Choosing a dead niche or market is a real worry for most entrepreneurs.

And rightly so.

You will lose a lot of time,effort and money if you go down the wrong niche.

Luckily, there’s a simple way to avoid going down a wrong niche.

Here’s how:

You have to understand that markets are just demonstrated cashflows.

What’s a demonstrated cashflow? :

A demonstrated cash flow is simply something people already spend money on to solve a problem or fulfil a need.

I think people define a market in a wrong way and that’s why they have problems finding a profitable niche.

For example, yesterday, someone told me he was going to start a niche site.

I asked him what niche he was going into.

Here’s what he said:

Photography.

For me, this is a wrong way to look at a niche or market.

Photography is not a market.

Or at least I won’t call it one.

It’s just too broad.

A market is something that has a demonstrated cash flow. Simple.

What are people already spending money on that indicates they have some problem that you can help them remove or need something you can provide?

So photographers learning how to use expensive software to edit their images is a market.

Expensive image editing softwares is a demonstrated cash flow. Photographers that spend money on these type of softwares may then spend more money to get better editing their images.

People who pay monthly for web hosting may spend money on web design.

People who pay monthly for Shopify may spend money on a course on how to generate more ecommerce sales with Facebook ads.

To be in a profitable niche is to follow demonstrated cashflows.