Your niche research will be the difference between making and losing money — that goes for both offline and online. This is a skill that you MUST develop if you want to be profitable.
How can you spot a potential niche?
It’s simple. If there are people advertising in it than you know they are making money with it. If there are not any advertisers, you known it’s not worth going after.
The easiest way to tell is to just do a Google search and look at the right hand side of the page. If there are Adwords advertisers there – preferably 7 to 11 – you known it’s got money making potential.
But don’t just stop at there. You also need to go and make sure they are bidding a reasonable amount.
What’s a “reasonable” amount?
Generally speaking — and this isn’t a hard and fast rule — at least $1-2 per click. If advertisers are willing to bid this high, you know they are making money and they probably have healthy profit margins as well.
But if you see them only bidding $.5 or below, you know their profit margins are razor thin. It’s probably a smart idea to avoid that niche.
Don’t get me wrong. I’m not saying those keywords can’t make you money. If there is a keyword with 1000s of searches a day than you can make a significant amount of money even with a 2% profit margin.
But in most instances, you should follow the above criteria. But make sure the niche has a sufficient amount of keywords.
What’s a “sufficient” amount?
In most instances at least 20-30 that meet the above criteria and preferably more. If there are only five keywords, there isn’t a whole lot of profit potential in that niche.
Go after sub-niches.
For instance, instead of trying to teach people how to make money with “internet marketing” which is insanely broad you would focus on teaching people how to make money with “Google Adwords.”
That would be an example of a sub-niche. It’s much easier to make $10 a day with 10 sub-niches than trying to earn $100 a day with 1 gigantic niche.
“If everyone is your customer, no one is your customer”
This is why having a sub-niche is incredibly important. So many people just try and sell generic products without having a clear vision of who they are targeting.
Picturing exactly who your customer is will help you write a sales letter designed for their specific needs. Really get into their minds and imagine how they spend their days, what their goals are, etc.
This is what separates the average from the above average marketers and this is why choosing a specific niche market is so important.