Why common "find your niche" advice is failing creators (and what to do instead)

The creator economy is facing a silent crisis. Algorithms are disrupting creator-fan connections, and traditional "find your niche" advice is failing. Discover the 5 phases of niche development, debunk common myths, and learn how to build true fan connections in this new era. Time to create your authentic "Niche of One".

Every day, thousands of creators wake up to a harsh reality: 

Their passion isn't paying the bills. 

Their "niche" feels more like a prison than a path to success. And the algorithms they once relied on now seem to work against them.

This isn't just frustration. It's a crisis.

I've spent the last decade building over 10 businesses online and in the creator economy. Some failed spectacularly. Others scaled to 8-figures. Through it all, I've witnessed firsthand the seismic shifts reshaping our digital landscape.

And let me tell you: the game has changed. The rules you learned even a few years ago? They're probably obsolete.

But don’t worry too much just yet. There is a way forward. It starts with understanding the true phases of niche development and debunking the big lies we've all been sold about success in the creator economy.

Table of Contents

Today, I'm going to share:

1. The 5 phases every successful niche goes through (and why most creators get stuck in phase 2)
2. 3 massive lies about "finding your niche" that are holding you back
3. A new framework for building true fan connections in an algorithmic world

This is a bit of a long one, but every word is important and can help you not just find your niche, but create your Niche of One. 

But first, let's address the elephant in the room: why is this happening?

The Silent Crisis of the Creator Economy

Jack Conte, co-founder of Patreon, recently shared a message that I found so profoundly beautiful and important.

He described the evolution of the internet from Web 1.0 (static websites) to Web 2.0 (social media and user-generated content) to what he calls "the decade of ranking" – where algorithms determine what content gets seen.

But that’s not the beautiful part.

This shift has fundamentally broken the promise of direct creator-to-fan connections. It's made it harder for creators to reach their audience, build community, and sustain their businesses.

The numbers don't lie:

• 93% of creators believe finding the right niche is vital for long-term success
• Yet only 7% feel confident they've found a sustainable long-term niche
• 95% of creators are confused by conflicting "find your niche" advice

The result?

• 71% of creators who follow generic "find your passion" advice are unsatisfied with their chosen niche
• 76% of creators who try to "niche down" based on generic advice feel stuck in a box
• 88% of creators feel traditional niche advice doesn't account for the fast-changing online world

This isn't just a problem. It's an existential threat to the entire creator economy.

But before we can solve it, we need to understand the true phases of niche development.

The 5 Phases of Niche Development

Every successful creator grows in phases.

It might be obvious when you consider how Ali Abdaal started as a no-name doctor and grew to become one of the largest productivity YouTubers. But growth phases can be harder to recognize when you're in the middle of your own journey.

It's too easy to get lost in the details, trying to do everything all by yourself. And before you know it, you're burned out, disillusioned, and ready to quit.

That's why it's crucial for creators to understand these phases and focus their limited time and energy on the appropriate tasks for each stage. If you can do that, you'll exponentially increase your chances of success.

Let's dig into the 5 phases of niche development.

Phase 1: Self Discovery

This is where you explore your interests, skills, and unique perspective. It's exciting as hell, but terrifying at the same time.

You learn so much about yourself at this stage. And I'd argue this phase is where 80% of people fail because they rush through it or skip it entirely.

So here are two simple tips for navigating the Self Discovery phase:

1. Embrace an explorer mindset. Don't pressure yourself to have it all figured out. This phase is about experimentation and learning (especially about yourself)
2. Document your journey. Start creating content about your process of discovery. This vulnerability can be incredibly attractive to potential fans.

When I work with creators, I help them find what actually matters to them. Your values, personality, passions, interests, experiences, personal background, strengths, and weaknesses all need to be considered if you want to create your life's work around something that truly matters to you and brings value to others.

Phase 2: Audience Discovery & Market Research

Once you have a clearer understanding of yourself, it's time to turn your attention outward. This phase is all about understanding your potential audience and the market landscape.

Think of this phase as becoming a detective. You're not just looking for any audience, but the right audience that aligns with your unique strengths and interests.

