced “ee-key-guy”) is a Japanese concept I learned about as a teenager that combines the terms iki (meaning “alive” or “life”) and gai (meaning “benefit” or “worth”).
It’s the Japanese method of finding and leading a fulfilling life.
But how can you use Ikigai to find a business niche?
It involves answering a series of questions to determine where what you love, what you’re good at, what the world needs, and what you can be paid for all overlap—this is your Ikigai.
I won’t get too philosophical here, but answering these questions really helped me choose my first business niche (and helped with life in general). They are:
- What do you love doing in your free time?
- What are you really good at?
- What are you interested in learning about?
- What do other people tell you you’re good at?
- What have you been paid to do?
- What do people always ask you for help with?
Look for the overlaps in your answers. Maybe you’re really good at gardening, love doing it, and have been paid to be a marketer. A gardening website could be a perfect fit for you.
I obviously have no idea what your answers are to these questions. The goal of this exercise is to give you some niche ideas that align with your current interests and skills.
If you’ve tried the exercises above and still can’t find a niche, don’t worry.
I wrote a guide to the best niches for affiliate marketing where I researched dozens of niches to find 10 that I think are not oversaturated and have a high potential for income. We also have a list of niche site ideas with other possibilities.
Here are some niches we found that you might be interested in:
- Vacuum cleaners
- Hotels with jacuzzis
- Ebikes
- Golf
- Home gym equipment
- Guitars
- Woodworking
- Zero waste
- Car audio equipment
- DIY gardening
Once you’ve found a possible niche, it’s a good idea to vet the niche to make sure it’s something you can succeed in before you commit to it.
Here’s how to do that:
Research traffic sources and competition
In this stage, your goal is to see:
- How much traffic your competitors get and where that traffic comes from.
- How difficult it may be to rank highly for keywords on Google in that niche.
- How much money they spend on ads.
In doing this, you’ll see how much money you may have to spend to compete in that niche and where you may go to get your traffic.
Let’s start by finding a competitor and entering their website into Similarweb to see how much traffic they get and where it comes from.
First, Google a keyword your competitors may rank for, such as “best bed frames,” if you’re in the sleep niche. Look for a competitor that is specifically about your niche—not a generic, broad competitor.
For example, in these results, I would skip giant sites like Forbes and WSJ and, instead, look at Sleep Foundation:
Looking at Similarweb, we can see it receives over 6.7 million monthly site visits.
If you scroll down, you can see that the majority of this traffic comes from organic search:
Repeat this process for several competitors to get an idea of where the majority of traffic comes from in your niche.
If you find that many of your competitors are using search engine optimization to get traffic from Google, the next step is to see how difficult it may be to rank your own site for similar keywords.
To do that, plug one of your competitor’s sites into Ahrefs’ Site Explorer. Head to the Organic keywords tab and browse the keywords it ranks for, paying special attention to Keyword Difficulty (KD).
If you find that the majority of keywords in this report have a KD greater than 30, that means it will be difficult for you to compete as a new site. That’s not to say you can’t compete—just know that it may not be easy.
In this instance, the majority of the keywords Sleep Foundation ranks for are above 30 and, thus, may indicate a tough niche to compete in. However, I suggest you do further keyword research before ruling a competitive niche out entirely.
Now, we have one more thing to check: ad spend in Google Search.
To see your competitors’ ad spend, go to the “Overview 2.0” page in Site Explorer. Sleep Foundation didn’t have any data here, so let’s look at another competitor: Sleepopolis.
We can see that it purchased 55 ads targeting 63 keywords, which cost ~USD 17K and got it 3.9K monthly visitors. Keep in mind that these numbers are estimates and may not be 100% accurate—however, they can still be used for a rough idea of your competitors’ ad spend.
Check several sites to get a more accurate picture of average ad spend among competitors.
Look at seasonality and trendiness
If you’ve done the research and found a niche still worth pursuing, there are a few more things I recommend you check before buying a domain name and starting your new business.
You should figure out if the niche you chose is seasonal (i.e., snowboarding) or if it’s a passing trend (i.e., fidget spinners).
