What is a good indicator that a market is going to be profitable? For an example- Search traffic, number of competitors, and SEO of those competitors. Are there signs that yout tend to look for when choosing a product or a market?
Try use Google's keyword tools - they'll show you the average cost per click people are willing to pay for those keywords which will give you a good idea what an average visitor to a site in that market could be worth.
A few things I normally consider: - How many competitors are in the market? This is a huge factor sometimes, as it can be the difference between hours spent trying to slowly creep up the rankings or powering up the SERPS. Not as important though, as: -How strong are the competitors? If the sites you're trying to keep with have thousands of backlinks, including from .edu and .gov sources, forget it. You COULD maybe rank in this page, but your time and money could see a much better return against weaker competition. -What is the average Adsense PPC? This is hugely important for an adsense site (obviously), as it is a good indication of how much revenue your site can draw in. Use the Google Keyword tool to find how much the average adwords CPC for a term is, and then find 25% of that amount. This usually gives a fairly good idea how much you, as the publisher will recieve per click. -Are there any strong clickbank products? This is an important one to bear in mind when looking at niches with less searches in. Even if your niche doesn't have the highest search volume, you stand to make a killing if you can get to number one and promote a great product. They may not convert as well as adsense ads, but your total profits stand to be much, much higher for the smaller niches. Hope this helps to some degree
The reason make many people go into the market because of the high demand. So, if you are good enough, you no need to worry about the competitor
You can test the market by doing article marketing.... after that you choose which market make you more money...
Thanks that does help a lot. So what your saying is that if there is a keyword that is only bidding around .05 cents then most likely that keyword is not profitable? What if there are a lot of competitors that are selling products related to those keywords, but there main focus is on other products (they sell a wide range of products)? Could it be that companies are not trying to spend and waste money on those keywords because they have other keywords that would be more profitable for them? I am assuming that if you decided to specialize in a product that keywords were bidding for so low, then you would really be specializing in a niche product? Let me know what your thinking is
Well, it depends. Profit by nature is obviously the money left over after your costs have been accounted for, so if you're getting 5 cents a click but have very low costs you may still have a profitable site. Basically, when doing your research, multiply the average CPC by the number of global searches. This will give you the total ad revenue (for Google) if everyone searching through Google clicked onto your site and then the ads. You then multiply this figure by 0.25 to give you a quarter (as mentioned earlier, a conservative estimate as to what you will recieve from Adsense). Obviously, even if you're number 1 in the SERPS, not everyone will visit you, so be conservative again and estimate that around 40% of search traffic will click your webpage (multiply by 0.4). Once you've done this, you then need to find out how much your visitors should generate. Some sites have a higher CTR than others, but a good average is 5%, so times your figure by 0.05 and you should end up with a rough estimate of how much revenue your site would generate each month if it was number one for your keyword term and relied soley on adsense for income. A great way to do this research in bulk is to use a spreadsheet formulae- you can then eliminate all of the keywords that earn less each month than the threshold amount you were going for.
I have researched over a hundred keywords pertaining to my product and most are specific keyword phrases related to my niche. I added up the monthly search traffic for all my specific keywords and there is 200,000. So what you are saying is pretty much trial and error in determining out of all that traffic pertaining to my product, finding which keywords are more enticing for people to convert and just knock one keyword down that hasn't shown any ROI? Sorry if my questions are somewhat boring, I am trying to learn as much as I can before launch, and thanks again for the input.
The google keywords is the simplest. Commercial intent is Just one other factor to look at http://adlab.msn.com/Online-Commercial-Intention/