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How To Locate
& Dominate a
Profitable Niche
A Step-By-Step System For
Niche Selection
Jason Fladlien
I am writing this report for one simple reason: almost daily one of my
loyal customers comes to me and ask me how to locate a niche. This is a huge
struggling point for most marketers, beginners and masters alike.
In my own business I have developed several strategies for identifying
and attacking profitable niches. Until now, I have only shared those with my
higher end coaching clients.
It's time to come clean.
This report is of supreme value in the sense that it is the first step to
your success in online business. If you do everything else right in internet
marketing but screw this up, you'll have little to know money to show for your
That's why it's important you master the skill of how to locate and
dominate profitable niches. I am going to show you how to do that in the
pages that follow.

The Best Kind of Niche

!or most people, the best niche to get into is an information niche. I will
cover the e"ceptions later, but for now let's discuss why information niches
are #usually$ the easiest to make money from.
!irst of all, information is easy to create. %ometimes it's even free to
create. This report, for e"ample, costs me pretty much nothing but my time
to write up. &o hard costs at all.
'n the other hand, it's hard to (uantify the value of information. If I
showed you one thing that doubled the happiness you e"perienced in your
life, what would that be worth to you)
%o if you're a good marketer you can enhance the perceived value of your
information through the roof.
*hat's this means) It means information products are the cheapest to
create and are the easiest to sell at premium prices. This means they have
the largest profit margins that e"ist #usually between +,-1../$.
That's why I almost always urge someone to get into an information niche
if they're starting out in marketing.
&ow that you understand the benefits of information niches, let's delve a
little deeper...
The Two Most Profitable Types of Information Niches
There are only two information niches worth marketing to and they are:
1. 01esperation2 &iches
. 03obby2 &iches
'ut of the two, desperation niches are by far the easiest to make money
ere!s my definition of a "#esperation$ Niche% 5 large number of
people who share some commonality that causes them to lay awake at night
staring at the ceiling in fear wanting to know how to solve 6....
7"ample: 8our shy to the point that people don't even know you e"ist.
8ou don't get dates. 8ou're underpaid because you're afraid to ask for a raise.
9eople walk all over you and take advantage of you. 5nd if you keep it up, it
looks like you'll die a sad, lonely, miserable person.
%o you lie awake at night staring at the ceiling in fear wanting to know
how to overcome your shyness so you can live the life you deserve. 8ou're so
desperate you're willing to pay for information that will show you how to
solve your problem.
1esperate people do desperate things. They don't make the most rational
decisions when they are in a mood of desperation. Thus, it's easy to sell stuff
to them, because they tend to make impulsive decisions. That's why
informational desperation niches are the most profitable to be in:
The second most profitable niche is a hobby niche.
ere!s my definition of a "obby$ Niche% 5 large number of people
who share commonalities that cause them to spend 0dumb money2 on stuff
they don't really need but that somehow brings them fulfillment they can't
get anywhere else.
7"ample: 8ou only make ;4.,... a year. 8ou drive a 1+,+ 9ontiac station
wagon that you couldn't sell for a ;1... That's the vehicle you used to drive
down to your local 0billiards < spa2 store to pick up that special ordered cue
stick that costs ;,.... The stick is worth more than the car:
*hen you get home, you're going to put in your special 0=innesota !ats2
cue stick case, and later you might break it out to play a rack on your ;>,...
custom pool table made out of stainless steel.
!or some reason, pool gives your life a purpose. 5nd any e"tra disposable
income you have is pretty much poured into that.
To give you an idea of hobby niches, here are some of the hobbies my
1ad has gotten into over the past few years.
Ma&ic' (u&&lin&' )omedy' )omic boo* creation' Blo&&in&' +ritin& a
Boo*' ,tc'
These are @ust what I came up with off the top of my head that I know he
has spent at least a hundred dollars in. 5piece.
Everybody has a hobby that they spend 0dumb money2 in. 1umb money
is e"tra money that should probably be invested or at least put into
something that will have a decent return on it but is instead used to purchase
stuff that immediately loses half to all its value and has no 0practical2 use.
