And I like the simple questions she uses at the end to determine if the niche is one you'd actually be happy to make 10 or 20 products in, compared to one you only envision making a single product around.
Yale's 5-Step Framework for Finding a Profitable Niche
Why "What Niche Makes the Most Money?" Is the Wrong Question
If you've been googling what niche makes the most money, I'm going to stop you right there. That's the wrong question. A niche is only profitable if it aligns with your strengths, your style, and the kind of products you can consistently create.
In this video, I'm going to give you the exact framework to find a niche that's profitable for you, not just profitable on paper.
Step 1: What "Demand" Actually Means
Step one is demand. What does demand even mean? Demand simply means people are already searching for and buying a certain type of product.
How to Build Your Initial Product List
Here's what I want you to do. First, write a list of all the digital products you're interested in selling. Just brain dump it. Don't overthink it. It can be planners, wall art, business templates, kids' worksheets, literally anything.
If you have no idea where to start, use ChatGPT. It's free. Here's a prompt you can copy: "Give me a list of digital products I can sell on Etsy based on these interests" -- then insert your interests. Write down anything and everything that comes up. You're not choosing yet. You're just gathering ideas.
Demand Signal 1: Volume of Listings
Once you have that list, go on Etsy, type in one digital product from your list, and look at the results. Are there a lot of listings? That usually means people are actively creating in that space because customers are buying.
Demand Signal 2: Bestseller and Popular Now Badges
Do you see "Popular Now" or "Bestseller" badges? If multiple listings have these tags, that's a great sign that products in this niche are selling consistently.
Demand Signal 3: Views and Add-to-Carts
If you click on a product, how many views or add-to-carts does it have? If a listing has high views and a lot of add-to-carts, that means people are searching for this product and they're considering buying it, which is a huge sign of demand.
Demand Signal 4: Multiple Shops Performing Well
Are the top sellers getting thousands of sales or reviews? The exact numbers don't matter. What you're looking for is proof of repeated sales. Are there multiple shops doing well, not just one viral product? That shows the niche is sustainable and not just a one-hit wonder.
Demand Signal 5: Similar Products Appearing Across Different Shops
Do you see similar products appearing across different shops? That means there's buyer intent. People come to Etsy expecting to find that type of product. If you can check off several of these, you're looking at a healthy niche with real money flowing through it.
Don't get scared if you see competition. High demand will always come with competition. That's normal. What you want is a niche where people are already spending money, and then you can come in with your own version.
Step 2: Validating Your Niche with Real Data
Once you've found a niche that looks promising, step two is to validate it with data. A lot of beginners choose niches based on what they're feeling. They'll say, "Oh, I like planners" or "I like wall art," and they run with it. But liking something doesn't mean it will sell. Data takes out the guessing. It tells you what's actually making money.
Using Profit Tree to Validate with Actual Etsy Data
You can do some of this manually or even ask ChatGPT to give you ideas, but at some point you want real numbers. That's where a tool like Profit Tree comes in, because it lets you validate your ideas using actual Etsy data instead of assumptions.
A lot of people want to sell planners. Every time I look for the top performing planners on Etsy, the biggest earners are almost always digital planners designed for GoodNotes. Just look at these numbers: this first planner has made $115,000, this one made $371,000, and the last one made $36,000. That is literally a full house and lot. That's insane.
What to Check Inside Profit Tree: Monthly Revenue and Monthly Sales
But total revenue isn't the only benchmark you should be looking at. What matters just as much is the current performance of the niche. Inside Profit Tree, check monthly revenue and monthly sales. This tells you how the product is performing right now, not just historically.
What to Check Inside Profit Tree: The Demand Badge
The demand badge is one of my favorite features inside Profit Tree. It shows you exactly how many times a specific product was viewed, added to cart, and purchased within the last 24 hours. That kind of real-time data is incredibly powerful. When a product is consistently being added to carts or sold, it's a clear sign that there is active demand for it right now.
For example, in these GoodNotes planner listings, you can see that each one has been viewed, added to cart, and even purchased in the past 24 hours. This is the type of insight you simply wouldn't have access to without a tool like Profit Tree.