Here's how you can take action in Phase 2:

1. Conduct thorough market research. Identify trends, gaps, and opportunities in your area of interest.
2. Engage with potential audience members. Use social media, forums, or in-person events to understand their pain points and desires.
3. Analyze competitors and complementary creators. What are they doing well? Where are they falling short?

I remember when I was researching the market for Nicheology. I spent countless hours talking to creators, analyzing successful niches, and identifying the common struggles that weren't being addressed. This research became the foundation for everything that followed.

Phase 3: Category Design (Crafting your Niche of One)

Now that you understand yourself and your potential audience, it's time to carve out your unique space. This is where you start to define your niche more clearly.

Think of category design as sculpting. You're not creating something from nothing, you're chipping away at the excess to reveal the core of what makes you unique.

Here's where the structure of your niche begins to form:

1. Develop your unique point of view (POV). This isn't just about what you do, but why you do it and how you see the world.
2. Create your "Niche of One". This is the unique category that only you can occupy, based on your self-discovery and market research.
3. Craft your messaging and positioning. How will you communicate your unique value to your audience?

 

I remember when I was defining the niche for one of my businesses called Teserea in the productivity space.

I realized that Teserea's unique angle wasn't just about getting more done, but about aligning productivity with personal fulfillment. That POV became the foundation of the entire brand.

With Nicheology, I realized my unique angle isn't just about finding a niche, but about creating a "Niche of One" - a space that only you can occupy. This POV became the foundation of the entire brand. 

My enemy is 'shallow "find your niche" advice'. That messaging is something you see all over my LinkedIn. I've positioned myself against surface-level advice and silently infer that my philosophy and methodology is all about depth and practicality.

Think about what your audience's "enemy" is and how you can position yourself against it.

Phase 4: Customer Discovery Process & Crossing the Chasm

With your niche defined, it's time to validate it with real customers and start building momentum. This phase is about turning your ideas into reality and finding your first true fans.

Some actions to consider for Phase 4:

1. Create a minimum viable product (MVP) or content series.
2. Engage in direct conversations with early adopters.
3. Iterate based on feedback.
4. Find and leverage your "crossing the chasm" moment - when you transition from early adopters to a wider audience.

I learned the hard way that trying to do everything perfectly from the start leads to paralysis. It wasn't until I started putting out "good enough" content and products, then improving based on real feedback, that I started to see real growth.

Phase 5: Growth & Continued Evolution

When you've found your initial success, you've likely reached Phase 5. This is where you start to scale your niche, push boundaries, and continuously evolve.

How will you grow without losing what makes you unique? This is where innovation, experimentation, and calculated risk-taking come in.

I'm currently in phase five with Nicheology, and here are some examples of how I'm planning to evolve:

1. Experiment with new content topics and angles.
2. Expand into adjacent niches and collaborating with complementary creators.
3. Develop more advanced offerings for creators who have mastered the basics.
4. Continue to adapt to changes in the creator economy.

Keep in mind, this phase never really ends. The most successful creators are those who continue to experiment, pivot when necessary, and adapt to changing circumstances.

Ultimately, your niche journey is unique to you. These phases are a guide, not a strict rulebook. The key is to stay true to yourself, remain curious about your audience, and always be willing to evolve.

And of course, as I continue to navigate these phases with Nicheology, I'll be sharing everything I learn with you along the way. 

3 Big Lies About Finding Your Niche (And the Actual Truth)

Lie #1: "Just follow your passion!"

This advice sounds great, doesn't it? Just do what you love, and the money will follow. But here's the truth: passion alone isn't enough.

I've seen countless creators pour their hearts into projects they're passionate about, only to struggle to find an audience or make a living.

The Truth: Successful niches lie at the intersection of passion, skill, and market demand.

Your niche needs to be something you care about, yes. But it also needs to be something you're good at and something people are willing to pay for.

When I started Nicheology, I wasn't just passionate about helping creators. I had spent years honing my skills in business development and content creation. And I had done extensive market research to confirm that there was a real need for this kind of guidance.

Lie #2: "Riches are in the niches – just niche down!"

