Dominating Your Online Niche Markets – Defining Competition & Winning Formula for Your Niche Markets
Today we embark upon the process of exploring with keywords or keyword phrases, the supply of your pre-defined niche market, which is equivalent to evaluating your competition.
A recap of the last segment, we discussed the process of Finding Demand of Niche Markets via the following steps :
- Collate the Functional list of your niche using Google Adwords Keyword Tools
- Measure the Profitability of your Niche Market via a 2-step process of firstly measuring the volume of your Niche Market via Freekeywords.Wordtracker. Thereafter, evaluating the Average CPC of your Niche Market using Google Adwords Traffic Estimator
- Search for Profitable Affiliate Programs related to your Niche Market to sell
Notice a simple natural reaction whenever you need to run a quick research on a topic. You would remind yourself to "Google" the topic. When evaluating supply, we do exactly that. Let’s run through the process.
Evaluating Supply
- "Google" your selected niche by inputting the keyword or keyword phrase.
- On the top right corner of the bar separating your search bar and search returns, you will find the total number of search returns and this number becomes the Supply or your competition.
Note that the total number of search returns ie. the supply will give you an idea of how much information or providers are out there competing to win over the potential niche customers.
However, that is not to say that when Supply runs into the millions the niche is too competitive. We must evaluate the supply against the demand before we derive our conclusion.
According to my constant testing and research from publications of gurus in the fraternity, I found that a simple formula suffice as a rather relevant guide.
You simply Divide your Supply [No. of Search Returns Obtained] by your Demand [No. of Searchs Conducted] and derive a figure
No one has ever definitively set a benchmark figure for this formula, and neither will I here. The reason being that different niche markets behave and yield different results. There have been instances, albeit rare, when I entered more than usual competitive niches, thinking that the survival rate would be akin to nil, but surprisingly, I managed to pull through with interesting results. And the vice versa is true.
Hence, instead of a Benchmark, we will simply provide a Rule of Thumb Guide.
Supply/Demand Should Be a 3 Digit Number, preferably mid Hundreds in order that the niche market is reasonably profitable.
Go ahead, I encourage you to test this hypothesis and see for yourself. There is no right or wrong, only what works for you.
And more importantly, do share the results with all our readers out here. I would really appreciate it. Afterall, we are all students of the internet!
Next Stop brings us to to investigating Key SEO ideas at 6 Steps to Effective SEO for Online Niche Marketing Domination.
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