Seasonality and trendiness are easy to check. Just plug one of the niche’s main keywords into Google Trends to see if searches decrease at certain times of the year and if your niche is a dying or dead trend.
If we look at “fidget spinner” and set the filter to “2004–present,” we can see it’s obviously a dead trend that peaked in 2017:
Looking at “snowboarding,” we can see that its searches peak every December, signaling seasonality:
Just because a niche is seasonal or trendy doesn’t mean it’s a bad niche. However, it is something you should be aware of and take into consideration before making a decision.
After all, this is (hopefully) a business you will be working on for years to come, and you don’t want to find out you built a whole business on a dying trend.
By this point, you should have found at least one potential niche. But if you’re torn between a few, how do you actually pick?
There are three things to think about when selecting your niche:
1. Passion vs. profit
Should you choose a niche that is exciting to you, or should you focus on one that has the highest profit potential?
Personally, I am not “money motivated.” I’ve been fortunate to make quite a bit of money in my career, but I didn’t choose my business niches based on how much money I could make.
However, I did choose my niches based on things I was excited and curious about. After all, if I’m not excited about something, it’s hard to get myself to do it.
Are you fine with boring, uninteresting work if the money is right? Or do you prefer to wake up excited to work and figure out how to make more money in a potentially less lucrative niche?
The choice is ultimately up to you.
2. Low vs. high competition
Many business experts will tell you to avoid high-competition niches unless you have a lot of capital and/or expertise in that market.
While generally I agree with this, I do believe that there is always space for exceptional businesses in every niche—even those that are highly saturated.
High competition typically also means high potential for profits. And if you’re a fiercely competitive and motivated person, you can compete well in virtually any niche.
That said, a low-competition niche will be easier to win in—though at the potential cost of not earning as much money. You need to figure out whether you’re willing to put in the work for a competitive niche, or if you want something a little easier.
3. Micro vs. broad
Similar to the last argument, many experts will say it’s better to go after smaller niches to avoid competition and become more specialized.
Again, however, there’s a trade-off here; smaller niches often require much more creativity to earn the same money you could make in a larger niche. Of course, that also depends on the niche—some small niches have people with deep pockets and can be really lucrative.
Like every other argument here, it really depends on the niche. My advice would be to choose the niche that feels right to you (and looks good on paper).
Final thoughts
Choosing a niche for your online business is a matter of some basic research and thoughtful considerations.
Ultimately, you have to decide for yourself if a niche is worth pursuing and whether you’ll go purely after profits or if you prefer something that’s actually interesting to you.
As for me, I’ll choose an exciting niche over a boring but profitable one every time.
Questions? Comments? Ping me on Twitter.
SEO
Stop Overcomplicating Things. Entity SEO is Just SEO
“Entity SEO”.
Sounds scary, doesn’t it? Not only does the word “entity” sound foreign, it feels like yet another thing to add to your never-ending SEO to-do list. You’re barely afloat when it comes to SEO, but ohgawd here comes one more new thing to dedicate your scarce resources.
I have good news for you though: You don’t have to do entity SEO.
Why? Because you’re probably already doing it.
Let’s start from the beginning.
In 2012, Google announced the Knowledge Graph. The Knowledge Graph is a knowledge base of entities and the relationships between them.
An entity is any object or concept that can be distinctly identified. This includes tangibles like people, places, and organizations, and intangibles like colors, concepts, and feelings.
For example, the footballer Federico Chiesa is an entity:
So is the famous British-Indian restaurant Dishoom:
Entities are connected by edges, which describe the relationships between them.
Introducing the Knowledge Graph helped improve Google’s search results because:
- Google could better understand search intent — People search for the same thing but describe it in different ways. Google can now understand this and serve the same results.
- It reduced reliance on keyword matching — Matching the number of keywords on a page doesn’t guarantee relevance; also it prevents crafty SEOs from keyword stuffing.
- It reduced Google’s computational load — The Internet is virtually infinite and Google simply cannot understand the meaning of every word, paragraph, webpage, and website. Entities provide a structure where Google can improve understanding while minimizing load.
