How To Find Your Niche For An Online Business Opportunity With Adwords Competition
How well can you narrow your niche?
You have an idea of the type of business you want to get started online, but you wonder whether your market will be worth targeting. You feel like Goldilocks testing out three different chairs. One can be too much, one can be too little, but one could be just right
So how do you find that comfortable chair? Which porridge is heated just right? Which bed is going to be the most comfortable?
The only way to find this out is doing what Goldilocks did…test the market with your online business opportunity. You need to find a personal niche market where other people are making money. This would apply even if you have assistance from mentors or franchisers in a small business franchise opportunity.
Measure It
After you have picked a topic based on your interest, you need look at some advertising metrics to figure out if a niche is large enough and whether people are willing to spend enough. One way to do this is to find out what advertisers are bidding for sponsored links on Google for your targeted keyword.
Realize that marketers bid on topics with the intention of at least breaking even on their clicks. If they can do that they can capture names and upsell their customers down the road. So they will bid higher if they can make more.
First you need to check the average bid prices on a site like Google Adwords or Yahoo Search Marketing.
Yahoo works well for some people, but now that Google Adwords is improving the quality of it’s metrics I use them as a litmus test. This is an obvious choice because all the market we are targeting are on their sites so they would have the best statistics to track keyword competition and potential.
Google Free Keyword Tool
Go to the Google Free Keyword Tool at https://adwords.google.com/select/KeywordToolExternal.
This site is going to give you a good analysis on the competition and potential of your topic. First we are focusing on potential of a keyword, which is an important step to deciding if this is a market I want to go after.
It is more important that I figure out there is enough size in the market originally then if it is too big. You can always drill down and target niche topics within your main topic initially and go after larger markets as you grow. You need to make sure you at least have a market where there is a sizable audience to advertise to or else you will hit a ceiling with no room to grow.
Type in your topic and fill out the ‘captcha box’ to show you are not a robot.
Then in the drop down column entitled ‘choose columns to display’ click on the estimated ad position. This will bring up a column showing different brackets of estimated adwords positions. 1-3, 4-6, 7-10 etc. Initially all will be 1-3
Next you want to adjust the dollar amount on ‘Calculate estimates using a different maximum CPC bid:’ to different amounts. Check out $1.00, $3.00, $0.50 or whatever.
When you do this you want to see what the positions are for your estimated adword positions. You are trying to figure out how much it costs to be in positions 4-6. That is the sweet spot for educated marketers. Spots 1-3 tend to be skewed a little because often people will bid like crazy with little education on Pay Per Click marketing.
You want to make sure that you are at least finding the 4-6 position between $0.50 and $1.00. The higher the better because that means that other marketers are making money on these bids and they can afford to pay more. Simply put they have higher profit margins.
Next step we want to not only make sure there is money to be made, but that there are enough people searching for your topic. There are some ways to test the size of a market that we will discuss in the next course.
Some Suggested Resources
A lot of these notes I have come to realize over time from other successful internet marketers. Some of the people I suggest you take a look at is Courtney Tuttle at courtneytuttle.com, Dr. Glenn Livingston, and Perry Marshall. There are also plenty of other solid marketers that we will continue to talk about and provide worthy information from.
This is as much your blog as it is mine and now the blog is yours.
Let me ask you what is your single most important question about an online business opportunity online?
What brought you to Write To Right?
What would you want to see more of on this site about online business opportunities online that would excite you, but you can’t find?
This is your chance to make this site better one comment at a time. Feel comfortable to express your inner feelings and don’t hold anything back!
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Filed Under Online and Internet Business Opportunities, Starting A Business |
Tagged With advertising metrics, cost per click, Courtney-Tuttle, estimated adwords postions, Glen Livingston, Google Adwords, pay per click marketing, Perry Marshall, target niche market, Yahoo Search Marketing
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