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Niche Case Study – Part 3 Ckecking Niche Profitablity!
By Franck | January 8, 2009
Welcome to Day 3 of our case study.
If you are New here and you didn’t read lesson 1 & 2, Do it before reading this page (Make sure that you get the course in the RIGHT order. Many people fail because they don’t know how to follow simple steps):
Update: I’ve added all the links to the case study below (links open in a new window):
1. Introduction the the niche marketing case study
2. How To Find A Profitable Niche
3. Checking The Niche Popularity
4. Ckecking Niche Profitablity
5. Choosing My Money Making Niche
6. Learning More About The Spyware Niche
8. Getting Website Content And Backlink Strategy Starts
Before we start, I want to make a Recap because this will keep you on track.
What’s my goal?
We are in the MODULE 1. Finding a money making niche.
Goal = Finding a niche.
What I’ve done so far?
On Day 1,
- I found several potential niches on clickbank.
- I also quickly checked the profitability of the niche with the gravity numbers.
- I decided to pick 7 niches, and compare between them
On Day 2,
- I checked the Demand (how many people search for this term every month)
- I started with one niche (spyware)
- I used the Google Keyword tool to quickly get the main related keywords for my niches.
- I used the Seo Book Tool to check the demand (as Nick – a blog reader – stated in his comment, this tool is not an EXACT number. It doesn’t matter at this stage because we want to COMPARE between the niches).
I will NOT go for all these niches at once. I just want to compare between these different niches, and then, choose ONLY one.
My criteria to find a niche:
1. Easier to go after (even if there is less money),
Or,
2. I like the subject (this keep me motivated even more),
Or,
3. There is a lot of money to be made (even if I don’t like the subject)
In these three cases, I make sure that there is enough DEMAND (traffic), and that people actually BUY (competition).
Why many beginners (I was) are afraid about competition, competition is GOOD.
Why?
It’s the proof that there is a lot of money to be made in the niche. And if you have a plan, you are also going to make money. Plus MOST of your competition don’t know what they are doing anyway. They just through up a blog or a site, and forget about it…
Saying that …
We are NOT in the keyword research process yet (this will come later on), we are just trying to START the plan, and to start the PLAN, we need to find a NICHE.
Important Note: Do the homeworks for each day before going to the next (This sounds obvious, but everybody want to go faster. Me the first, and this is one of the first reasons I failed in the first place. I use to read a tutorial, and … finish it, and then going to the next. No wonder why I wasn’t making any money! Learn from my mistakes. ok?)
Ready for Day 3?
If it’s your first time doing this, it will seem difficult at first. It’s not! Make sure that you do one step at a time. Don’t try to read everything at the same time. READ step #1, and then, DO it. Then, READ step#2, and then, DO it, etc…
Important: This is not the keyword research phase. We are just checking to see if we are going to continue with this niche or not.
Good, let’s start …
Niche Marketing Case Study (8 Jan 2009)
MODULE 1. Finding a money making niche.
C. Checking the PROFITABILITY of the spyware niche
Goal:
Now that I know that there is a decent number of searches in the spyware niche, I want to find out 2 things:
1. Is there anyone spending money in this niche?
2. How affiliates are making money in this niche?
3. Will it be easy for me to enter in this niche?
Then, once I find the answer to these 3 questions (above), I will take notes, and then, start with another niche (it may be Registry Phone Lookup) to start my niche comparison process.
Step #1: Are People Buying Actually Buying Spywares Related Products Online?
A. Google Sponsored Search Results
Now that we know that advertisers (people just like you and me) are willing to pay $3+ to be on the first page of Google for the keyword Spyware, we are going to check those results on Google.
1. Go to Google (www.Google.com)
Important: according to where you are living, you will not get the results from google.com in the US, and you will not be able to see the paid ads (sponsored results).
To see the ads, you can either:
- Add this at the end of the query in your addressbar:&gl=us
- Browse with a proxy (I use freeblox.info sometimes, it’s not the best, and there are a lot of popups, you may want to find a better one)
You will see (see image below) that:
a. Paid advertising are in the red ellipse.
b. FREE advertising are in the black rectangle
Checking Paid Results In Google
At this point, we are just checking if people are willing to PAY Money in this niche (spyware). We don’t bother with the free results.
