Most internet marketers will tell you to keyword research to find a niche. If you follow this advice you could spend lots of time and money developing your niche only to realize later it was not profitable. Even if your keyword receives a high number of searches there is no guarantee it has commercial value.
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How To Research The Market Value Of Any Keyword

Most internet marketers will tell you to ONLY carry out keyword research to find a niche or develop a product. If you follow this advice you could spend lots of time and money developing your niche only to realize months later it was not profitable. Even if your keyword receives a high number of searches each month there is no guarantee it has commercial value.

Example

Some time ago I created a Google AdWords campaign centered on "italian recipes" because the average cost per click (CPC) was very low and there were several clickbank products available to sell as an affiliate. At the time the CPC was around 10 cents so I only had to spend $10 for 100 clicks. I ran the campaign for several weeks trying the different keywords I'd researched. I achieved a 2 percent click through rate but didn't make one sale.

Why didn't I generate any sales?

A search for "italian recipes" generates 1000s of free italian recipes. Why pay for an italian recipe cookbook when you can get the information for free from the Net? The keyword phrase "italian recipes" receives 1000s of searches each month but has little or no commercial value.

Irrelevant keywords Waste Your Time and Effort

90 percent of all keywords receive no traffic therefore you should only target keywords that get significant traffic.

Many keywords that receive a lot of traffic have no commerical value therefore you should only target profitable keywords.

90 percent of most keywords are too competitive to get top search engine rankings. You should only target keywords that receive a high number of monthly searches and small number of competing sites.

How to research the market value of any keyword

1. Google keyword research tool

Enter your keyword into the Google search box and see how many ads are listed down the right side of the results pages. If there are eight ads you know advertisers are paying for each click on their ad. To determine the average cost per click (CPC) for each keyword enter it into Google's keyword research tool. Keep in mind this value is a rough estimate. Usually the cost is lower when you actually set up your campaign. This method is not full proof because even though advertisers are spending money on a pay-per-click campaign you don' t know if they are generating any profit. They could be losing money.

2. Market research

Find out where your target market visits on the Internet. Locations may include forums, blogs, twitter, facebook, yahoo answers. etc. Engage in conversations by asking lots of questions. Interacting with your target audience will give you insights into what people are thinking.

3. Surveys

Survey your email list by asking what products and services they would be interested in and how much they would be willing to pay. If you don't have an email list build one from scratch by creating a squeeze containing a free report in exchange for an email address. Drive traffic to your landing page using pay-per-click, article marketing and⁄or video marketing. Survey your list once you've got 200-500 subscribers. If you receive many positive responses you have winner.

4. Market Samurai

This a very powerful keyword research tool which determines the commercial value of your keywords. It creates a list of 800 related keywords to target, analyzes your competition and provides the number and quality of backlinks needed to achieve top rankings. It also determines:

What markets are worth targeting
What markets are worth avoiding
Which keywords you should focus on for fast results
Which keywords should be avoided
Which markets have weak competition
Which markets show impossible levels of competition
What are the chances of achieving front-page rankings for a keyword
What topics you should write articles on for your website
Where to find quality backlinks
How many backlinks you need
What quality backlinks you need
How to determine the quality of a page for a backlink

The amount of time and effort you invest up front using the methods above is proportional to the future success of your niche or product.


Herman Drost is the Certified Internet Webmaster (CIW) owner and author of www.iSiteBuild.com Download his SECRET WEAPON for niche market research and SEARCH ENGINE OPTIMIZATION at: Market Samurai

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