Aolf probably has the greatest amount of people with 0dumb money2 in
The reason why hobby niches are so profitable is that again, logic is
suspended in terms of emotional and impulsive decisions. 5lso you can play
on their sense of intangible fulfillment to increase the perception of value of
your offers.
%o of the two, which is better) *ell, there is no 0better2. 1esperation
niches are easier to sell stuff in, but the customers are generally harder to
deal with.
It can get depressing being in a desperation niche because +B/ of your
customers are in a state of turmoil. It can make you cynical if you let it. %o
there is a trade off.
3obby niches are less profitable as a whole, but you get a customer who
is usually 0in a state of constant e"citement2. These are fun customers to be
around. %o what you miss out in profits, you make up for with positivity
#generally speaking of course$C
If you had absolutely Dero leverage-able resoures, I'd recommend you
start in a desperation niche, and once you build a sustainable, passive
business then you can move into hobby niches.
Eut there are other factors to consider, which we will discuss later on in
this report.
!irst, I want to give you some further criterion for locating the precise
desperation or hobby niche that is most likely to give you profitable results.
)riteria for ,nterin& a #esperation Niche
Fule 1: 9eople in the niche must be dying for a solution to relieve the of
a certain tremendous pain they are e"periencing #either mentally, phsyically
or a combination of both$
Fule : The average person in this niche must have an 0appetite for
Fule 4: There must be an 0online hang out2 spot where a large number
of 0desperation people with an appetite for consumption2 go to congregate
with each other.
*e've already discussed rule number 1. Get's look at rule two.
Appetite For )onsumption
!ew marketers can create business models that allow them to make
money on the first sale. If they do, it's usually only by luck or some
temporary circumstance that allows them to make money from 0one-off2
=ost of the real money is made in the second, third and subse(uent
sales. It's simple: it takes you 6 amount of dollars to find that buyer. Eut once
you have found them, then it costs little to nothing to contact them again
with another complimentary offer to that first offer.
5lso, the more you stay in contact with someone, the more you can
build a relationship. Then you can leverage this to get people to buy stuff
from you, @ust because you're the person offering it. 8ou can't do this on the
first sale.
These are @ust some of the reasons why you want to target niches where
prospects in that niche have an 0appetite for consumption2.
This means that the average person in that niche doesn't @ust buy one
measly piece of information. They buy the ebook, the audio program, the
Hideo course, the coaching, the software, the tools... and they do this for
several different complimentary offers that accent the first thing they bought
as well.
These are the niches you want to be in. %o how can you determine if a
niche satisfies rule number ) It's simple: look at the vendors. 5re there a lot
of vendors selling a lot of different stuff in this niche, and doing so at a
If so, then the niche passes. If the only thing being sold in that niche is
one or two kinds of product, then I'd be skeptical of that niche. The only
reason I'd still enter a niche like that is If I could somehow easily engineer a
situation to make a profit from the initial sale and I already had e"pertise or
e"isting resources I could leverage in that niche.
Eut for the most part, I don't want to enter a niche unless it has an
e"tensive product line of different goods and services to offer, and a lot of
people in that niche who purchase several different types of those goods and
There Must Be An -nline "an&--ut$ Spot
The final rule is that there must be a way that's easy for us to reach a
large number of people in that niche. Instead of trying to go out and locate
each person in that niche, we want to find where a ma@ority of them are
already at, and then @ust go there and hang out our shingle.
Ao to where they are #in masses$... don't make them come to you.
%o if I do an online search for that niche and I can't find any active
forums or message boards, I start to get nervous. This means that there isn't a
strong online presence in this niche. 5nd if I2m going to market to them
online, that's not a good sign:
Ideally, besides a really active forum, it's good to be able to locate a
really active blog in that niche with a lot of comments being made on it. This
shows you that the forum itself is not enough. They need more: They go to
forums and blogs. 5nd they are responsive.
%o if a niche doesn't have an active forum andIor an active blogging
community, I usually skip it. I'm looking to travel the path of least resistance.
)riteria for a obby Niche
Fule 1: 8our 9rospects =ust 3ave 01umb =oney2
Fule : They =ust 3ave an 05ppetite !or Konsumption2
Fule 4: The &iche =ust 3ave an 'nline 03ang 'ut2 %pot
'kay, so rule two and three are the same for hobby niches and for
desperation niches. The only difference is rule number 1. *e've discussed this
briefly, but let's take a closer look.