What to Check Inside Profit Tree: The Niche Score
Profit Tree also gives you a niche score, which I love because it instantly tells you how difficult or easy it is to succeed in that niche. All of these metrics together help you validate whether your niche has real money, real demand, and real longevity -- not just hype.
If you want to give it a try, Profit Tree still has their $67 lifetime offer. So instead of paying monthly, you pay once and you get access to all of this data for life. I'll link it below so you can see all this data for yourself.
How to Validate Your Niche Manually (Free Methods)
If you want to validate your niche manually, you totally can. Profit Tree just makes it way faster and puts all the numbers in one place. But there are free ways to do this, too.
Manual Validation Method 1: Bestseller and Popular Now Badges
Look for "Bestseller" or "Popular Now" badges. These tags mean the product has been selling recently.
Manual Validation Method 2: Recent Views and Add-to-Carts
Click into individual products and check two things: how many recent views it had and how many recent add-to-carts it had. Views equal active traffic, and add-to-carts equal strong buying intent.
Manual Validation Method 3: Recent Reviews
Check the reviews. If the listing has recent reviews, that means it has recent purchases, which is exactly what you want.
Manual Validation Method 4: The Seller's Shop History
Visit the seller's shop. Look at their total sales, total reviews, and how long the shop has been active. A shop with consistent sales over time means the niche is healthy.
Manual Validation Method 5: Number of Listings in the Niche
Look at how many listings exist in that niche. More listings equal more demand. Don't be scared of competition. Competition usually means there's money flowing in that niche. As long as your designs are strategic and offer something different, you can absolutely succeed.
Step 3: Analyzing Competition the Right Way
Step three is checking the competition -- but we're doing this the right way. A lot of beginners see competition and instantly think, "Oh no, this niche is too saturated." But saturation isn't the enemy. Bad competition is. Good competition is actually a sign of high demand.
Competition Signal 1: Outdated or Low-Quality Top Products
Are the top products outdated or low quality? This is actually the best situation. If the listings are outdated, cluttered, or look like they were made 10 years ago, that means you have a huge opportunity to enter the niche with a fresh, modern design. This is where you can stand out immediately.
Competition Signal 2: Listings That All Look the Same
Do most listings look the same? When everything in the niche looks identical -- same color, same font, same structure -- that means there's room for differentiation. You can easily change design style, color palette, layout, aesthetic, packaging, or bundles, and instantly look different.
Competition Signal 3: Ignored Product Formats or Bundles
Are creators ignoring certain product formats or bundles? Sometimes you'll see a niche full of single products but almost no bundles, or everyone's offering the same 10-page version but no one is offering a 40-page premium version. Gaps like this are golden opportunities.
Competition Signal 4: Newer Shops Making Sales
Are newer shops making sales here? If only the biggest shops are winning, that niche is harder to break into. But if smaller or newer shops are getting reviews, that means the niche is accessible. This is a great sign for beginners.
Competition Signal 5: Weak or Inconsistent Thumbnails
Are the thumbnails weak or inconsistent? If competitor thumbnails are messy, outdated, or unclear, you can outperform them immediately just with clean layouts, modern aesthetics, strong mockups, and clear messaging. Good branding alone can help you stand out in crowded niches.
Competition is not something to avoid. It's something to study. If a niche has zero competition, that usually means zero demand. Good competition means people are buying. What matters is: can you offer a version that's better, clearer, or more visually appealing than what already exists? And the answer is usually yes.
Step 4: Understanding Buyer Intent
Step four is understanding buyer intent, and this is where a lot of people miss the mark. A niche isn't profitable just because it's popular. A niche is profitable when people have a strong reason to buy.
Buyer Intent Factor 1: Does the Buyer Have Urgency?
People buy faster when they need something for a specific purpose, like a wedding, a baby shower, a business launch, a school activity, or a big life event. When there's urgency, buyers spend quickly and they buy multiple items. This is why event niches and business niches do so well.
Buyer Intent Factor 2: Does Your Product Solve a Clear Problem?
