Tips that save time.
Let’s dive straight into it:
Instead of hunting for an untapped niche, focus on entering one that’s already crowded.
For some, this might not sound counterintuitive at all. Experienced entrepreneurs know that joining an established market is often safer than trying to pioneer a new one. But for first-time entrepreneurs, the allure of a fresh, untapped niche can be hard to resist. The thinking goes: “If no one is doing this yet, I’ll have zero competition, and success is guaranteed!”
Unfortunately, that’s rarely how it works in the real world. Whether you’re running an online business or a traditional one, there’s one key truth you need to remember: competition is often a sign of demand.
The hidden risks of untapped niches
Let’s be real for a second: Do you really believe that you’re such a genius that no one else has ever thought of the idea you just had?
Sure, there are rare occasions when this is true – once in a blue moon, a groundbreaking idea like Twitter comes along. But most of the time, the ideas we think are revolutionary have likely crossed someone else’s mind. People tend to think alike, especially when faced with similar problems or opportunities.
So, if your “untapped” niche really is empty, it’s worth asking why. If others have had the same idea and it didn’t take off, that’s a red flag.
It’s likely not because they lacked the drive or resources, but because the market simply wasn’t there.

Now, consider the opposite:
If you find yourself drawn to an idea that’s already being executed by others, it’s a good sign. It means there’s demand, and people are successfully making money in that space.
Given the choice, I’d rather jump into a market where there’s proof of concept – where others are already generating revenue – than gamble on an untested idea with no clear path to success.
But I get it. Not everyone agrees with this approach. So, let’s break down the pros and cons of entering a niche that’s already crowded.
Why crowded niches are actually advantageous
The first and most obvious reason to enter a crowded niche is simple: there are already people making money there.
If they’re succeeding, you have a solid chance to do the same, assuming you can compete effectively.
This is a huge advantage because you’re stepping into a market that’s already proven to be profitable.
Another big benefit is that you can thoroughly research the market before jumping in.
By analyzing what your competitors are doing, you can identify strategies that work and avoid those that don’t. You don’t have to guess or experiment blindly; you can build your business on the foundation of existing, successful practices.
In a well-established niche, customers are already familiar with the types of products or services being offered. This means you don’t have to spend as much time or effort convincing them of the value of your offering. If your product is similar to what’s already available – but better in some way – customers will quickly understand its value.
Pricing is another area where crowded niches provide an advantage. Since prices in established markets are typically well-defined, you can choose how to position yourself. You might start by matching competitors’ prices, or you could go premium and target higher-end customers. Alternatively, you could undercut the market to attract more price-sensitive buyers. In an untapped niche, figuring out the right pricing strategy is much riskier.
Competition also opens up opportunities for partnerships. While it might sound counterintuitive, turning competitors into allies can be a smart move. Whether through joint ventures, cross-promotions, or other collaborative efforts, partnering with others in your niche can significantly boost your business.
Another perk of crowded niches is the presence of affiliates. Affiliates are experts at promoting products, and they can be a major source of revenue for your business. This is something that’s virtually non-existent in a new niche, where no one has yet established an affiliate network.
Ultimately, the biggest advantage of entering an existing niche is your higher likelihood of success. I don’t have specific data at hand, but it’s reasonable to assume that businesses entering established markets tend to succeed at a higher rate than those venturing into uncharted territory.
So, while the idea of finding an untapped niche might seem appealing at first, the reality is that crowded niches offer a lot more in terms of security, resources, and potential for profit.
The disadvantages of crowded niches
Let’s be real: entering a crowded niche isn’t without its challenges. While there are clear advantages, we need to acknowledge the downsides as well.
The most obvious disadvantage is the competition. In a crowded niche, you’re up against established businesses that have been around longer, have bigger budgets, and have already built strong customer bases. Breaking through that noise and getting noticed can be tough, and it can take time before you start making any significant money.
This is why it’s crucial to choose your niche carefully. If it’s too crowded, your chances of standing out diminish. Unfortunately, there’s no universal definition of “too crowded” – it varies by niche. You’ll need to use your judgment and do some thorough research to find a niche that’s competitive but not oversaturated.
Another potential drawback is profit margins. In a competitive market, especially one dominated by big players, margins can be razor-thin. Larger companies often have the advantage of economies of scale, allowing them to offer lower prices or invest more heavily in marketing. As a newcomer, competing on price can be a losing battle, depending on the niche.
Then there’s the challenge of becoming a leader in your niche. While you don’t have to be the top player to be profitable, leadership brings a lot of perks, like more opportunities for partnerships and collaborations. However, breaking into that top tier can be incredibly difficult when you’re competing against well-established brands.
In summary, while I believe entering a crowded niche is often a smart move, it’s not without its risks. This is based on my experience and observations, but I’m not claiming to be the ultimate authority on the subject.
I’m curious to hear what you think: do you agree that existing niches are generally safer bets than untested ones? Or do you still see value in exploring the unknown?
5 Comments
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I think it would take a brave man to follow untapped niche and as you indirectly said it will be a long shot…but then following what successful bloggers and marketers has done in a niche can be quite successful. We can choose a niche which is crowded but not too crowded so as to lower the risk…but then it always depends on person to person and the web experience of the person.
nice article karol !
You bring a very good point here. It’s just like fishing where there are no fishes hoping you’ll catch some anyway. Or it’s just like how in SEO you can rank first page for keywords that nobody ever looks up. It’s just a huge waste of time.
Great point, Reese! It’s exactly what I mean.
I always thought that untapped niches would be a great idea. Thank you for making me realize the pros and most especially the cons for this issue.
Thanks for sharing such a wonderful article and I look forward to reading your article blog.