Today
I’m going to show you how to determine the profitability of your product based
on the niche or area of interest you have selected.
That
is you need to find out if the niche
will make you any money!
Bear
in mind that there is no 100 % guarantees that you will make money with your
product, however if you follow this step it should make you 99% sure that there
is a market for the taking!
What
you should do now as well is make a folder on your Desktop to keep all your
work together. Just call it your “niches name” product for example “Dog
Training Product”.
To
find out if you will make money from your product we need to ascertain that all
the people are searching for your phrases
are buying as well!
There
are many different ways to do this but this is the way I do it:
The
first step is go to http://www.google.com and type in your top
phrase (the one with the most searches) for instance I would type in “Cat
Training”.
This
is what Google bought up for me:
Once
you have typed in your main phrase the first thing you should look at is the
number of search results the query has.
You
can see from the example above I have highlighted the search results and there
are 38,800,000 results for the phrase “Dog training”.
This
is a lot of results and that normally means there is a market there.
The
next thing you should do is look at the number of adwords the phrase has.
I
have highlighted the Adwords on the page and these are adverts people place on
Google for certain phrases what we are interested in is how many competing ads
there are and what sort of price they are paying to be there.
Basically
the more profitable a market the more people will bid to place their ads.
So
all you need to do now is type each one of the five phrases you picked earlier
and make a note of:
1.
The
number of search results
2.
How
many people are paying to be there on
Google Adwords
The
next step we need to do is to get a rough idea of how much people are willing
to pay to be there on Google Adwords as this is a good indicator of how much
money is in a niche!
Also
make a note of what the Adwords are selling as this is a good indicator of WHAT people are buying in the
niche and this can help you with your product creation.
For
instance what is the top Adword Ad?
For
the dog training niche it is:
Dog
Training Problems
The
Professional Solution
Remote
Collars & Electrical Fences
Bear
in mind this is not necessarily the best product to copy although it will give
you an idea of what people are selling in the niche.
However
the above is just something to bear in mind, when you have checked out the
search results for each one of your phrases and the competing ads we need to
know how much people are paying and for this we will use a site called:
Spyfu
is a site that lets you see what sort of money people are spending on Google
Adwords for their phrases.
Once
you go to the Spyfu site you will see this screen:
All
you need to do is type in your main phrase into the Spyfu search bar and it
will display the information we want.
You
will need to do this with each of your phrases but I will go through the
process with my example phrase “Dog Training”.
This
is the info that SpyFu bought up for the phrase “Dog Training”:
You
will receive more info showing the Google Adwords ads but we are only
interested in the top bit as shown above.
Let
me explain what this data means and how it is relevant:
Cost/Click: This tells us the
average cost to the advertiser per click, so you can see that the average
advertiser is spending $0.80 per each click. The higher amount is the better as
if they are spending a lot of money per click they must be getting sales!
(normally anyway!)
Click/Day: This shows us the
average amount of clicks per day an advertiser is getting on that phrase. If
this is high it is better also as it means people are searching for information
on that phrase.
Advertisers: This shows the number
of advertisers bidding on this phrase. Ideally this number should be lower than
20 as it means that there is more than 20 different competing Google Adwords
and if you can find a good niche with low competition then this is better.
Don't worry too much about this though as if it is high you can get people to
promote your product!
Cost/Day: This shows the total
daily cost to all advertisers that bought this keyword/phrase this just shows
you how much an advertiser is prepared to pay to stay at the top. Normally the
more the better, as if the advertiser is willing to pay more than they must
think the keyword is profitable!
So
all you need to do is go through each of your 5 keywords and see the results
using this tool.
Ideally
you will be looking for all the figures to be high and the competition low
(lower than 10 competing ads can be a goldmine!).
However
as long as people are spending money and there is a market there you will make
money 99% of the time!
Also
you should now start thinking about narrowing down your niche for product
creation using this tool.
For
example I have been focusing on the keyword “Dog Training” however it is a good
idea to focus on an actual topic within
a subject like “Dog Potty Training” in my example.
This
is not always the case but does mean you can focus in on one point and will be
easier when creating your product and more targeted.
Here
is the results for “Dog Potty Training”:
As
you can see from the example above this phrase is a lot more focused and is
still very competitive.
However
although it is saying we would only receive 0.79 clicks per day if you created
a product on how to potty train your dog you would get more sales than if you
created the same guide and bid on just the phrase “dog training”.
Does
that make sense?
You
should find a niche this way that tells people how to solve a problem or offer
some solution.
So
for this example I will settle on the topic “Dog Potty Training”.
If
you are having any problems with this part then just send me a quick email and
I will help.
Also
don't get too caught up on this just take each of your 5 phrases type them into
Spyfu and note the results and see how much people are spending to be there.
Then
select a phrase that solves a problem or that is more focused!
So
I have settled on the phrase “Dog Potty Training”.