Products that solve problems sell way more consistently than products that are just nice to have. Examples: a small business owner who needs templates to save time, a teacher who needs worksheets for tomorrow, a bride who needs signs for her event, a parent who needs activities for their kid. When there's a problem, there's demand, and when there's demand, there's profit.
Buyer Intent Factor 3: Is the Niche for a Hobby or Entertainment?
These niches can still make money -- like wall art or stickers -- but buyer intent is lower because the purchase is optional. Not bad, just less predictable. So you want to balance your shop with high-intent products, too.
Buyer Intent Factor 4: Does the Niche Encourage Multiple Purchases?
Niches where customers tend to buy a bundle, multiple designs, or matching sets are easier to scale. Baby showers, business templates, wedding products, and classroom resources all have strong potential for repeat or multi-item purchases.
Buyer Intent Factor 5: Does the Niche Attract Buyers Willing to Spend?
Some audiences naturally spend more, like brides, business owners, teachers, parents, event planners, and digital notetakers. These groups invest in tools and resources because they actually need them.
What I want you to remember is this: high buyer intent equals easier sales, and low buyer intent equals more views but fewer conversions. This is why two niches can have the same demand, but one earns way more money because the buyer intent is completely different.
Step 5: Choosing a Niche That Actually Fits You
Step five is choosing a niche that actually fits you. This part is so underrated, but it's one of the biggest reasons why people either stick with this long term or burn out in a month. You can find a profitable niche, validate it with data, and check buyer intent -- but if the niche doesn't align with your strengths and the way you naturally create, it's not going to be sustainable.
Fit Factor 1: Can You See Yourself Creating 20 to 50 Products in This Niche?
Most successful shops don't make one product. They build a collection. If you already feel bored after product number two, that's a sign. You don't need to be obsessed with the niche, but you should at least enjoy designing in it.
Fit Factor 2: Does the Design Style Match Your Natural Aesthetic?
Some people are naturally minimal. Some have a playful, colorful style. Some love elegant editorial looks. If the niche requires a design that's completely opposite of your strengths, you'll struggle or feel drained. Pick something that flows with the way you already create.
Fit Factor 3: Do You Have Any Experience with the Audience?
You don't need to be an expert, but familiarity helps. If you work in events, you can do baby showers, weddings, or party printables. If you're obsessed with productivity, you can do planners or journals. If you're a teacher or parent, you can do kids' worksheets. If you're a business girly, you can do business templates. Use what you already understand, because it makes ideation so much easier.
Fit Factor 4: Is This a Niche You Can Talk About and Create Content For?
You're also going to market these products on platforms like Pinterest, or maybe later you'll expand to YouTube, TikTok, or Instagram. It's so much easier to grow when the niche feels natural for you to talk about. If you can comfortably share tips, show behind-the-scenes, or talk about your design process, you'll have a much easier time building visibility and trust.
Fit Factor 5: Does the Niche Align with the Lifestyle You Want?
If a niche feels stressful, overwhelming, or too technical for your personality, you'll avoid it. But if it feels exciting or creatively energizing, that's a green flag. Remember, you're not just choosing a niche. You're choosing what your days will look like as a business owner.
A profitable niche is amazing, but a profitable niche that fits you is sustainable. That's how you stay consistent, avoid burnout, and build a shop that grows month after month.
Your Complete Five-Step Framework for Finding a Profitable Niche
Now you have a full five-step framework to find a niche that has demand, real buyers, strong competition signals, high buyer intent, and most importantly, a niche that actually fits you.
If you want suggestions or examples of niches I personally recommend, I have a full video where I explain the top most profitable niches you can start with. I'll leave the link below if you want to watch that next. And if you want to validate your niche with real data and not guesswork, definitely try Profit Tree. They still have that $67 lifetime offer -- you pay once and get access to all the data forever.
By the time you watch through Yale's questions, you're going to have a very good idea of which niche markets are perfect for you. Again, don't get caught up with the fact that she is working with the context of Etsy sales. The questions she asks are foundational for all business research scenarios and reveal how to find a profitable niche.
If you need help digging deeper into this topic, Rochelle has an excellent method of using ChatGPT with some prompts that will help you find a niche in the market.
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