What is the most profitable niche for a side-hustle or passive income?

Published: October 18, 2021 at 8:39 am

Last Updated on October 18, 2021 at 8:39 am

Every week we receive questions related to our articles on side-hustle and passive income. There is one common thread to many of these questions. Readers appreciate the importance of building multiple income streams for retirement but don’t know where to start. So they ask what is the best niche or the most profitable niche for a side income?

I am afraid this is also the number one mistake made by anyone desiring a side income. No one can tell which niche or area you should work on. We cannot approach this like we approach choosing college degrees.

Even today, many parents (and children) ask, “which area has good scope?” before enrolling their child on college. What they are saying is, “Tell me a degree that has good placement opportunities so that my child can get a good salary”.

That might work for a salaried existence (only to see the frustration creep in slowly), but it will certainly not work for anyone wanting to build a passive income stream. Here it would be best if you thought like an entrepreneur:


Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!
🔥Enjoy massive discounts on our robo-advisory tool & courses! 🔥
  1. What are my skills?
  2. What problems can I solve with my skills? In other words, how can I help people with my skills?
  3. What difference can I make when so many others with my skills are already working on the same problems?

No one except you can answer these questions. Many creators who sell online courses mislead buyers into believing buying the course will help them choose an area (niche). It does not work that way.

Choosing a niche is often a trial and error activity. It should be done without worrying about making money. Don’t dream about side hustles or passive income unless your primary goal is to help other people.

This is the only way you can make others consume your content. And this is the only way to understand the real problems faced by others. New stock market investors are often asked to buy stocks of products that they use.

Similarly, one of the first aspects discussed in our Earn from skills course is to create content around our daily searches. For example, I have multiple Gmail accounts (personal + work). I wanted to create a chrome profile shortcut for each account to access associated accounts like Google drives on separate Chrome windows.

It is a trivial issue; however, when I searched for information on this, it was either not what I wanted or outdated. So I after I eventually found a solution, I decided to write about it on the Earn from Skills site: How to create a desktop shortcut for your chrome profile.

I just assumed there would be others like me looking for such information. So if they search for this on Google, maybe, just maybe, they will land up on my page. A fraction of them may end up exploring the other content; sign up for the newsletter. That is one of the ways by which you build a community gradually. So many opportunities to grow traffic from our everyday searches!

This community will tell you which problems to solve, and as you continue to do that, they will be ready to buy products or services from you.

If a particular topic is not gaining traction, you can either focus on better quality content or switch to another topic – as long as you have the discipline and patience. No one will immediately pay you or hire you. Reader acquisition takes time. This is why online advertising is also often (but not always) a waste of money.

Trial and error is the only option if you do not immediately know which topic you would like to work on. In either case, monetization should not be the priority.

So the most profitable niche is the one in which you can make a difference in the lives of others.  Only you can find out what that is, either following your passions or by trial and error. No one else can teach to do this.

Once you have identified such skills, you can learn how to build a winning web presence, build online trust, and build a loyal community that would buy what you have to offer.

Here are some resources to help you get started:

Do share this article with your friends using the buttons below.

🔥Enjoy massive discounts on our courses, robo-advisory tool and exclusive investor circle! 🔥& join our community of 5000+ users!
Use our Robo-advisory Tool for a start-to-finish financial plan! More than 1,000 investors and advisors use this!
New Tool! => Track your mutual funds and stock investments with this Google Sheet!
Follow Freefincal on Google News
Follow Freefincal on Google News
Subscribe to the freefincal Youtube Channel. Subscribe button courtesy: Vecteezy.
Subscribe to the freefincal Youtube Channel.
Follow freefincal on WhatsApp Channel
Follow freefincal on WhatsApp
Podcast: Let's Get RICH With PATTU! Every single Indian CAN grow their wealth! 
Listen to the Lets Get Rich with Pattu Podcast
Listen to the Let's Get Rich with Pattu Podcast
You can watch podcast episodes on the OfSpin Media Friends YouTube Channel.
Lets Get RICH With PATTU podcast on YouTube
Let's Get RICH With PATTU podcast on YouTube.

  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Have a question? Subscribe to our newsletter with the form below.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Join over 32,000 readers and get free money management solutions delivered to your inbox! Subscribe to get posts via email!

Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr. M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over ten years of experience publishing news analysis, research and financial product development. Connect with him via Twitter, Linkedin, or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation promoting unbiased, commission-free investment advice.
Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3,000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both the boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision-making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook is for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or get the Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low-volatility stock screeners.
About freefincal & it's content policy. Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified with credible and knowledgeable sources before publication. Freefincal does not publish paid articles, promotions, PR, satire or opinions without data. All opinions will be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically, with links to the web pages and hand-holding at every step. Get the pdf for Rs 300 (instant download)