#umb Money ,.plained Further
I have a , year old brother. *henever he gets money, he immediately
goes out and spends it on a video game.
3e can't even save it up to buy the video game system he wants the most
#a *ii$. 3e @ust can't resist taking all of his available income and disposing of
it right away.
To him it's 0dumb money2. It has no other purpose but to go toward his
hobby, which is video games.
=ost people act like my , year old brother when they get caught up in a
hobby. The only difference is he doesn't have bills to pay. 9eople who have
bills to pay take whatever money they have left over, and instead of saving
it, go out and blow it on their hobbyIhobbies.
To them, it's @ust 0dumb money2 that has no other purpose but to be
disposed of immediately.
*hen I was 1>, I wanted to be a really good chess player. I was obsessed.
%o for my 1,
birthday, I had everybody buy me chess books. That's all I got.
I don't think I even read half of them. I still have them on my bookshelf
though J years later:
Think about your hobbies. &ow ask yourself... do you consume
information to help you get more en@oyment out of this hobby) 1o you
consume it in many different forms)
If you answered yes to both these (uestions, you've identified a perfect
hobby market to e"amine. Then it's @ust a matter of answering the final
(uestion: do you hang out with other hobbyists online in a forum or visit an
active blog) 5nd if not, could you if you wanted to)
If you answered yes, then you have absolutely uncovered a hot niche.
The key here though is information. There are some niches where only
physical goods can be sold. %o we want to avoid those. 5nd there are some
niches where only magazines or books can be sold. Eut that doesn't pass rule
two then, because people in that niche don't have an appetite to consume
several mediums of information.
Niches That +ill Always Be Profitable
*ithin both the hobby and desperation sectors, there are certain niches
that will always be profitable to a savvy marketer. I call these 0evergreen
niches2 because as long as you know what you're doing marketing wise, you'll
make money in these niches.
The problem is that these niches are not much of a secret. %o there is
going to be competition. Eut competition is good when you're starting out
because it demonstrates that the niche is profitable. 'therwise, no one
would be spending time, money and resources to target that niche.
Get me share @ust some of the 0evergreen2 niches with you.
,/er&reen #esperation Niches
1. *eight Goss
. =ake =oney
4. 1ebt Felief
?. Aain =uscleI%trength
B. 9ick Up *omen
>. 5strology
,. 9arenting
J. Eeating 9eople UpI%elf 1efense
,/er&reen obby Niches
1. Gearning a 9opular Instrument
. 9laying To 9lay a %port Eetter
4. Kooking
?. Auns
B. Hideo Aames
>. KarsIHehicles
,. 'utdoors
J. 3ome Improvement
+. 9etsI5nimals
1.. Technology
&otice how all of these niches satisfy the criterion laid out in the pages
above) Taking a look at these niches should really bring everything together
for you for what a profitable niche looks like.
&ow that you know how to identify a profitable niche, let's discuss how
you choose the one that's best for you.
)hoosin& 0our Niche
*henever I do coaching with people @ust starting out in internet
marketing, I always ask start with this:
#o you ha/e any e.pertise that you can le/era&e1
The idea here is that when you're new to internet marketing, or you still
haven't made any money with it, it means you haven't yet created a
marketing system.
That's hard enough. It's even harder when you also need to create e"pert
status and start from ground Dero in your niche, too.
2e/era&e 0our ,.pertise
%o let's talk about e"pertise. Get me share a little bit of my own. If I had
to start over again, there are three niches I could enter immediately and start
marketing in.
!irst, chess. I know how to contact several grandmasters, could
interview them and have an instant product created. Then I could @ust focus
on the marketing.
%econd, music. *hen I was a musician, I figured out a way to get high
paying college gigs. I could write that report off the top of my head with no
research, and I know there's a demand for it. Instant product. Then I could
@ust focus on the marketing.
Third, cooking. I know several natural, vegetarian health dishes that you
can prepare el cheapo and in under 4. minutes. Instant product. Then I could
@ust focus on the marketing.