This is the flip side of the "follow your passion" coin. The idea is that the more specific your niche, the less competition you'll have and the easier it will be to stand out.

But here's the problem: niche too far, and you might find yourself in a market too small to sustain your business.

The Truth: The goal is to be specific enough to be an expert, but broad enough to capture significant market share.

It's not about finding the smallest possible niche. It's about finding the right balance between specificity and market size.

For example, instead of niching down to "productivity tips for left-handed guitarists," I focused on helping creators find their unique niche. It's specific enough to differentiate me, but broad enough to appeal to a wide range of creators.

Lie #3: "Once you find your niche, stick to it no matter what!"

This lie assumes that your niche is a static thing, something you discover once and cling to forever. But in our rapidly changing digital landscape, this kind of rigidity is a recipe for obsolescence.

The Truth: Your niche should evolve as you and your audience grow.

Your niche isn't a final destination. It's a journey. As you progress through the phases we discussed earlier, your niche should adapt and expand.

When I started in the creator economy, my focus was purely on helping individuals monetize their passions. But as I grew and learned, my niche evolved to encompass broader questions of creator empowerment and sustainable business models.

Now that we've debunked these lies, let's talk about how to actually build true fan connections in this new era.

Building True Fan Connections in an Algorithmic World

Jack Conte talks about Kevin Kelly's "1000 true fans" concept – the 5% of your audience that drives 90% of your engagement and revenue. In the age of algorithms, building these true fan relationships is more important than ever.

(you can check out Kelly's 2016 1000 true fans essay here)

Here's how to do it:

1. Prioritize Depth Over Reach

Stop chasing vanity metrics like follower count or views. Instead, focus on creating deeper connections with your existing audience. 

Action you can take: Identify your most engaged followers and create special content or experiences just for them. This could be a private Discord channel, exclusive livestreams, or personalized feedback on their work.

2. Own Your Distribution

Don't rely solely on social media algorithms to reach your audience. Build direct communication channels that you control.

Action you can take: Start an email newsletter. It might seem old school, but email is still one of the most effective ways to reach your true fans directly.

3. Create a Unique Experience

In a world of endless content, what makes your niche truly unique? It's not just about the information you provide, but the experience of engaging with you and your brand.

Action you can take: Develop a signature framework or methodology that's unique to your niche. For Nicheology, this is our "Niche of One" concept.

4. Build Community

Your true fans don't just want to connect with you – they want to connect with each other. Facilitate these connections to create a vibrant ecosystem around your niche.

Action you can take: Create opportunities for your audience to interact, whether through online forums, in-person events, or collaborative projects.

5. Continuously Evolve

Remember, your niche isn't static. Stay attuned to your audience's changing needs and be willing to adapt.

Action you can take: Regularly survey your audience and analyze your content performance to identify emerging trends or shifts in interest.

The way forward

We're at a critical point in the creator economy. The old rules no longer apply, but the opportunities for those who adapt are greater than ever.

As Jack Conte says, "Don't forget what matters to you as an artist. Don't forget what fills you with pride to make. Don't forget your purpose for making things in the first place."

Your authentic niche – your "Niche of One" – is waiting to be created and shared with the world. It's not about fitting into a pre-existing category or chasing the latest trend. It's about creating a category that only you can fill.

This is what Nicheology is all about. I’m not here to give you a one-size-fits-all formula for success. I’m here to guide you through the process of discovering, defining, and evolving your unique niche.

If you're ready to stop chasing algorithms and start building true fan connections, feel free to check out my most proud creation to date (Nicheology!).

Access to the Nicheology Academy is rolling out as we speak. People like you are learning a step-by-step system for doing everything we've discussed today:

• Uncovering your unique strengths and perspective
• Identifying your ideal audience and their unmet needs
• Positioning & designing your Niche of One
• Crafting a compelling point of view that sets you apart
• Evolving your niche as you and your audience grow

Feel free to learn more about the Nicheology Academy here: caitholmes.com/niche

In this new era of creation, it's not about being everything to everyone. It's about being everything to someone. 

Your true fans are out there, waiting for the unique value only you can provide.

Thanks for reading.

- Cait