Picking the right niche for your YouTube channel can mean the difference between just having fun and actually making good money. The right niche can boost your followers, engagement, and earnings. Why? Because advertisers will pay you more for ads if your channel’s viewers are the people they want to reach.
Let’s break down what makes a niche profitable and which are the top money-makers.
Most Profitable YouTube Niches in 2023
- Affiliate Marketing
- Investing
- Dropshipping
- Content Creation
- Personal Finance
- VPN Content
- Amazon Affiliates
- Website Hosting & Development
- Tech Reviews
What is a niche?
Think of a niche as a YouTube channel’s specific theme or topic. Your niche could be something general like gaming or super specific like speedrunning old-school 8-bit games. By focusing on a niche, YouTubers can attract a specific group of viewers, making their channel the top choice for that topic.
Financially speaking, narrower niches often translate into more focused and lucrative advertising opportunities. Advertisers are generally willing to pay a higher CPM (Cost Per Mille or cost per thousand views) for content that closely aligns with their target demographic.
What is YouTube CPM and how does it work?
There are many ways to make money on YouTube, but the main method for most creators is getting paid for the ads that play on their videos. How much you can make from these ads is dependent on what’s called YouTube CPM – which is dependent on your niche.
YouTube CPM (cost per mille) is what advertisers pay for every 1,000 ad views. When their ad plays on your video, you get a share of that money. The more they spend for the ad, the more you earn.
CPM rates can vary drastically by niche. The main factors that impact these rates are:
- Industry
- Advertiser competition
- Ad format
- Audience demographics
- Country
- Time of year
- Content sensitivity
- Engagement levels
For example, a YouTube channel focusing on “personal finance” could attract higher-paying ads from finance companies, banks, and investment apps, as they’re looking to reach a more financially savvy audience. This makes understanding YouTube CPM rates by niche an essential part of maximizing your channel’s earning potential.
Overall, CPM is a good indicator of how valuable advertisers find your videos and audience for achieving their own business goals.
9 Most Profitable Niches On YouTube
YouTube doesn’t publish niche CPM data, so the numbers we’ve outlined in this article are based on research from SMBillion.
1. Affiliate Marketing
Videos in this niche teach people how to earn money by promoting products. With online shopping booming, there’s a big demand for trusted product recommendations.
For instance, Smart Money Tactics is a YouTube channel that focuses entirely on creating videos about affiliate marketing strategies and making money online.
Average CPM: $12-22
2. Investing
These videos teach people the intricacies of the financial market. As more people look for passive income, these channels offer insights into stocks, bonds, and other assets.
Due to the competitive nature of this niche, a deep understanding of financial topics and a strong angle are crucial for standing out. Andrei Jikh is an example of prominent YouTuber who focuses on stocks, credit cards, and more.
Average CPM: $8-18
3. Dropshipping
This niche is all about selling stuff online without having to store inventory. Sellers buy the product from a third party after getting an order and have it shipped directly to the customer. With the rise of e-commerce and people shopping from home, this model is more appealing than ever.
Well-known creators in this space include Dan Dasilva, Wholesale Ted, and Ac Hampton.
Average CPM: $7-14
4.Content Creation
These channels give tips on how to make good online content, like blogs or videos. With the digital space crowded, creators need strategies to stand out and attract viewers.
For example, Katie Steckly is a YouTuber who shares insights and tips to help other content creators succeed on various social media platforms.
Average CPM: $5-13
5. Personal Finance
These channels empower viewers to manage their finances better. Creators in this niche often offer advice on debt management, savings, and smart investments. Similar to the investing niche, a deep understanding of financial topics and a unique angle on the topic are crucial for standing out.
The Financial Diet is a well-known channel in the personal finance space. They focus on talking about money and finances in in a way that is easy to understand and doesn’t stress people out.
Average CPM: $4-12
6. VPN Content
Creators in this niche explain VPNs, or Virtual Private Networks, that help people use the internet safely and privately. With increasing concerns about online privacy, more people are investing in tools to keep them safe.
VPNpro is a YouTube channel run by a team of cybersecurity enthusiasts. Their videos dig deep on the best VPNs and share cybersecurity tips.
Average CPM: $3-12
7. Amazon Affiliates
This is a subset of affiliate marketing, focusing specifically on Amazon’s vast marketplace. These channels guide viewers on making money from the e-commerce giant’s referral program.
Prominent channels in this niche include Success With Sam and Baddie in Business.
Average CPM: $3-10
8. Website Hosting & Development
In this niche, creators teach people about making websites, including coding, design, and website tools. They also cover where and how to put a website on the internet. As businesses move online, web development skills are highly sought after.
For example, Website Learners, SiteStarters, and Curious Themes are all educational channels on how to make and run a website.
Average CPM: $3-9
9. Tech Reviews
This niche is the go-to for the latest in tech. With rapid tech advancements, these channels keep viewers updated, influencing buying decisions from smartphones to smart homes.
Well-known creators in this space include some of the most well-known YouTubers overall like MKBHD and Mrwhosetheboss.
Average CPM: $2-9
What are the best YouTube niches for beginners?
When you’re starting on YouTube, the best niche for you really depends on what you want out of it. Everyone’s different, and so is their reason for making a YouTube channel.
If your goal is to make money, you might want to think about areas that aren’t too crowded. In a less competitive space, your videos have a better chance of standing out and getting more views, and therefore more ad dollars.
On the other hand, if you’re just looking to share a hobby or passion, then go for what you love most. It’s much easier to make videos about topics you’re excited about, and that enthusiasm will shine through to viewers.
Related: How to Get More Subscribers on YouTube
How do I find the right niche for me?
To find your perfect niche on YouTube you should consider what you love, what you’re good at, and where there’s an audience. Here are some tips to help you pinpoint your ideal niche:
- List your interests. Start by listing out your passions, hobbies, and skills. What topics can you talk about for hours? What activities or subjects make you lose track of time?
- Explore YouTube. Search for potential niches on the platform. Are there many channels on the topic? If it’s crowded, can you bring a unique angle or perspective?
- Create test videos. Before fully committing, produce a few videos in your potential niche. This helps you get a feel for the content and how viewers might respond.
- Gather feedback. Share your videos with friends, family, or online communities. Their feedback can offer valuable insights and help refine your niche.
- Adjust as needed. Stay open to change. If a niche doesn’t resonate with you or your audience, it’s okay to explore new directions.
Ultimately, the best niche for you is where your strengths and passions meet an audience’s interest. It’s where you’ll create content consistently, enjoy the process, and offer genuine value to viewers.
Bottom Line
Picking the right YouTube niche isn’t just about which pays the most or what’s trending. It’s about your interests, knowledge, and what viewers like. Even if YouTube niches like investing or personal finance have better CPMs, it’s best to choose something you’re passionate about. If you’re new, consider less popular but still profitable niches. YouTube success takes time, so pick a something you enjoy and that has an audience. Whether you’re drawn to high-earning areas or simply passionate about specific hobbies, everyone can find their niche on YouTube. Find your perfect topic and dive in!