These are just some of the things I have e"pertise in. I'm a recovering
panic attack sufferer. !rom 1, to 1 I had bad panic attacks. Then I cured
them. !or ? years, I stayed panic attack free. Then I (uit following my own
schedule, and they returned. I have now defeated them once again.
%o I could create an instant product on that. Then I could @ust focus on
the marketing.
5lso, right before I turned 1, I weighed >. pounds. 'ver the ne"t year
and a half I lost +. pounds and at my skinniest, and L years later I weighed
1B4 pounds. I could create a product on that. Then I could @ust focus on the
=usic production. &ot only did I know how to be a performer, but I also
knew how to mi", produce and even master music. This is a whole different
niche. I know ways to create hi-fi radio (uality mi"es on a budget of less than
;1.. with little to know learning curve involved.
I even had a write up in Fecording =agaDine about one of my mi"es. I
could turn that knowledge into a product. Then I could @ust focus on the
That's not including all of the marketing skills that I have turned into
products, services, coaching programs, etc.
1on't think I'm some sort of wunderkind. 5lmost everybody has some sort
of e"pertise that they could leverage to instantly enter a profitable
information niche.
'ne of my coaching clients has e"tensive e"perience in the carpet
cleaning business and also with search engine optimiDation. I told him to use
this information to generate leads online and sell them to local carpet
cleaners. Then, once he got a system up and running to turn around and
package it and sell the opportunity to biD op seekers. Then, if that worked
really good, he could even sell a package to carpet cleaners direct:
5nd so on.
If you look hard enough, you'll find that you have a hidden area of
e"pertise that you can leverage to enter an information niche almost
2e/era&in& 0our 3esources
7ven if you don't have e"pertise, chances are you have resources. Get me
give you an e"ample. 5 lady I know used to work for a very successful
corporation that sold high ticket software platforms to fortune B..
companies. %he now wants to get into internet marketing.
I asked her: 0where you friends with any of the sales people)2 %he was. I
asked her: 0where you friends with the really good sales people)2 %he was. I
asked her: 0could you contact them and ask them if you could interview them
for a product you're putting together)2 she could.
5nd when she is finished she'll have something perfect to market to
anybody who is looking to increase their powers of persuasion #like sales
people, marketers, public speakers, etc., etc. -- pick your niche$.
Khances are if you don't have any e"pertise you can identify, then there
is someone you know who does. Then it's @ust a matter of dovetailing that
e"pertise into a profitable information niche.
Fesources are not @ust people. %ometimes it's places. 'r things. 1o you
have access to a certain location M online or offline M that other people wish
they could access, because the information at that location could benefit
them in some way)
1o you know where to go to find the best service, deals, satisfaction,
etc. related to a certain niche)
That's a resource:
If you can leverage both your areas of e"pertise and your resources you
can hit the ground running in whatever niche you decide would be easiest to
apply those levers to.
'nce you've had a list of all your potential e"pertise levers and resource
levers, then it's time to complete the final step.
)reate a )ate&ory to Be First In
1id you know I'm the world leader in servicing internet marketers looking
for low cost time management systems related to their online business) 8ep,
I'm the leader all right.
I'm also the only one in the category!
Time management is an evergreen desperation subniche. 9eople are
staring at the ceilings wide awake in fear wondering how they are going to
get the time in their life to do NNNNNNN #insert unfulfilled dream here$.
Eut how does one enter that niche:) 8ou're up against some competition.
%o what you do is break off a small, manageable portion of that niche, and
that's where you enter.
Think of the broad niche of time management as an ocean, and the
narrow niche of 0low ticket time management systems of internet marketers2
as a puddle.
8ou can't @ump up and down in the ocean and make waves. 8ou're not big
enough. Eut anybody can @ump up in down in a puddle and have an impact.
The good news is that there are a lot of puddles out there!
%o start with a broad niche to apply your e"pertise and resources in.
Then, if it doesn't look like you can gain any presence in that niche because
it's too crowded or too competitive, look for smaller segments of that niche
that you can e"ploit.
