The internet is the ultimate spy tool. By using it correctly, you will be able to find exactly what people want to buy, how many people are within that market, how they want to be marketed to, and how much they are willing to spend. The power of internet marketing is unparalleled, with no competition in sight.
Before you start pumping out a product, you need to ensure that people are actually willing to buy it. Chances are that if you rush in and product the product first, you will simply end up with a garage full of it! So many people overstretch their budget and end up failing miserably because they create the product first, and then try and find people to sell it to.
Before you jump into a market, make sure there is enough water in the pool. The amateur marketers will create a product and try and sell it, professional marketers find exactly what people want, and then give it to them. It is a win win opportunity.
So, how do you find out if a market is a worthy investment of your time and money? You need to following 3 simple steps:
1. Research the amount of search traffic for keywords relating to that particular market and identify the competition;
2. Research the average big price for those keywords;
3. Research the trend of the market to ensure that it is growing or at the very least, stable.
Then, and only then, should you decide whether you should start creating a product to sell to this market.
Google thankfully gives you all the tools you require, and for free too! This kind of market research a decade ago would of cost hundreds of thousands of dollars and would of taken years. Now you can do the same thing on a lazy Sunday afternoon for absolutely free.
Think of the top keywords people would search to find your future product. If you are interested in “Back Pain”, for example, some examples would be: “back pain”, “lower back pain”, “back pain relief” etc.
Next, check out the Google Keyword Tool and search each of these keywords. This tool is fantastic because it will not only show you the average number of searches per month, but also the competition. The tool will also generate a load of keyword ideas for later inclusion in your AdWords campaign.
Using the above keywords as an example, they received the following average monthly search results:
Back pain: 368,000 (Global Monthly Search Volume)
Lower Back Pain: 368,000 (Global Monthly Search Volume)
Back Pain Relief: 8,100 (Global Monthly Search Volume)
The green bar on the left of the search results indicates advertisement competition. Practically every “back pain” related keyword is extremely competitive, meaning very high advertisement prices, so perhaps this market is not a good one for you to enter. However, we will try step 2 and 3 to make sure.
We know that this market is very competitive, so before we create a product to market to this rather active market, we need to ensure that we would be able to make a profit given the advertisement price.
Google has another tool to gauge the advertisement cost on specific keywords. This tool is called the “Traffic Estimator Tool”. It is by no way conclusive, but it will give you excellent market research.
Simply enter the keywords you are interested in, and leave the other selections blank to show you the estimated price for the top positions (the places you want your adverts to appear). Using the “Back Pain”
keywords as an example again:
Back Pain: $1.05-1.48 (Estimated 549-687 Clicks a Day)
Lower Back Pain: $1.05-$1.42 (Estimated 119-149 Clicks a Day)
Back Pain Relief: $1.05-$1.42 (Estimated 21-27 Clicks a Day)
While no where near the most expensive market available, paying $1.05 a click would make it rather hard for you to make a profit from an E-Book costing only $35. However, let’s run the last test on this market.
Google Trends allows you to view the popularity of a market over time. You are looking for a market that is growing, or is steady. If you see a massive drop, then you are best to stay away. The market is dying out, and the money has already been made.
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