They are because there are many Google Adwords ads.
Rule of thumbs: More than 8 ads is a good sign that the niche is profitable.
The Google Adwords sponsored ads are the sponsored link in the red ellipse.
Now that we know that people pay money for this term, let’s find out how much they are willing to pay …
B. Google Keyword Tool External (Click Here)
For this, I am going to use Google Keyword Tool External.
I want to know how much money people are willing to pay to be on Google paid results.
Generally, the more they pay per click, the better the market!
Advertisers are willing to pay money because they know that they will earn more in return, otherwise, they don’t spend.
1. Type the word “spyware” in the search box, like I did on Day 2.
Once I got the results, I will do the following:
2. Click on the drop box menu in the elipse (Choose Colums to display), and then, select: “Show Estimated Avg. CPC”
Drop Box Menu
Now, you have the same screenshot,
BUT,
As you can see, there is a new column (in the red elipse): the costs per click (see below).
Cost Per Click New Column
Important: You need to get the cost per click in dollars. If you are not in the US, make sure that you:
a. Use the drop box menu (above the arrow on the picture above), and then,
b. Choose US Dollars.
c. Once you’ve done this, click “Recalculate” and you will get the CPC in dollars.
3. Then, write down (or save in excel) the cost per click (CPC)
So for me, I will write: Spyware $3.30
Step #2: Research Organic Competition
Now, I need to find out how many competing sites are there (the sites in the black rectangle from the picture above):
1. I go to Google.com
2. I type spyware in the search box
3. I write the number (in the red ellipse)
Google Organic Results Number
That’s it.
Step #3: Check for Magazines
This step is pretty easy. All you need to do is to type: spyware + magazines
I just checked, and there are several magazines.
The more magazines, the better.
Why magazines?
Simple. Because magazines make money via their advertissments. In fact, advertisers (people like you and me & companies) are the ones who allow the magazine to survive.
Conclusion:
Now, we know if the niche is profitable:
Now, in my notebook, I have:
Spyware Niche:
Search (Seo Book Count): 119K / Month
Cost Per Click: : $3.07 /Month
Paid Advertisers in Google: 8+
Organic Sites: 121,000,000
Clickbank Gravity: 88 & 81
Nb of clickbank products: 10+
Magazines: 4+
There are even more things to do to check your niche’s profitablity, but this is enough.
Stay tuned …
Franck
PS. Don’t forget your homeworks:
Here is what you need to do step by step:
- Go to Google.com
- see if people are advertising in your niche In Google paid results
- Go to Google Keyword Tool External
- Find out how much advertisers pay per click
- Research your organic competition
- Check for Magazines
- Write the numbers down
And…
That’s where you have to WORK:
8. Do this for all the potential niches you found in DAY 1 (at least 3 niches).
9. Get all the numbers for EACH of your niches
10. Choose A Winner (I mean choose ONE niche)!
In my next post, I’ll post the different numbers, and choose a niche.
Topics: clickbank case study | 27 Comments »
January 8th, 2009 at 5:35 pm
I love this step by step stuff Franck. The spyware niche looks way too competitive it will be real interesting to see your next post!
:-)
All The best
Alex
January 8th, 2009 at 6:22 pm
That’s a good tip about the “magazine” search. I never thought of that. I do search Amazon to see what kind of books are for sale there but I didn’t think of magazines too. thanks
January 8th, 2009 at 6:49 pm
Hi,
@ Alex, Glad that you like it. Don’t worry that a lot of competition means that many people area making money.
@ Mike, I do check the book on Amazon as well sometime. There are so many ways to find out if a niche is profitable.
Franck
January 8th, 2009 at 7:13 pm
Hi Franck,
Dude…this is some great stuff my man! You’re really laying out there blow by blow and in an easy to understand kinda way.
Very rare for a guru…very rare indeed.
