Picking one of these three categories dramatically increases the likelihood of finding people who actively want solutions and will spend money to get them.

But there’s a catch: saturation. Because these markets are so large, you must drill down into a niche, sub-niche, or micro-niche to stand out. For instance, you might offer:

Each of these examples is narrower than just “health,” “wealth,” or “relationships,” and that narrow scope allows you to speak directly to a smaller (but more motivated) audience.

According to Nielsen, about 70% of people prefer to buy from brands that understand their needs on a personal level. This is huge! When you home in on a sub-niche or micro-niche, your messaging becomes laser-focused, enabling you to address very specific needs, pains, or desires.

Another piece of data from eMarketer shows that 80% of e-commerce shoppers are more likely to engage with a brand if it offers personalized experiences. Finding a niche audience that resonates with a very specific message is the first step toward creating highly targeted marketing, which leads to better conversion rates, more word-of-mouth referrals, and a stronger brand presence.

​So yes, it might feel safer to try to cater to everybody. But the research clearly shows: smaller, well-defined audiences are actually more profitable for most new online businesses or digital product creators. Keep these quotes—credit to Dante at Click Funnels—in mind when focusing on your niche audience and offer:

Before we dive into how to use artificial intelligence to discover or refine your niche, it’s important to understand what makes a niche truly viable. Generally, you want your target audience to meet these criteria:

Now that we’ve covered the “why,” let’s dig into the “how.” Large Language Models (LLMs) like ChatGPT, Gemini, Grok, Llama or Claude are advanced artificial intelligence programs trained on vast amounts of text data. They can process and understand language in a way that mimics human conversation. This makes them powerful tools for:

Example: Let’s say you have a general interest in fitness. You might ask, “Which sub-niches in the home fitness category have shown the most growth over the last two years?” Or “What are common pain points for postpartum women who want to exercise at home?”

​By iterating on your prompts, which is similar to asking someone more defining questions, you can refine your research and get more specific.

Let’s say you’re an aspiring digital product creator named Alex. You’re passionate about health, especially around safe, sustainable weight loss. You know this is a crowded market, but you’re not sure how to stand out. You turn to one of the many LLM chatbots to start brainstorming potential sub-niches.

Just like that, Alex has begun to zero in on a micro-niche. Sarah’s situation offers a narrower segment than “weight loss for women.” With this clarity, Alex can create a specialized product that addresses Sarah’s exact needs. The competition is smaller, but the willingness to pay might be higher because the product is so specific.

Let’s walk through a simple B.R.I.D.G.E.S. framework for using AI-driven prompts:

In this phase, you’re casting the widest net. Explore overarching markets—like Health, Wealth, and Relationships—then note down anything that sparks your curiosity or aligns with your passion.​

Next, you start narrowing things down. Which smaller segments within each broad market are rising in popularity? Where do you see unmet needs or special interest groups that might be easier to target?​

Here, you weigh the pros and cons. Determine if each potential sub-niche meets key criteria: is it easy to find this audience, do they spend money, and is the niche growing or shrinking?​

Once you’ve identified some promising sub-niches, it’s time to get laser-focused. Aim for small, specific, or underserved segments—this is where you’ll truly stand out from the competition.

Tailor your message and products by picturing the exact type of person who will buy from you. AI can help flesh out their demographics, pain points, goals, and more, giving you a crystal-clear target.

Don’t just rely on intuition—look for proof. Make sure your chosen micro-niche has real demand by scouring credible sources, market reports, or even competitor analysis to confirm your assumptions.

Finally, commit to the niche that checks the right boxes. Once you solidify your decision, you can move forward with product creation, marketing strategies, and your official launch.