Get's look again at our J e"amples of 0evergreen desperation niches2
1. *eight Goss
. =ake =oney
4. 1ebt Felief
?. Aain =uscleI%trength
B. 9ick Up *omen
>. 5strology
,. 9arenting
J. Eeating 9eople UpI%elf 1efense
*hat are some 0puddles2 we can @ump up in down with in the weight
loss niche) Get's say you were an 5sian women over BB who discovered some
simple diet and e"ercise routines that allowed you to lose 4B pounds in 4
*ell, here's your puddle: 0weight loss for middle age 5sian women2.
That's a good start: 3ere's an ad@acent puddle to also go for: 0weigh loss for
women over BB2.
Get's say the way you lost weight was in direct contradiction to the
atkin's diet. &ow your puddle could be: 0weight loss for women who hate the
atkin's diet2.
7tc. 7tc.
The downside about going narrow is that you won't get million dollar
results. The upside is you can get some results. In the broad niches, it's either
all or nothing.
*hen you go for puddles, you make money and you get momentum. %o if
a narrow niche works, you can either go horiDontal or vertical. The
information is not much different from weight loss for middle aged 5sian
women or for women over BB who use your method.
The only difference is the target.
%o if it works in one puddle, it is easy to work it in another. That's how
you leverage your time and assets. 5lso, if it works on a small scale, you now
have proof, a track record and some recognition. That makes you more
competitive. 8ou can use that to break off a larger chunk of the niche.
=ake money is second on our list. %ections of that niche include: make
money gambling, make money in investment markets, and through business
%ub niches of gambling are horse race betting, black @ack and poker. %ub
niches of financial trading are day traders, fore" traders and rare coins or
hard money. %ub niches of business opportunities are making money on the
internet, make money buying a franchise or make money stuffing envelopes.
7ven sub niches have sub niches. 8ou can make money trading stocks. 'r
you can make money day trading. %elling short. Kalls. 'ptions. 9uts. 7tc.
5nd so on with all of the J listed above.
*hatever the case my be, if you start broad, go up at least two levels. In
really competitive markets, consider three level or even four.
!or e"ample. in the make money niche, you might go make money online
#level 1$ with free advertising #level $ in , days or less #level 4$.
If you wanted to make money teaching guys how to pick up women, you
might want to show them how to do this by making women chase them
instead of them approaching women #1 level$ without using mind games or
manipulation #level $ all for under ;B. #level 4$.
3obby niches are the same way. %ay you knew a way to teach someone
how to play drums that was really killer. Gearn to play drums is the level 1.
Gevel may be without boring rhythm e"ercises. Gevel 4 may be in 1B days or
less to become a 0competent drummer2.
Onow a method for training dogs) Training dogs is level 1. Gevel would
be training dogs to obey commands. Gevel 4 would be commands that an
average dog could learn in 1 day.
5nd so on.
Turnin& Niche Mar*etin& Into a System
*hat I have given you above is a lot of general #albeit straight to the
point$ advice to prepare you for the ne"t step. I like to think of myself more
or a 0systems2 man than an advice giver.
%o now I'm going to give you my system for niche marketing and selecting
a profitable niche. 3ere's how it works.
Niche Selection System
Step 4: Take out a list and right down every single bit of e"pertise you
possess, regardless of whether or not you think you could leverage it when
entering either a 0desperation information niche2 or a 0hobby information
Step 5% =ake another list of all the resources, people, places and things
you have that you think you might be able to leverage to help you enter a
Step 6: Gook at the list of 1J 0evergreen information niches2 I have
given in this report, and see what areas of e"pertise and resources you
possess that could help you enter any one of those niches. %et a timer and
give yourself five minutes to choose.
Step 7: 9ick your niche. &ow take it up either or 4 levels so you can
start in a 0puddle niche2 instead of in an 0ocean niche2.
Step 8: %pend 4 weeks testing the responsiveness of that niche. Use
whatever traffic and monetiDation strategies you know of to see what kind of
results you get in that niche.
If the niche shows promise keep at it. If it doesn't, throw it away and use
the niche selection system to pick another niche. Fegardless of whether it
works or not, you still benefit because you gain 0insight through e"perience2.
This is the best way to become an e"pert at niche marketing and
internet marketing in general.
'nce you find a hot niche, then you can either use my system for
creating an information products in under ?J hours #?$ to sell
to that niche or you can use my affiliate system called internet millionaire
recipe$ to monetiDe that niche to the furthest
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