For example, even though we didn’t mention the actor’s name, Google can understand we’re looking for Harrison Ford and therefore shows his filmography:
That’s because Hans Solo and Harrison Ford are closely connected entities in the Knowledge Graph. Google shows Knowledge Graph data in SERP features like Knowledge Panels and Knowledge Cards.
With this knowledge, we can then define entity SEO as optimizing your website or webpages for such entities.
If Google has moved to entity-oriented search, then entity SEO is just SEO. As my colleague Patrick Stox says, “The entity identification part is more on Google’s end than on our end.”
I mean, if you look at the ‘entity SEO’ tactics you find in blog posts, you’ll discover that they’re mostly just SEO tactics:
- Earn a Wikipedia page
- Create a Google Business Profile
- Add internal links
- Create all digital assets Google is representing on the page (e.g., videos, images, Twitter)
- Develop topical authority
- Include semantically related words on a page
- Add schema markup
Let’s be honest. If you’re serious about SEO and are investing in it, then it’s likely you’re already doing most of the above.
Regardless of entities, wouldn’t you want a Wikipedia page? After all, it confers benefits beyond “entity SEO”. Brand recognition, backlinks from one of the world’s most authoritative sites (albeit nofollow)—any company would want that.
If you’re a local business, you’ve probably created a Google Business Profile. Adding internal links is just SEO 101.
And billions of blistering barnacles, creating all digital assets Google wants to see, like images and videos, is practically marketing 101. If you’re a Korean recipe site and want to be associated with the kimchi jjigae entity, wouldn’t you already know you need to make a video and have photos of the cooking process?
When I started my breakdance site years ago, I knew nothing about SEO and content marketing but I still knew I needed to make YouTube videos. Because guess what? It’s hard to learn breakdancing from words. I don’t think I needed an entity SEO to tell me that.
Topical authority is an SEO concept where a website aims to become the go-to authority on one or more topics. Call me crazy, but it feels like blogging 101. Read most guides on how to start a blog and I’m sure you’ll find a subheading called “niche down”. And once you niche down, it’s inevitable you’ll create content surrounding that one topic.
If I start a breakdance site, what are the chances I’ll write about contemporary dance or pop art? Pretty low.
In fact, topical authority is similar to the Wiki Strategy, which Nat Eliason wrote about in 2017. There wasn’t a single mention of entities. It was just the right way to make content for the Internet.
I think the biggest problem here isn’t entities versus keywords or that topical authority is a brand-new strategy. It’s simply that many SEOs are driven by short-sightedness or the wrong incentives.
You can target a whole bunch of unrelated keywords that have high search volume, gain incredible amounts of search traffic, and brag about how successful you are as an SEO.
Some of the pages sending HubSpot the most search traffic has barely anything to do with their core product. A page on how to type the shrug emoji? The most famous quotes?
This is not to single out HubSpot—I’m sure they have their reasons, as explored by Ryan here—but to illustrate that many companies do the exact same thing. And when Google stops rewarding this behavior, all of a sudden companies realise they do need to write about their core competencies. They need to “build topical authority”.
I don’t want to throw the baby out with the bathwater because I do see value in the last two ‘entity SEO tactics’. But again, if you’re doing something similar to the Wiki Strategy for your site, chances are you would have naturally included entities or semantically relevant words without thinking too much about it. It’s difficult to create content about kimchi jjigae without mentioning kimchi, pork, or gochujang.
However, to prevent the curse of knowledge or simply to avoid blindspots, checking for important subtopics you might have missed is useful. At Ahrefs, we run a page-level content gap analysis and look out for subtopics:
For example, if we ran a content gap analysis on “inbound marketing” for the top three ranking pages, we see that we might need to include these subtopics:
- What is inbound marketing
- Inbound marketing strategy
- Inbound marketing examples
- Inbound marketing tools
Finally, adding schema markup makes the most sense because it’s how Google recognizes entities and better understands the content of web pages. But if it’s just one new tactic—which I believe is already part of ‘standard’ SEO and you might already be doing it—then there’s no need to create a category to define the “new era” (voice SEO, where art thou?)
Final thoughts
Two years ago, someone on Reddit asked for an SEO workflow that utilized super advanced SEO methodologies:
The top answer: None of the above.
