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Home Home and Family Home Business How to Determine Niche Profitability
How to Determine Niche Profitability PDF Print E-mail
Written by Caroline Middlebrook   
To have a profitable niche there are two main factors that you need. First of all the niche needs to have traffic, specifically search engine traffic which means a steady stream of people searching for lots of keywords in the niche. Secondly, you need to be able to monetize that traffic with ad programs, affiliate products etc. Let's look at both in turn:
by CarolineMiddlebrook


To have a profitable niche there are two main factors that you need. First of all the niche needs to have traffic, specifically search engine traffic which means a steady stream of people searching for lots of keywords in the niche. Secondly, you need to be able to monetize that traffic with ad programs, affiliate products etc. Let's look at both in turn:

Does Your Niche Have Good Traffic Levels?

How much traffic is enough? I have been making a nice income (4-figures) on my blog from just a few hundred visitors a day. 500 visitors a day is a nice number to aim for. Now unless you are an SEO expert, it is virtually impossible to predict how much actual traffic you might get for certain keywords and it's really not worth going into that much detail.

All we really need to know is that the traffic potential is there - that there are thousands of searches being performed on keywords within that niche every day. As long as you do your homework and build your site around the relevant keywords and do the relevant SEO work then you can know that you'll get a slice of that traffic but if the traffic is not there in the first place your efforts are wasted.

So what we need to do is find out how many searches are being performed. The best way to do this is using Google's own keyword tool which is free. Just search for "good adwords keyword tool" to find it. All we're going to do here is determine the traffic levels and brainstorm the kinds of sub topics and keywords in our chosen niche.

By default the tool will show data tailored to your country but we want to show ALL data so using the link 'Results are Tailored To', make sure that you select 'All Countries and Territories'. With that done the first step is to start with some very broad one-word search terms related to your niche such as 'gardening', 'golf', 'money', 'cats' etc.

Obviously broad words such as these will show huge traffic numbers but don't get too excited as these are usually far too broad to target effectively. What we're looking for here are the related keywords which will show hopefully a huge number of sub topics that you could write about. For example if you picked a topic such as 'cats' you might see cat grooming, Persian cats, cat diseases and so on. All of these are potential content topics.

Now you can drill down a little bit if you like, if you type in 'cat health' as a potential topic for your blog you'll see a ton of keywords now more specialised. They cover topics such as hairballs, teeth problems, fur etc - in short, you have a nice topic here with many smaller topics that you could write about which all have lots of traffic potential. This is a great topic.

Now let's say that you love Carp Fishing but only in France. You type in 'carp fishing France' and lots of keywords come up but these have very small traffic numbers - less than 100 for most of them. This isn't really enough to create an entire blog around so you'd need to branch out a little.

Researching Monetization Options

We can continue to use Google's same tool here to look at the advertising potential of this niche. You should see a column called 'Advertiser Competition' and this is an indication of the number of advertisers who are bidding on that keyword. Where are looking for high values here because they will only be bidding if they are making money which means it's a profitable keyword!

Many of the people advertising will be promoting their own products and you probably don't have your own yet. Now as long as you have traffic you can make money. There are loads of on-page monetization strategies that you can use but if you want to just feel a little more secure you might want to look for a few products in your chosen topic that you might like to promote.

One site that many marketers overlook is Amazon but they are a great site to start with because they sell an enormous range of products and they have an affiliate system for the whole range. Whether it's books, music, electrical goods etc, if Amazon sell it then so can you. To check out potential products simply go to their site and type in some of your chosen keywords. As long as something is returned, you have something you can promote.

Some marketers don't like Amazon because their commission is small however that's missing the point really. What we're trying to do here is establish the profit potential of your chosen niche. If Amazon have a whole bunch of products relating to your niche then it is another indicator that it has good profit potential. Later on when you develop your site more fully you can go on to create your own products and services.

About The Author:

Caroline Middlebrook has been blogging in the Internet marketing niche since 2007 and her popular blog generates a 4-figure revenue-stream every month. She teaches people how blogs make money and has downloads of her free ebooks, guides & courses from her website.

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