Internet Marketing

How to Determine if Your Niche Market is Profitable?

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This post is a guest post by Darrell.

If you have ever tried to make money online, then you know how difficult it can be to utilize the right keyword strategy and make money online. How do you know if your niche is profitable?

Remember, the foundation of being successful online is picking the right keyword terms. Too many people make the big mistake and try to take top level mega keywords like make money. Lets just clear this up right now before we move forward. Stop chasing big keywords when you are a newbie. You are wasting your valuable time. Enough said about that, now lets discuss some specifics on analyzing if your niche market is profitable.

Drilling down in your niche market

Go to Google’s keyword tool Here.

  • First, start by entering your primary keyword term like, home based business
  • Second, scroll down the list and take at look at the various long tail keywords to choose from
  • Third, say you select how to start a home based business
  • Fourth, now enter that phrase in the keyword tool to see your new results
  • Fifth, this is what’s referred to as drilling down in your particular niche market
  • Sixth, the idea is to keep entering long tail keywords until you find something that has a reasonable amount of monthly searches and is low in competition.

Once you find a suitable long tail keyword, then you need to check a couple of factors online to see what the competition is going to be like. Take your keyword term, enter it in the Google search field with quotes to determine your true competition. You will also want to see it without quotes to see the overall competition.

How to analyze if your niche is actually profitable

What you need is a couple of pieces of information from Google’s keyword tool or any tool of your choice. In this case, I need to know the Average Estimated CPC value and the true or Exact monthly results. So on the top of the keyword tool in the drop down box, click “choose columns to display” for the CPC value and then click on “Match Type” and select Exact.

Example from above using keyword: how to start a home based business

I can see that my monthly exact searches is 1900 and that my CPC average is $3.12 per click.

I need to determine my overall potential for this keyword.

1900 x $3.12 = $5928 overall

But, there’s more to this calculation as follows:

I can expect on page 1 and position 1 of Google, that I would get approximately 40% of the traffic and that only 5% would probably click on any Google Adsense Ads.

$5928 x 40% = $2371.2 x 5% => $118.56 monthly potential income

At first you might be thinking, why would I bother with all this work for approximately $118? Fair enough and here’s why. This only represents 1 long tail keyword that you are ranking for. Let’s explore what happens over time as you rank for more long tail keywords. There are hundreds of thousands of long tail keywords you can go after.

What if you ranked on page 1 for say 25 terms?

25 x $118 => $2950

All of a sudden, this starts to become some serious money. In many cases, $3000 per month will allow you to work for yourself at home. The point of going after the low lying keywords is to rank more quickly, thus making money sooner. Trust me, it feels a lot better getting a few hundred dollars, than struggling along for 1 or 2 years.

For something like home based business, there are literally hundreds of terms to rank for. It doesn’t mean you will rank on page 1 for that many terms. However, it’s to give you a starting point and show you how the calculation works.

There are thousands of terms online, that you will only need to do some limited back link building to get page 1 and stay there indefinitely. Other times in more competitive categories, you will have to monitor it on a weekly basis to ensure you remain in the upper 3 or 4 spots to get most of the visitors to your site.

Many online marketers get stuck with using only Google Adsense. There are all kinds of ways to make money for your website. You can always choose to go after niche markets via affiliate products like article spinners. There are literally thousands of products to market. One place that I get ideas and products from is Clickbank. They are very reliable and secure.

Remember, focusing on niche markets is the better alternative in my opinion and experience. Once you get your feet wet and have some successes under your belt, you can always go after the big keyword categories.

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4 Comments

  1. Hi

    Thanks for writing this article It is true what you say. I have a few sites that are number page terms. This as improved my ranking also in one week a lone by 8million for a new site diamondisforever.co.uk is one example. Keyword diamondsisforever and i get 1- 5% global search. Newbies this is good sound advice

    Also i have a few site just launch that is doing the same.

    Thank you

    christineblackledge.com

  2. Thanks for giving a thorough explanation about the topic. By the way, i was banned by Google Adsense, is there any good PPC programs i can join that i can benefit more?

  3. What do you think about using market smurai instead of google keywords? I use it to finy my niche on mma site and it gave me great results

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