When our Chief Marketing Officer Tim Soulo tweeted about this Reddit thread, he got similar replies too:
And even though I don’t know him, this is a person after my own heart:
You don’t have to worry about entity SEO. If you have passion for a topic and are creating high-quality content that fulfills what people are looking for, then you’re likely already doing “entity SEO”.
Just follow this meme: Make stuff people like.
SEO
Assigning The Right Conversion Values To Make Value-Based Bidding Work For Lead Gen
Last week, we tackled setting your data strategy for value-based bidding.
The next key is to assign the right values for the conversion actions that are important to your business.
We know this step is often seen as trickier for lead gen-focused businesses than, say, ecommerce businesses.
How much is a whitepaper download, newsletter signup, or online quote request worth to your business? While you may not have exact figures, that’s OK. What you do know is they aren’t all valued equally.
Check out the quick 2-minute video in our series below, and then keep reading as we dive deeper into assigning conversion values to optimize your value-based bidding strategy.
Understanding Conversion Values
First, let’s get on the same page about what “conversion value” means.
A conversion refers to a desired action taken by a user, such as filling out a lead form, making a purchase, or signing up for a newsletter.
Conversion value is simply a numerical representation of how much each of these conversions is worth to your business.
Estimating The Value Of Each Conversion
Ideally, you’d have a precise understanding of how much revenue each conversion generates.
However, we understand that this is not always feasible.
In such cases, it’s perfectly acceptable to use “proxy values” – estimations that align with your business priorities.
The important thing is to ensure that these proxy values reflect the relative importance of different conversions to your business.
For example, a whitepaper download may indicate less “value” than a product demo registration based on what you understand about your past customer acquisition efforts.
Establishing Proxy Values
Let’s explore some scenarios to illustrate how you might establish proxy values.
Take the event florist example mentioned in the video. You’ve seen that clients who provide larger guest counts or budgets in their online quote requests tend to result in more lucrative events.
Knowing this, you can assign higher proxy values to these leads compared to those with smaller guest counts or budgets.
Similarly, if you’re an auto insurance advertiser, you might leverage your existing lead scoring system as a basis for proxy values. Leads with higher scores, indicating a greater likelihood of a sale, would naturally be assigned higher values.
You don’t need to have exact value figures to make value-based bidding effective. Work with your sales and finance teams to help identify the key factors that influence lead quality and value.
This will help you understand which conversion actions indicate a higher likelihood of becoming a customer – and even which actions indicate the likelihood of becoming a higher-value customer for your business.
Sharing Conversion Values With Google Ads
Once you’ve determined the proxy values for your conversion actions, you’ll need to share that information with Google Ads. This enables the system to prioritize actions that drive the most value for your business.
To do this, go to the Summary tab on the Conversions page (under the Goals icon) in your account. From there, you can edit your conversion actions settings to input the value for each. More here.
As I noted in the last episode, strive for daily uploads of your conversion data, if possible, to ensure Google Ads has the most up-to-date information by connecting your sources via Google Ads Data Manager or the Google Ads API.
Fine-Tuning With Conversion Value Rules
To add another layer of precision, you can utilize conversion value rules.
Conversion value rules allow you to adjust the value assigned to a conversion based on specific attributes or conditions that aren’t already indicated in your account. For example, you may have different margins for different types of customers.
Instead of every lead form submission having the same static value you’ve assigned, you can tell Google Ads which leads are more valuable to your business based on three factors:
- Location: You might adjust conversion values based on the geographical location of the user. For example, if users in a particular region tend to convert at a higher rate or generate more revenue.
- Audience: You can tailor conversion values based on specific audience segments, such as first-party data or Google audience lists.
- Device: Consider adjusting conversion values based on the device the user is using. Perhaps users on mobile devices convert at a higher rate – you could increase their conversion value to reflect that.
When implementing these rules, your value-based bidding strategies (maximize conversion value with an optional target ROAS) will take them into account and optimize accordingly.
Conversion value rules can be set at the account or campaign levels. They are supported in Search, Shopping, Display, and Performance Max campaigns.
Google Ads will prioritize showing your ads to users predicted to be more likely to generate those leads you value more.
Conversion Value Rules And Reporting
These rules also impact how you report conversion value in your account.
