How To Determine A Profitable Niche Part I
Number one there’s no way to prove if it’s going to be profitable for you until you do it.
Having said that, I think there’s a few indicators. Number one, I don’t think you necessarily have to discount keywords searches. Obviously, a keyword gets 100,000 searches and another one gets 2000 searches. There is probably more demand from the keyword that gets 100,000 searches but that doesn’t mean it’s more profitable. Just because it has fifty times more searches doesn’t mean it’s more profitable.
Okay, that just helps us understand relative demand. That’s it. That is only 10% of your equation. What I would probably do if I were choosing a new niche today, and I haven’t had to choose a new niche in seventeen months, I do not intend to choose another niche any time soon. I’m still growing. I don’t have any desire to sell anything else. But if I were, I think the place I would go would be Google. Go to Google, the search engine and I would literally google the search terms that people in my niche might be interested in. The next thing that I would is I would look at the sponsored listings, the adwords?
I would do this over time. I would determine… and there’s actually software out there, and I don’t recommend that kind of software. I don’t use it so I can’t recommend it. But for anybody who really wants automate with this process there’s plenty of good software out there, I don’t know if the software helps you much more than what we were talking about earlier with the keyword searches. I don’t know how accurate the software is. But what I would do, software aside, and I would not spend a lot of time on this. Maybe an hour once a week for three or four weeks find out what’s going on with those ads. So let’s just say there’s ten ads on the first page and let’s say these ads are promoting products for they are selling for $10. And let’s say that we look at a different keyword, we see ads that are on average promoting products that sell for $100, and then on a third keyword we see ads that generally don’t promote a product but they promote a free give away of some kind. Then if you join the give away you find that instead of being approached with a $100 sales page, you’re approached with a $1000 sales page. Now assuming this was the only information available, of course it’s not, which one of these three search terms is probably making more profit?
Caller: The one that has the higher price ticket.
Sean: Absolutely. Absolutely. Obviously, if the particular search word only gets 100 searches a month then there’s no competition for that word. You know the person may only be spending 10 cents a click and you can really have a low conversion rate with a $1000 product. So you’ve got to kind of think about that, too. If you’re looking at something that’s high competition, then the clicks are costing more, and if the clicks are costing more than the conversion rate has to be higher. It’s really a gut intuition thing. So spend some time looking at what people sell and look at it over time.
You know if you look at a keyword today and a particular sales page that’s selling something for a$100 and it’d a decent amount of keyword searches, a couple a thousand a month keyword searches, and that product is the number one spot, you might be able to assume they are spending two bucks a click. I don’t know. I’ve had ten cent clicks that are number one and I’ve had eight dollar clicks that are number one. Let’s just say than on average it a dollar or two dollars a click. In order for them to break even there’s got to be at least a !5 conversion on a $100 product. If we look at next week and they are still in the number one spot, and the next week they are still in the number one spot.
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Sean Mize is an internet marketing strategist who teaches internet marketers how to increase their income by creating high ticket classes and coaching programs.
Tags: niche
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