How to find a profitable niche for your consulting business

Ignore this at your own risk: How to find a profitable niche for your consulting business: Part 2

How to find a profitable niche for your consulting business

#1:  Competition is good

One of the easiest ways to see that a niche is profitable is by finding potential competitors.  If others are in a niche, it’s likely that there’s money to be made in it.  Competitors demonstrate that there’s an existing market for the niche.  If there’s nobody in the marketplace, then there may not be a market.

#2:  Rate and salary surveys

Finding out what others are making and/or charging in your niche is a great way to see how profitable it is.  If the average salary is $30k in niche A and $75k in niche B, then all other things being equal, focus on niche B.

#3:  How expensive is it to advertise in your niche?

The more expensive the ad space, the more likely it is that advertisers are able to recoup their marketing costs, otherwise, they wouldn’t be advertising–they simply couldn’t afford the ad space.  Similarly, advertisers are willing to pay more in profitable niches.  As a result, comparing advertising costs are a good way to assess the relative profitability of different niches.