Many entrepreneurs and small business owners don’t know the tips of how to discover a profitable niche for free. They think that a keyword tool will help them to make money.

Here is the secret. keyword research only shows what keyword phrases people are using in the search engines to search for answers, not what people actually buy on the internet. Just because a group of people search for specific terms or brand names does not mean that’s what they purchase.

When looking for a profitable niche marketplace, your primary focus should be looking for a group of hungry buyers that want to exchange their money for a service or product (information, physical or digital). Without this crucial qualifier, you may have the greatest product in the world, but you don’t have a market to sell it to.

Once you have find a market that is worthy and people buy, then have a worthy reason to look further into a keyword research service, to find out what keyword phrases people use to find the market you have chosen.

How to discover a profitable market.

1. MAGAZINES

One of the best ways to find signs of a truly profitable marketplace is looking for a magazine in that industry. If a publisher has enough money to print and circulate a full color magazine, there are most likely advertisers that support the funding of the magazine’s ability to circulate all the copies. Which means there are sales being made by those advertisers.

Now, this may bring you to question whether there is too much competition in a marketplace with so many advertisers selling in a magazine.

In fact, it’s a great sign to have competition which means there is abig amount of customers to sell to and a portion of a sizable pie to be had in that marketplace. large the competition, large the profits you can make.

Without having to leave your seat, you can hop on over to Magazines.com and looking through the number of different categories to find a profitable topic or industry in which to start an online search.

One of the things you’ll want to focus in on is the number of subscribers each magazine has and how long the magazine has been in print for stability purposes.

Make a list of magazines you want to look into and then go hunting for them at one of those large dedicated newsstands that covers just about every magazine on every topic.

To get a better look at what people are buying in the online world, you will need to decide whether you wish to represent physical or digital products.

2. PHYSICAL PRODUCTS

There are two incredibly huge marketplaces that are massively trafficked, move a lot of product and are great places to find what people are really buying.

Let’s start with the first huge marketplace…

eBay

At eBay, you can look through a list of the most popular products people are buying through auctions or from eBay stores that vendors have setup. To see a visual path on how to locate the most popular products.

Amazon

Another really big marketplace is Amazon and it’s not just for books. You can find just about any product and name brand that is a mover and shaker. Look at the most popular products in those categories that catch your attention.

3. DIGITAL PRODUCTS

If you wish to sell digital products, does not require inventory and which usually carries high profit margins for affiliates, you’ll want to check out the Clickbank digital marketplace that ranks product sales from highest to lowest sellers in each category.

Just browse through categories at Clickbank.com and you’ll instantly find the top sellers of digital info products, software and subscription services which are located right at the top listings. See also reference section below for a link to the extended version of this article for visual aids and more detailed guidance.

Once you make the market research, you can do one of the following:

• Create an online store that ships out physical products and merchandise (requires inventory)
• Sell merchandise through eBay auctions or their online stores (requires inventory)
• Create a site that represents vendors as an affiliate (requires no inventory)
• Create your own product, service or software for a digital product (requires no inventory)

Having used at least two of the four places above, you can be assured that you have conducted proper market research to uncover “proof positive” what people are buying and a profitable niche market.

You can then quickly build out a non-complex site with a simple product offering, find some low cost keywords to use in a Google Adwords Pay-Per-Click campaign with a minimal spend of $50 to test the market and see if you have a winner.

If the initial test results pan out, meaning that you pulled a profit from your test, you can invest more energies, conduct more extensive keyword research and invest more money. If the test results don’t satisfy you, then find another market until you find the profitable niche you want.

P.S.

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