For example, you may value a lead at $5, but know that these leads from Californian users are typically worth twice as much. With conversion value rules, you could specify this, and Google Ads would multiply values for users from California by two and report that accordingly in the conversion volume column in your account.
Additionally, you can segment your conversion value rules in Campaigns reporting to see the impact by selecting Conversions, then Value rule adjustment.
There are three segment options:
- Original value (rule applied): Total original value of conversions, which then had a value rule applied.
- Original value (no rule applied): Total recorded value of conversions that did not have a value rule applied.
- Audience, Location, Device, or No Condition: The net adjustment when value rules were applied.
You can add the conversion value rules column to your reporting as well. These columns are called “All value adjustment” and “Value adjustment.”
Also note that reporting for conversion value rules applies to all conversions, not just the ones in the ‘conversions’ column.
Conversion Value Rule Considerations
You can also create more complex rules by combining conditions.
For example, if you observe that users from Texas who have also subscribed to your newsletter are exceptionally valuable, you could create a rule that increases their conversion value even further.
When using conversion value rules, keep in mind:
- Start Simple: Begin by implementing a few basic conversion value rules based on your most critical lead attributes.
- Additive Nature of Rules: Conversion value rules are additive. If multiple rules apply to the same user, their effects will be combined.
- Impact on Reporting: The same adjusted value that’s determined at bidding time is also used for reporting.
- Regular Review for Adjustment: As your business evolves and you gather more data, revisit your conversion values and rules to ensure they remain aligned with your goals.
Putting The Pieces Together
Assigning the right values to your conversions is a crucial step in maximizing the effectiveness of your value-based bidding strategies.
By providing Google Ads with accurate and nuanced conversion data, you empower the system to make smarter decisions, optimize your bids, and ultimately drive more valuable outcomes for your business.
Up next, we’ll talk about determining which bid strategy is right for you. Stay tuned!
More resources:
Featured Image: BestForBest/Shutterstock
SEO
Expert Embedding Techniques for SEO Success
AI Overviews are here, and they’re making a big impact in the world of SEO. Are you up to speed on how to maximize their impact?
Watch on-demand as we dive into the fascinating world of Google AI Overviews and their functionality, exploring the concept of embeddings and demystifying the complex processes behind them.
We covered which measures play a crucial role in how Google AI assesses the relevance of different pieces of content, helping to rank and select the most pertinent information for AI-generated responses.
You’ll see:
- An understanding of the technical side of embeddings & how they work, enabling efficient information retrieval and comparison.
- Insights into AI Content curation, including the criteria and algorithms used to rank and choose the most relevant snippets for AI-generated overviews.
- A visualization of the step-by-step process of how AI overviews are constructed, with a clear perspective on the decision-making process behind AI-generated content.
With Scott Stouffer from Market Brew, we explored their AI Overviews Visualizer, a tool that deconstructs AI Overviews and provides an inside look at how Snippets and AI Overviews are curated.
If you’re looking to clarify misconceptions around AI, or looking to face the challenge of optimizing your own content for the AI Overview revolution, then be sure to watch this webinar.
View the slides below, or check out the full presentation for all the details.
Join Us For Our Next Webinar!
[Expert Panel] How Agencies Leverage AI Tools To Drive ROI
Join us as we discuss the importance of AI to your performance as an agency or small business, and how you can use it successfully.
-
SEO6 days ago
Early Analysis & User Feedback
-
WORDPRESS6 days ago
Analysing Features, Pricing, and User Experience
-
AFFILIATE MARKETING6 days ago
What Is Founder Mode and Why Is It Better Than Manager Mode?
-
SEARCHENGINES5 days ago
Daily Search Forum Recap: September 6, 2024
-
SEARCHENGINES6 days ago
Google Ads To Require Gambling Advertisers With Games Certification To Recertify
-
WORDPRESS6 days ago
John Kostak of Web Dev USA – WordPress.com News
-
SEARCHENGINES4 days ago
Google August Core Update Done, Google Interview, Google Ads & Merchant Center News & The YouTube Algorithm SEO
-
SEO5 days ago
Plot Up To Five Metrics At Once