In this Post I will guide you on how to make a research to discover profitable niche and analyze Your competitors so you can achieve in whatever niche you are interested.
An essential step in discovering the niche market you want to pursue is to identify the keywords that are used by your target market. You need to figure out which keywords they are typing into the search engines and use them to search the topics and products that are related to your market. The searches that you uncover will help you know the pain points of the niche customers and what problems they need to be solved.
Knowing the keywords used for your niche will help you grab the maximum number of specifically targeted customers that are looking for products and services that are directly related to your niche. This will, in turn, help you earn a substantial profit within your niche. You can use Google Ads Keyword Tool (https://ads.google.com), a free tool, to search out specific words and phrases that are related to your niche market.
The Keyword planner from Google provides you with the chance to find all the relevant keywords that are being used by your target customers. You can use the data that you gather from the tool to research the specific products, services, and solutions in any niche market and determine which ones will apply to your particular area of expertise.
After you’ve identified some of the keywords and phrases that are associated with your chosen niche, you can start to identify those keywords that have the most profit potential. The profit potential of keywords can be measured in three ways:
- Low competition
- High search volume
- Little cost/effort to rank high
Finding Hot Keywords
Using the Keyword Planner provided by Google Ads allows you to estimate the amount of potential visitor traffic for each keyword in your niche. It shows you which keywords people are using and any associated keywords that can give you clues as to the other requirements of your potential customers.
When it comes to choosing a viable and profitable niche, your research needs to be focused and in-depth. You need to test as many keywords as you can until you think you’ve covered all the keywords and phrases that a potential customer might use to search for your product or service.
The first piece of data that you need to look at is whether or not there is a sufficient monthly volume of potential customers actively searching for the product or service that you are looking to sell. You also want to determine if other businesses are already making money from similar products or services. This can be accomplished by using Google’s Keyword Planning Tool along with search engines like Google and Bing.
How To Organize Your Keywords
Next, you need to organize your keywords and phrases into groups. This can be done by breaking all of your keywords down into groups of specific keywords and phrases. For example, the keyword phrase, “digital camera,” can be further divided into “underwater digital camera,” “underwater digital cameras,” and “digital underwater camera.” These would be placed in one group, while “digital camera case,” can be put into “underwater digital camera case,” and “digital camera cases,” can be placed in yet another group.
You want to separate your keywords into a group of no less than 2,000 searches per month. The reason behind this is to find a prevailing mindset of groups of people that are currently looking for similar products, services, information, benefits or features.
You can drill down even further and discover even more potential buyers for your products or services by selecting the top ten keywords that you’ve researched. With these ten keywords, you want to try and find a total of 100,000 or more searches in total per month. Each of your keywords can be added to the Google Keyword Planner Tool to uncover even more specific long tail keywords.
The next step is to start looking at your list for the money making words. These buyer keywords signal that people will pay for information. These keywords include brand names, model numbers, color, cheap, buy, for sale, supplier, seller, etc. The more specific the search, the more likely the customers are ready to buy.
How To Test Your Keywords Live
The best way to check the potential profit of your keywords is to test them live online. You can do this by adding some keyword specific content to a page on your current blog, website, or social media pages.
Then you can test each piece of material and see where it lands on Google and how much traffic it brings in.
This strategy will allow you to determine which keywords will bring you organic traffic and those that are converting the traffic into revenue, as well as which keywords rank higher on the search engines.
The more traffic a keyword when it ranks lower on search engines, the more profit potential it has.
Analyzing Your Competition
Analyzing your competition is an essential step in choosing your niche. Almost every business has competition, either indirect or direct. Some competitors are ruthless, so make sure that you are careful when you are examining the competitors in your niche before you enter it. While it is true that you need to be aware of your competition, you shouldn’t feel intimidated by them.
Determining How Many Competitors There Are in The Niche
The first step to analyzing your competition is to figure out how many competitors are currently in your potential niche. To do this, you can use a simple Google Search to calculate, which websites are targeting the same keywords as you.
If you find sites that are using the same keywords in their site’s URL, title, and anchor text, then you know that there is some serious competition for those keywords. You can also use Google Search with your key phrases in quotes to find out how many competing web pages there are online. You can use website resources like SEOmoz (https://moz.com), to find out how many backlinks the competition has.
Your biggest competitors will be those sites which show up at the top of the search engines for the top three most competitive keywords in your niche.
Researching the Competition
The difficulty of ranking higher than your competitors will depend mainly on the Page Rank (PR) of their websites and relevant web pages. If the average PR of the top ten sites is below PR3, then it should take you under three months to rank for the keyword. Using SEO Quake (https://seoquake.com), you can find out the average PR of the top ten websites for each of your keywords.
To analyze your competitors PR, you can create a spreadsheet that is divided into two sheets, with one labeled “Preliminary,” and one marked “Market Competition.” Place the top ten keywords in the “Preliminary” sheet. On the other sheet, create ten columns, labeling them; “Site1PR,” “Site2PR,” etc., up to “Site10PR.”
Next, take the best three to five different search terms and put them in the “Market Competition” sheet. Then search Google using the top three keywords. Note the PR of the top ten websites for each of the three to five keywords that you listed. Then remove the highest and lowest PRs and calculate the average PR for each row, as well as overall. After you’ve conducted as many searches as you think are necessary, make a shortlist of all the keywords for which you believe you can rank highly.
Evaluating the Competition
When you feel like you’ve found a niche to test, and you know the niche’s subject matter well enough, you can create a report, eBook, short article, or white paper that provides some vital information about the benefits of your new business products or services without compromising any of your intellectual property. You can use this free information as bait to acquire responses from your potential customers.
Over the last several decades, internet marketers have proven that people respond best to ethical bribes, where you offer potential customers something in return for their email address or personal details. This is why publishers of informational products provide free giveaways in return for email subscriptions. Many larger brands haven’t discovered this tactic yet, which means you can get a leg up on the competition by utilizing this strategy.
Consider Your Competition’s Pricing
If you discover your niche has serious competition during your research, subscribe to their email list to see what they’re doing. Look to see if they are selling higher priced products and services, or are all their products and services discounted? If you uncover higher prices, then you know that there is a market. If they’ve continued to offer high priced goods for many years, then you know that there is definitely a market that is sustainable.
If you discover that the average price for a product in the niche has a reasonable profit margin, then it will allow for smaller players to enter the market and co-exist with the larger, established brands. However, if the market competes on price alone, and the profit margins have been squeezed until they are paper thin, then you might be better off looking at a less competitive niche with better profit margins.
You also want to be aware of competitors discounting each other in a small market. When this happens, you could end up struggling just to get your business off the ground. However, when there are several tiers of pricing in a niche, it can be a lot easier to not only get into the market but slowly increase your prices as well.
Generally, when it comes to search engine competition, the lower the number of competitors, the better. However, if you discover a niche that has no competition, you need to be cautious because this could mean that there is no money to be made in the niche.