First time posting here…I’m really lovin’ your blog.
Keep it up! I’d like to really see how this unfolds.
Jonathan
January 8th, 2009 at 9:07 pm
Hi Franck,
no wonder that you’ve a brilliant name in our field, if you always provide such golden tips. Thanks so much.
However, I have a short comment concerning checking the competition: I type my target keyword in Google with no quotes “” to check the competition worst case. This is especially effective for long tail key words. There is no gurantee that internet users would type my target key word between quotes.
Q1: Do you have any tips concerning my approach?
Q2: I think If I appear in 1st Google page for the keyword with no quotes, this would be 100% the case too if the user typed the keyword between quotes. Am I right?
Thanks again for your very appreciated golden tips and all the best.
Asem
January 8th, 2009 at 9:21 pm
Hi Asem,
Q1: The majority of Internet users don’t type their keywords in quotes (Marketers type keywords in quotes.).
Don’t worry, this is coming very soon for the keyword research. Right now, we are just checking the number of searches to compare between the niches.
Q2: It should.
Franck
January 8th, 2009 at 9:23 pm
Hi Jonathan,
Glad that you like my blog… I’m not a guru by the way. Just an other online marketer.
Franck
January 8th, 2009 at 10:04 pm
Hi Franck,
Sorry about the guru comment, if it offends. :)
But a quick question. You said in earlier that a majority of people the spyware niche were only looking for free methods to remove spyware/malware…
Question is what changed your mind about it being a profitable niche?
Jonathan
January 9th, 2009 at 6:33 am
This is a very interesting series where we can see a live step-by-step example of an affiliate sales in a niche. This is one quality that sets you apart Franck. Keep it up. Just like others, I am also following you closely.
Regards
Eklavya
January 9th, 2009 at 2:39 pm
Hi,
@ Jonathan, It didn’t offend, don’t worry, but I’m not a Guru. I’m just like you. I make a living on the Internet.
As for your question… No, I know it’s profitable because of the steps I took to check the profitability. If it wasn’t a lucrative niche, those people wouldn’t spend money. Does it make sense?
And, if you read “Science of Advertising” (I give a link in the 7 deadly affiliate mistakes ebook), you learned that advertising is giving something for free before you can see a return, so I’m even more confident that it’s profitable.
@ Eklavya, I’ll try to deliver, but what would make me really happy is to see YOU (and other subscribers) follow the plan and actually make their first commission!
Franck
January 9th, 2009 at 8:27 pm
Hi Franck,
Great Step-by-Step,
January 11th, 2009 at 12:57 am
Excellent guidance, Franck. I am a newbie from New Zealand. I have a question on google.com search results (addressbar:&gl=us) and paid advert.
If I advertise on Google from New Zealand, would my AdWord show on Google searches in NZ only? If so, how can I cover US market? Or, do I have to load my AdWord from US?
Your reply will be highly appreciated as I am very excited to start on-line business and I am following your daily blogs on live demo.
January 11th, 2009 at 5:06 am
Hi Deepak,
You can Choose to target the US right from your Google Adwords account.
The only thing is that if you are in NZ, you’ll get Google Adwords results for NZ when you type a kewyord in Google.com
To see all the ads from the US, you can either use a proxy site, OR do the following:
1) You type your keyword like you usually do it in Google.com.
2) Then, at the end of the line in the addressbar (see example below):
I typed spyware in Google.com, and I got this in the address bar:
http://www.google.com/search?hl=en&rlz=1B3GGGL_enEG297EG297&q=spyware&btnG=Search
3) Add this code after the last word (here, the last word is Search): &gl=us …
It would be like this:
http://www.google.com/search?hl=en&rlz=1B3GGGL_enEG297EG297&q=spyware&btnG=Search&gl=us
4) After you add &gl=us, press enter on your keyboard.
5) That’s it, you should see Adwords ads from the US on your screen.
Franck
January 11th, 2009 at 5:26 am
Thanks Franck. I have an extension of this question. How can I show my Adwords ad in US market (somebody searching in US) while I am in NZ?
