It's time for your third lesson.
Today let's talk about how you can be sure that your product will make you money!
Ok, so you have your niche and have picked out the top 5 phrases that people are searching for in that market. The next thing we need to find out is if the niche will make you any money!
Bear in mind that there is no guarantees that you will make money with your product, however if you follow this step it should make you 99% sure that there is a market available for the taking!
Before we begin I highly suggest that you make a folder on your Desktop to keep all your work together. Just call it your "niche name" product for example "Dog Training Product".
Now to find out if you will make money from your product we need to ascertain that all the people are searching for your 5 phrases are buying as well!
There are many different ways to do this but this is the way that I recommend because it's easy and effective.
First of all go to http://www.google.com and type in your top phrase (the one with the most searches) for instance I would type in "Dog Training".
Once you have typed in your main phrase the first thing you should look at is the number of search results the query has.
For example at the time I am writing this there are 37,200,000 results for the phrase "dog training".
This is a lot of results and that normally means there is a market for dog training products. The next thing you should do is look at the number of Adwords ads the phrase has.
These are the mall ads on the right side of your search results page. Basically the more profitable a market the more people will bid to place their ads. If your search returns a page with few or no Adwords ads on it. Drop that topic and find a new one because chances are good that no one is buying in that market.
Now all you need to do now is type each one of the five phrases you picked earlier and make a note of:
1. The number of search results
2. How many people are buying Google Adwords for that phrase.
The next thing we need to do as mentioned above is get a rough idea of how much people are willing to pay to be there on Google Adwords as this is a good indicator of how much money is in a niche!
Also make a note of what the Adwords are selling as this is a good indicator of WHAT people are buying in the niche and this can help you with your product creation.
For instance what is the top Adwords Ad?
For the dog training niche it is:
Tropical Dog Training Achieve Behavior that will impress.
Serving South Florida
Bear in mind this is not necessarily the best product to copy although it will give you an idea of what people are selling in the niche.
However the above is just something to bear in mind, when you have checked out the search results for each one of your phrases and the competing ads we need to know how much people are paying and for this we will use a site called:
Spyfu is a site that lets you see what sort of money people are spending on Google Adwords for their phrases.
When you go these all you need to do is type in your main phrase into the Spyfu search bar and it will display the information we want.
You will need to do this with each of your phrases but I will go through the process with our example phrase "Dog Training". SpyFu bought up this information for the phrase "Dog Training"
Cost/Click: $0.82 - $3.41
Clicks/Day: 62.4 - 79.0
Advertisers: 20
Cost/Day: $51.46 - $270.00
You will receive more info showing the Google Adwords ads but we are only interested in the top bit as shown above.
Let me explain what this data means and how it is relevant:
Cost/Click: This tells us the average cost to the advertiser per click, so you can see that the average advertiser is spending $0.82 per each click. The higher amount is the better as if they are spending a lot of money per click they must be getting sales! (normally anyway!)
Click/Day: This shows us the average amount of clicks per day an advertiser is getting on that phrase. If this is high it is better also as it means people are searching for information on that phrase.
Advertisers: This shows the number of advertisers bidding on this phrase. Ideally this number should be lower than 20 as it means that there is more than 20 different competing Google Adwords and if you can find a good niche with low competition then this is better. Don't worry too much about this though as if it is high you can get people to promote your product!
Cost/Day: This shows the total daily cost to all advertisers that bought this keyword/phrase this just shows you how much an advertiser is prepared to pay to stay at the top. Normally the more the better, as if the advertiser is willing to pay more than they must think the keyword is profitable!
So all you need to do is go through each of your 5 keywords and see the results using this tool.
Ideally you will be looking for all the figures to be high and the competition low (lower than 10 competing ads can be a goldmine!).
However as long as people are spending money and there is a market there you will make money 99% of the time!
Also you should now start thinking about narrowing down your niche for product creation using this tool.
For example I have been focusing on the keyword "Dog Training" however it is a good idea to focus on an actual topic within a subject like "Dog Potty Training" in my example.
This is not always the case but does mean you can focus in on one point and will be easier when creating your product and more targeted.
Here is the results for "Dog Potty Training":
Cost/Click: $0.61 - $1.95
Clicks/Day: 1.58 - 2.00
Advertisers: 20
Cost/Day: $0.96 - $4.00
As you can see from the example above this phrase is a lot more focused and is still very competitive.
However although it is saying we would only receive approximately 2.00 clicks per day if you created a product on how to potty train your dog you would get more sales than if you created the same guide and bid on just the phrase "dog training".
Does that make sense?
You should find a niche this way that tells people how to solve a problem or offer some solution.
So for this example I will settle on the topic "Dog Potty Training".
Also don't get too caught up on this just take each of your 5 phrases type them into Spyfu and note the results and see how much people are spending to be there. Then select a phrase that solves a problem or that is more focused!
So I have settled on the phrase "Dog Potty Training".
The next step will show you how to get started creating your product. So, do all of your research and save your results to the folder that you created earlier and make sure you look for your next lesson soon.
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