January 11th, 2009 at 5:35 am
Hey Deepak,
Yep, I just realized that I didn’t really answered to your question…
Here it is:
You choose the US when you set up your campaign.
Here is how to do it:
1. Right on the page after you choose the new campaign, you should see this: “Target customers by location”. Then…
2. Click on “Change targeting”, and you will see the map.
3. Then type US in the search box, and select it.
4. That’s it.
Franck
January 11th, 2009 at 5:53 am
Excellent Franck. I really appreciate your quick, honest & meaningful reply. I am your fan now..!
January 11th, 2009 at 7:03 am
Hi Deepak,
I’m glad to help, I wish you all the best with your campaign.
Franck
January 11th, 2009 at 1:35 pm
Hi Franck,
Thanks for this nice and useful guide.
a}I am very happy to inform you that using your techniques in SEO seduction secrets, I succeeded to bring an inner page of one of my websites to position number 5 in Google among other 600,000 websites in 3 months. Many many thanks -:)
b) On the other side I have to admit that your SEO book lacks some information about how to “KEEP” this high rank? I am really worry to loose all the hard work I did in the last 3 months and loose this top position in Google?
Franck,
1} please provide me with some tips about how to keep my good Google position for a long time.
2}If you intend to update your SEO book, please add a chapter about this topic.
3} Please inform me as soon as you have another SEO product, a new one, or an extension version of one of the old ones.
Again, thanks 1000 of times for your great and honest product wishing you further success and happiness.
Regards from Germany
Asem
January 11th, 2009 at 8:30 pm
Hi Aseem,
Great, I like when my members get great search engine rankings for their websites.
As for keeping your rank, here is what work for me (in a nutshell):
1. Always get new links towards your home and inner pages.
2. Make sure that you update your page every couple of months. Google when people update their pages.
As for my upcoming seo ebook, I’ll let you know. I added many seo weapons to my arsenal. I will add them in the second version.
Franck
January 11th, 2009 at 9:19 pm
Hi Franck,
Thanks for your care to answer me. I apperciate it. However, one short comment:
Did you mean that I have to update my page every couple of months or every couple of “weeks”?
Best Regards,
Asem
January 12th, 2009 at 7:43 am
Being an SEO is not easy and there is no one fit formula for different sites. It entails hard work.
January 14th, 2009 at 9:15 pm
Simple question, what does Nb of clickbank products mean?
Is it the number of products on clickbank, in your case is it the amount of spyware products being shown on clickbank.
By the way, great Info.!
Mario3173
January 15th, 2009 at 9:06 am
Hi,
@ mario, you get it. It’s exactly what you said.
It’s just a proven criteria to find out if there is money in the niche. Obviously, there is.
Franck
January 17th, 2009 at 7:46 pm
Hi Franck,
Thanks for this great and honest guide you offer us here. Regarding your SEO secrets, you strongly recommended to use article marketing, which worked very well for me. However, I hear from other experts that a) submitting too many articles like crazy in short time can lead to be punished by Google. b) Other experts say: in the beginning submit articles with the proper anchor text as many as possible and when the corresponding webpage gets good ranking, then decrease your rate to one article per week. c) Others say to keep my good rank I have to offer my webpage fresh backlinks as usual as possible. So, please help me as I am nearly lost among these 3 options.
Thanks many times in advance.
Asem
January 18th, 2009 at 9:04 am
Hi Asem,
First, I think that you are listening to too many people at the same time. This will cause a lot of confusion, since everybody is following what works for them.
As for being punished by Google, there is no evidence about this fact.
What is sure is that you want to get links from as many different places as possible. Don’t just get links from EZA.
Franck
July 6th, 2009 at 1:32 pm
[...] Re: How do you do keyword research using free tools only? I’ve detailled my step by step keyword research process on my blog, you can view it here: This is a full step by step tutorial: Niche Marketing Profitabililty | Internet Marketing Mentor [...]
November 26th, 2009 at 12:41 am
we loved going through the article, you totally knocked it out of the ballpark! I have forwarded a link to my bro, and shall definately be returning for more updates.